Treasury’s Internal Relationships are Impacted by Evolving Workplaces & Technologies
While the ability to communicate effectively with different departments and stakeholders across the “Office of the CFO” has always been an important component of treasury’s role, the technologies and workflows used to facilitate this communication have evolved quite rapidly within a short period of time.
In recent years, continued innovation in cloud services (SaaS) and mobile phones, as well as more recent breakthroughs in artificial intelligence (AI), have all propelled major shifts in the technology habits and standards through which corporate communication is conducted. At the same time, a new-age workforce environment that consists of many remote and “work-from-home” employees is driving adoption of a whole new suite of collaborative workflows, tools, and solutions.
For treasury, the impact of these shifts were likely most noticeable during the 2020 Covid period, where very sudden changes in staffing requirements and workplace habits quickly created a highly-digital and often “isolated” approach to operations. Although many treasury teams were operating remotely before the pandemic, the suddenness of the broader corporate environment’s shift to these practices and the ensuing process of collaborating across different departments, entities, and stakeholder groups were nonetheless a challenge. This was evidenced by 4,700% growth in monthly active Zoom (video meeting) users between 2019 and 2020, as well as growth from 32 million to 75 million active users on Microsoft Teams in just a matter of weeks during Q1-Q2 2020.
And now, as data and insights from 2020 onwards have continued to demonstrate, treasury’s ability to coordinate operations with colleagues across the Office of the CFO, as well as within IT, Legal, and other teams still depends overwhelmingly on the efficacy of their digital technology and communication tools.
How Have Treasury’s Communication Challenges Evolved in Recent Years?
For modern treasury professionals, critical functions surrounding cash flow orchestration, data management, financial reporting, payments execution, and regulatory compliance all require constant communication with a myriad of different groups. In 2022, an AFP study of more than 300 treasury professionals found that leadership and communication skills ranked 3rd and 4th out of 14 skills that were increasingly being applied by practitioners to support their organization.
In addition, between 35-43% of practitioners noted a consistent increase in communication between treasury and the CFO, as well as AP, AR, and legal teams in the past 24 months. Most recently, a 2023 TIS survey with 250+ respondents highlighted that nearly 50% of practitioners have become strategic partners with the CFO, while 69%, 67%, and 59% of treasury teams hold influence over their company’s respective AP, AR, and FP&A operations.
To access the full insights, including a list of recommendations for treasury to bolster their communication with other stakeholders, download the complete guide below!