Transforming a Global Treasury Organization from Transactional to Strategic

Transcription

1 Transforming a Global Treasury Organization from Transactional to Strategic Maria Logiopoulou, Senior Vice President, International Treasury Sales Officer, Bank of America Merrill Lynch Nichole Trainor, Assistant Treasurer, Checkpoint Systems Inc Stephen Lee, Director of Treasury, McKinsey and Company June 1, 2016

2 Maria Logiopoulou, Bank of America Merrill Lynch International Treasury Sales Officer in the Global Treasury Solutions (GTS) Team for the North East US Region Specializes in working with Commercial global clients to optimize cash management structure worldwide Prior to joining the U.S. team, Maria was a Director in the Global Treasury Solutions (GTS) Officers Team in EMEA responsible for more than 30 U.K. headquartered clients with Global GTS relationships. Industries included consumer products, technology and telecoms Joined Bank of America Merrill Lynch in October, 2010 after four years with ABN AMRO and subsequently Royal Bank of Scotland in London where she performed a similar GTS relationship role Previously at Citi in Athens, Greece for eighteen years, specializing in Cash Management and Trade Products. Degree in Statistics and Computer Science, from the University of Athens, (Athens Business School) Also studied History of French Arts at the University of Paris - Sorbonne 2

3 Stephen Lee, McKinsey & Company Stephen Lee, Director of Treasury, McKinsey & Company Global Treasury & Financial Risk Management Responsible for managing all worldwide Treasury operations which includes; cash management; worldwide banking relationships; Foreign Exchange; Investment Portfolio; and financing/ capital needs. Prior to McKinsey, served in various capacities in Treasury. From was Senior Director of Firm Funding, Fidelity Investments; Global Treasury Director at Moody s Investors Service; Vice President, Treasury at ED&F Man Group Holds a B.S degree in Finance and a B.A. in Biological Sciences with a concentration in Psychology from State University of New York at Binghamton School of Management Also holds an M.B.A. from Leonard N. Stern School of Business at New York University with an emphasis in both Finance and Management. Volunteers his time to various HealthCare nonprofit organizations and animal rescue shelters. McKinsey & Company Global management consulting firm that serves leading businesses, governments, nongovernmental organizations, and not-for-profits. Global firm with over 100 offices in more than 60 countries, comprising more than 9,000 consultants and nearly 2,000 research and information professionals. Our clients reflect our global nature. Around 40% are in Europe, 35% in the Americas, 15% in Asia Pacific and 10% in the Middle East and Africa. 3

4 McKinsey and Company By regionally concentrating our needs to match the strengths of our partner banks, the Global Treasury & Financial Risk Management Team can provide specific service and expertise throughout the Firm N. America UK & W. Europe CIS & EE S. America Middle East & Africa Asia 4

5 Nichole Trainor, Checkpoint Systems Inc. Nichole Trainor, Assistant Treasurer Responsible for all levels of risk at Checkpoint, including: global cash liquidity, financing, foreign exchange management, and insurance for 75 legal entities in 30+ countries. Has led various projects to transform business processes, including: a successful SAP R3 implementation, establishing and a netting system, utilizing building and managing a company-wide cash flow forecasting system to review weekly cash flows, successfully negotiated credit facility while in prebankruptcy/workout. Treasury lead for multiple acquisitions around the world and most recently part of strategic team to support CCL Industries acquisition of Checkpoint. Joined Checkpoint in 2001 working in Corporate Tax and then transitioned to Corporate Financial Planning & Analysis, and subsequently started her Treasury career in 2005 where she has been promoted to her current role. Earned a Masters of Business Administration from Widener University and holds a Certified Treasury Professional certification Checkpoint Systems Inc Global leader in merchandise availability solutions for the retail industry, encompassing loss prevention and merchandise visibility Leading end to end, technologybased solutions provider to the retail industry Solutions enable substantial improvement in merchandise availability and shopper experience Accurate, real time inventory Accelerated replenishment cycles Prevention of out-of-stocks Reduction in theft Long-standing, blue-chip customer base of top global retailers Global footprint in 27 countries Differentiated technology / intellectual property portfolio Attractive recurring revenue model (~50% in 2014) with potential to expand into new verticals / geographies Strong balance sheet and robust FCF supports continued technology investment and M&A 5

6 Checkpoint Systems Inc Differentiated Global Platform Serves All Major Retail Markets 60+ Facilities Strategically Positioned Across 27 Countries Full Time Employees by Region Int'l Americas 2% North America 13% Europe 17% Asia Pacific 68% Facility location 6

7 Strategic Treasurer s Balanced Scorecard Creating Stakeholder Value with Effective and Efficient Use of Capital Sources of Capital Stakeholders Allocation of Capital Decision Support, Information and Execution Systems 7

8 The Journey

9 Evolving Treasury...defined by objectives and solutions Continuously improve Eliminate, rationalise, simplify, standardise FTE reduction within existing process Reduce vendors banks & accounts Reduce rework and manual processes Cost centre Consolidate, centralise, manage & control, re-organise in source FTE reduction reduce locations, management levels Centralise - payments/ receipts/liquidity IT consolidation, integration Increase skill levels Reduce error rates Reduce integration costs Regional liquidity Automate, optimise scale, operational capability FTE productivity Increase STP, scale Increase flow reduce cycle times Increase ability to manage & control (BPM) Reduce operational & financial risk manager Interoperability PoBo/RoBo Global liquidity Information reporting Reconciliation (STR) Centres of Excellence Funding efficiency Inter-company management Re-organise outsource, realign strategic value add FTE reduction leverage resource arbitrage Access cost effective IT solutions Build operational contingency Integrate with enterprise solution (GBS) Analytics decision support Internal advisor & consultancy Create value lead OWC improvement In-house Bank Risk manager? Profit centre? Target 10-15% cost efficiency p.a. Operational excellence Global process ownership Strategic alliances 9

10 The future of your Treasury Improved visibility Improved security & control Reduced paperwork Automation What it means to your business Transparency Risk management Redeployment of resources Accuracy 10

11 Operating Model Centralization with Automation Decentralised Centralised global 11

12 Getting the data right A spreadsheet report should be a simplified representation of what is really happening in the treasury in a specific period of time An essential step to accurate reporting is to obtain correct raw data when and where you need it, before it gets turned into usable information Automating data population into Excel enables companies to mitigate risk of producing and utilizing incorrect or false information Boosting reporting horsepower Accuracy Data imported into Excel directly from its original source Automation Quick download/upload, allowing treasury staff to spend more time in value-adding activities Ease of use Plug and play reporting templates; minimal impact Implementation 12

13 Two helpful rules This is not simplicity This is tech for tech s sake. Two rules to start off: 1. Simplify 2. Standardize 13

14 Treasury Operations and Transformation Drivers Cost reduction; efficiency and scale Control, increase risk capability Transform strategic, value add, standardise, simplify, reliable & repeatable Operational capability; agility, resilience, flexibility Compliance/regulatory requirements Gain access to new technology/skills In pursuit of best in class Support growth, acquisition/mergers Tax strategy Enablers Operational capability Harmonization Technology Technology workflow, connectivity Globalization Resistors No need to change things are currently working Change readiness other priorities Impacted resources Existing stakeholder control Technology access to, current state Investment challenge Cannot prove business case Perceived issues loss of control, service & quality 14

15 Key Objectives and Drivers Efficiency and Scale/Cost Reduction Improve STP Rationalize number of bank account relationships and platforms Depending on organization type and size, automate through one common platform Consolidate payments time management for AP, Accounting, and Treasury Optimize payment routing especially for natural hedge and Intercompany processes Optimize FX transactions and fees Control Risk Management Corporate Treasury now able to view cash on global scale Less bank systems to manage, for updating users and vendor details Transform Value add and Simplify Lean finance staff internationally Optimize payment routing channels, types and timing Support Growth Future Acquisition/Mergers/Hires Global banking provider 15

16 Things to Remember

17 Drivers for change Strategic value Support key business objectives Treasury policy Internal funding M&A Consulting Cost Reduction Non-value add activity Rationalise, consolidate Cycle time Efficiency Scale + productivity Automation (STP) Revenue, P&L Tax strategy Operating working capital optimisation Treasury value centre Risk management Policy & risk appetite Market volatility Execution capability Visibility & transparency Quality Entity service delivery Timeliness Quality (error) rate Reliability & repeatability Control & compliance Regulatory changes Geographical expansion Reporting & compliance 17

18 Lessons Learned What Works? Strong project & change management skills Executive sponsorship Include key stakeholders early tax, acctg, IT, finance Robust iterative business plan Centralise data management Rigorous current state assessment Inclusive design phase Develop a core process and define exceptions oversee all Hybrid build in variance, flexibility Pragmatic phased implementation 80/20 rule Phased implementation Open Views, collaborative Focus on Critical Path Test all possible scenarios Robust performance management Realism Retain and attract talent Delayed or insufficient planning Inadequate funding Changing goals & targets Insufficient data & analytics to aid in decision making Inadequate standardisation of procedures & policies Culture: resistance to change Lack of coordination & cooperation between departments Lack of executive sponsorship Focus on cost savings Over planning / under delivering Adopting a one size fits all approach Utopia Lack of contingency / budget Unrealistic benefits expectation Change in management or leadership Failure to appreciate individual change curves 18 What Hinders?

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