.but they’re not seeking feedback Only 35% regularly measure stakeholder satisfaction with the treasury — down from 40% in 2016. Of those that do, it’s primarily ad-hoc. This suggests that the treasury is not proactively listening to or engaging with the wider business. Only 7% said that KPIs are used to benchmark the treasury against its peers; even though benchmarking can provide valuable insights and help to drive strategy. The most common reported use of KPIs was to support risk management within the group (68%). This shows a shift in priorities — in 2016, risk management came second. Back then, the most common purpose of KPIs was ensuring alignment with the goals of the company. 35% regularly measure stakeholder satisfaction with the treasury 7% said that KPIs are used to benchmark the treasury against peers They’re focused on the short term. Treasuries are focused on the same top three core objectives as they were in 2016 — liquidity (83%), FX risk management (76%) and funding (75%). And interest rate risk management is up to 69%, from 64% in 2016. That probably reflects the current economic climate. Treasuries are lean and efficient. They’re focused on mission-critical, immediate goals — ensuring that the business has healthy liquidity and access to funding. But there’s been a massive drop off in operational and CSR KPIs. Treasuries can’t afford to sacrifice these long-term initiatives if they’re going to stay relevant in the future, especially as machines and algorithms could soon be performing their critical tasks. 13% have KPIs for operational efficiency and control — down from 64% in 2016 30% have KPIs for working capital management — down from 52% in 2016 .and not ready for digitalisation. Despite the major impact that digitalisation will have on every business, 94% of treasuries don’t have defined KPIs to measure success in this area. This suggests that even if treasuries are starting to think about new technologies, they’re not taking measurable actions Areas identified by treasuries as possible areas for digitalisation in the short-term were treasury reporting (53%) and FX exposure (51%). In the long-term, treasury reporting came out on top again, cited by just over a third (36%) of treasuries. That’s likely because the automation of reporting could save significant hours and free up employees to focus on more strategic tasks. Treasuries need to define and strengthen their digitalisation focus, but something is holding them back. 6% have KPIs for the digitalisation of treasury functions 36% have identified treasury reporting as an area for digitalisation in the long term TREASURY KPIs 2019 EXECUTIVE SUMMARY / 3
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