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Treasury Team Structures and Best Practices
Presented by Kyriba CorporationFebruary 21, 2013
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Nilly EssaidesDirector, Practitioner Content DevelopmentAssociation for Financial Professionalsnessaides@afponline.org
Bob StarkVice President, StrategyKyriba Corporationbstark@kyriba.com
Introductions
Today’s Presenters
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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
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“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
Why the focus on treasury structures?
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“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?
Centralization vs. Decentralization
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“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?
Implementing Structures
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What kind of treasury structure has your organization implemented?
a) Centralized
b) Decentralized
c) Something in between
d) Not sure
Audience Question
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“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?
Hybrid Structures
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“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?
Strategic Impact
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“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?
Collaboration
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“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?
Technology
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“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?
Technology
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Do you believe that your organization has the right technology solutions in place?
a) Yes
b) No
c) Not sure
Audience Question
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“Taking the First Steps”$1.6 Billion Midwest multinationalOperates 11 countriesDecentralized treasury
Key question
1) What would help this organization meet their treasury goals?
Case Studies – Company 1
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“Getting Ready for Global Growth”$ Billion CompanyRapidly GrowingReady to roll out internationally
Key question
1) Company proactively participated in design of the organizational structure. What opportunity did this allow them?
Case Studies – Company 2
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“Reengineering the Information Flow”$3 Billion CompanyGoing through transformation –> treasury’s roleHybrid structure
Key question
1) Company used metrics to measure efficiency of their treasury structure. Why wouldn’t everyone do this?
Case Studies – Company 3
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“Dell’s Virtual Treasury”$62B technology companyVery internationalNext generation treasury structures
Key question• Worth the download of the report on its own!
Case Studies – Company 4
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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
Audience Question
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“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?
Key Takeaways
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“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?
Key Takeaways
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Who Realizes the Benefits?
Key questions
1) Are there benefits to be had for all organization sizes?
2) Are benefits different for smaller companies?
Key Takeaways
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Summary
Drivers for ChangeInternational Growth
More Affordable TechnologyMore Strategic, Less Tactical
Choosing StructuresBusiness size
Treasury’s RoleCompany Business Model
Treasury TechnologyDon’t buy what you don’t need
Technology can enableCloud can offer benefits
Variety of StructuresCentralized
DecentralizedHybrid Structure
Creating Business ValueSpecialize people/region
Efficient movement of fundsImprove working capital
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CTC Guide: Global Treasury Structures
AFP's 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. 24
Nilly EssaidesDirector, Practitioner Content DevelopmentAssociation for Financial Professionalsnessaides@afponline.org
Bob StarkVice President, StrategyKyriba Corporationbstark@kyriba.com
Questions?
Today’s Presenters
Download the recording of the webinar at http://www.kyriba.com/resources/webinars/treasury-team-structures-and-best-practices
http://www.kyriba.com/resources/webinars/treasury-team-structures-and-best-practices-22113-11am-edt-12-ctpccm-credits http://www.kyriba.com/resources/webinars/treasury-team-structures-and-best-practices-22113-11am-edt-12-ctpccm-credits