The completion of a Treasury Management System implementation does not also mean the end of strategic change you can offer the organization. You likely worked very hard to achieve important victories in your original TMS project, but it should not end there. It’s a well-worn adage that the only constant is change, but you must be prepared to leverage the technology you have implemented to lead that change. Treasury does not have to be a bystander constantly playing catch-up to the rest of the organization.

1. Treasury Transformation – From
Operational to Strategic
Ari Morris, Founding Partner
Global Treasury Partners Ltd.
Yvonne Chan, Director, Solutions Delivery
GTreasury

2. © G Treasury SS, LLC 2008 -2014
Questions
Prior to implementation, how many had formalized
process to identify needs?
Have those objectives been met?
Were the objectives largely operational or strategic?

3. © G Treasury SS, LLC 2008 -2014
Communicating the Value
Achieving operational objectives very impactful for
treasury operations
E.g. multi-bank connectivity, ease of consolidated
reporting, auto-generated journal entries, stream-lined
payment authorization
But, barely visible to Executive suite and other
departments
Reduced bank fees, but increased bank service fees;
time saved within the department, but no reallocation
of head-count

4. © G Treasury SS, LLC 2008 -2014
Implementation Assessment
Strategic objectives are often not achieved
E.g.
Proactive FX risk management
Regional cash pooling
Treasury as a strategic advisor to business units
Coordination with Shared Service Center structure
But…you can’t get there unless the foundation is built on
solid, reliable operational ground

5. © G Treasury SS, LLC 2008 -2014
Disconnected
Bank Portals
TMS
Strategic
Partner
Organize
Deliver Value
Manage
Liquidity and
Risk
“Home grown”
technology -
Excel
Integral part of
corporate
planning
Centralized risk
management
Front, Middle,
Back office
integration
TMS/Integration
Processing
requests
BenefittoOrganization
Evolution of
Treasury
Activities
Transact
Treasury Technology Evolution

6. Planning for Treasury
Transformation

7. © G Treasury SS, LLC 2008 -2014
Treasury Transformation Planning
Unfinished items erode confidence and
create obstacles for future
improvements. Common items include
international payments, GL integration
and key reports
• Create mini project plan for last mile
items and work with vendor to complete
• Stop banging your head against the
wall – some items will remain outside
the TMS
Achieve “last mile”
operational
objectives
Coalesces treasury and Executives on
what to expect and how success will
impact the entire organization. Sets the
goals and objectives of “Next Phase”.
• Work internally to vet strategic
objectives
• Complete business case
• Validate role of technology
Reassess, Prioritize
and Document
Strategic Objectives
Support should be introduced with the
step above, but it is required throughout
the project. Managers are more likely to
provide resources and prioritize activities
if they are vested in the result
• Develop communication strategy for
TMS in general to reignite enthusiasm
• Employ change management
techniques
Develop internal
support
Activity Implementation StepsImpact

8. © G Treasury SS, LLC 2008 -2014
Treasury Transformation Projects
Cash Pooling
Pool funds notionally or physically within a
regional entity structure to maximize investable
funds and use working capital most efficiently
Coordination
with Shared
Service Center
Treasury can play an integral role with an SSC
structure, leading bank connectivity, enabling
multi-lateral netting and operating a payments
factory
Strategic
Advisor to BU’s
Contribute reliable and predictive information as
opposed to collecting and reporting on historical
data
Centralized FX
Management
Centralize global FX activity to consolidate all
risk and execution
 Inter-company tracking
 Tax planning
 New bank services
 Payment service expertise
 Inter-company invoices
 ERP integration
 Cash planning
 Contract support
 P2P and O2C
 Back-to-back trades
 Trade on-behalf
 Position management
Description Considerations

9. Example – Centralized FX
Management

10. © G Treasury SS, LLC 2008 -2014
Step 1 – “Last Mile” Operational Objectives
Insure the following operational objectives have been
met
Efficient front, back and middle office workflow
Trade execution, capture, confirmation, settlements,
accounting, valuations, compliance and performance
Determine what items should be dropped
E.g. Tailored performance report, trade compliance
blocking

11. © G Treasury SS, LLC 2008 -2014
Step 1 – Key Considerations
Be realistic on the remaining items and how it’s tracking against
timeline
Take dates and deadlines seriously
Ownership – this is going to be your system
If things are falling off track, develop a “get well plan”
Daily meetings with key users/ stakeholders on status
Daily update on status and what next day’s key tasks are
Each tasks should be owned by 1 person
Everyone should be clear on criteria for go live

12. © G Treasury SS, LLC 2008 -2014
Step 2 – “Next Phase” Strategic Objectives
Fully describe specific objectives and their purpose, working with relevant
departments and stakeholders
Eliminate simultaneous short/long positions and simultaneous buy/sell activity
Consolidate risk management with internal domain experts
Enable complete picture of FX exposure and activity
More effective decisions on company-wide hedge management
Accurate knowledge of components of FX gain/loss
Work with Vendor to determine the role of technology
Integrate with trade execution, confirmation and/or valuations/hedge
accounting
Enable In-house Bank and counter-party compliance
Implement back-to-back FX trades and Trade on behalf

13. © G Treasury SS, LLC 2008 -2014
Step 2 – Key Considerations
Objectives and Expectations
Mindset: Be prepared for change
Understand your internal processes
Industry standard vs. Custom solutions
Drive for best practices as much as possible
Recognize what is a ‘habit’ vs. a need, what is a nice-to-have vs. a requirement
The Right Attitude
Develop an honest relationship with your vendor
Stay focused and positive
Team spirit

14. © G Treasury SS, LLC 2008 -2014
Step 3 – Develop Internal Support
Most effective change management tools are communication,
inclusion and transparency
1. Current Assessment – communicate openly to all stakeholders on
the status of the original implementation and solicit their feedback;
FX deal capture, remote system access, visibility of activity
2. Strategic Objective Development – include those whose work would
change the most in development of objectives and insure their pains
are not overlooked; local controllers/finance managers
3. Project Structure – Must have an active Executive sponsor whose
own objectives are tied to success of the project.

15. © G Treasury SS, LLC 2008 -2014
Step 3 – Key Considerations
Communication Plan
Status meetings
Weekly formal meetings
Daily scrum meetings
Regular status updates to
executives/ stakeholders
Celebrate Milestones
Formal announcements
Launch party
Lessons Learn
Post Mortem discussions
Allow change to occur over time
Resistance to change from users
Introduce incentives or motivations

16. When to Embark on Transformation

17. © G Treasury SS, LLC 2008 -2014
Key Observations
Based on actual project experience
Too much time is spent on “last mile” items resulting in vastly diminished
marginal returns and project exhaustion
Not enough attention is given to remote operations’ needs resulting in
cynicism and diminished support
Project communication is too vague and/or infrequent
Executive sponsor provides support in name only and loses interest
Objectives are not well-understood across all stakeholders

18. © G Treasury SS, LLC 2008 -2014
Are You Set Up to Succeed?
What is the state of your technology implementation?
Are there any “last mile” items too costly to complete?
Are there any items not implemented that prevent you from declaring the project
complete?
How important is the strategic objective you are considering and
is it achievable?
Is the objective part of or related to a current corporate initiative?
Can you easily measure the value of a successful implementation?
Where does it rate as a priority within the organization?
Can it be done at an acceptable cost?
Is there organizational support?
Is there an engaged, committed Executive sponsor with power over allocation of
resources
Do you have the time to succeed?

19. © G Treasury SS, LLC 2008 -2014
Key First Steps
1. Assess current state of TMS
Define and communicate a definitive end to the initial project
Describe the benefits achieved and be transparent about what was not
achieved
2. Gain full understanding of corporate strategy and objectives
Solicit discussions with Treasurer and his/her peers
Design project proposal aligned with those objectives
3. Develop business case
Work with vendor and advisor to determine feasibility
In addition to costs/benefits, insure to identify potential business process
changes

20. © G Treasury SS, LLC 2008 -2014© G Treasury SS, LLC 2008 -2013
Contact Us
Ari Morris
Founding Partner
Global Treasury Partners
ari.morris@globaltreasurypartners.com
Yvonne Chan
Director, Solutions Delivery
GTreasury
ychan@GTreasury.com