Treasury Success:

Blocking & Tackling to Strategic Leadership

Ernie Humphrey, CTP

CEO, 360 Thought Leadership Consulting

OUR AGENDA

The Strategic Role of Treasury: Current State of the Union

Exceling in and Moving Beyond Blocking and Tackling

Developing Your Toolbox for Success

Owning Treasury & Career Success

THE HUMOR: YES WE CAN HAVE FUN

Top 5 Signs the Strategic Role of Treasury is on the Rise

5. No one asks you “where’s the mayo for my sandwich”

when you enter an executive lunch meeting.

4. You are actually recognized for being good at your job.

3. There are no looks of “bewilderment” when you speak at a

meeting of company executives.

2. Your CEO addresses you by name and not “buddy” or“you”.

1. No one calls you “the cash person” anymore.

THE STRATEGIC ROLE OF TREASURY IN 2014

2014 AFP Strategic Role of Treasury Survey

THE STRATEGIC ROLE OF TREASURY IN 2014

2014 AFP Strategic Role of Treasury Survey

COMPELLING HIGHLIGHTS

83%

69%

74%

45%

46%

THE STRATEGIC ROLE OF TREASURY IN 2014

2014 AFP Strategic Role of Treasury Survey

WHAT’S DRIVING TREASURY’S STRATEGIC ROLE EXPANSION

0% 10% 20% 30% 40% 50% 60% 70%

Other

Greater delegation of strategic responsibilities to

Treasury

Treasury professionals now have a more holistic view

of the organization

Organization has reduced finance staffing, requiring

employees to contribute in a broader number of ways

Increase in monitoring financial metrics on projects

and other activities

Organization has more cross-functional approach to

its activities

Organization is finding new ways to leverage Treasury

skills

Senior management and board seek greater visiblity

to liquidity and risk exposures

Cash management and liquidity are now more

important

THE STRATEGIC ROLE OF TREASURY IN 2014

2014 AFP Strategic Role of Treasury Survey

WHERE TREASURY PLAYS A LEAD ROLE IN 2014

Cash Management

Bank Relationship Management

Short-term borrowing

Long-term borrowing

Short-term investing

I.E., BLOCKING & TACKLING

CASH MANAGEMENT

Online Bank Platform

SWIFT Access

Treasury Workstation

Excel

Treasury Module of an ERP

Cloud/SaaS TMS

VISIBILITY

CONTROL

Process

People

Technology

CASH MANAGEMENT

Online and Mobile

Managing Card Processing Fees

Payment & Collection Terms

Global Payments

PAYMENTS & RECEIPTS

CASH FORECASTING

Data

Collaboration

Process

Technology

BANK RELATIONSHIP MANAGEMENT

Networking

Social Media

Relationship Management Tools (CRM)

Fee Allocation

PROFESSIONAL RELATIONSHIPS

BANK ACCOUNT MANAGEMENT

EBAM

Account Analysis Solutions

Account Reconciliation Tools

SHORT TERM & LONG TERM BORROWING

Short Term vs. Long Term

Vehicle Allocation within Each Category

Counterparties

PORTFOLIO MANAGENT

DEBT COVENANTS

Types & Structures

Covenant Management Solutions

SHORT TERM INVESTING

Risk vs. Reward

Counterparty Risk

Investment Portals

PORTFOLIO MANAGENT

INVESTMENT POLICY

Monitoring

Enforcement

Management

BEYOND BLOCKING & TACKLING

2014 AFP Strategic Role of Treasury Survey

All

Revenues

Less Than

$1 Billion

Revenues

At Least

$1 Billion

Privately

Held

Publicly

Owned

Financial risk management 53 41 63 47 62

Counterparty risk analysis 50 35 63 45 63

Working capital management

(e.g., A/R, A/P, inventory) 49 55 46 53 48

Insurance 47 38 54 43 58

Internal financial consultant to other

departments, business units

and/or affiliated companies 46 45 46 48 44

Financial planning & analysis (FP&A) 38 49 27 46 25

Retirement/pension plan management 36 26 43 30 44

Enterprise risk management (ERM) 32 35 28 30 31

Investor relations 28 27 29 25 24

Mergers & acquisitions 26 26 24 38 20

Functions Where Treasury Plays a Lead Role(Percent of Organizations)

STRATEGIC LEADERSHIP OPPORTUNITIES

ERNIE’S PATHS TO STRATEGIC IMPACT

FP& A Corporate Performance Management

Leverage Cash Forecasting Skills

Leverage Knowledge of Financial and Operational

Performance Drivers

Mergers & Acquisitions Company Growth

Leverage Comprehensive Company, Industry,

Supplier and Customer Knowledge

Financial Risk, Counterparty Risk, Insurance ERM

Leverage Any Ownership of Financial Risk

Management to Become a Key Partner or Owner

of ERM

Internal Financial Consultant Chief Trusted Advisor

Build and Leverage your Internal Network &

External Networks

CORPORATE PERFORMANCE MANAGEMENT

Budgeting, Planning and Forecasting

Financial, Statutory and Management

Reporting

Formal Financial Consolidation

Profitability Modeling & Optimization

Strategy Management Software

Any or All of the Above

- Courtesy of

CORPORATE PERFORMANCE MANAGEMENT

THE ABCs OF SUCCESS

People

Process

Communication

Collaboration

Alignment

Technology

TECHNOLOGY: TREASURY BLOCKING & TACKLING

Technology is not a “one size fits all” solution

Technology advances are leveling the playing

field for SMBs to deliver best-in-class treasury

practices

Cloud-based TMS

Cloud-based treasury & risk applications

Technology advances are improving existing

treasury technology tools that needed work

ERP Treasury Modules

Online Bank Platforms

Treasury Workstations

Research technology options to alleviate pain

points and needed improvements

Technology enables efficiency and best

practices, not magic that delivers them.

TECHNOLOGY: BEYOND BLOCKING & TACKLING

Empowering Modern Finance:

The CFO as Technology Evangelist

TECHNOLOGY: THE POWER OF THE CLOUD

Courtesy of

TECHNOLOGY INVESTMENTS

TECHNOLOGY INVESTMENTS: THE BUSINESS CASE

PEOPLE: YOU

Self-Assessment

Technical Skills

Soft Skills

Resources

Skills Gaps

Your Personal Brand

Within Your Company

Within Your Profession

Within Your Community

Online

Thought Leadership

YOUR ONLINE BRAND

Your online brand can impact career success in today’s world

Actively Assess it-

Respect it- Don’t let Professional and Personal

Worlds Collide

Build it-

Leverage it

Networking

Conveying & Promoting Thought Leadership

Show it Love – Do Not Neglect it

You DO Have the Time to Own it!

THE HUMOR: MORE FUN

Top 5 Signs You Need Social Media 101

5. You think Instagram is a breakfast treat.

4. You think that LinkedIn is a fashion accessory.

3. You are studying up on bird calls so you can catch

up with all of the other who are “tweeting” out there.

2. You think that blogging is the consequence of eating to

much ice cream.1. You are worried that you are “it” when someone says they

tag you in a photo.

PEOPLE: YOUR COLLEAGUES

Internal

Within Your Department

Outside Your Department

Up & Down the Chain of Command

External

Suppliers/Service Providers

Consultants

Customers

Fellow Members of Your Profession

PEOPLE: YOUR NETWORK

Who you Know

How Can you Help Them

How Can they Help You

Who Do You Want to Know

Building Relationships

Colleagues

Within & Outside Your Profession

Personal

Managing Relationships

PROCESS: THE FOUNDATION OF EFFICIENCY

Efficiency is Limited without It

Allows Scalability

Can Deliver Flexibility

Defines Stakeholders

Fuels Effective Change Management

COMMUNICATION: A WEAPON OR WEAKNESS

Effective Communication Skills

Start with the Ability to Listen

Deliver “Buy-in” for Projects, Ideas

and Career Defining Decisions

Getting to a “YES” and not just a “YES, BUT”

The Ability to Sell Without a Sales Pitch

Effective Verbal and Written

Communication Require Different

Skills on Some Level

Verbal and Written Communication

Require Different Skills on Some Level

Success is about “how you do it” in

addition to what you get done

COLLABORATION: THERE IS NO “I” IN SUCCESS

Meaningful accomplishments require

effective collaboration, and great ideas

often fail from the lack of it.

Listen

Know What YOU Know

Know What You Need

Know Who You Need to Engage

Discover How to Engage Them

Be a Team Player as Well as a Leader

Technology Fosters the Ability to

Communicate, not its Effectiveness

ALIGNMENT: RUNNING ON ALL CYLINDERS

Within & Among Projects

People

Process

Technology

Your Current Job Related Goals

Your Departmental Goals

Your Company’s Goals

Your Career Goals

Your Life Goals

YOUR CAREER PATH TO STRATEGIC LEADERSHIP

Self-Assessment

Technical Skills

Soft Skills

Resources

Your Professional Brand

Within Your Company

Online

Define Opportunities

Optimizing Blocking and Tackling

Involvement in Areas beyond

Traditional Treasury

Leading in New Areas for Your Company

YOUR CAREER PATH TO STRATEGIC LEADERSHIP

Define Your Success Toolbox to Create

and Capitalize on Opportunities

Where You Are

Where You Want to Go

What You Need to Get There

How You are Going to Get There

PARTING THOUGHTSDevelop, Manage, and Own Your Toolbox for Success within and Beyond Treasury.

People- You, Your Network, Colleagues

Process- Not much Great Happens

without It

Communication- Leadership Demands

Effective Written and Verbal Communication

Collaboration- There is no “I” in Success

Alignment- Your Current Job, Career, Life

Technology- Needs to be Right-Sized for

Each Company

PARTING THOUGHTS

LISTEN

LEARN

BE INSPIRED

BE INSPIRING

Ernie Humphrey, CTP

CEO, 360 Thought Leadership Consulting

E-Mail: Ernie@360thoughtleadership.com

LinkedIn: http://www.linkedin.com/in/erniehumphrey

THANK YOU!!!

http://www.360thoughtleadership.com