What’s on International Treasurer’s radar screen.
This week’s International Treasurer editorial meeting produced several topics we’ll be fleshing out in the coming weeks. Several of the topics originated in our NeuGroup peer groups, including further discussion of talent management and treasury management systems (Treasurers’ Group of 30_2) as well as new investment ideas (Treasury Investment Managers’ Peer Group).
Talent management.
As companies’ global footprint expand, one of the most pressing issues is talent management, including recruitment, retention and compensation in emerging market locations. Getting employee and management buy-in is one pre-requisite: “You can have a brilliant talent management program but if people are not invested in it, it won’t go anywhere,” said one T30_2 member. Another critical component of a successful talent management program: communicating the details to employees.
TMS.
Another topic from T30_2 was on treasury management systems (TMS). As it happens, SAP is the most popular ERP/TMS choice for this group. Though not completely satisfied with what they have, members have found ways to make it work. Other third-party providers that have gained the confidence of the group include Wall Street Systems, Reval, IT2, Quantum and Treasura. In general, for many members it is still back to basics, so clearly Excel continues to be a winner and their fallback choice (see related article here).
Emerging investment options.
With interest rates continuing to bump along the very low end of the spectrum, companies (and just about everyone else) are searching far and wide for better returns on their investments. As mentioned in a previous post, we’ll explore new portfolio strategies that were discussed at an October NeuGroup Treasury Investment Managers’ Peer Group. These include more focus on emerging market debt (countries like the not-so-emergent Brazil et al), as well absolute return strategies and SHIP, aka as stable high income portfolio. In the meantime, companies continuing to turn over every stone possible with some looking into mutual funds and ETFs, all the while hoping they don’t trip over MF Global-style toxic assets.