Published: June 01, 2013
Much has been said about the changing role of treasury in recent years as many treasury professionals expand their remit and engage with a wider range of internal and external counterparts. What has been discussed less regularly is how these expanding responsibilities impact on the skill sets that treasury professionals need to maintain to satisfy them. This issue is relevant not only to a treasurer’s ability to fulfil his or her current position, but also how treasury professionals position themselves for their next career move in a competitive marketplace. Furthermore, how does treasury need to change in a rapidly changing business environment?
In this article, we talk to two highly respected recruitment consultants who specialise in treasury: Mike Tucker, Director, MR Recruitment and Deborah Thomas, Partner, Gowerbridge Ltd. These professionals are joined by Will Spinney, Associate Director, Education, and James Lockyer, Development Director of the Association of Corporate Treasurers (ACT), the UK membership association for treasury professionals, and premier provider of treasury education, training and events.
Many treasurers are experiencing dual pressures: on one hand, the renewed focus on liquidity and risk in their organisation means that core disciplines of treasury have never been more important; on the other, they are expected to expand their remit into new areas that require new skill sets. As Will Spinney, ACT outlines,
“In some respects, nothing has changed in treasury, in that the core principles of managing liquidity, risk and financing remain the same; however, in others, everything has changed, as these issues have become essential business priorities, particularly amongst companies with lower credit ratings.”
He continues,
“The markets themselves are also changing, which requires treasurers to take a different approach. No longer can treasurers manage the entirety of their business through a single location such as London, they need to take into account the global nature of the business, particularly in emerging, high-growth markets where the regulatory and market environment is more challenging.”
The growth of regional treasury centres, shared service centres and a balance between local finance teams and centralised treasury functions are all part of this developing trend. From a liquidity perspective in particular, however, James Lockyer, ACT emphasises that treasury professionals within companies of varying scale and credit quality have had differing experiences of the global financial crisis,
“Inevitably, a number of the largest companies have seen little impact of the global financial crisis on their business so they have not changed their treasury models. These are often the most influential companies in the treasury profession, which may give the impression at times that nothing has changed. However, although liquidity may not pose a challenge for large, highly rated companies, risk must be a priority for companies of all sizes, and the impact of political, economic and reputational risk can shake the company’s foundations as the experience of BP following the Gulf of Mexico oil spill illustrates.”
He continues,
“For most companies, however, access to finance is far more constrained than in the past, not only in terms of access to cash, but also on what this is used for. This can lead to a situation where the direction of a company’s business strategy is limited by the availability (or cost) of funding. Treasurers therefore need to be innovative and flexible in their approach to financing in order to support the business. For example, large supply chain finance programmes now effectively mean that some companies have become banks to their suppliers, so for these companies, in fact treasury activity may have changed substantially.”
While treasurers’ expanding remit involves a number of new technical skills, such as alternative financing and liquidity structures, it is not only technical skills that are required. Traditionally, treasury professionals have come from a finance or accounting background, or have pursued a long-term career in treasury. The question is therefore whether the education, training and experience that they have pursued in the past fully equip them for the current role in which they are employed and future roles that they may pursue. Will Spinney, ACT emphasises that treasury qualifications remain essential,
“With a rapidly changing liquidity and risk environment, and changing ideas on risk appetites and budgets, treasurers need qualifications as a vehicle for gaining new experiences and then apply them to their own company’s situation.”
James Lockyer, ACT continues,
“Treasury qualifications play an essential role in developing skills beyond an individual’s direct experience. ‘On-the-job’ training is not enough to sustain a treasury professional’s career, as experience of one company or type of treasury neither provides the breadth to take a career to the next stage or a new direction, nor equips them to deal with novel challenges.” [[[PAGE]]]
Deborah Thomas, Gowerbridge agrees that maintaining up-to-date technical skills with international relevance is essential, but needs to be supplemented with wider skills,
“Treasurers need to maintain their technical skills, which could be through qualifications offered by the Association of Corporate Treasurers (ACT) or other similar qualifications. The MCT qualification is well-recognised both in the UK and internationally. An MBA could also add an intellectual or strategic angle to treasury professionals’ expertise. Just as importantly, softer skills can be acquired through internal training or from external providers. Coaching can be beneficial to treasurers seeking to develop their confidence, skills and personal approach. Often we find that treasurers are promoted to a new role, either within their existing company or a new one, but then find they have little support. Coaching can be a valuable way of helping in this situation.”
‘Soft’ skills are not inferior or less important than ‘hard’ technical skills, and are becoming a prerequisite for treasurers to fulfil their changing role. An on-going discussion amongst treasury consultants over the past few years is the evolution towards ‘Treasury 3.0’. This reflects the changing emphasis of treasury from manual treasury processes (Treasury 1.0) to automation (Treasury 2.0) to collaboration and engagement with the wider business. As James Lockyer, ACT suggests, these discussions should be practical rather than conceptual,
“There are frequently discussions about the evolution towards Treasury 3.0, but what this means in practice is that the treasurer’s priority should be to understand what the business needs, and to work out how to support it.”
He continues,
“Collaboration has become more important than ever before. Treasurers need to understand the business in detail and the levers on cash, profitability and credit.”
Will Spinney, ACT highlights that a more collaborative approach is required, not only with the wider business, but with external counterparts too,
“In the past, treasurers’ counterparts were typically the banks. Now they need to talk to a far wider range of people, both internally and externally, such as bond holders, private placement holders, export credit agencies, credit insurers. Banks cannot provide everything that treasurers need, so they need to actively find out who they can trust to deliver the services that the company needs.”
Deborah Thomas, Gowerbridge also emphasises the value of these skills to enhance treasurers’ direct interpersonal relationships and internal profile,
“Wider business engagement means that treasurers need to extend their technical skills into ‘softer’ skills such as communication, influencing, negotiation, leadership and people management. This includes team management, but also managing upwards. Treasurers have not always been good at this. For example, treasurers need to identify how their activities can have a positive impact on the CFO and board’s priorities, such as finance, procurement etc. to ensure that treasury remains on the CFO’s agenda. In many cases, the CFO and the board will not have direct treasury experience, so being able to explain treasury issues in a non-specialist way is very important.”
While collaboration, negotiation, presentation and persuasion skills are valuable in most treasury professionals’ current role, proven capabilities in these are equally beneficial when looking towards the next role. This month, Robert Walters released its Career Lifestyle Survey, 2013. The survey includes 1,420 respondents currently working across a range of professional disciplines (including accountancy & finance, compliance, operations, IT, legal, HR, risk, marketing, projects, sales, secretarial & support, tax and treasury) and sectors. According to the survey, more than half (58%) of treasurers would seek to change jobs only after four or more years (19% after six years or more). Lack of career progression in a treasury professional’s existing company is the most common reason for moving on (50%). A shortage of career opportunities in-house is becoming a growing problem, as Deborah Thomas, Gowerbridge describes,
“Senior treasurers often stay in position for a long time, so it may be difficult to move upwards within the same company. This is exacerbated by people working longer, so while group treasurers may have chosen to retire in their 50s in the past, this is now less often the case, further restricting career opportunities.”
Without a clear upwards career direction, treasurers have two choices: move out or move across. Although the treasury recruitment market has been relatively depressed over recent years, Mike Tucker, MR Recruitment suggests that this may be starting to change,
“The treasury recruitment market does appear to be showing some signs of recovery, particularly at senior levels, compared with the past two to three years. As senior treasury positions become available, this creates movement more widely across the profession; however, the trends remain unpredictable.”
However, he continues, competition is fierce and it is a ‘buyer’s market’,
“Employers have higher than ever expectations from treasury professionals that they appoint. Following a number of years of squeezed headcount, it is essential that they select the right person for a role when they come to recruit. In particular, they are looking for individuals to demonstrate accountability and risk management expertise.” [[[PAGE]]]
Demonstrating accountability may be feasible for higher level roles, but it is more difficult for more junior positions, as Mike Tucker, MR Recruitment discusses,
“For more junior appointments, it may not be realistic to show accountability so far in your career; however, there are still ways of standing out compared with other applicants. A demonstrable commitment to the profession is essential, such as achieving or working towards a relevant professional qualification. In the UK, for example, most treasury appointments will seek an ACT qualification, and this is becoming more widespread internationally. It is also valuable to be able to show that you have volunteered to become involved in project work; while you may not have taken on a leadership role in a project, a willingness to get involved, develop new skills and relationships and contribute to the wider priorities of the business can be a very useful differentiator.”
As the international reach of companies of all sizes and sectors expands, and treasurers become involved in a wider array of projects globally, the importance of direct international experience is growing. According to Robert Walters’ Career Lifestyle Survey, 2013, 72% of treasury professionals believe that overseas experience is very important or important in career success, more than any other profession surveyed, particularly for more senior positions. This is not always feasible in practice, due to family demands and lack of opportunity, but there are alternatives as James Lockyer, ACT explains,
“There are a number of credible educational offerings relevant to treasury, often provided by universities or business schools, but these are often domestic in their focus. Unless a treasury professional only deals with domestic issues, and intends to continue doing so, it is important to develop international expertise, which rigorous globally-relevant qualifications such as the ACT’s provide.”
In a competitive marketplace, treasurers also need to develop their personal profile, not only within their company but more widely across the profession. As Mike Tucker, MR Recruitment says,
“Amongst more senior treasury professionals, developing a profile within the profession, such as by speaking at conferences or contributing to treasury publications, is a very important way of differentiating yourself compared with other candidates.”
In addition to moving out of the company, the opportunities to move across into complementary roles are also growing, particularly as treasurers become more visible through cross-functional projects. Deborah Thomas, Gowerbridge outlines,
“Treasury is increasingly taking a more strategic role in the business and becoming engaged in a wider variety of projects. While many treasury professionals choose to stay in treasury throughout their careers, engaging in a wider variety of projects helps to expand your experience and provide greater career choice.”
Mike Tucker, MR Recruitment concurs,
“While many treasury professionals follow a linear career through treasury, there are increasing opportunities to move into other areas of the business as the visibility and role of treasury within the business has expanded. Consequently, many successful finance executives are spending a period of time in treasury to develop experience before moving to other senior management positions, a trend we expect to continue.”
Whether a treasury professional chooses to stay in his or her existing role, or moves upwards, sideways or out of the company altogether, ideally each of these should be a conscious and deliberate choice. Deborah Thomas, Gowerbridge emphasises that treasurers need to focus more on managing their careers,
“Most treasury professionals do not proactively manage their careers, or think about whether they’re doing a job they enjoy or to which they are suited. Often the first time they do so is when faced with redundancy, which therefore comes as an enormous shock as they have to think about what they want to do next.”
She continues,
“Treasury professionals need to be proactive in managing their own careers. For example, you should regularly take the opportunity to think about whether you’re happy in your current position, what you want to do next, and what you need to do to get there. This may be an expansion or reduction in your role, or a sideways move to round out your experience, depending on your personal situation and lifestyle goals.”
Mike Tucker, MR Recruitment agrees,
“You need a clear vision of where you want to go, and how you go about positioning yourself for the next opportunity that will take you there.”
Maintaining education and skills, whether technical or ‘soft’ skills should be an on-going process, with multiple opportunities to achieve this. Will Spinney, ACT describes,
“The ACT’s recently enhanced Continuing Professional Development (CPD) offering is a highly valuable complement to the ACT’s qualifications, which enables treasury practitioners to keep their skills fresh and demonstrate an on-going commitment to their careers and to the profession.”
Demonstrating accountability, achievements and commitment to the profession are all important when moving roles, in whatever direction. In addition, treasurers need to be proactive in maintaining their network of contacts, both during fair weather and foul. Mike Tucker, MR Recruitment outlines,
“When considering how best to manage your career, it is vital to maintain your network, both internally and externally, and develop your profile. This includes networking with specialist recruitment agencies, as you can’t be considered for positions if you can’t be seen. These agencies can provide career guidance as well as employment placements, but it is important to have these relationships in place before a time you might need them.” [[[PAGE]]]
Deborah Thomas, Gowerbridge continues,
“In the event of redundancy, it is essential to take a systematic approach to contacting people across your network. While it may seem difficult to contact people with whom you have not spoken in some time, sending a quick email or using LinkedIn can be very beneficial.”
Career progression (or redundancy) are not the only reasons for moving jobs, however. According to the Robert Walters Career Lifestyle Survey, 2013, 94% of treasury professionals believe that a work-life balance is either very important or important to their job satisfaction: 60% cited that this was very important. This eclipses any other factor, including interest in the job, remuneration or profile. (However, remuneration is more important to treasury professionals than those in other careers, with 46% stating that this was very important compared with 42% overall). Achieving this balance is not easy, however, particularly for those with family commitments or other demands on their time. Deborah Thomas, Gowerbridge comments,
“Achieving a successful work-life balance remains difficult in treasury, despite greater opportunities for mobile working to reduce the necessity of being in the office. In many cases, employers are still paying lip service to career flexibility, and there remain very few treasury practitioners who work part-time. Inevitably, this business culture means that many women are put off pursuing a long-term career in treasury, resulting in few women in senior treasury positions and a continuation of the same culture.”
With vendors and banks now providing myriad opportunities for mobile working and home working, it is difficult to see why flexibility in treasury careers is proving elusive. Women typically excel in ‘soft’ skills that are becoming so important to treasury, in addition to technical skills, so companies are missing out by remaining intransigent in their recruitment practices. Deborah Thomas, Gowerbridge continues,
“Not only is it detrimental to the profession that there are so few senior female treasurers, but it creates a vicious circle with a lack of women taking non-executive board level positions in the future.”
There are other related problems that threaten to hamper treasury departments’ and individuals’ objective to expand their skill sets and range of responsibilities. According to the Robert Walters Career Lifestyle Survey, 2013, treasurers work on average 44.8 hours per week, with those in senior positions often working far more than this. They are working long hours, but also for a long time. For example, treasurers are postponing retirement, while recruitment freezes have meant that treasury departments have experienced little personnel change in recent years, or have shrunk in size. This is not a healthy environment for promoting innovation, adopting new ideas or promoting a wider range of skills. Part-time and flexible working practices enable treasuries to expand the diversity of individuals, with a breadth of skills and ideas within the department, and potentially engage with a wider range of projects and initiatives.
According to the Robert Walters Career Lifestyle Survey, 2013, 100% of treasury professionals believe that their personal achievements have a direct impact on business success. Treasury is the only profession surveyed where this is the case, compared with 91% in sales and 87% in projects who were second and third respectively. This is a huge validation of the value of a profession that, as Mike Tucker, MR Recruitment notes,
“….is still not actively promoted at a graduate level, so most people who end up in treasury typically do so more by accident than by design.”
However, the culture of treasury needs to evolve if both treasury departments and individuals are to fulfil the potential that is gradually being opened up to them. Employers and senior treasurers should have the confidence to break out of traditional working practices and embrace technology to facilitate greater working flexibility. This in turn will enable access to a wider range of skills and ideas, make senior treasury positions accessible to more well-qualified professionals both male and female, and enhance employees’ work-life balance and job satisfaction.
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