Six essentials for the strategic treasurer: treasurers are encouraged to go beyond their traditional role and 'think out of the box' as a way to earn a seat at the management table.

• Author: Jeffery, Craig A.
• Position: Treasury

In order to participate in the success of their organizations, as well as advance their own careers, treasurers must expand their focus--from their traditional role of securing funds and financial risk to focusing on how to help drive overall business initiatives. They must strive to be integrated partners with all areas of the business, and not reside as a disconnected "vendor" who provides financing or executes on other operational tasks.

Just as other professionals in every job role are being asked to do, treasurers must learn to think outside the traditional (treasury) box. Combining this new thinking with certain other essential requirements, today's treasurer can make the transformation to "strategic treasurer."

This is the message that is consistently conveyed through extensive work with customers. Wachovia Treasury & Financial Consulting (WT & FC) gains perspective on many trends and/or themes in the cash management industry, and these themes were further confirmed at the March 2004 Treasury & Risk/FEI Treasurer's Conference held in New York City. During this conference, WT & FC led a panel discussion with financial executives from a diverse array of companies on the idea of the "strategic treasurer." Some of the insights and discussion that arose from this group are summarized in this article.

What Is the 'Strategic Treasurer?'

Since, the term "strategic" is often overused, let us first define the term. Working with the definition of strategic as "highly important to the intended objective," it's apparent that the strategic treasurer's objectives must necessarily support the overarching goals of the entire organization. They must not be a freestanding set of treasury-only focused objectives.

The strategic treasurer needs to have a robust understanding of the entire business and every way in which his or her role/function has an impact. His or her treasury department is tightly integrated into all business lines. This treasurer is included in meetings that concern new product planning and business development activities, along with acquisition and integration efforts. It is clear that this strategic involvement of the treasurer is a dramatic change from the norm where after-the-fact consultation with the treasurer occurs only to secure financing, to open a bank account or establish a required banking service.

There are several skills, perspectives and accomplishments that the treasurer must focus on as he or she moves into a more...