STOCKHOLM/COPENHAGEN– A Nordea survey of more than 160 large Nordic and international corporates, conducted in Q2, 2016, has shown how the treasury function is quickly maturing into a key C-level influencer.
The survey focused on the setting and alignment of treasury KPIs within corporates, and the results provided a clear indication of a strategic shift in the role of treasury. A key finding showed how 92% of treasuries have a formal treasury policy, while 76% have “established” KPIs, which are in most cases decided by and reported to the CFO, the CEO and the Board. This is evidence that the treasury is getting increased C-suite level attention and a seat at the highest table.
The full survey and report is available here: https://insights.nordea.com/go/treasury-kpi/
The report also revealed a possible tension that needs to be addressed if treasury is to fully seize the potential of being a strategic advisor to the business. While most treasurers say that their KPIs are in line with the business’s strategic goals, only a small percentage actually derives their KPIs directly from the business’s objectives, while only 17% have shared KPIs with other areas of the business.
“We’ve had a number of roundtable discussions with many treasurers in big Nordic corporates and I’m surprised to find how few have KPIs that are aligned with overall business goals. Measurement often focuses on tactical deliveries like implementing a new cash pool, or on maintenance issues such as ensuring the smooth functioning of intercompany netting processes or to maintain a certain liquidity or hedging ratio.”
- Jesper Ramsö, Head of Cash Management Sales, Nordea
More often than not, the KPIs are actually parameters or limits drawn from the treasury policy, governing acceptable limits in traditional operational areas like liquidity, funding and FX risk management. The majority of treasurers are not yet using their KPIs as a lever to prove and improve their value to the business – just 40% measure stakeholder satisfaction and only one in ten benchmark their performance against other businesses.
More than 160 large Nordic and international corporates participated in our 2016 Treasury KPIs survey in Q2, 2016. Our respondents were spread across Sweden, Denmark, Finland and Norway and were representative of a wide range of industry sectors. Nearly 40% of the large corporates we surveyed had an annual turnover greater than €1 billion, with almost 15% of our respondents coming from smaller large corporates with a turnover less than €250 million. Our quantitative research was supplemented by in-depth discussions with treasurers both one-on-one and in group roundtables.
Contact Katri Benckert in Nordea Transaction Banking Communications and Marketing who can provide further information or arrange interviews with the report authors.
Tel: +46 10 1563604 | Mob: +46 738665776 | E-mail:
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