Industry group survey says the job of treasurer remains in expansion mode.
For years now corporate treasurers have been called upon to take on more responsibility as it relates to all things finance within the company. This was further confirmed amid the heat of the financial crisis when treasurers were even more sought after not only for their financial acumen but to give an accurate description of the company’s financial position.
And while there have been suggestions that despite the demands and requests from boards, ambivalent CFOs are more concerned with treasurers sticking to what they do best, i.e., making sure the company has enough cash on hand to meet its needs (and not to mess that up; see related story here), there are new indications that treasurers are doing more in terms of strategy: a new Association of Financial Professionals (AFP) survey says treasurers are more involved than ever in “critical finance activities ranging from accounting and SEC compliance to financial planning and analysis to serving as a valued internal financial consultant to the company.”
According to the AFP, 81 percent of senior-level financial professionals report that treasury “is playing a greater strategic role in their organizations than they did five years earlier.” This is the result of the “increased importance of cash management and liquidity given economic and credit market volatility (78 percent); management and boards seeking increased visibility into liquidity and risk exposures (70 percent) and closer monitoring of financial metrics on projects and other activities (44 percent),” the AFP reported.
This has certainly been reflected in what members of the NeuGroup universe of treasurers have been saying. The general consensus gleaned from the NeuGroup meeting sessions over the past year or more is that treasurers are increasingly carving out a role for treasury in executing the strategic plan, if not being a part of the planning. Part of this has been an effort to map out the treasury infrastructure and resources required to support each phase of company growth in line with the C-suite’s strategic vision. The next step will be to match specific treasury activities that most effectively support the goals of that vision.
As the AFP notes in its survey summary, the heightened visibility of treasury to management derives “not only from expanded responsibilities but also from a heightened value attached to traditional treasury functions,” much of which was realized and appreciated by the higher-ups in the heat of the crisis.