On the third day of Christmas the Peter Drucker* Foundation sent to me suggestions on how to:
by Jack Large
Improve my corporate treasury department’s internal and external contribution by:
- Understanding that “Leadership is the lifting of a man’s vision to higher sights, the raising of a man’s performance to a higher standard, the building of a man’s personality beyond its normal limitations.” (Boris Johnson and Trump sadly and tragically are nowhere close to understanding this.)
- Accepting that the purpose of a corporate treasury department is to be the guardian and anchor of the financial health of the corporation. Or in the long term: “To ensure the survival of the company sustainably. – see.
- But as Bruce Lynn pointed out, Treasury needs some context for the “does corporate treasury have a purpose" question:
- Lifespan – no entities, especially corporations, are sustainable over long periods of time. The problem is that no one knows what the natural life of an entity is?
- Company – whatever treasury’s purpose it cannot exist outside of the company’s purpose. I doubt senior management is willing to pay for treasury to answer the question on its own.
- Market – company’s purpose must “fit” within the constructs of a market composed of other corporate entities usually constructed to obey a variety of economic principles.” – see: https://ctmfile.com/story/yes-corporate-treasury-departments-do-have-a-purpose-but
- But as Bruce Lynn pointed out, Treasury needs some context for the “does corporate treasury have a purpose" question:
- Accepting that corporate treasury departments need to “take the paying out of buying”, see: https://ctmfile.com/story/new-business-model-for-2020-take-the-paying-out-of-buying-and-keep-your-cus
- Remembering that “If you are not measuring it, how can you manage it?”. See https://ctmfile.com/story/dont-leave-money-on-the-table-in-your-ap
- Never forgetting that “It’s the questions stupid” that should drive your corporate treasury department – see: https://ctmfile.com/story/its-the-questions-stupid - which starts with “What business are you in?”
* Professor Peter Drucker, known as “the founder of modern management” and who wrote 39 books which have become classics in modern management theory, died 2005.
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