Zanders Treasury Scan: ‘You know precisely where you stand’

“The crisis has led many companies to ask questions about their own performance in terms of treasury”, says Richard Roering. “It is not always easy to determine your own performance.

Treasury is a complex area of specialization that is constantly changing and adapting. This prompts CFOs and treasurers to ask themselves certain questions. Have I properly identified all the risks and are they under control?

“Have I properly identified all the risks and are they under control? Are my treasury processes properly and efficiently organized?”

Are my treasury processes properly and efficiently organized? Our scan is an ideal instrument for establishing what happens in your own treasury organization, how your treasury activities are set up and how they relate to what is going on in the outside world.”

Practically structured

The scan is very practically structured. The result is not a thick report to be put to one side and consulted at some later date, but a concise report with concrete findings and recommendations presented on the basis of traffic signal indicators.

The scan analyzes various aspects of the client’s treasury organization, such as policy and strategy, risk management, cash management, financing, bank relationship management, and systems and processes. Matters that are well organized are indicated by a traffic signal that is on green.

Everything that requires attention in the future or that may cause problems is indicated with an amber traffic signal. And everything that requires immediate attention and resolution because the client would otherwise be exposed to a significant operational or financial risk is flagged with a red traffic signal.

Three phases

The scan consists of three phases: identification, analysis, and a concluding workshop.

“We start by making an in-depth analysis of the current situation”, explains Richard Roering. “We then undertake a thorough study of relevant documents, such as policies, contracts and treasury reports. This we combine with interviews in order to better understand the client’s processes.

We also organize sessions to which we invite everyone who is involved in the treasury process.” These sessions often throw up some very interesting findings, according to Zanders consultant Jaco Boere: “It can become evident during such a session, for example, that some people have no idea whatsoever why they or their colleagues need to provide certain information and what the importance of that information is.

By emphasizing certain aspects you can create insight and understanding.” Sometimes the interviews and the sessions can also reveal the existence of a discrepancy between documentation and practice. Richard Roering notes: “Organizations undergo many changes. In practice it is often the case that the treasury documentation is not maintained with the same dynamism.”

The identification phase is followed by the analysis phase. In this phase the information obtained from the first phase is processed and also compared with so-called ‘Market Best Practices’. These are processes within comparable organizations that have proven to be successful and that serve as examples within the specialized field of treasury.

Zanders can draw on many years’ experience and has a wide range of Market Best Practices at its disposal. The improvement potential of the client inherently follows from this comparison.

In the final phase the findings are fed back to the client and Zanders makes a number of practical recommendations. “Key emphasis here is a willingness to share in the client’s thinking”, comments Richard Roering. “We don’t just dump a standard format in the client’s lap. The scan is entirely tailored to the client’s specific wishes and focus areas.”

Interesting for every company

The scan is proving to be very popular. In the last few months Zanders has performed the treasury scan for many different organizations, ranging from a company in the entertainment industry to a manufacturer of foodstuffs and a vegetable importer/exporter.

The scan can also be useful – in slightly adapted form – to local and national government agencies. It can offer a unique advantage in the market. Richard Roering observes: “The scan is interesting for almost every organization with treasury activities.

Zanders is unrivaled in its knowledge of the Market Best Practices in the field of treasury. Furthermore, we understand the way in which internal and external stakeholders such as banks perceive the world.”

Jaco Boere adds: “Once completed, the scan provides you with a clear road map and highlights concrete areas requiring improvement. We always provide a practical conversion of the results into actual implementation.

The client knows precisely which steps he has to take to optimize his treasury organization, expose his potential, save costs, and to carefully hedge his risks. We define a framework and give the client practical guides which he can use to control and manage. As a result, the client stops reacting to events and instead develops the capability to become proactive.”