A recent survey of corporate executives conducted by SAP and CFOResearch provides some interesting insights into global businesses'priorities for their treasury function. The survey included 661executives, all at companies with more than $500 million in annualrevenues. Eighteen percent of respondents said they are CFOs; 18percent are directors of finance; 15 percent are treasurers; and 11percent are CEOs or other business managers.

When the survey asked these participants to select their threemost important priorities for improving treasury performance, theirtop two choices are not surprising: optimizing treasury processes(44 percent) and upgrading treasury information systems ortechnology (38 percent). Nearly a third also prioritize improvingthe treasury function's ability to work closely withline-of-business managers. However, fewer than a quarter ofrespondents are focused on improving treasury performance byexpanding or adding treasury services, or by adjusting treasurystaffing levels. (See Figure 1.)

The survey also asked participants how much improvement theyneed to make in specific treasury activities. Again, respondentshighlighted the need to beef up their treasury information systems.Overall, more than three-quarters said their company needs toimprove its treasury software. Other areas in which the vastmajority of participants said their company needs to do better:improving the accuracy of its cash flow forecasts (75.9 percent),improving connectivity with third parties' information systems (72percent), improving yield on liquid assets (70.3 percent), andstrengthening the company's liquidity position (69 percent).Respondents placed lower priority on reducing costs, either intheir internal treasury function or in their dealings with thirdparties, such as banks. (See Figure 2.)

The survey results become even more revealing when responses aredivided by job title. It's true that similar proportions of CEOs,CFOs, and treasurers said their treasury information systems needsignificant improvement. However, when it comes to activitiesrelated to growth, much larger proportions of business executivessee room for improvement than do finance managers. For example,more than twice as many CEOs as treasurers think their companyneeds to substantially boost its liquidity. Twice as many CEOs asCFOs think the company needs big improvements in connecting withinformation systems of third parties. And CEOs are about twice aslikely as either CFOs or treasurers to think the company needs tomake significant progress in either optimizing internal fundingacross national borders, or in reinvesting cash in the business.(See Figure 3.)