treasury metrics for high-performance treasury · treasury metrics for high-performance treasury...

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May 17, 2011

Treasury Metrics for High-Performance Treasury

Presented by: Laurie McCulley, Managing Director, CTP

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Objectives Drive Measurements

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What Defines Success in Treasury?

Increase firm

value

Reduce volatility

Improve cash flow

Reduce WACC

Manage risk

Reduce banking

cost

Reduce hedging

cost

Reduce interest expense

Reduce liquidity

risk

Corporate Level

Treasury Level

Functional Level

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What Are Your Objectives?

Optimize cash

Manage cash flow

Provide access to

capital markets

Maintain a banking structure

that supports business strategy

Manage financial

risk

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Many Ways to Measure

Flows Cash Flow

Forecast Variance

Ratios Avg.

Transaction Rate

Weighted Avg. Return

Stats Portfolio

Value

Stress Tests

Time To Complete

Cash Position

To Process Wires

Counts

Transaction Volume

# of Errors

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Sample KPIs: Analytic and Strategic

% Counterparty Limits used

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Sample KPIs: Operational

% Cash in Interest-Bearing

Investments

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Next Steps

•  Ensure your treasury has defined its objectives •  Institute meaningful key performance indicators across all functions •  Incorporate these in policies and procedures •  Measure success at all levels

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Questions?

Laurie McCulley Managing Director Treasury Strategies, Inc. Laurie_McCulley@TreasuryStrategies.com 407-644-6202

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