The Path to the Treasurer’s Role

By Bryan Richardson

Is it better to go out and learn the business or stay put and become a treasury expert?  

Have you ever considered that managing your career in treasury is much like a football team strategizing for a touchdown, or in your case, a promotion? Each play has risks and potential gains based on team and player strengths, and the strengths and weaknesses of your opponent.

One way to get to where you want to go professionally is to drive straight up the middle, typically with short but steady gains and leveraging sheer strength and determination. Another is the end run where the runner by-passes all of those people along the line of scrimmage in the hopes of greater yardage or even a quick score. This leverages speed, agility and maneuverability but has greater risk of fumble, injury or running out of bounds. Both plays have their purpose, time and place but not everyone is able or willing to execute both. For assistant treasurers, the touchdown equates to scoring the treasurer title. Gaining that title was a popular topic at a recent NeuGroup Assistant Treasurer’s Group of Thirty (AT30) meeting. As indicated by the chart below, the AT30 is ambitious, with most eyes on the goal line.

Think of yourself once in a while

The NeuGroup has catered to treasury professionals for 20 years and there have been a number of peer group discussions on the topic of employee development. However, there have been few, if any, discussions among members about how to advance their own careers to the next level. In attendance at the AT30 meeting were two hall-of-fame-type treasurers from Honeywell and very recently General Motors, both with strong pedigrees. While the two offered insightful words of wisdom to accelerate careers, a somber mood followed the session.

The message from both was consistent in that “the best treasurer is one who understands the underlying business,” which meant the best way to get to the treasurer’s office is via a substantial stint in a key operational role, i.e the “end run.” A few in the room already had that box checked and may have felt pretty good about the message. Others not so much.

For many this message presents a bit of tension. A common view among dyed-in-the-wool treasury practitioners is that they do it because they love the work. Many people get into the unique functions of treasury—which most outside of treasury have no clue about—and never want to leave it. Indeed, as a former practitioner, I can relate. I always very much enjoyed my treasury responsibilities, both routine and on special projects, and welcomed new opportunities to improve my area (except for anything accounting-related unless it was to reduce accounting responsibilities). To my mind, there are tangible benefits as well as gratification in successes such as reducing bank fees, accelerating cash flow, nailing a forecast, managing a portfolio, successfully implementing a TMS.

There is also a lot of gratification gained from touching as many parts of the company as treasury does. Leaving that role for an operational stint in order to get back to more of what you prefer seems both counter-intuitive and risky. The risk is you move and don’t succeed, or you can’t get back into treasury because another treasury hound is in your target spot and won’t leave. Leaving this comfort zone can be a sizable challenge for those that bleed green.

we’ve seen it all

But there is hope. The NeuGroup is in a unique position in that we interface closely with our members across nearly 200 Fortune 500 organizations. As you would expect, we see a lot of movement up, laterally and even out. The good news is that we have seen many assistant treasurers promoted to treasurer because of their specific knowledge and expertise, whether they moved around or stayed put. In other words there are many paths to the treasurers’ role.

Of course this is only encouragement and no guarantee. Much depends on the views and policies of your company and your boss. If they believe the best treasurer is one who understands the underlying business then a diversion is the only path within your own company. (Sometimes this is offered as an incentive to stay engaged.) But if they are more interested in treasurers who bleed green then you may be able to stick it out with short runs up the middle. With a little courage, stamina and people skills (see sidebar) an end-run out to the business could end up surprising you by offering a new perspective and appreciation for the operation and could positively alter your career path.

The obvious clues are right before you—and in looking at those in your position that came before. How did the current treasurer get there? What’s the company’s style? You can decide to be content as a really great assistant treasurer, perhaps as bench strength, or you can opt for free agency and find another team that has greater appreciation for your skill set.