How To Develop andLead a Global Treasury

Organization

Darrell ThomasMay 2019

Harley-Davidson, Inc.

• 7 Manufacturing Operations• 22 Sales and Marketing Operations – Globally• 2 Regional HQs• Global headquarters – Milwaukee, WI• 6,000 employees• 1,500 dealers in 90+ countries• Wholly-owned Financial Services business – HQ in Chicago

1Company Confidential

Vision

• To develop and lead a global treasury organization, you need to have a vision the team believes in.

2Company Confidential

Harley-Davidson must Have a World-Class Treasury

Organization

People

• Once the vision is established

‒ Assess

‒ Benchmark

‒ Everything starts with:

3Company Confidential

People

People

4Company Confidential

• In 2010, Treasury comprised 35 people and I had 6 direct reports.

• Today the Treasury Department is 29 people with 5 direct reports.– Only one of the current direct reports were in place when I joined.

• You must get the people part right and they must accept the vision.

Policies and Procedures

5Company Confidential

• Review of all policies and procedures

• Benchmarking

• Gap Analysis

• Identify time and resources needed to get to “World-Class”

• Develop Road Map

Technology

6Company Confidential

• A Key to World-Class is Technology

• We developed a 5-year Road Map– Payroll System– Treasury Management System– OCR– Global AP / T & E System– RPA

• These systems deliver– Globality– Visibility– Efficiency

Treasury Technology/Investment Road Map

2010 2011 2012

Global CashManagement(Single System)

Global Risk Management

GlobalLiquidity

Management(Cash Forecasting)

Standardize GlobalPolicies and Procedures

HDI, HDMC, HDDS, LA RHQ Implementation

2013

Develop Robust Commodities Hedging Strategy

SAP

Rel

ease

SAP

Rel

ease

May

SAP

Rel

ease

SAP

Rel

ease

SAP

Rel

ease

RequirementsGathering &

Visioning

Develop Robust FX Hedging Strategy

Develop Liquidity Policy, Procedure and domestic

forecast model

Identify Global Bank Structure and rationalize bank partners & consolidate relationships as appropriate

HDDS into US cash poolHD Michigan into US cash pool

EMEA RHQ Implementation

Blue Printing

Blue Printing

HDI, HDMC, Implementation

RequirementsGathering &

Visioning

Blue Printing

Expand liquidity management to include 100% of accounts and

cash worldwide

APAC BluePrinting

Technology ComponentProcess only steps

Treasury Technology/Investment Road Map

2014 2015 2016

Global CashManagement(Single System)

Global Risk Management

GlobalLiquidity

Management(Cash Forecasting)

SAP

Rel

ease

SAP

Rel

ease

SAP

Rel

ease

SAP

Rel

ease

SAP

Rel

ease

EMEA RHQ Implementation

APAC RHQ Implementation

Blue Printing

Blue Printing

Blue Printing

APAC RHQ Implementation

HDI, HDMC, HDDS, LA RHQ Implementation

RequirementsGathering &

Visioning

Blue Printing

APAC RHQ Implementation

SAP

Rel

ease

Business Impact Analysis (BIA) - Previous Process

A BIA establishes critical functions, recovery requirements, and interdependencies so that recovery priorities can be set.

Gathering business requirements from 350+ global areas is a large time investment resulting in an immense amount of valuable data.

Results were in excel format and manually uploaded into a cloud based tool.

9

Resolution- Automation

10

Prep./Interview

Data Validation Data Entry Reporting

1.5 Hours*

30 Min.* 1 Hour* 1 Hour*

15 Min.* 0 0 30 Min.*

Saves 3.25 Hours per business areax 350 business areas

*Per Business Area

4 Hours*

TOTALS

45 Min.*

Manual Process

Automation

Delinquency Reporting – the process prior to automation

Corporate credit card accounts are paid upon trip approvalLate payments occur when trips not submitted before payment dueProcess established to measure delinquenciesn Generate report using Citibank systemn Email delinquent employees & managersn Escalate to 2nd level managers after 2 weeksProvided visibility, awareness & increased timely submission of

expense reportsPositive impacts to our rebate program with Citibank

11

Delinquency Reporting – RPA, how it works

12

Programmed a robot or “bot” named ‘Polly’

to follow a set of defined steps to

replicate an existing process performed by a Program Manager

Using RPA

Benefits realized by incorporating RPA with program management1. Improved efficiency

2. More time for analysis

3. Improved accuracy and consistency

Recognized Benefits

Embracing technology to change the manner in which we manage

the global card program

Why it’s Important

Step 1: Polly logs into Citibank, pulls the delinquency report and saves it

Step 2: Polly updates/refreshes all the metrics graphs and data tables with new delinquency report

Step 3: Polly goes to a shared drive and pulls the HR report of employee reporting structure

Step 4: Polly uses the delinquency report + HR report to create the email file

Step 5: Polly replaces all VP’s with their administrative assistant in the newly created file

Step 6: Polly sends emails to all the employees past due & cc’s manager

Step 7: Polly sends email to her manager stating her job is complete

13Company Confidential

Conclusion

VisibilityPeople Policies and ProceduresTechnology

Used together are the key elements to developing a World-Class Treasury Organization

THANK YOU!

Thank You