Photo of Feyisayo Oduniyi and James Kelly, Pearson.
James Kelly
Treasurer
Pearson plc is a multinational corporation, headquartered in the UK, focused on educational publishing and services. The company says its 18,000 employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. The company serves customers in nearly 200 countries with digital content, assessments, qualifications and data.
The challenge
Can’t access the data you need or have issues ensuring data quality? Addressing these issues is becoming an increasing focus for treasurers to be able to leverage the latest technology and to use their technical skills.
Learning giant Pearson had a series of specialist tools to manage key treasury processes but linking and reconciling between them was time consuming and any inconsistency significantly slowed the process as the reason was investigated. Furthermore, meeting requests for data from other companies in the group was time-consuming, often requiring translation tools due to language differences.
The solution
Pearson has created its own data warehouse by building a centralised repository that consolidates the company’s key treasury data in one place and eliminates the need to access multiple systems. The company no longer has scattered information across various systems and can efficiently pull data and configure reporting.
Labour-intensive tasks like generating hedge accounting documents, control sign-offs and group structure charts are now automated. Elsewhere it uses tools such as the Claude Language Learning Model (LLM) to provide multilingual support, streamlining communication. Using Python, a near ‘1-Click’ exercise allows treasury to report and respond to queries, solving pain points and paving the way for more effective and agile treasury operations.
The technology also allows much clearer insights. For example, internally built FX and interest rate dashboards, powered by Tableau transform how the company manages currency risk. Dashboards allow risk managers to track exposures and illustrate cash flow and balance sheet impacts influenced by FX volatility. They now inform workflow, analyses and the company is working towards automated rules based hedging informed by market data.
Dashboards also provide quick access to interest rate positions. Whether it’s tracking exposures or overlaying treasury hedging, the clarity empowers decision-makers at all levels. “Our data unification, Python-driven innovation, and insightful dashboards position us for success. We’re not just managing treasury; we’re shaping its future,” says James Kelly, Treasurer at Pearson.
“This is a very special award as it recognises the work that Feyi and Bobby in my team have done to produce some really leading edge technology solutions. Our IT department have been great partners but they’ve done a brilliant job to turn the vision into reality. I’m delighted that Feyi is joining me to collect the award and his smile when he heard the news was fantastic to see.”
Best practice and innovation
Pearson’s data warehouse combines a strategic approach with best practice and cutting-edge technology. The data centre has centralised critical information and streamlined reporting as well as introducing security measures, including encryption and multi-factor authentication to safeguard data integrity.
The solution also allows the group to democratise data for informed decision-making. Dashboards have been shared with senior management and new dashboards focussing on operating company metrics are being rolled out, with the objective to provide near real-time insights. This will mean that the ability to draw insights from data will no longer confined to specialists and critical information will be at everyone’s fingertips.
The team estimate that these new processes allow the company to produce summary treasury information three days earlier and to a higher standard. Key year-end financial statements which took over a week are now automated, and processes including multi-stage intelligent checks, have significantly reduced the risk of error by getting rid of spreadsheets or significantly reducing reliance on them so they are just used for quick calculations.
This automation has allowed people to focus more on value-added activities, elevating treasury management and positioning the company for growth.
Connectivity via APIs will shape all future integration with the data centre and the company’s banks. Meanwhile, Pearson estimates the systems cost of £30,000 per year results in a £40,000 per annum saving, with potential for up to £100,000 more saving through simplifying bank connectivity.
Key benefits
Cost savings.
Process efficiencies.
Increased automation.
Improved visibility.
Errors reduced.
Manual intervention reduced.
Increased system connectivity.
Future-proof solution.
Exceptional implementation (budget/time).
The Adam Smith Awards are the industry benchmark for best practice and innovation in corporate treasury. The 2024 awards attracted 389 nominations. To find out more please visit treasurytoday.com/adam-smith-awards
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