Treasury, considered as the steward of an organization’s liquidity is also thought of as the superintendent of payment security. 

Treasury has also become an integral component in various organizational functions, from being crucial in M&A transactions to influencing decisions on supply chain dynamics and commodity risks.

Geopolitical conflicts, economic uncertainty, supply chain disruptions, impact of rising inflation, and high interest rates have thrust corporate treasurers into the spotlight over the last few years. As they step out in the limelight, and are tasked with greater strategic responsibilities, enterprises that are empowering treasury to play an increasingly influential role are achieving higher growth and financial stability.

Corroborating this assertion are some of the findings explored in the survey report, “Why Treasurers’ Influence Matters,” a PYMNTS Intelligence and Citi collaboration, which states that “Treasurers are on the front lines of keeping a company financially healthy. When they have greater influence and integration within their organizations, they can drive improved performance.”

The survey, conducted between April 9 and May 28, polled 500 company executives, including 251 treasurers from companies that reported annual revenues of at least US$1 billion in 2023. The companies surveyed were from sectors such as consumer packaged goods, healthcare, mobility, technology, transportation/trucking, and distribution.

Some of the key findings of the survey include the following:

Companies where treasurers hold considerable influence enhance their performance metrics

PYMNTS Intelligence’s latest study finds that “Treasurers with high levels of influence are far more likely to report that their companies have predictable cash flows, expect revenue to increase and are agile in responding to shifting market conditions.”

Among treasurers who rate their firms’ cash flows as very or extremely predictable, 72% consider themselves highly influential. In contrast, only 40% of treasurers at organizations with low cash flow predictability share this view”, the survey report explained.

Furthermore, the level of agility that firms demonstrate in responding or adjusting to market conditions mirrors this pattern. Sixty-eight percent of treasurers who consider their enterprises to be very or extremely adaptable also see themselves as highly influential, compared to only 36% at organizations with minimal or no adaptability, as per the report.

The PYMNTS Intelligence study extends its findings to reveal that treasurers with significant influence are about 20% more likely to expect revenue growth in 2024. Specifically, 61% of treasurers at companies with projected revenue increases view themselves as highly influential, whereas just 50% of those at organizations with unchanged revenue outlooks or flat revenue expectations express the same sentiment.

Importantly, the data from the study also shows that a treasurer’s degree of integration within the corporation is positively associated or correlated with these three metrics, reinforcing the crucial role and impact of treasury’s involvement in driving company success.

According to the study, these trends are echoed by other company executives. Non-treasurers who regard their organization’s treasurers as highly influential are more likely to repose confidence in key performance indicators.

For instance, the survey queried non-treasurer executives about their companies’ most recent annual revenue forecasts. “Those who felt their treasurers are highly influential were much more likely to feel very or extremely confident about the estimate, at 83%, than those who felt the treasurers were only somewhat influential, at 70%, or slightly or not influential, at 64%. This suggests a more involved treasurer can improve the understanding of company financial performance for stakeholders across the company.”

Benefits of involving treasurers in cross-departmental collaboration

The PYMNTS Intelligence study goes on to mention that “Most treasurers cite cash flow predictability as the most widely expected advantage from greater cross-departmental collaboration. Eighty-five percent of treasurers name this as a benefit and 34% cite it as the top benefit.”

Other benefits frequently cited by respondents include a faster cash conversion cycle, which 62% name as a benefit and 14% view as the most significant benefit, followed by reduced debt and greater returns on investment. Interestingly, half of the treasurers believe they can enhance profit margins through greater involvement in cross-departmental collaboration.

In conclusion, as treasury continues to grow in importance and influence within corporations, it is poised to deliver even greater value. By fostering closer or tighter collaboration with strategy teams, as well as finance, sales and marketing, product and procurement departments, these departments stand to gain distinct benefits, as per the study

This collaboration would also empower treasury to adopt a more forward-thinking approach to transform complex business challenges into competitive advantage, paving the way for sustained growth while bolstering the organization’s financial stability and resilience.