Generalists Versus Specialists
With the FIFA World Cup playing out through June and July, finding an analogy between football team selection and treasury team building seems fitting. But is there really anything these two outwardly unconnected groups have in common? Oleh Kurinnyi, a global treasury and operations specialist, believes they have.
Over his long career, Cristiano Ronaldo has proven to be a rare example of athletic versatility. Through training and intelligence, he has adapted to the demands of modern football. And now, even at the age of 41, he is set to be a key part of Portugal’s World Cup squad.
Ronaldo started his career as a classic right midfielder. He then became an explosive left winger, and by his late 20s had transformed into the ideal centre-forward (or striker). He is equally dangerous in front of goal with both right and left feet. His ability to leap higher than most has enabled him to become one of the best headers of the ball in the game’s history.
It’s this uncommon blend of the specialist and the generalist that has elevated Ronaldo into the highest echelon of the sport. But in the slightly less visible but nonetheless important world of treasury, is the distinction or combination between specialist and generalist appropriate?
The classic treasury role is to ensure the smooth liquidity and solvency of a company or bank. It involves maintaining a balance between incoming and outgoing cash flows so that the company always has the funds to meet its current obligations.
In a small business or greenfield treasury setting, the treasurer will often cover all of the necessary functions. In many large treasury teams, specialists are often employed in cash reconciliation, cash flow forecasting, liquidity management, bank account co-ordination, and payments, as well as in the collection and analysis of related data.
But even within large units, for teamwork to succeed, it is helpful for individual team members to be able not only to perform their own specialist duties but also step in to cover for a colleague who is temporarily out of the loop.
Such Ronaldo-esque individual adaptability serves as a hedge against operational risk, which is particularly important during force majeure events, a topic covered in my TMI article on crisis management.
At the same time, the treasury function itself is the heart of the financial department in any company, as well as the Asset and Liability Management Centre in every bank. As a middle-office function, it serves as the flexible link in the technological chain connecting the front office, trading desk, and account management to the back office, as well as actively collaborating with compliance and risk management departments. In addition, treasury acts as the co-ordinator of the transfer pricing system, helping to transform business units that were traditionally considered cost centres into profit centres, a theme explored in my TMI article on balancing risk and return.
An experienced treasurer and treasury must therefore possess knowledge in a wide range of related fields, and be experienced in communicating with employees in neighbouring departments and branches around the world, with internal and external stakeholders, and with company management, all at various levels.
One or the other, or both
Broadly speaking, the demand for generalists or specialists depends on the strategic task facing the treasury team. In the early stages of launching a start-up or a greenfield treasury, treasurers who can build a cash management system and establish business processes with clients and partners will be more valuable. Large companies with processes established over many years of successful operation will most likely need specialists who perform one or more functions within a large organisational framework.
Specialists may be effective for simple tasks, but surmounting challenges that require creativity and multitasking calls for versatile employees. It is precisely these well-rounded professionals who can provide a comprehensive service through a single point of contact with clients.
Large companies and banks often have special teams of ‘Jacks of all trades’. These may step in to assist various departments experiencing a temporary shortage of staff during, for instance, periods of restructuring, the opening of new branches, relocation to a new office, data migration, new product launches, external audits, and even during extended holiday periods.
The highest level of versatility is required of specialists in project management and financial consulting. Optimising treasury business processes, implementing a new TMS, creating dashboards, and introducing new reporting systems, is best accomplished by a team of creative specialists with experience in various related fields, as well as across different industries, companies, and banks. These are all ideas covered in more depth in my TMI article on financial transformation projects.
From a hiring perspective, at first glance everything seems simple: generalists should be hired for treasury manager positions and sometimes senior treasury analyst roles, while specialists should be hired for junior and treasury analyst roles. But I wouldn’t jump to conclusions.
If a candidate appears ‘too experienced’ for a specific open position, this should not deter HR from considering that application. First, such an employee will perform routine tasks better than any junior staff member, since they have already mastered them and do not require any training.
Second, a generalist views their duties as part of a larger process and knows how to take into account the perspectives of related departments when interacting with treasury. Moreover, such an employee can advise managers on how to improve existing processes, what can be automated, and where to implement additional controls, always drawing on their experience and a fresh perspective in their new role.
By hiring an ‘overqualified’ candidate for an entry- or mid-level role, the company gains a double benefit for a modest salary. Additionally, such an employee can serve as a pipeline for a managerial position in the future if the company plans for growth and development.
For the treasurer, in this era of globalisation and rapid spread of technology, the job market is highly volatile. Versatility is becoming one of the key factors in hedging against the risk of unemployment.
Wisdom of the stars
Well-rounded training begins at the stage of obtaining a basic professional education. Many successful treasurers hold a degree in finance or a STEM (science, technology, engineering, and mathematics) degree. Due to internationalisation, many are also fluent in several foreign languages. The readiness of many treasurers to take on additional training in data analytics, the use of AI and other cutting-edge technologies in the workplace can further serve as a springboard for starting a new position or changing career paths.
While long-held wisdom informs us that scientia potestas est – knowledge is power –exceptional talent such as Ronaldo also understands the power and endurance of flexible thinking and a high degree of adaptability. Seen through the eyes of the treasury professional, it means being both a generalist and a specialist is entirely possible if you put your mind to it.
