What next for group treasurers?

For a long time, holding the title of group treasurer has been considered the Holy Grail for many treasury professionals. The complexity, the breadth, and responsibility, that comes with the title are both fulfilling and challenging, and one would be excused for simply enjoying the satisfaction of knowing one’s hard work has finally paid off. However, as with every milestone – you may find yourself thinking if you have already reached that summit – what happens now?

The treasurer’s route is not as well laid out as the accountancy firms, or even in the company’s neighbouring finance teams. For many group treasurers, it was assumed that the next natural step would be to compete with finance directors, financial controllers and similar, to try and obtain the elusive CFO position. This proved successful for some, but for many, trading in external relationships for internal ones perhaps seemed difficult and not what was expected, or even desired. I am pleased to say that in the last couple of years, we seem to be discovering a new route for ambitious treasurers that isn’t solely the CFO position.
We are seeing a rise in hybrid specialist roles in which treasurers are able to use their experience as problem solvers, and aptitude for business partnering to great effect. Often work streams such as risk, insurance, pensions, tax, investor relations, and the like, are quickly coming into the treasury remit, thankfully bringing both a fresh challenge and also a well-placed discussion about remuneration with it. This trend has accelerated in the last few months, with a number of notable examples across the FTSE250s. Typically, these positions arise when there is an internal restructure or a departing incumbent which has seen the above moved into the scope of treasury. This is often as a result of the fact that these specialisms naturally work closely with the treasury department, and equally because the group treasurer has been seen as a strategic lead, and someone who can understand complex business issues that are niche but that also run throughout the threads of the business as a whole. This has seen the emergence of titles such a head corporate services, reporting to a CFO and responsible for the more specialist, and strategic areas outside of financial control that will typically sit under a financial controller. 

What can you do?

Sadly, I don’t believe that good things come to those who idly wait. If the above sounds like this would be an appealing next step for you, then I would urge you to best position yourself internally for when such an opportunity arises. Group treasurers can sometimes face the pushback that they are ‘niche’ in their subject matters and the best thing you can do is to make sure that you have been working on your internal brand. Firstly, and this may sound obvious, but when so many of a treasurer’s stakeholders are external (banks, credit rating agencies etc.) building your relationships with internal stakeholders is key, and may require a bit more legwork than initially imagined. It is crucial that, whether it be via the boardroom, a transformation project or the mentorship schemes that are in your business, that you are putting your hand up and making it known that you put the same skills that have been honed with the banks, to good use in your own business as well. 
Secondly, if you have aspirations to grow your role, in the vast majority of cases, you will need to tell someone. Whether it be in a formal appraisal or more casually after a joint meeting, taking the time to make your intentions clear to both your line manager and also HR department, is important, as otherwise, it is always easy to get overlooked. This is especially true in specialist areas where the gift of high levels of trust and autonomy can also lead to lesser visibility. Be willing to take on an area that you may not have a huge amount of knowledge in. Particularly if there is a project or problem that upon an initial look, may not seem as interesting as the comfort zone of treasury. Thankfully, the myth that treasurers live in an ivory tower is dissolving, but it is not the time to get complacent. The more you can show that you can exist outside of this dimension the better.
Finally, have a successor. The truth is that in most cases, any internal promotion or broadening of a role is usually only granted when the business knows that there is someone who is ready and able to take over. It is very much your responsibility to make sure that you are training and developing your deputy so that when you step up, your old department can still live up to the expectations that you have set. 

When do you need to start?

It is never too early to start planning for the future. Whether you know what your end goal is or whether you are still deciding, it is still useful to proactively manage your internal brand. With increased numbers of internal promotions this year in the senior treasurer space, considering your options internally before looking externally, is always a good idea.
If you have any questions or would like to know more about the corporate treasury world then please do get in touch.
Jessica Timelin
Director, Michael Page Treasury 
T: +44 20 7269 2474