Benjamin Defays (ATEL): Strategic Treasury Leadership and Stakeholder Management
The role of treasury has transformed dramatically. Treasurers have emerged as strategic leaders, pivotal in steering the strategic direction of their organizations. In this article, I’d like to touch base on a few of the critical aspects of strategic treasury leadership and stakeholder management, offering a few insights into how treasurers can cope with their expanded roles.
Strategic Treasury Vision and Roadmap
I firmly believe that a compelling vision is the cornerstone of any successful treasury team. It aligns the team's efforts with the broader business strategy, ensuring a unified pursuit of common goals. Developing a strategic vision involves a deep understanding of the current operating model, active engagement with team members, and a clear definition of long-term business and human priorities. This vision must be translated into a detailed roadmap, outlining key initiatives, required resources, and timelines for achieving the desired outcomes.
Creating a strategic vision is an ongoing process, necessitating regular reviews and updates to remain relevant amidst changing market conditions and business needs. Engaging the team in this process fosters a sense of ownership and commitment, enhancing the likelihood of successful implementation. It is therefore advisable in my view, to involve all team members in building this vision together, for better engagement.
Building Relationships
Effective relationship management is at the heart of successful treasury leadership. Treasurers must cultivate strong relationships with internal and external stakeholders, including colleagues, management, and business partners. This involves regular communication, active listening, and a genuine interest in the professional and personal well-being of team members. Building trust with stakeholders ensures better collaboration and support for treasury initiatives.Treasurers should strive to comprehend the needs and concerns of their stakeholders and work
collaboratively to address them. This might involve regular meetings, informal catch-ups, and participation in cross-functional projects. By being approachable and responsive, treasurers can build a network of
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allies who support their initiatives and help drive the treasury function forward. It can be daunting sometimes, with this feeling of being in endless meetings constantly. Whenever you have that feeling, remember that it is part of the job: being present (actively, not multi-tasking on your phone or answering Emails on your computer) and listening to others, being in that moment, is a big part of a treasurer’s assignments. This is maybe why sometimes, you have this impression of never stopping for a minute during the day, while you come back home wondering what you actually achieved. You achieved more than you think!
Mastering Change Management in Treasury
Change is an inevitable aspect of any organization, and treasurers must be adept at managing it. Successful change management involves clear communication, stakeholder involvement, and addressing the human aspects of change. Treasurers should focus on the three main phases of change management: ending the old era, navigating the transition phase, and establishing the new era. By acknowledging the challenges and providing support, treasurers can facilitate smoother transitions and ensure the successful implementation of new processes and systems. Make sure you understand the feeling of the people who have to say goodbye to their current operating model. It can be hard for them and whoever is in charge of a change management phase must ensure it is being discussed openly with them. They must see that you are aware of that and of the current model, of what they are letting go.
Change management is not just about implementing new systems or processes; it's about managing the impact of these changes on people. Treasurers should be empathetic and supportive, helping their teams navigate the uncertainty and stress that often accompany change. This might involve providing training, offering reassurance, and being available to answer questions and address concerns. If you find that you are repeating yourself a lot, it is normal!
Continuous Evaluation
Treasury teams must continuously evaluate their processes and seek innovative solutions to stay ahead. This involves leveraging technology, exploring new tools and systems, and fostering a culture of continuous improvement. By staying proactive and open to change, treasurers can drive efficiency, enhance decision-making, and contribute to the overall growth and success of the organization. Innovation in treasury is not just about adopting the latest technology; it's about finding new ways to add value to the business. This might involve automating routine tasks to free up time for more strategic activities, using data analytics to gain insights into cash flow and risk, or exploring new financial instruments to optimize liquidity and manage risk. Treasurers should be curious and forward-thinking, always looking for opportunities to improve and innovate. In short, strategic treasury leadership and stakeholder management are critical components of modern treasury functions. By developing a clear vision, building strong relationships, effectively managing change, and continuously seeking innovation, treasurers can elevate their roles and make significant contributions to their organizations.