5 Top Tips - Selecting a new Treasury Management System

Jan 31st 2014 | Americas, Asia, Middle East and Africa, Europe

There is much to consider when choosing a new TMS, get in the right mindset with these tips.

For a more detailed step-by-step guide to save you time, money and resources, attend our online workshop
How to Select and Implement a Treasury Management System >

1. Use this as an opportunity to review treasury
The beginning of a TMS project provides an excellent opportunity to check all of the current processes and procedures within treasury.  Are they still efficient?  Are they still relevant to a changed business?  Do the actual tasks performed still match the original processes and procedures document?  Time for a spring clean!
Also, check the existing application of systems within treasury and how they are used; it’s possible that the solution is not a new system but a more fitting application of the existing one.

2. Build a requirements definition
This document should be a thoroughly researched definition of treasury’s requirements in respect of treasury technology.  It may include other software in addition to a TMS.  Be sure to involve all relevant parties and ensure that all key personnel (stakeholder’s, etc.) sign off on the completed document.
3. Ensure management and budget commitment
At the outset ensure that there is solid management commitment to its completion and agree any parameters that management may require.  Also ensure that budget is available.   Naturally, this will initially be of an estimated cost gleaned from a little research but as the selection process moves forward and discussions are held with suppliers more accurate costings will be available.  Make sure management are aware and regularly check on-going support for the budget.

4. Carefully manage the selection project
Research the market thoroughly to ensure that all of the options are considered otherwise opportunities may be lost. Plan the selection project carefully and compare all of the systems that you see against a common yardstick, usually the key points from the requirements definition.  Distinguish carefully between essential requirements and those system attributes that are “nice to have”. Make sure that all of the important areas have been covered with the suppliers and keep asking questions and seek assurance before a final decision is made.

5. Thoroughly plan and execute the implementation project
Confirm that management backing is in place for the implementation project and put into place a robust project team structure that involves sponsor, stakeholders and representatives from the most important finance/business areas.  Most importantly there should be an experienced project manager in place.
Work with the supplier as part of the team to ensure that any issues are resolved quickly and effectively and also put in place a sound governance structure to ensure that the project runs within the prescribed parameters and that best practice is followed. And most importantly, build at the outset a thorough and detailed project plan breaking the project down into its various parts and also clearly assigning specific responsibilities to individuals.

By Ken Lillie, Director, Lillie Associates and EuroFinance tutor

For a detailed step-by-step guide, attend our online workshop
How to Select and Implement a Treasury Management System >
Next date: 12-13 March 2014

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