Project Perfection

How to Ace Change Management

In the face of external and internal drivers, treasurers must frequently embark on projects to alter their processes, policies or technologies. While change can be daunting, there are certain steps that any treasurer can take to increase their chances of achieving successful outcomes and avoiding the painful – and embarrassing – sting of inaction.

Corporate treasurers are at the forefront of navigating a rapidly evolving financial landscape. Amid technological innovations, regulatory shifts, and economic volatility, they face pressures to adapt while safeguarding organisational stability.

External drivers, such as regulatory requirements, are unavoidable, and treasurers are discovering they must constantly adapt. One example is the financial services sector’s transition to the ISO 20022 payment messaging format.

Didier Vandenhaute, Partner, PwC, highlights: “While the ISO transition directly impacts the banks as a bank-to-bank obligation, it will indirectly impact corporates, so they cannot just ignore it.”

Fraud, too, has emerged as a critical driver. A significant incident can have severe financial implications and, if that happens, the CFO will obviously demand better control over cash. From payment initiation to reconciliation, robust fraud prevention tools suddenly become non-negotiable.

Internally, leadership transitions often accelerate transformation. A new CFO or treasurer frequently arrives with fresh ideas, unburdened by legacy practices. “They want to make their mark and bring insights from previous roles,” Vandenhaute says, making them prime advocates for modernising treasury operations.

Post-pandemic dynamics have also reshaped expectations. CFOs now emphasise tighter control over cash flows and working capital, and are asking sharper questions of treasury regarding control and visibility over funds and querying whether treasury is aligned with corporate priorities. “These demands have spurred initiatives such as payment factories and expanded in-house banking,” Vandenhaute observes.

Market volatility remains a perennial concern for treasurers, often driving process changes or policy approaches.

Bob Stark, Head of Market Strategy, Kyriba, reflects: “Market volatility is always top of mind, especially with CFOs pressing for solutions.” Geopolitical tensions and fluctuating interest rates compound these challenges. “FX exposure management and balance sheet protection still lack the predictability treasurers need,” Stark adds, pointing to ongoing gaps in forecasting capabilities.

This volatility also adds a layer of complexity to the interest-rate element, as issues that may have been minor concerns in a low-rate environment now demand urgent attention.

Vandenhaute elaborates: “If you have a 5% interest rate in the US, every unused million dollars costs $50,000.” Treasurers who once overlooked weak cash flow forecasting now feel the sting of inaction.

Anticipate bottlenecks, embrace collaboration 

Change initiatives in treasury can range from minor adjustments, such as adding a few new bank accounts, to full treasury transformations involving organisational alterations, process improvement, and system implementations.

Judith van Paassen, Partner, Zanders, explains, “We distinguish between internal factors such as management commitment and clear scope definition, and external factors, including resource quality and realistic planning. Both are essential for success.”

Treasurers can underestimate the time required for these projects. Without accounting for dependencies between treasury and external collaborators – such as banks, consultants, or vendors – timelines can stretch far beyond initial estimates. “Realistic planning is crucial,” van Paassen notes, emphasising the importance of anticipating potential bottlenecks.

Today’s interconnected financial environment demands seamless collaboration across departments, as Stark notes. “The challenges arise when treasury works with other groups that share high-level objectives but differ in processes, tech stacks or data management abilities.”

For example, a treasury transformation might involve IT, accounting, legal, and tax teams, each with its own priorities and workflows. Misalignment in these areas can create friction. “Treasury must embrace its role as part of the broader finance ecosystem. Changes should never be isolated,” Stark adds.

Securing the budget for treasury projects is another recurring challenge. Vandenhaute points out the difficulty of quantifying the benefits of enhanced cash visibility or control. “Treasurers struggle to translate qualitative improvements into hard numbers, which makes it harder to justify budgets,” he says.

Budget planning is often siloed, leading to unexpected roadblocks. Treasurers can sometimes overlook the need for buy-in from IT or legal, whose budget constraints can stall the project.

Resource availability compounds these issues. Treasury teams may lack the bandwidth or skills to implement more complex projects. “If the treasurer doesn’t have adequate resources, projects take far longer than expected or don’t reach the desired quality,” Vandenhaute reflects.

Technology and data also play critical roles in treasury transformation’s success or failure. “Treasurers can sometimes clearly see what they want to achieve, but their current systems just can’t support it,” underlines Vandenhaute.

Data accuracy is another major hurdle, particularly in cash flow forecasting, which is consistently cited as a top challenge for treasurers. Although the treasury might have access to vast amounts of data, it is unusable if the data isn’t accurate. Reliable, actionable data is the foundation of effective change management for treasury operations.

Treasurers looking to drive meaningful change must address these challenges head-on. Success hinges on realistic planning, cross-departmental collaboration, securing necessary resources, and ensuring data and technology readiness.

As Stark aptly summarises, “Treasury transformation isn’t just about treasury – it’s about building connections across the organisation and aligning everyone towards shared goals.”

Seeking cultural alignment

When treasurers embark on change-management projects, addressing cultural aspects is often as crucial as tackling technical or operational hurdles. The challenges lie in balancing perspectives, engaging stakeholders, and ensuring the treasury integrates smoothly within the broader organisation.

To succeed, treasurers must fully grasp the scope of the issue they aim to resolve. “Don’t rush,” cautions Vandenhaute. “Spend time understanding the current situation and its impact on the organisation and people involved. Are you sure you’ve defined the problem correctly?”

This understanding sets the foundation for aligning teams and resources. Vandenhaute stresses early stakeholder engagement: “Treasury doesn’t live in isolation. If treasury needs support from accounting, IT, or legal six months down the line, tell them from the very start so they can allocate time and resources.”

Creating buy-in is critical. Adopting a ‘key-user’ approach can help, as van Paassen explains: “Involve representatives from the front office, back office, and accounting. They’ll contribute to the change process and help convince their teams to embrace new ways of working.” This fosters ownership and ensures changes resonate throughout the treasury.

Forming reference groups adds a decentralised perspective. “Sometimes treasurers assume a simple email suffices to explain a new process, but the reality is different,” van Paassen notes. “A reference group ensures communication is clear and understood.”

Treasury’s work often intersects with departments including AP, AR, and FP&A, each with unique views on shared goals such as cash flow management. Stark highlights: “Treasury has strong views on cash, but AP and AR control the cash conversion cycle from different angles.”

Aligning these perspectives, particularly around data strategies, requires focusing on the end goal. “Start with the overarching business objective, then break it down,” Stark advises. “Identify approaches, weigh their pros and cons, and find common ground.”

Though differences may surface initially, focusing on shared goals often reveals synergies. “By focusing on the high-level objective, you’ll find more similarities and opportunities for a unified model,” Stark points out.

Successful treasury transformations hinge on cultural alignment. Treasurers can address challenges by understanding problems, engaging stakeholders early, building internal champions, and fostering cross-departmental collaboration.

“The opportunity lies in recognising differences, finding common ground, and creating a synergised model that supports organisational goals,” Stark observes.

Don’t promise the moon

Treasurers embarking on change management initiatives must define, track, and report on KPIs that reflect their impact on both treasury operations and the company.

Vandenhaute explains: “A project’s success starts with defining KPIs at the outset. Treasurers need measurable benchmarks to track progress and demonstrate results.” Without clear metrics, it’s impossible to gauge success or prove a project’s value.

The KPIs themselves will naturally depend on the project’s goals. A relevant metric for a payment factory implementation could be the percentage of payments going through that payment factory globally. For technology upgrades, it might be the percentage of cash treasury can see worldwide moving from 60% to 90%, for example. Similarly, for cash flow forecasting improvements, accuracy rates could rise from 80% to 85% within a set period. The salient point in any project proposal is to ensure that the KPIs are realistic.

“Don’t promise the moon,” Vandenhaute cautions. “Think carefully about what success looks like, define a measurable KPI around it, and ensure you can follow through.”

Metrics such as cash saved, risk reduced, or payment volumes rationalised can help treasurers build a strong business case for change, van Paassen argues. “Look at reconciliation rates, payment submission volumes, or the reduction in the number of bank accounts. These KPIs tie directly to the business case and prove treasury’s value.”

While operational KPIs are critical for treasury, it is vital also to consider the level of impact a project may have on other areas of the business.

Stark posits: “Treasury KPIs are great for benchmarking the department, but they don’t always resonate with leadership. Instead, tie your metrics to top-line or bottom-line goals such as earnings per share or free cash flow.”

Treasurers who link their work to broader business outcomes, such as helping achieve organisational KPIs, are often more likely to be viewed as strategic partners.

“The departments that focus only on efficiency improvements – like reducing hours or automating processes – may struggle to obtain recognition or additional budget,” says Stark. “If you position treasury as part of an organisational digital transformation rather than just a treasury upgrade, you’re far more likely to secure long-term investment.”

A further consideration is that measuring the success of any treasury change management project should be tracked over time, as the overall demonstrable benefit may be cumulative. Understanding the long-term impact of a change can give treasury more ammunition when discussing budgets.

“If a business doubles in size, and treasury needs to invest in new technology, CFOs may hesitate without clear justification,” Vandenhaute points out. “But if treasurers can demonstrate that a past project saved €10m over the last decade, getting approval for a new €1m investment becomes much easier.”

Positioning for successful outcomes

Treasurers often focus on operational efficiency or departmental goals, but Stark emphasises the importance of stepping back and considering the bigger picture. “It’s a cliché, but it’s also great advice – think bigger,” he says.

The evolving profile of CFOs underscores this need. Many modern CFOs come from backgrounds outside traditional finance and often serve as agents of change. As a result, they prioritise broader strategic initiatives over specialised treasury operations.

“Treasurers need to ensure that their projects align with the strategic goals of the CFO and CEO,” Stark explains. “Check your agenda – are you supporting the organisation’s objectives for 2025? Should you reprioritise or consider different technology investments to align better with the company’s goals?”

Treasury’s role as a trusted adviser is more critical than ever. “With CFOs who may not have a treasury background, treasurers have an opportunity to stand out,” Stark adds. Whether it’s explaining the potential impact of FX market fluctuations or how cash management decisions influence broader corporate strategy, treasury can shift from being a support function to a proactive driver of change.

For Vandenhaute, treasurers’ biggest  mistake is rushing into a project without adequate preparation. “Plan the change appropriately,” he advises. “Communicate widely and involve external stakeholders from the beginning – especially key players such as the CFO and heads of tax, IT or legal.”

He highlights the risks of neglecting stakeholder engagement. “I’ve seen projects delayed for six months simply because the Head of Tax was unavailable to allocate resources. Proper planning and early involvement of all relevant parties can prevent such roadblocks.”

Success in any change programme hinges on identifying internal and external stakeholders early in the process and maintaining clear communication throughout. Van Paassen notes: “Treasury doesn’t operate in isolation. Define the stakeholders and ensure they’re informed and engaged at every stage.”

But it’s not just about involving others; it’s also about the core treasury team. “Having the right skills within your team and fostering a positive environment is critical,” van Paassen concludes. “With the right people and a clear vision, treasury is well-positioned to achieve its goals.”