Turning expectations into reality
According to the Treasury 2025 report there are 5 steps treasuries can take to be viewed as more of a partner by the rest of the business. These include building bridges and changing perceptions, demonstrating relevance, becoming an innovation role model, building the skills needed for innovation and leveraging new business models. Treasury departments will need to build trust and the impression that they are open and enthusiastic about new technology.
The report also argues that the treasury needs to become more involved in strategic planning and earn a place at the table by showing a willingness and desire to engage in other areas of the business. The treasury is often seen as a purely internal function with little direct impact outside its traditional remit. Treasuries need to show that they can have a positive impact on customer experience and other factors that are important to the business. Barriers to successful innovation include limited experience, unproven business cases and legacy technology. The treasury must demonstrate how it can help the company overcome these.
Wherever possible, the treasury should, with IT’s support, investigate and drive its own technology initiatives. This would create natural touch points with the rest of the business, increasing collaboration. With some successful innovation projects under its belt, the treasury can then build credibility with the rest of the business.
Leverage new business models
As companies digitalise and adopt new business models, the Treasury 2025 report notes that the treasury will face new challenges to how it operates and how it supports the rest of the business. How well the treasury can transform to these new business models—such as usage and subscription-based pricing—will affect the overall success of innovation projects. New business models also provide an opportunity for the treasury to realign as a strategic resource. By getting involved early, co-creating and adding value, the treasury can present itself as an enabler or driver of innovation, not an obstacle.
Taru concludes: “It is important for treasuries to understand that even though many have begun on a path towards automating their processes, they need to make sure that they take a new position and undertake these initiatives in coordination with the other parts of the company. Business model transformation demands buy-in from across the organisation, otherwise the treasury risks being left out. If the treasury is left out, then key processes such as payments and liquidity management can begin to live their own life outside of the department without their participation, risking a loss of control and a fragmented approach towards changing business models. We see the importance of helping treasurers to take the business view on value chain thinking and focus on how they need to address automation from that perspective. Prioritising the activities where they should be taking a more active role. This will allow them to be the enabler of the business transformation instead of being left out from those discussions.”