As a treasurer you have a unique view of the business, you see everything, know everyone and can see into the future with your forecasting and insight.
Here are 5 steps that you can take to ‘grab a spoon’ (Friends reference) and get your voice heard when the decision-makers are setting the business strategy.
1. Learn the history
To contribute effectively to financial strategy, you must first understand how the business has gotten where it is today. No one likes a bull in a china shop who wants to come in and change everything. You need to speak to the right people and LISTEN to what they have to say. Get familiar with the company’s goals, objectives, market positioning, and growth plans. You can then set about aligning your financial expertise with the strategic priorities of the business and that’s where the magic happens.
2. Collaborate, collaborate, collaborate
To be successful in contributing to the strategy in a meaningful way, you need the people in the room to be on your side. You need champions, who trust you and value your opinion. Building these relationships happens outside of the board room, and involves learning about how other leaders in the business operate and what they are responsible for.
3. Bring the data
How many times have you heard, “we are a data-led organisation?” Before any decisions are made, there often needs to be some evidence that it will be successful. Luckily, treasurers are the gatekeeper to A LOT of data as they can see exactly how much cash is flowing in and out of the business. This gives invaluable insight into trends, patterns, and opportunities such as how successful a marketing campaign was, what the impact of shortening the working capital cycle would look like, or how to optimise cash flow. Not only does this aid the decision-making process, it also adds credibility as viewpoints can be justified with real figures.
4. Create value- think BIG picture
Shifting your focus from purely transactional activities to value-creating initiatives that drive long-term growth and profitability is essential. It involves lifting your head beyond the day-to-day to seek new opportunities. Examples include, evaluating investment opportunities, optimising capital structure, and managing financial risks in a way that maximises shareholder value. By adopting a value-centric mindset, you can contribute to the creation of sustainable competitive advantage which would enhance the financial performance of the business.
5. Get your point across
Ideas are great but if you can’t communicate them well, they won’t be taken forward. It’s important when you’re speaking to articulate complex financial concepts in a clear and concise manner, and avoid jargon wherever possible. By speaking in simple terms you’re much more likely to resonate with the people in the room to gain buy-in, and drive consensus.
Wrap up
As a treasurer you have a unique view of the business, and if you can build your soft skills around building relationships, and effective communication you can be an excellent contributor to business strategy.