Who should be accountable if company assets are not being optimized?

You could bring in the fancy blue chip consulting firm or plan the next round of retrenchments. Or, the less dramatic route is the low-cost option staring you right in the face. Let me explain.

According to NYU Stern Cash Holdings by Sector research, organizations have between 10-20% of company assets in cash. And here is the rub. Most CXX executives are honed in on optimizing every part of the business and delivering growth, but somehow omit cash as an asset class as part of what must be optimized. Why is that?

Historically, the process has been too manual and time-consuming; therefore, many managers overlook or dismiss the 0.4% to 2% benefit in that light. So, let's do the math. On average, with cash of say $50m, one could achieve an extra, $750,000 income. That seems worth the effort.

The majority of organizations are not proactive in seeking the best yield returns and getting their banking counterparties to sharpen their pencils. Instead, an almost laissez-faire environment exists, and the best return on corporate cash barely gets a mention in board or exco meetings. This simply is not good enough!