Q: The pandemic cut a swathe through normal life – impacting how businesses are organised and operate, as well as how and where treasurers work. What are your thoughts about these features of working life going into 2022? What positives have you seen in how treasurers and businesses have adapted?
A: One of the big things I noted from our Business of Treasury research earlier in the year is that, entirely unprompted, treasurers are talking about an increase in trust between themselves and their colleagues, and other relationships. Because the whole idea – outdated to my mind – that you have to see people physically working in order to be sure they are doing their job, has gone out of the window. There is a new sense of empowerment out there, and treasurers are enjoying feeling that they are trusted, as well as acknowledging that they need to trust others, too.
I also think that inclusion is on people’s minds as they plan their return to the workplace. At least in part, they are wondering how best to manage inclusion. Not only are they thinking about flexible working and maintaining some of the benefits that people experienced when working from home, they are also thinking about how in a hybrid world you ensure those who are not physically in the room are as full a part of the conversation as before. The whole area has prompted a lot of debate. For instance, people are weighing up whether those in the room are in fact disadvantaged, as they appear smaller on-screen to those working remotely.
Many organisations are considering whether to require all staff to use their own device. This makes sense, as there’s been lots of research that shows that if you appear larger than others on-screen, you appear more aggressive, and perhaps a shrinking violet if smaller.
Q: Hybrid working has been our reality for some time, with some businesses setting out a programme for steadily increasing employees’ days in the office and others saying they will permanently adopt flexible and homeworking. How do you see this aspect of our working lives evolving over the next few years?
A: I think this is really interesting. Currently, most treasurers seem to be planning to be in the office for two to four days a week. As you say, company culture will dictate where the balance lies. But I think there is a risk that companies may start to fall back into old habits among the euphoria of people meeting each other in person again and potentially forget the benefits of remote working.
I also think we have higher expectations of productivity at the moment. Add in a commute and I believe we are already seeing real fatigue setting in. It’s there wherever you look – the online fatigue and the return-to-the-office fatigue. I think it will be sensible for all if organisations test a few models before making any rash long-term decisions.
Let’s not forget diversity and inclusion – that’s where you’re going to get all the great ideas coming in
It is quite likely that we are in a period of ‘reaction’, currently. We want to forget some of the challenges of the past 18 months and we want change. People are changing jobs, moving houses – you name it. They want to feel in control and to experience something new and different. We need to take time out and ask: what actually is an ideal working environment? And how do we service the needs of all employees – well, at least as far as possible?
Q: Challenges are all around us. Besides grappling with the COVID-19 crisis, we are also seeing an intransigence around environmental, social and governance (ESG) issues and the climate crisis, plus a complicated picture in terms of international supply chains and cooperation generally. What is your sense of how these issues will play out?
A: As you say, Liz, these are very complicated areas. I think COVID-19 actually did bring more awareness to ESG initially, and was therefore a good thing in that regard. Now, the situation we see playing out is a divergence between different organisations. Some have done really well over the past 18 months, and some have really suffered – if they even still exist. And then the supply chain issues – which come from a whole multitude of factors, not just COVID-19 and not just Brexit – are happening everywhere.
So, I do wonder whether we’re going to see some of the behaviours we saw initially under the pandemic where people and organisations take a more nationalistic approach, or whether they will leave that to the politicians. I hope that the G and S of ESG will have influence, and that across the international community pressure from stakeholders will ensure that integrity holds its ground, on so many levels.
Q: When it comes to leadership, we’ve been hearing calls for higher levels of integrity, honesty and empathy for a long time. Now more than ever, there is a need for clarity and direction from leaders. But how easy is that to achieve? What’s being weighed up in the minds of leaders as they seek to project clear messages around purpose and strategy?
A: I have read many articles around the empathetic and honest leader, etc, and it’s a style I myself advocate as being the ideal. And I do think clarity and direction are not such challenges in themselves if they are built on a foundation of transparency and integrity. And of course you’ve got to have a bit of decisiveness in there, too!
The key thing I would say is that a leader needs to be authentic, and that is down to them knowing, and living, their core values. We may not like someone with values different from our own, but we respect them, because they are authentic. I heard something the other day, though, that worried me – about a leader of a company in the States where it’s all about demanding the highest standards in a very traditional way, I would say, where staff are called at any time of day or day of the week to pick up on a tiny error.
For me, that describes a regime of fear rather than leadership. We need to give people some freedom to be their best, and we need to protect some downtime outside working hours. Only then is there a basis on which to give those clear messages around purpose and strategy. Purpose then is easy – it ties in to values. And ‘culture eats strategy for breakfast’, as they say.
So, today’s leader is thinking about whether they have the right team, and hence the right culture, and whether that culture includes a high level of agility – as that’s what you’re going to need most, I believe. And let’s not forget diversity and inclusion – that’s where you’re going to get all the great ideas coming in.
Q: Diversity and inclusion has been a clear focus for you and the Association of Corporate Treasurers. Why is it important to you and to business?
A: Quite simply, you get better ideas and results if you are inclusive and have a diverse team. So, on the one hand, people are happier and therefore more productive if they feel part of something. And on the other, as research shows, leadership teams and boards that are made up of gender and racially diverse individuals are more innovative and deliver significantly better bottom-line results. So, to business it should be a no-brainer. To me? Well, it’s part of my core values set.
Liz Loxton is editor of The Treasurer
This article was taken from Issue 4, 2021 of The Treasurer magazine. For more great insights, log in to view the full issue or sign up for eAffiliate membership