Chapter Twenty Seven

Key Performance Metrics for a Treasury

A SCORECARD FOR TREASURY PERFORMANCE needs a balanced combination of objective and subjective elements. Various firms use different methods to evaluate the performance of their Treasury. Some firms use just one method. Some firms do not find the need to have an objective evaluation of the performance of the Treasury function; we do hope that the reading of this book will encourage them to develop metrics for their Treasury.


For a global Treasury that works as a cost centre, Figure 27.1 provides a simple summary of the key organisation and financial goals.

FIGURE 27.1 Key Metrics


How these are achieved and how the many elements that contribute to the success of a global Treasury are captured form the core of this chapter. All activities involve people, and without extensive interaction and teamwork among people of the Treasury function and the rest of the organisation, no success would be possible. Some of these subjective performance elements should be captured in metric form. Performance metrics and benchmarks have to be comprehensive in coverage and simple in design and execution.

In this chapter, we provide just one of the many scorecards that can be used. The performance evaluation for a Treasury can be divided into three steps:

1. Decide the metrics to be evaluated.
2. Compare these ...

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