EVA is growing in popularity and Eli Lilly has devised a solid example of how to initiate an important process to enhance financial performance," said AFP Chairman Nolan L. North, CCM, who is vice president and assistant treasurer at T. Rowe Price Associates, Inc.
Jointly sponsored with Wachovia Corporation, the AFP Pinnacle Award is presented annually to an organization whose finance and treasury operations have implemented groundbreaking solutions to cash management and financial challenges. As part of the 2000 award, AFP and Wachovia will make a $10,000 donation to a charity of Lilly’s choice.
"Wachovia is honored to sponsor the Pinnacle Award because it symbolizes our firm commitment to treasury innovation and our dedication to helping companies use technology in new ways," noted John C. McLean, executive in charge of the Wachovia Corporate Financial Services Division. "Previous winners of this award have inspired their peers to be proponents of positive change within their own organizations and across the industry. We are excited to recognize those that have implemented groundbreaking solutions to meet the increasing demands of the treasury profession."
For the first time in its four-year history, the program solicited entries for three categories:
- Treasury as Strategic Partner – Lilly won the top prize in this category by demonstrating its work with senior management to effect positive change with the organization.
- Innovation – The Ohio Treasurer’s Office won the award by applying creative thinking and innovation to solve a treasury or finance problem.
- Technology – Dell Computer Corporation claimed the top prize in this category by using technology to create an effective solution to a treasury or finance problem.
Judges rated Lilly’s submission as the best among the three top winners and awarded it the grand prize.
"Our Strategic Capital Management initiative created global alignment within critical company components and significantly boosted cash flow through improvement in working capital," said John Harkey, assistant treasurer and director of Lilly’s global treasury. "It also significantly reduced payment risk in emerging markets as it strengthened our global credit and risk management abilities. We’re thrilled that AFP has recognized Lilly for its successful strategic partnership initiative and financial management solution."
Pinnacle Award entries were judged by a nine-member evaluation committee, selected from a cross-section of financial industry experts. This year’s judges were: Kathleen Cormier, CCM, CPA, CMA, vice president of finance, Med Resorts International; Rebecca Flick, director of treasury, The Home Depot; Dianne Greathouse, assistant treasurer of money and banking, Wendy’s International, Inc.; Jean-Francois Heitz, corporate treasurer, Microsoft Corporation; Mark Heuer, principal portfolio manager, Harris Investment Management, Inc.; Gregory Schwartz, chief treasury officer, University of California Treasurer’s Office; David Shafer, CCM, managing director, Ernst & Young LLP; Walter Stark, CCM, CIA, assistant treasurer of cash management, Humana, Inc.; and Henry Waszkowski, senior vice president, Wachovia Treasury Consulting.
About AFP
The Association for Financial Professionals in Bethesda, Maryland, formerly the Treasury Management Association, has grown in the past 20 years into a community of more than 14,000 individuals representing a broad spectrum of financial disciplines. AFP turns knowledge into performance by supporting members throughout all stages of their careers with research, continuing education, career development, professional certifications, publications, representation to key legislators and regulators, and the development of industry standards.
About Wachovia Corporation
Wachovia Corporation, with headquarters in Atlanta and Winston-Salem, N.C., is a leading financial holding company serving regional, national and international markets. Member companies offer consumer and commercial banking, bank card, asset and wealth management, capital markets and investment banking, brokerage and insurance services. Businesses of all sizes rely on Wachovia as a key adviser for strategic treasury decisions, and Wachovia Treasury Services leads the field in expertise, capabilities and service. An array of e-commerce solutions, including patented imaging functionality, streamlines transactions and reporting.
2000 AFP Pinnacle Award Winners
Grand Prize Winner
Treasury as a Strategic Partner Winner – Eli Lilly and Company
Through its 1998 benchmarking analysis, Eli Lilly and Company’s global treasury team found that its domestic and international headquarters lacked adequate balance sheet reporting and working capital management. With full senior-level support, the team integrated global supply chain initiatives including procurement, financial management and line management. As a result, balance sheets were fully integrated, EVA plans for 1999 were met and cash flow improved by nearly $600 million over 1998 figures.
Innovation Category Winner – The Ohio Treasurer’s Office
The Ohio Treasurer’s Office, which manages and invests more than $15 billion and is the custodian for more than $145 billion, won the category award for implementing a new process of investing interim funds in state financial institutions through online competitive bidding. Previous processes were not competitive and less efficient, resulting in low participation among banks and low rates of return. BidOhio, a "live" 30-minute monthly auction, allows all state depository institutions to participate and receive immediate notification of bid status, encouraging competition. The program has increased the number of bidders and enabled small, rural banks to compete for large deposits. Since the inaugural auction on October 5, 1999, BidOhio has earned an additional $3 million for Ohio taxpayers, more than doubling original estimates.
Technology Category Winner – Dell Computer Corporation
Dell Computer Corporation won the category award for developing and implementing a fully integrated, Web-based treasury workstation that allows cash management, foreign exchange, investments, and accounting activities to reside on one platform. Daily and weekly cash forecasting used to be collected via e-mail and voice mail, and was entered manually into a spreadsheet. Meanwhile, investment functions and back office record keeping was performed on a DOS-based system, and bank balance reporting was generated through a dial-up modem, with data collection at four sources handled by many individuals. The new system automatically downloads previous and current day bank balances through electronic data interchange files every 30 minutes. Intranet-based reports provide bank balance information on more than 30 currencies in both local currency and U.S. dollar denominations, and the system manages wire transfers, benchmarking, and general ledger updates. The workstation has saved the company $2 million to date.
