How One Treasury Group Released $300 Million in Trapped Cash  

By Rich Bond

Many CFOs have established themselves as “strategic business partners” to senior management in terms of the actionable information they provide.

But what about the groups reporting to the CFO, such as treasury? Can they, too, act as strategic advisors?

A survey conducted by CFO Research and Kyriba revealed that 75% of CFOs do not think their treasury departments are operating at a high, strategic level.

In my experience, that’s because many treasury groups are largely “back-office bookkeepers,” recording what happened without providing any significant recommendations to improve what can happen.

Although the treasury group makes up a tiny proportion of a corporation, it can have a grossly disproportionate effect on profitability and cash flow.

With a treasury transformation, that effect can be even larger. Here’s an example from a white paper I published: “8 Things Strategic Treasurers Are Doing to Avoid Back Office Oblivion”

  • Some years ago, Honeywell was given the overall award for treasury excellence. One of the key projects honored had been undertaken by the Assistant Treasurer in Europe.
  • Honeywell had acquired many companies in Europe that that were largely allowed to keep most of their existing banking relationships. By consolidating down to one of two lead banks, Honeywell was able to free up $300 million in previously trapped cash and generate significant savings in bank fees.

What is your treasury group doing for you and your company? Let’s talk.

In the meantime, I hope you’ll read my white paper. Here’s a link: https://bondandcompany.com/resource/8-things-strategic-treasurers-are-doing/

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