Citi and The NeuGroup have announced results from the first phase of their partnership to identify best practices in corporate cash management. This was an outcome of a joint research programme with The NeuGroup’s Global Cash and Banking Group, a peer group of senior treasury practitioners from global companies across a variety of industries.
Highlights of world-class principles identified in the first phase include:
- Organisation – owning core functions, while maintaining significant influence over those that can impact financial results.
- Centralisation – striking the right balance between headquarter centralisation versus regional and local co-ordination and execution.
- Technology – continually driving to minimise the number of core platforms, supplemented by ‘best-of-breed’ special-purpose applications where necessary.
- Talent management – developing and using tools and philosophies for effective recruiting, development and retention of star performers.
- Bank relationship management – standardising internal management and control of bank accounts and signatories, and the use of scorecards for measuring the performance of global partner banks.
- Policies and procedures – covering critical functions, including performance metrics, segregation of duties and control processes, and thorough, tested business continuity plans.
Phase two of the principles of world-class cash management project will be completed in March of 2010 and cover processes including in-house banks, cash pooling, and cash forecasting and positioning.