TOMATO CATCH-UP: Newsletter Issue 150 - June 2012
It’s our 20th anniversary and this is the 150th edition of the newsletter. Definitely a reason to celebrate! See our first events in Point 1! And enjoy the update on news and views that keep treasury and IT personnel on their toes! It’s a mix of articles in English and German reflecting the variety of sources we scour to come up with relevant and interesting pieces.
Enjoy!
Regula Spottl and the Tomato Team
In Today's Issue:
TOMATO UPDATES
FINANCE, BANKING AND IT
- Krise in der Euro-Zone: Implikationen
- Would SEPA Survive a Euro Zone Breakup?
- Forecasting: Less Data, More Judgment
- Increased Role of CFO in IT Investment
- Cloud Computing: Vorteile und Herausforderungen
- Devising a Successful BYOD Policy
CAREER AND MANAGEMENT
- Five Ways Processes Can Lower Productivity
- Hiring the Right People for the Treasury Job
- High IQ Doesn’t Guarantee Managerial Competence
On-going Anniversary Celebration
By Martin Schneider
Our 20th anniversary celebration is well on its way. First of all thanks a million to all the clients and friends who took the time to congratulate us on our anniversary. The notes were touching and reassuring; we are humbled by the words of appreciation sent our way.
Reminiscing about the good times, challenges and successes is good for the soul. Doing it together is illuminating. You may remember that Hans-Peter Zimmermann did just that in a video chat with me in May 2010.(Listen to it...)
Anyhow, the first events are specified; they dates are not finalized. Plans include:
- 24 June: Führung durch den ProSpecieRara-Schaugartein Schloss Wildegg, Aargau
- August: Führung durch die Arterien der Passagierabfertigung im Zürich Flughafen
- September: Rheinschifffahrt im Züri-Unterland
- October: Führung durch das Kultur- und Kongresszentrum KKL, Luzern
Krise in der Euro-Zone: Implikationen
Der Umfang von Turbulenzen an Kapitalmärkten in der Euro-Zone sind heute noch nicht absehbar. Unternehmen müssen sich trotzdem auf das Szenario einer ausgeweiteten Krise vorbereiten.
Frank Wendt, Director Management Consulting at KPMG, spricht über die Implikationen einer sich ausweitenden Krise in der Euro-Zone und erklärt wie sich Unternehmen darauf vorbereiten können. Er fokussiert vor allem auf die Aspekte, die das Treasury eines Unternehmens prüfen muss und die Massnahmen, die gefasst werden müssen. (Details...)
Would SEPA Survive a Euro Zone Breakup?
If Greece excited the euro zone, and it’s not unlikely, what would it mean for SEPA?
A survey published by the Financial Services Club revealed that 68% of the 350 participants said that it may not survive intact.
As to the impact of a euro zone breakup, 42% said that that SEPA would be just as relevant, although only 38% of European participants and 33% of bank participants agreed.
Some aspects of SEPA are doubtful. For example, only 47% of the participants felt that the end date will make a significant difference to SEPA’s success.
However, 60% of participants believe that the SEPA vision would be realized by 2017, compared with 66% in last year’s survey.
Financial Services Club’s Report The State of the European Payments Marketplace
Related article in GTNews SEPA Will Survive Even if the Euro Doesn't, Believes Banking Industry
Martin Schneider’s Comment:
This issue is important and the media needs to discuss it. For us who work in international payments, there is no need for what if analyses just yet. The way I see it, SEPA and IBAN regulate and structure the European payments. Even if the Euro doesn’t survive, the underlying infrastructure can be maintained. Processes and IBAN can continue, so can Swift/BIC addresses. Prices are regulated and that too can continue.
Forecasting: Less Data, More Judgment
Financial planning and analysis teams that keep looking until they find the “perfect” data won’t provide insights CFOs can use. To reap desired result, they need to incorporate more judgment with fewer numbers into their analysis, according to the CEB Financial Planning & Analysis Leadership Council, a new program of the Corporate Executive Board (CEB).
The CFO Magazine article “Too Much Data, Too Little Judgment” elaborates on qualitative analyses conducted by the Council.
Since judgment is so crucial, the CEB specified five elements of judgment and identified how they should be integrated into financial planning and analysis:
- Synthesizing diverse data
- Inferring trends
- Generating insight
- Redirecting poor business assumptions
- Influencing business decisions
(Full story and elaborations on these points...)
Increased Role of CFO in IT Investment
A recent survey by Gartner and the Financial Executives Research Foundation revealed that CFO’s role in technology decision-making is up 44% since 2010.
255 CFO responded to a survey that asked financial executives about the economic environment, the CFO's role in technology and their IT investment priorities.
The survey results showed various ways that CFOs are involved in making IT investment decisions; and it leads to the conclusion that engaging the CFO is critical. For example, CFOs need to explain to CIOs the IT capabilities needed by the finance function. Also, they often have greater involvement with senior business governance group. In addition, they have a strong influence and credibility with the CEO and board.
Artikel auf deutsch: “CFO: mehr Macht bei IT-Investitionen!”
Cloud Computing: Vorteile und Herausforderungen
Cloud Computing wird die IT-Architektur, die IT-Organisation und die Rollen der Involvierten in den nächsten Jahren grundlegend verändern. KPMG erklärt in zwei Dokumenten worum es geht sowie die Herausforderungen und Risiken.
In “Cloud Computing ermöglicht Paradigmenwechsel” diskutieren Alain Beuchat und Pius Ziegler, beide in IT Advisory von KPMG Schweiz, die Wettbewerbsvorteile durch flexible Cloud Computing Systeme und wie sich die Situation der IT-Branche verändert.
“Clarity in the Cloud: A Global study of the business adoption of Cloud” (48p pdf) reveals the impact, opportunity and risk of cloud and what companies are doing.
Devising a Successful BYOD Policy
BYOD (Bring Your Own Device) seem to be one of the big issues CIOs have to deal with. In the May newsletter, we referred to the CIO.com article The BYOD Troubleshoot: Security and Cost-Savings. The latest feature in CIO.com suggests “7 Tips for Establishing a Successful BYOD Policy.” Since it was shared in social media almost 150 times, it must resonate with readers.
Jonathan Hassel, a CIO and consultant, offers tips that will help CIO address device security, IT service, application use and other key components of an effective BYOD policy. They include:
- Specify What Devices Are Permitted.
- Establish a Stringent Security Policy for all Devices.
- Define a Clear Service Policy for Devices under BYOD Criteria.
- Make It Clear Who Owns What Apps and Data.
- Decide What Apps Will Be Allowed or Banned.
- Integrate Your BYOD Plan With Your Acceptable Use Policy.
- Set Up an Employee Exit Strategy.
Five Ways Processes Can Lower Productivity
Proper processes help organizations improve efficiency if they are managed right. It’s not just managers’ shortcoming; company structures including the number of procedures, interface structures, coordinating mechanisms, and required decision approvals have constantly increased.
In the Fast Company article “5 Ways Process Is Killing Your Productivity” Lisa Bodell describes these processes as:
- Empowering people, giving them more responsibility, yet obtain an unreasonable number of approvals and sign-offs to get anything done.
- Managers focusing on processes rather than people to solve problems.
- Relying too much on meetings signals a focus on politics, not productivity.
- Confusing people with a great vision and mission that don’t explain the purpose.
- Tearing people down when they propose new ideas or question the status quo signals a lack of perspective and openness.
The article features elaborations on the five points and examples. Excerpted from the book Kill the Company: End the Status Quo, Start an Innovation Revolution, by Lisa Bodell.
Hiring the Right People for the Treasury Job
Finding a good match between the person and the job is not easy. Gtnews recently featured several articles on hiring treasury personnel. It seems to come down to several questions that need to be answered before evaluating resumes and interviewing candidates. They include for example:
- What fundamental skills should good treasurers have?
- How familiar are they with changes in regulatory environments and pressing issues in regard to risk management?
- How are their soft skills?
- How strong are they in communication in meetings that require them to translate financial findings persuasively?
In “Finding 'the One' to Fit Your Treasury Role”, Finian Toh of Robert Walters offers a good overview of what to look for when recruiting a treasury professional. (Full story... registration required, free)
Related articles:
Getting the Right People into
Treasury Roles
Anne Ryan, The Meyer
Partnership
Recruiting: How to Find a Match Made
in Heaven
Paddy Adair, Investigo
High IQ Doesn’t Guarantee Managerial Competence
A high IQ doesn’t guarantee managerial competence and success in business. Researchers at the Carnegie Institute of Technology have found that 85% of financial success is “due to skills in ‘human engineering,’ your personality and ability to communicate, negotiate, and lead” and only 15% is due to technical knowledge.
In the article “Intelligence Is Overrated: What You Really Need To Succeed”, in Forbes Magazine, Keld Jensen suggests that people should focus not only on the conventional IQ but also on their EQ (Emotional Intelligence), MQ (Moral Intelligence), and BQ (Body Intelligence).
Jensen, an expert on trust, negotiation, leadership, and communication, describes each of these intelligences and offers tips for improvement. (Full story...)
From the Desk of Regula Spottl, Greensboro, North Carolina
Postpone doing things and going places and you may regret it!
For years Doc Watson, a blind North Carolina guitarist and folk singer, performed several times a year in the Greensboro area. I always planned to go listening to his picking the guitar and singing bluegrass and country music. Well, he passed away at 89 the other day. All that’s left is some youtube videos.
If you are somewhat vague about the culture in my part of the world, Doc Watson exemplifies North Carolina mountain music. The New York Times writes in the obit that “Mr. Watson came to national attention during the folk music revival of the early 1960s. He injected a note of authenticity into a movement awash in protest songs and bland renditions of traditional tunes. In a sweetly resonant, slightly husky baritone, he sang old hymns, ballads and country blues he had learned growing up in the northwestern corner of North Carolina, which has produced fiddlers, banjo pickers and folk singers for generations.” (NYTimes Obituary...)
Watch/Listen to “Deep River Blues" (1991); and "Doc Watson & Earl Scruggs Play At Doc's Home"
Your Tomato
Regula Spottl