Consulting and implementation guidance are vital parts of any treasury management system roll-out. After all, any system is only ever as good as its users and the workflows surrounding it. But how can treasurers get the most bang for their buck when it comes to TMS consulting – and are there convincing arguments for a no-guidance approach?
You can buy the fastest car in the world, with all of the latest gadgets, but if you don’t have a driving licence, leveraging all of the car’s functionalities from the get-go will be extremely tough. Performing a treasury management system (TMS) implementation without consulting is similar – you’re unlikely to be able to make the most of your investment, certainly not within a short time-frame.
Of course, not everyone wants or needs the fastest car. Some just require a mode of transport to get from A to B safely – but critically, they want to be able to set out on their journey ASAP. As such, it is not uncommon for treasurers to request an out-of-the-box system, with one of the main requirements being speedy implementation.
In this instance, treasurers are rarely looking for any kind of consulting. They want the car manual – in other words the technical TMS implementation – and they want to be firmly in the driving seat of the project. The rise of cloud computing has aided this approach, since treasurers can now deploy a cloud TMS with minimal disruption and zero on-premise work. Training on the system and any basic configurations can also be delivered remotely, freeing up time for ever-busy treasurers.
This kind of low-touch TMS implementation offers obvious time and cost benefits. And many companies can configure their chosen TMS to take advantage of its basic functionalities without significant external help. This is like getting in an automatic car – you just switch on the ignition, select ‘drive’, release the handbrake, press the accelerator and away you go.
Revving the engine
Nevertheless, a TMS implementation without consulting is unlikely to extract maximum added value. A consultant can take the technical functionalities of a system and marry them with expertise around how the system can support processes, simplify workflows, create operational efficiencies, and improve cash visibility and security – to deliver a ‘full package’ solution.
After all, the functionality of a system is a prerequisite; consulting is the more exciting part as it injects fuel into the TMS engine, through knowledge transfer. This is not to say that consulting has to be incredibly in-depth. Cases can be made for different levels of consulting, depending on the desired results. But the more entrenched the consultant is in the implementation and the better they understand your treasury function’s workflows, the more knowledge they can impart from other projects to ensure that best practice is embodied. The right consultants can also give advice on restructuring treasury activities to enable greater efficiencies in the age of digital transformation.
Choose the fast lane
So, when you’re thinking about going through an RFP for a new TMS, it’s worth adding consulting from a potential TMS vendor into the mix if you’re looking to get as much mileage as possible out of your system – and also if you’re keen to future-proof your tech set-up. Ask TMS providers to put forward their best suggestions for a system implementation based on challenges and goals outlined by the corporate. Often the solution will be more imaginative and more responsive to the corporate’s particular needs if open-ended questions are asked.
This type of approach does require a consultant with sound treasury knowledge, however, as they truly understand the demands of the role, and what is required of a TMS. At BELLIN, all of our certified consultants are experts in the field of treasury.
As such, our consultants can determine how factors such as the number of entities the company has, the different currencies it uses, and its bank connectivity channels, will impact any TMS implementation. They will also take account of liquidity forecasting and risk management challenges.
Call in the mechanics
While having in-depth consulting knowledge in-house at a systems provider is key, it is also important to recognise when to partner with external experts. A perfect combination of in-house consulting from a systems provider and qualified certified and competent external implementation partners can make a real difference – especially when working in challenging or unique markets, such as Japan.
With this collaborative approach, BELLIN leverages the local knowledge of external consultants, and combines that with in-house subject matter experts, to create a powerful solution for the client. That said, we also recognise the different implementation approaches that corporates require. As a result, we have developed three levels of consulting that represent this:
Avoiding potholes
Some corporates define all of their requirements for a new TMS without even talking to a system vendor. This could lead to an RFP questionnaire that consists of 500-plus questions. Instead of spending so long creating such an extensive questionnaire, it could be more advantageous to spend time in workshops with the system vendor. This enables the corporate to create a questionnaire that accurately describes the challenges they are facing and what they are looking for in a solution, without being overly prescriptive.
For a complex implementation project, perhaps involving a new cash management set-up, it can also be helpful to undertake a thorough scoping exercise. In addition to workshops, scoping can be extended to a full analysis of requirements and solutions, which is documented in writing and serves as a basis for the implementation. This helps both the corporate and the vendor to define what the project should look like, the assignments for both parties, and the goals and timelines. This can be very valuable for multinational treasury projects as it helps to keep everything on track and ensures both sides are aligned.
Keeping pace
When it comes to trends in consulting needs, we are seeing increasing demand for rapid implementation – with many clients opting for the Get Started pillar. This is driven in large part by the fact that many of our new clients are not only already very experienced in treasury but are also familiar with our tm5 TMS. If they have used our system at a previous company, they are confident enough to ask for the quick approach. But at the same time, they know they can request additional consulting at a later stage – and they very often do.
Another interesting trend is the growing requirement for remote consulting. At BELLIN we want to be a carbon-neutral company, and many of our clients share the same aspirations. While our Comprehensive Consulting pillar still favours on-site assistance, we are increasingly supporting clients remotely and we find this offers a good balance between expertise, resources and sustainability.
Arguably the most interesting and exciting trend, however, is the growing technical sophistication of today’s treasurers. A conversation about a TMS implementation is no longer a question of explaining a system’s functionalities. It’s about understanding how man and machine can work in partnership to deliver the best results for the treasury department and the wider organisation – which is precisely the sweet spot of well-qualified consultants.
In short, ticking TMS boxes simply isn’t the answer. A collaborative and consultative approach is the best way to ensure maximum added value from your TMS, by designing an efficient treasury structure and optimising your processes to leverage the full extent of the system’s capabilities. But don’t just take our word for it, try it and see!
| Michael Juen Chief Customer Officer, BELLIN
Michael Juen is Chief Customer Officer (CCO) at BELLIN and boasts close to 25 years of combined treasury experience, highlighted by 20 years as partner and shareholder of a renowned consulting company, where his focus was on the implementation of TMS and consultation of cash management, liquidity planning and risk management. Michael has a degree in business informatics from Vienna University. |
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