Centralization Case Study
A human resources (HR) advisory firm that provides senior-level executive search and leadership consulting services, with hundreds of consultants in more than 70 locations worldwide.
As the firm's global presence grew, its back-office processes developed country by country, resulting in a fragmented and decentralized treasury model. In 2009, it decided to centralize and standardize back-office functions and integrate a new global finance system.
The firm consolidated its banking across 13 countries in Asia with J.P. Morgan, including in-country accounts, centralized payments and an enhanced automated liquidity structure. Today, the firm's centralized corporate treasury structure, along with regional management in Hong Kong, sets global policies for the region's cash management and forecasting with enhanced visibility, operational efficiencies and risk management.
- Gained visibility into balances and control of transactional flows
- Improved control over company expenses through transparent pricing across the region
- Reduced errors by implementing a single upload/download from the enterprise resource planning (ERP) system
- Improved reconciliation and increased efficiency by standardizing processes
- Enhanced yield on operating balances
- Realized value for funds held in restricted markets, such as the Chinese Yuan (CNY) and Indian Rupee (INR)
- Lowered intangible administrative costs resulting from duplication of treasury functions
- Reduced the number of bank accounts to reconcile and maintain
- Lowered risk with foreign exchange spot conversion and cash movement by eliminating the physical movement of cash
- Gained access to information updated in real time
- Achieved greater adherence to Sarbanes-Oxley (SOX) guidelines
- Reduced counterparty risk exposure
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