For some, a fundamental and radical re-organisation is vital if the
inefficiencies of many years are to be swept away and effective
use made of new banking and financing techniques.
Treasury can extend its influence over the whole organisation
looking for financial efficiencies and adding real value to the
bottom line. Using working capital management pro-actively is
one way to reach across the organisation. A high profile project
can open up new career paths to those involved – as long as it is
The scope for activity depends on the skills within the treasury
and of the treasurer in particular and on the appetite within the
company as a whole.
The important point is that there is a fundamental difference
between concentrating on achieving a low cost treasury service
centre and getting involved in high profile projects to achieve
added value. The latter involves incurring costs to achieve greater
gains. Both approaches are valuable and are needed at different
The most important issue is to understand what your company
needs right now and what you can achieve. If the added value
project cannot succeed, focus on efficiencies and driving out
costs. If not, there is a real danger that you will get stuck,
delivering on neither front.
Reduce costs or add value – do not get caught in the middle doing