Treasury Team Structures and Best Practices

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There is no perfect answer to the question of what is the optimal structure for a corporate treasury. US corporates are finding significantly more reasons to restructure their global treasury operations in order to operate effectively. In our 1-hour webinar we will discuss key factors that help determine the optimal structure and deployment for different treasury teams, as well as:

International growth
Technology becoming more affordable
An increasingly more strategic role of treasurers
And more…

Speakers
Nilly Essaides
Director, Practioner Content Development, The Association for Financial Professionals

Bob Stark
Vice President, Marketing Strategy, Kyriba Corporation

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Treasury Team Structures and Best Practices

  1. 1. Treasury Team Structures and Best Practices Presented by Kyriba Corporation February 21, 2013
  2. 2. Introductions Today’s Presenters Nilly Essaides Director, Practitioner Content Development Association for Financial Professionals nessaides@afponline.org Bob Stark Vice President, Strategy Kyriba Corporation bstark@kyriba.com© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 2
  3. 3. CTC Guide – Global Treasury Structures Highlights • Introduce treasury structures • Reasons to explore treasury structures • Driver of strategic value • Enablement by treasury technology Download the CTC Guide: Global Treasury Structures at http://www.kyriba.com/resources/library© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 3
  4. 4. Why the focus on treasury structures? “Several new developments are driving treasurers across the organizational and business spectrum to take a closer look at how treasury is organized.” Key drivers 1) International Growth 2) More Affordable Technology 3) More Strategic, Less Tactical© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 4
  5. 5. Centralization vs. Decentralization “While some companies are still struggling to centralize, more organizations are seeing the value in putting ‘boots on the ground’ closer to operating businesses” Key questions 1) Why not centralize everything? 2) What are the options?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 5
  6. 6. Implementing Structures “It is a journey…not a destination… for a company and to be successful you should have a vision of the future state’s goals and requirements.” Key question 1) What are the two phases to the evolution of treasury structures?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6
  7. 7. Audience Question What kind of treasury structure has your organization implemented? a) Centralized b) Decentralized c) Something in between d) Not sure© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 7
  8. 8. Hybrid Structures “Leading-edge treasuries are adept at achieving this new balance. Centralizing everything ‘doesn’t necessarily make sense’”. Key questions 1) What defines a hybrid structure? 2) Does a hybrid structure require regional treasury centers/hubs? 3) How does one define what kind of hybrid structure they want?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 8
  9. 9. Strategic Impact “We’re finding that treasury platforms (technology and organization) are much more aligned to the overall strategic objectives of the company.” Key questions 1) What are examples of business value that were offered as strategic benefits? 2) What is driving this strategic view of treasury?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 9
  10. 10. Collaboration “The next generation of treasury organizations takes treasury outside its usual comfort zone into a collaborative effort with the operations.” Key questions 1) What are examples of collaboration found in the project? 2) Collaboration more often at HQ or in decentralized offices?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10
  11. 11. Technology “It is no longer enough just to input data or create a cash forecast. Companies are looking for people who can think about the data and present it in a way that reflects their specific risks associated with operating in a particular region.” Key questions 1) What are the two most important benefits of technology in this context 2) How is the cloud important in this context?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 11
  12. 12. Technology “It is no longer enough just to input data or create a cash forecast. Companies are looking for people who can think about the data and present it in a way that reflects their specific risks associated with operating in a particular region.” Key questions 3) Establishing ROI for treasury technology is imperative. What did companies share about how they built ROI for technology?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 12
  13. 13. Audience Question Do you believe that your organization has the right technology solutions in place? a) Yes b) No c) Not sure© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 13
  14. 14. Case Studies – Company 1 “Taking the First Steps” $1.6 Billion Midwest multinational Operates 11 countries Decentralized treasury Key question 1) What would help this organization meet their treasury goals?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 14
  15. 15. Case Studies – Company 2 “Getting Ready for Global Growth” $ Billion Company Rapidly Growing Ready to roll out internationally Key question 1) Company proactively participated in design of the organizational structure. What opportunity did this allow them?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 15
  16. 16. Case Studies – Company 3 “Reengineering the Information Flow” $3 Billion Company Going through transformation –> treasury’s role Hybrid structure Key question 1) Company used metrics to measure efficiency of their treasury structure. Why wouldn’t everyone do this?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 16
  17. 17. Case Studies – Company 4 “Dell’s Virtual Treasury” $62B technology company Very international Next generation treasury structures Key question • Worth the download of the report on its own!© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 17
  18. 18. Audience Question Do you feel that your organization has the optimal treasury structure in place? a) Yes b) No c) I did, but not so sure now© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 18
  19. 19. Key Takeaways “Don’t buy what you don’t need” Key question 1) What did you find were the most important lessons that organizations should consider to start them thinking about whether they have the optimal treasury structure?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 19
  20. 20. Key Takeaways “Treasury experts urge companies to outline business requirements and request a scripted demo/presentation before buying any system” Key question 1) What did you find in terms of considering treasury technology to support a company’s desired treasury structure?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 20
  21. 21. Key Takeaways Who Realizes the Benefits? Key questions 1) Are there benefits to be had for all organization sizes? 2) Are benefits different for smaller companies?© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 21
  22. 22. Summary Drivers for Change International Growth More Affordable Technology More Strategic, Less Tactical Variety of Structures Choosing Structures Centralized Business size Decentralized Treasury’s Role Hybrid Structure Company Business Model Creating Business Value Treasury Technology Specialize people/region Don’t buy what you don’t need Efficient movement of funds Technology can enable Improve working capital Cloud can offer benefits© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 22
  23. 23. CTC Guide: Global Treasury Structures AFPs CTC Guide to Global Treasury Structure, underwritten by Kyriba, provides insight into how treasury is streamlining its operations, implementing technology and reassessing the tools that are necessary to succeed globally. You can download the guide at http://info.kyriba.com/CTCGU-SSPPT.html© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 23
  24. 24. http://www.kyriba.com/resources/webinars/treasury-team-structures-and-best-practices-22113-11am-edt-12-ctpccm-credits Questions? Today’s Presenters Nilly Essaides Director, Practitioner Content Development Association for Financial Professionals nessaides@afponline.org Bob Stark Vice President, Strategy Kyriba Corporation bstark@kyriba.com Download the recording of the webinar at http://www.kyriba.com/resources/webinars/treasury-team- structures-and-best-practices© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 24

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