Leading through change: Essential leadership skills for Treasurers

Written by:

Jessica

Treasurers are more than just the custodians of cash, they’re leaders who guide their teams and companies through times of change. Over the years, having led numerous treasury projects across the globe, I’ve seen that the most successful treasurers are those who adapt, think strategically, and inspire others. Treasury leadership is about more than just technical expertise; it’s about how we manage change and help our teams grow in a constantly evolving financial clime.

Here are some of the key leadership skills I’ve found essential for treasurers when navigating change.

1. Adaptability: Embracing and leading change

Change is constant in the Treasury, whether it’s shifts in regulation, the rise of new technologies, or market volatility. A great Treasurer not only keeps up with these changes but also leads the way. For example, I worked on a project in West Africa where new regulations forced us to pivot from traditional investment instruments to alternative options. Rather than resist, we embraced the change, learning about new instruments and adapting our strategy quickly. This shift allowed us to continue meeting our goals while staying compliant, ultimately leading to a stronger, more resilient portfolio.

Adaptability isn’t just about being reactive to change, though; it’s about leading your team with confidence when things shift unexpectedly. It’s about creating a culture where change is seen as an opportunity, not a threat.

2. Strategic thinking: Looking beyond the numbers

For Treasurers, strategic thinking is about aligning financial strategies with the company’s broader business goals, especially during shifts in economic conditions. I led treasury operations for a beverage manufacturing company during a period of rising interest rates. This environment posed challenges, as increased borrowing costs impacted our cash flow, given the significant capital requirements for production, equipment, and raw materials.

Rather than passing costs on to customers, we took a strategic approach by adjusting our financial structure to navigate this rising rate clime. We renegotiated terms with our suppliers to extend payment windows, helping us free up cash and reduce immediate financing needs. We also prioritized early repayments on variable-rate loans to minimize exposure to rising interest costs and secured fixed-rate 7-year loans, locking in predictable costs for future expansion.

Additionally, we revisited our hedging strategy to mitigate the potential impact of currency fluctuations on our imported raw materials, which could further strain cash flow under high rates. By proactively managing both financing and operational strategies, we were able to protect our margins and continue growth initiatives, even in a high-rate environment. Strategic thinking in treasury means seeing beyond short-term adjustments and making decisions that support long-term resilience and growth.

3. Effective communication: Making complexity simple

Treasury can be a complex and technical field, and often, as a Treasurer, you need to explain complicated ideas to people who don’t speak “finance.” Being able to communicate clearly is essential. I once had to explain the nuances of currency hedging to a team of non-financial stakeholders. Instead of speaking the jargon, I focused on real-world examples: how hedging would protect us from price increases in raw materials and help stabilize costs.

Clear communication builds trust and alignment across teams. As a Treasurer, you need to make sure that your team, executives, and other departments understand the treasury strategy and how it ties into the company’s overall vision. When everyone is on the same page, decisions are easier to make and execute.

4. Resilience: Staying strong in the face of adversity

Treasurers often find themselves at the center of high-pressure situations, particularly during times of financial uncertainty, like during the COVID 19 pandemic. Whether it’s a market downturn or an unforeseen crisis, resilience is key to maintaining control. I remember during the 2020 financial crisis, when liquidity was tight, I was managing treasury for a large multinational. We had to make quick decisions to protect the company’s cash flow. It wasn’t easy, but by staying calm and focused on our long-term objectives, we managed to weather the storm and came out of it in a stronger position.

Resilience is about staying steady and making informed decisions, even when things are tough. It’s also about keeping the team motivated and confident in the face of adversity. As a treasury leader, you set the tone for your team in times of crisis, and your resilience will be felt throughout the organization.

5. Technological savvy: Harnessing the power of tech

Technology is transforming the treasury function, and as a leader, staying on top of fintech trends is crucial. I recall implementing a new ERP and TMS for a large beverage manufacturing company as the Head of Treasury, I experienced great resistance. We had to raise project champions within the resistance which infiltrated and spread the benefits of the technology. This eventually dismantled the resistance, and people quickly adopted the technology, which led to increased efficiency.

Treasurers today need to be open to new tools and systems but should anticipate internal resistance and proactively develop mitigation strategies. Whether it’s leveraging AI for better cash forecasting or using data analytics for smarter decision-making, embracing technology can dramatically improve efficiency and performance. Staying tech-savvy means looking at how new tools can enhance treasury operations and make the business more competitive.

6. Mentorship and team development: Growing future leaders

Leading a treasury team means more than just managing processes, it’s about developing people. As treasury leaders, we have the responsibility to mentor and nurture the next generation. I once helped create a mentorship program within my team, where we paired senior team members with junior colleagues to guide them in both technical skills and leadership development. The result? A more engaged, capable, and motivated team that could handle more complex tasks with confidence.

Mentoring is one of the most rewarding aspects of leadership. By investing in your team’s growth, you’re not only ensuring the long-term success of the department but also building a culture of leadership that can thrive beyond your tenure.

7. Visionary Leadership: Inspiring the future

A great Treasurer doesn’t just manage today’s treasury needs; they inspire a vision for the future. One of the best pieces of advice I received early in my career was to always ask “Why?”, why we’re doing something, why it matters, and why it will make a difference. I’ve passed this on to my team, encouraging them to think beyond the current task and understand the bigger purpose behind their work.

As treasury leaders, we set the direction for our teams and organizations. By inspiring a vision of what the future could look like, we motivate others to think creatively and push the boundaries of what’s possible. Leadership isn’t just about managing day-to-day tasks; it’s about fostering an environment where innovation can flourish.

In summary

Leading through change requires a balance of technical expertise and strong leadership qualities. The best treasurers I’ve worked with, whether in the US, Europe, Asia or Africa, are those who possess the adaptability, strategic insight, communication skills, resilience, technological awareness, and mentorship abilities to guide their teams through challenges.

Being a Treasury leader today means more than just managing money; it’s about setting a vision, adapting to change, and leading your team through the unknown. When you embrace these leadership skills, you not only strengthen your treasury function but also build a culture that thrives in the face of change. And that, in the end, is what truly makes a Treasury leader successful.

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