It’s hard to believe that 2018 is nearly half over. Time passes way too quickly!
At CMA, this has been one of the busiest years I’ve seen, as we are continuing to work on exciting new initiatives that will help your company’s credit and finance teams.
I love the opportunity to talk with members and customers; lately during these conversations we discuss cost savings and doing more with less. These issues are affecting every business. Utilizing cost-effective tools is one way to adhere to budget restrictions and bring efficiencies to the Credit Department. We’ve been looking at different solutions to help solve these issues and to that end I’m happy to tell you about the brand new CMA CREDIT REPORT. This report is a cost-efficient way to access data for small- to medium-sized companies that are not usually reported to the larger credit bureaus.
The CMA Credit Report, which is the result of a partnership with data provider Ansonia Credit Data, offers payment trends and experience on your customers so that you can make informed credit decisions. The report includes payment history, bankruptcies, risk score, balance, days beyond terms and more. Better yet, the report is available at an affordable price point: CMA members get 5 free reports to try during their membership calendar year, and then pay $12.95 per additional report. Members who contribute their data to CMA get an additional 5 free reports, and pay $10.95 per additional report.
The report is also integrated with anscersX, our multi-bureau reporting solution that allows users to get the most-used data elements from the major bureau reports with one click.
We are excited to hear from our members on your thoughts on the new report. We hope you enjoy this new benefit, and that it’s useful in your credit decision making process.
Change is never easy. In this volatile business environment, more than ever before, change is the only constant. In the past few months, there have been many changes in credit, which is why we decided to use the concept of “managing change” as the overall theme at CreditScape. Due to outside factors such as budget cuts in credit, automation and technology, the credit manager’s role is ever changing, and it is imperative that you stay up-to-date on the latest changes in the industry.
CMA has been changing as well. In the past few months since I became President of CMA, we have been evaluating every facet of our business. Our top priority in every conversation has been, and will always be, taking care of our members’ needs in credit.
We are the oldest and most experienced organization that continues to be your best source for information to make credit decisions about California and Nevada based companies, as we have been since we were founded in 1883.
Here are some of the changes that we have been working on behind the scenes.
We have enhanced the quality of the conversations at our Industry Credit Group meetings. If you have not attended a meeting lately, I strongly suggest you take the time to hear about the valuable account discussions that take place in those meetings and the best practices from companies that operate in your same vertical market.
We have created new strategic partnerships that provide members with the best information that they can use to make credit decisions. Here are several examples of these partnerships:
The new CMA Credit Report, which represents your best chance in finding data about California and Nevada based companies, with a nearly 20 percent increase in the number of relevant searches over the report it replaced.
An enhanced anscersX multibureau credit report that includes data from a number of sources such as D&B, Experian, Equifax, and others, to make it easier (and less expensive) to find credit information in one click.
A partnership with Credit Today to provide useful and relevant articles that affect the credit profession.
Low-cost webinars on topics that members have told us they want and need, increasing overall participation in our education program.
Here are some things about CMA that will never change:
We are loyal to our members and continue to strive to make your experience with CMA the best that it can be. Many of our staff members have been with CMA for more than 10 years serving your needs in credit with accumulated experience and knowledge.
We are committed to the credit profession.
We are headquartered in the areas we service.
We are dedicated to providing you, our customer, with the best value in credit services that you need to make informed credit decisions.
Our credit reporting and construction forms filing services is one are among of the best in the industry.
I encourage you to join me in continuing to support programs and services that make CMA great, as we truly are your partners in credit.
If you have suggestions on how we can make your association better or questions about our programs, I encourage you to reach out to me at 702-259-2622 or by email at firstname.lastname@example.org.
We thank you for your continued loyalty and patronage.
Happy New Year everyone! With the beginning of every new year, we like to think about the goals and objectives we set for ourselves in the coming year, to move forward both personally and professionally. A major goal of CMA’s this year is to expand the credit community, creating a better network for our members. Traditionally, we have looked at growing that community unilaterally within our own market (primarily California and Nevada). Now, we have the opportunity to expand the community by working with other credit associations to bring our respective communities together. By bringing credit professionals together through various networking activities, we can create a unique benefit through collaboration that our individual associations cannot achieve on our own. This is the true essence of what associations like CMA are designed to do – leverage the power of many individuals and organizations to create value that no one individual or company can create on its own, especially in the increasingly global nature of all of our businesses.
For the first time in its history, CMA is working with other credit associations to share educational and training resources, and to host customer account discussions among members of our common industry groups. CMA is collaborating with NACM Business Credit Services in Seattle and Southwest Business Credit Services in Phoenix to produce educational webinars and industry credit networks that our three associations can offer to our respective members – for FREE. Our goal is share our collective resources to add more value to our annual memberships. We all want our members to get more for their membership dues.
We are kicking off this collaboration with Bob Shultz’s Collections Negotiation Skills webinar on January 25 at Noon PST. Collectively, there are more than 150 credit professionals from all across the West registered to attend. In an environment where a credit professional’s time is at a premium, we are very encouraged to see members express interest in learning more skills and gaining more knowledge to improve performance. We hope that the members who participate in these new joint programs will see the untapped potential value that an expanded credit community has to offer. More information on this and other educational offerings is at www.creditmanagementassociation.org/events.
Along the lines with this is an expanded CreditScape program, which includes the hottest topics we’ve heard in nearly every conversation we’ve had with members: credit card chargebacks, companies changing their own terms, skills that credit professionals need to stay relevant, and overall dealing with change in your organization. I really hope to have your support and attendance to help “prove” that CMA is doing what’s best to help your company’s credit department.
We hope you have a great year and are able to reach your personal and professional credit goals, and we remind you that CMA is here to help.
Thanks to everyone who participated in CMA’s Member Value Survey last month. Nearly 20% of our members responded, and I would like to share some of the results and insights we have gained from the feedback.
The top 5 reasons that participating members joined CMA were:
1. Networking with other credit professionals (73%)
2. Access to information on potential customers (67%)
3. Obtaining trade references from other CMA/NACM members (60%)
4. Credit education and training (49%)
5. My company was already a member when I started (48%)
Industry credit groups came in at #6 with 41%, but credit groups offer the benefits that members rated as the #1 and #2 reasons they joined (access to customer information and trade references, above).
The three benefits most important to participating members are:
1. Networking with other credit professionals (69%)
2. Access to information on potential customers (59%)
3. Obtaining trade references from other CMA/NACM members (43%)
4. Industry Credit Group membership (27%)
5. Credit education and training (27%)
More than half of all participants feel that the most valuable aspect of NACM membership is being part of a national credit community.
Almost 90% of participating members feel that their companies’ upper management understands the value of CMA membership.
Based on how likely a member is to recommend CMA to a friend or colleague, more than 83 percent of responders said they’d rate CMA at least 8 out of 10 or higher.
Here are a few member comments that best illustrate the survey results:
“Mostly networking and better knowledge of customer paying habits.”
“Be able to get first-hand, latest information about customers.”
“I think it’s very important to communicate with other Credit Professionals. Bringing our knowledge together will help in the success of our departments.”
“The continued education and training is priceless and networking with other credit professionals”.
Here’s what we learned:
Members who participated in this survey want CMA to continue to focus on providing opportunities to network with other credit professionals, access to customer payment information, and credit education and training. Some members suggested that CMA could improve upon those core benefits by encouraging credit group members to increase participation (attendance and data contribution) in credit group meetings, create more credit groups that are better aligned with certain industries, offer more advanced credit education and training programs, and offer an online forum for members to exchange best-practices. Additionally, a number of members suggested that CMA should offer more job-related services (job postings and resume search).
Thank you again to all who participated in our member value survey, and I will be reporting back to our members about the progress we make toward improving the benefits that you have deemed the most important to you and your companies.
A traditionalist. A pragmatist. A very nice man. These were the thoughts that first ran through my head after hearing the news that Harold Fraizer, Director of Credit for Reliance Steel & Aluminum Company, passed away suddenly last week on July 18.
I was introduced to Harold in 2013 over lunch at the Grand Café in the Omni Hotel, just walking distance from Reliance’s downtown Los Angeles office. I was invited to chat about CMA and explore what the Association could do to support the credit teams at Reliance Corporate and at the many Reliance branch locations in California. What I found was a long-time credit professional who cared deeply about the credit profession and the people he supported. He wanted them all to have the best tools, resources, and training available so that they would be successful in their jobs. Clearly, he was a mentor as well as a leader.
Thus began a tradition of meeting for lunch about every six months or so, where I came to hear what Harold and Brian Lacey, his corporate credit manager, had to say about the state of credit.
This past April, I was thrilled when Harold agreed to participate on a panel discussion for our CreditScape Spring Summit. I interviewed him a few weeks before the event to help us both prep for the panel. During our discussion, he shared with me that Reliance concentrates on the front-end process and good credit management. He wanted his branch’s credit operations to focus on making good credit decisions and was willing to provide many options for tools and resources that would help accomplish that goal.
When I asked Harold about various automation tools that he was using or considered making available to his vast network of Reliance credit operations nationwide, he made it perfectly clear where he stood on the topic. “Credit’s not hard,” he said, “but what sets it apart from accounting is that it’s an art as well as a science. We don’t believe you can automate credit decisions. There will always be a role for the credit professional in making the final credit decision.”
What I learned from Harold is that success in credit is driven by the fundamentals – customer due diligence, smart data analysis, strong customer relationships, and good decisions. Automation will continue to drive modern credit processes, but can’t replace good professional judgement.
“You’re a credit manager – invest your time looking at all customers, not just the ones that are in front of you on the credit applications.”
I had lunch with Harold and Brian last month at our regular spot, the Grand Café. I asked Harold about how senior finance executives view the role of credit. He dismissed the idea that credit can be spun as a profit center. “It is a cost center, but if you let me do my job, I’ll save you a lot of money.”
On behalf of the staff and members at CMA, our deepest condolences to the Reliance Family for your loss.
Mike Mitchell is the President and CEO of Credit Management Association.
At CMA, we often hear stories about how credit group membership can save your company THOUSANDS of dollars by providing critical information that helps you avoid extending too much credit on high-risk accounts. Here’s a real example of how a multi-national company avoided a costly disruption when a long-standing critical supplier filed for bankruptcy.
The member regularly attends credit group meetings, and at a recent meeting, he was surprised to learn that one of his company’s critical suppliers had recently filed for bankruptcy. He was surprised by the news because his company subscribes to various monitoring services that should have alerted him and his department to the bankruptcy filing. When he contacted his procurement department, he was further surprised to learn that the department responsible for the relationship with the supplier was not even aware of the bankruptcy filing. The member had sufficient time take the necessary steps to source the critical supplies from a different supplier so that production was not interrupted. Supply chain disruptions potentially can cause more damage to a company’s business model and reputation than the failure of customers to pay their bills, so this was a big deal.
Once the member had mitigated the risks of the potential supply chain disruption for his company, he contacted his supervisor, the Director of Corporate Credit, and let him know that the critical piece of information came from a discussion at a CMA credit group meeting. He gave CMA credit for providing the information that potentially saved his company millions of dollars in lost production time and goods.
We hear these stories all the time at credit group meetings. The real value of regular participation in credit groups is the money and time you save in getting the critical information you need in order to get out in front of situations that could cause significant losses to your company. The member whose story I highlighted above feels confident that the time and money his company spends to have him participate in credit groups is well worth the investment.
During the holidays, CMA staff called and emailed most of our members to help us determine their goals and objectives for 2017, and what they thought their biggest obstacles would be. Thanks to all of our members who took the time to speak with CMA staff to share those goals, as we learned a great deal from the process, to help us shape what we’re doing to help our members. Many of you told us that (not surprisingly) that you want to reduce DSO, keep your A/R balances current, reduce late payments and bad debt write-offs, and keep customers paying on terms. Obstacles cited were customers requesting extended payment terms, reduced staffs, and bankruptcies. We also heard throughout that many of you need to overcome these obstacles and achieve your goals more efficiently and for less cost.
The upcoming CreditScape Spring Summit, which takes place in April, speaks to your concerns, as it will feature presentations and discussions that focus on helping you streamline operations and create efficiencies that will reduce the cost of doing business.
Kicking off the Summit is Dan Goldes’ presentation, “The Influence Edge: How to Get What You Want.” Why are influence skills important for credit managers? Credit roles are by their nature cross-functional – internally, you work for a senior finance executive, but you work with sales, order entry, billing, customer service, legal, shipping, and maybe even procurement. Goldes says that, “with the horizontal structure of today’s progressive organizations, it is increasingly important to ask for and receive the support you need to accomplish your goals. The most effective way to do this is through the strategic use of influence skills.”
Creating efficiencies that will reduce costs will require change, and change requires buy in. You will likely have to get approval from senior management to implement those changes (and the costs associated with them), and you will have to convince staff to adopt those changes. Both tasks require influence skills – without them, process improvements may not be successful, and indeed may not happen at all. When you attend CreditScape and learn about process improvements and tools that can create efficiencies and cost savings, we want you to feel empowered to take that knowledge back to your office and get things done. Dan says, “By using influence skills strategically, others will be more willing to help move organizational processes along without resistance.”
Additional programming at CreditScape will include a panel discussion from real-world credit practitioners explaining areas in their businesses where they’ve achieved process improvement, CMA’s version of “Speed Networking,” and other interactive events geared towards helping members create efficiencies and reduce costs in their credit operations.
At CMA, we are dedicated to helping develop educational programs that speak directly to your real-world credit needs and concerns. I encourage you to reach out to my team at CMA (or respond to this blog) if there are other topics that you think could help your business. I really hope to see you at CreditScape in April.
We live in a global economy where many of the trading lines that used to go from state to state now stretch from country to country. Our businesses sell to places in the world where the political climate is volatile and it is the credit professional’s job to protect their company’s A/R and ensure they get paid on the deals they accept.
More and more, I have credit professionals asking me how CMA can help them assess the risk involved in selling to different countries, where they can find information and reports about companies in their particular country, and which resources they can access to help sell abroad. In our ongoing effort to help members with mitigating risk, we recently surveyed our members for input on the best ways for CMA to help members sell internationally.
Based on the results of the survey, I am pleased to announce the formation of a new International Credit Best Practices Group, a monthly virtual meeting for credit professionals from different industries to exchange best practices in international credit sales. Each meeting will feature an expert in one of the many areas of international credit, including credit reporting, credit insurance and international business consulting. Each meeting will allow time for participants to share their own knowledge, and get advice from the rest of the group to help address their own specific issues.
If you manage international credit sales for your company, please join us for the FREE inaugural meeting of the International Credit Best Practices Group on January 23, 2017 from 10 am – 11 am PST. We will be joined by several experts, including Gary Mendell and Robina Peanh of Meridian Finance, and Eddy Sumar of ERS Consulting, who will share expertise about getting started in international business and where to find information about assessing country risk. The event will be held via web conference, and you can sign up on the anscers.com Education page.
The Group is an excellent place for companies who sell internationally (or plan to in the future) to hear from experts who will share best practices, tips and tricks to help companies minimize the risk associated with selling overseas. During the initial meeting, your input will help the group determine topics for upcoming meetings, allowing CMA to build a series of agendas for topics that will help your business.
We hope that this new Group will provide you with the knowledge and tools you need to help your company compete in the global marketplace. I look forward to participating with you early next year.
All too often, our members tell us that they want to take advantage of all of CMA’s benefits but they say they do not have the budget to do so. For companies on a calendar fiscal year, here’s your opportunity to begin planning for those budget worthy benefits for 2017. Even if your next fiscal year extends well into 2017, it’s never too early to start your wish list.
If your company is one of the 600+ members that participate in one of CMA’s 51 Industry Credit Groups, then you know how valuable it can be to have unlimited access to anscers Credit Reports, RFIs, Credit Alerts, and the knowledge and experience of other credit professionals in your industry. In the past year, CMA group members have submitted more than 45,000 RFIs, warned other group members with more than 6,800 Credit Alerts (which included NSF and bankruptcy information), and shared countless stories about best practices in credit. Many credit group members have reported that they still find their credit groups and the shared trade payment experience the fastest and most economical way to conduct timely due diligence on prospective customers and effectively manage existing customer accounts. The unique combination of industry trade data, insider knowledge about common customers and industry best practices often recoups your dues many times over in helping group members minimize risk and grow revenue.
Before you budget, consider whether you are getting the best value possible for your credit information needs. Let CMA’s experts help you analyze your current credit reporting product mix – we might be able to save you money (and help you get better results) by suggesting a different report or mix of products that better meet your company’s risk assessment requirements while staying within budget. In addition to credit bureau contracts, CMA has several transactional credit report products priced to deliver maximum value at minimum cost. We have also seen usage for the NACM NTCR increase significantly over last year. Only CMA members have access to the millions of tradelines in the NACM National Trade Database (many of which are only available in this report), and at only $14.95 each, the NTCR reports are a great value for an initial credit check. CMA’s anscersX multi-bureau report combines proprietary scores and data elements from all three major credit bureaus (Dun & Bradstreet, Experian, Equifax) to give you a comprehensive look at the payment history of your customer or prospect ($69 per report). Be sure to budget for some anscersX reports to supplement your existing credit reports.
If you are a construction supplier, consider how using CMA’s Lien Filing Service can save you time and money. With more than 30 years of experience providing services ranging from preliminary notices to lien warning notices, mechanics liens, bond claims and stop notices, CMA has hundreds of clients across the United States who value the personalized, unlimited support from CMA’s caring and knowledgeable staff. You might be interested in CMA’s new Construction Credit Report, providing title data, public record data, active trade lines, credit analysis and scores, collection agency activity and links to state contractor information. The report, which is the only all-inclusive report of its type, runs $29.95 per report.
CMA’s collections partner, AG Adjustments, offers third-party collection services at competitive rates on a contingency basis.
If you’re looking for professional development help for your staff, CMA is again offering NACM Certification Courses for the CBA (Credit Business Associate) and CBF (Credit Business Fellow) designations starting in January. These will only be offered once next year, unless there is sufficient participation for additional classes. If you plan to get certified in 2017 or early 2018, you’ll need to register for the Certification Courses now and budget accordingly ($899-$995 per course). Information for all professional development events can be found on CMA’s website and on anscers.com under the Education tab.
CMA will continue to offer its standard webinar program, which includes several series on topics such as collections, advanced lien law and credit reporting. Our webinars typically cost $49 for CMA members and $69 for non-members, but some may be free to CMA members, depending on the topic.
We hope this list is helpful as you consider your needs for 2017.
Are there other credit-related services that you’re looking for that we currently don’t offer? Feel free to reach out to me by responding to this blog. Thank you for reading, and we look forward to your increased participation with CMA in 2017!
Every quarter the UCLA Anderson School of Management hosts the highly reputable (and influential) UCLA Anderson Forecast, an economic forecast for the U.S. and California. As an Advisory Board member of UCLA Extension’s Credit Analysis and Management Certificate Program, I was invited to attend the September 2016 Economic Outlook, a live presentation by the economists and economics professors who contribute to the UCLA Anderson Forecast. You can read more about the event on the official UCLA Anderson Forecast blog, but here are some highlights.
The theme this quarter was the impact of the economy on the Presidential Election. David Shulman, Senior Economist for UCLA Anderson Forecast, opened the session with a non-partisan breakdown of the major economic policies of both major party candidates for President. For me, it was nice to see policy differences in black and white without the political spin of the candidates and their campaigns. Bottom line, Shulman concluded that no matter who wins, Hillary Clinton’s approach (increased taxes and increased government spending) and Trump’s approach (massive tax cuts, changes in trade policy, less regulation, and yes, increased government spending) would BOTH increase the deficit. The reason – both plans assume a national GDP growth rate north of 2%, but Shulman argued that without improvement in productivity (maybe) and significant growth in innovation (unlikely), GDP will remain on a growth path of 2%.
Jerry Nickelsburg, Adjunct Professor of Economics at the Anderson Business School, gave his forecast for California. While still one of the fastest growing states in the U.S., growth of California’s $2.5 trillion economy is slowing because the state is close to reaching full employment. Declining manufacturing coupled with historically slow population growth will continue to restrain economic growth. Nickelsburg also warned that a trade war would have a greater negative impact on California than most states.
Nickelsburg also presented some interesting stats on small business. I didn’t realize that the proportion of small businesses (defined as enterprises with 10 or fewer employees) in Los Angeles County is much greater than the proportion in the U.S. and 26% of employment is L.A. County. To me, that means that small business is (and has been) a significant part of our local economy which CMA has not been able to reach. Perhaps CMA’s strategic partnership with the local SBA will provide more opportunities to reach those business owners who may not fully understand how to leverage business credit for the benefit of their businesses.
Shifting from local to global trade, I learned more about the controversy surrounding the broad-ranging free trade agreement known as the Trans-Pacific Partnership (TPP). Given that much of California’s economy is dependent upon international business flowing through the Ports of Los Angeles (L.A. is the #1 export district in the U.S.), Long Beach and San Francisco, why wouldn’t a free trade agreement that represents 40% of the global market be good for our local and national economy? The panel of experts argued that intense opposition to TPP is grounded in a retreat into protectionism, a general reaction to insecurity and uncertainty. Most interestingly, they claim that TPP is not as much about free trade as it is about anti-free trade because of all the exceptions in the agreement for goods like drugs, intellectual property, and dairy, just to name a few. I suppose that’s the fine print.
Economist William Yu concluded the morning session with a presentation of an economic model that puts a weight of 51% on each state’s real median household growth to predict the outcome of Presidential elections. A 10% weight is put on economic performance factors, GDP growth, Misery index, and state median income growth; demography, religion, and “other” factors such as candidates’ character, leadership, trustworthiness, campaign messages and strategies are weighted 13%, 3%, and 20% respectively. Since the election in 1972, the model has correctly predicted the outcome of 8 out of the last 11 Presidential elections. The model incorrectly predicted the elections of 1976 (Carter v. Ford), 2000 (Bush v. Gore), and 2012 (Obama v. Romney). Yu stated that the model currently gives Hillary Clinton a very slight edge over Donald Trump, but he was quick to say that it is within the margin of error and with 20% of the prediction weighted on factors like character, leadership, and trustworthiness, there is no predicting the public’s taste.
So why am I writing about this? There are several reasons. For one, it proves that economic data can be used to predict a lot of things, including the outcome of a presidential election (or how liberal your company might be in assigning trade credit). It also nicely demonstrated the whole “cash to cash” cycle that was discussed at length at CreditScape and in various blogs throughout the year. Finally, in the glut of credit-related content that we’ve been talking about all year here, I’m interested to gauge member interest in hearing more about topics like this. As we’re putting our education calendar together for 2017, I’d love to know what topics you’re interested in learning more about, including economic forecasts like this one. Feel free to leave comments below.
Thanks to all the credit practitioners, industry experts, and industry partners who participated in the many valuable conversations at CMA’s recent CreditScape Summit. Our goal was to create an interactive, collaborative learning environment, and I was so pleased with the high level of sharing among all participants throughout the two-day event.
I was equally pleased with the audience response to facilitator Bob Shultz’s approach to process improvements within what he calls the Cash-to-Cash cycle. Also known as the cash conversion cycle, Shultz emphasized that the role of credit management extends beyond basic credit and collections processes. There is the opportunity to impact the company’s liquidity through good inventory and accounts payable management, in addition to traditional accounts receivable management. Collections trainer Bart Frankel recommended that credit people take responsibility for helping to resolve issues that arise out of these “other” departments, as they ultimately impact the credit department’s effectiveness in granting credit and collecting receivables.
Experienced credit practitioners and other credit industry experts shared specific examples of how they successfully influenced and improved processes across the Cash-to-Cash cycle and created more cash flow from operations.
Another example of how CMA is advocating for the expansion of the traditional role of credit within the enterprise is the suggestion that credit can support procurement in evaluating the risk of critical suppliers. Recently, I had the unique opportunity to participate as a panelist in the fourth annual Global Supply Chain Management Conference at USC’s Marshall School of Business. As panel moderator, CMA Member Alvin Moreno, Director of Global Supply Chain Credit Risk with Nestle USA, made the case that the credit department is best positioned to help the procurement department assess the financial stability of a company’s suppliers. In the wake of shipper Hanjin’s bankruptcy, supply chain disruption has continued to grow as a concern for companies that rely on critical suppliers, which gives credit the opportunity to add new value to the business.
As a panelist, I told the audience of supply chain professionals about how CMA has worked with Alvin, his team at Nestle USA, and other CMA Members to create a special credit group in which credit managers collaborate on processes and best practices in supplier risk evaluations. More information about that collaboration is here.
Clearly, we at CMA are big fans of process improvement through collaborative learning. But as I mentioned in my opening remarks at CreditScape last week, credit managers need to step up and become credit leaders if they are to be successful in driving the organizational changes necessary to make those process improvements a reality.
How are you leading change in your organization? I welcome your feedback.
As the Olympics wind down this week, I wonder if any of our CMA members did business with companies in Rio before or during the international games? Or more generally, how many members currently export to Brazil? This serves to remind us that international credit sales will continue to grow as global commerce continues to evolve. As the economy becomes more and more globally focused, I wanted to take this opportunity to let our members know about some international tools and resources that are now available or coming soon to a California venue near you:
• International trade data now available on the NACM NTCR. Many NACM members report their international trade to the NACM National Trade Database, which is now available to CMA members in the enhanced version of the NTCR launched last week. Additional international trade data is available from Skyminder, Experian, Dun & Bradstreet, and Equifax Canadian.
• Understanding International Credit. In October, Eddy Sumar, MBA, CCE, CICE, and CEW will take you on an exciting journey through the world of international credit. If your company engages in limited exports or none at all, Eddy’s boundless energy and expertise in export trade credit will make you wish it did. His popular and engaging seminar will highlight resources made available through CMA’s partnership with U.S. Department of Commerce and other government agencies.
• West Coast Trade and Working Capital Conference. In November, the Global Trade Review (GTR) will host experts from various trade finance sectors to discuss how global markets have impacted trade for both corporations and banks, an update on current capital needs and availability. Gary Mendell, President of credit insurance broker Meridian Finance, and long-time supporter of CMA’s members, has recommended this conference in San Jose because he believes that it is one of the best international forums he attends each year.
Even though most CMA members do not engage in significant exporting, we believe it is important for CMA to remain committed to providing international credit resources to support the growing trend toward global sales.
What are your biggest challenges in international credit? I’d love to hear your feedback.
This morning, I delivered my quarterly webinar presentation, “Maximize Your CMA Membership,” which I present to our newest CMA members and credit professionals to help them learn about the myriad of resources a CMA membership has to offer. This morning, I started with an online poll, asking the participants, “What are the reasons you joined CMA?” As always, the two most popular reasons for joining are “networking” and “professional development.” And for good reason – there is a limit to what you can learn and information you can gather by electronic means alone. In keeping with this value we hold so dear at CMA, I attended Credit Congress last week, NACM’s premier educational and networking event. Based on our members’ feedback and my own participation in sessions, I learned that networking with your peers and professional development are alive and well and more vital than ever.
What continues to excite me about in-person conferences is what you learn when the audience engages with the presenters – people ask questions and share their own experiences, and the subject matter experts give practical advice to challenges and issues that are not part of the slide deck. I learned more about what our members are facing in their work environments (doing more with less, shrinking budgets, using more tools and technology) than about the credit topics themselves. Never underestimate the power of good catharsis – I can’t tell you how many people nodded their heads and grinned with relief when they heard someone talk about the same challenges that they face.
I also want to acknowledge the many credit vendors who supported the event with their own knowledge, expertise, and tools. I spent many hours talking with many vendors at the Expo, and I learned that many of these providers have played a vital role in helping the credit function and profession progress and evolve. If it weren’t for these companies (many of them small start-ups) investing their time, treasure and talent in the service of credit, our members would not have the tools and resources they need to compete in an ever-changing and risky business environment. We appreciate that many credit vendors have become as valuable an advocate for the credit profession as the credit associations!
By emphasizing the value of networking, peer-to-peer learning, and vendor support, I don’t want to minimize the contributions of the presenters and quality of their content at Credit Congress, which appeared consistently strong and on-topic. Thanks to NACM for continuing to provide a high quality, high value experience for our members.
A healthy turnout for Credit Congress and positive feedback from our members who attended has shown us that there continues to be good reason to offer these kinds of programs to our credit community. Now I am more excited than ever about CMA’s upcoming CreditScape Fall Summit (September 22-23 in Sonoma County) that will immerse all attendees in a learning environment designed to help them discover ways to improve their credit and collection processes.
So that’s what I learned at Credit Congress — what will you learn at our next event?
Here is a follow up from my column last month, when I mentioned a survey to determine which core skills members feel are the most important to credit managers. First, I want to thank all of the 133 members who took the time to respond to the survey. Second, I wanted to share the results and let you know how we will use the information to guide our development of skills training programs this year.
As a reminder, we asked members to rate 15 functional areas of the credit and collections cycle as “Very Important,” “Somewhat Important,” or “Not Important.” From the nearly 13% of CMA members who responded, “Communications Skills (verbal/written)” was rated most important (119 very important), followed by “Credit Basics” (116 very important), “Collection Techniques” (112 very important), “Customer Service Skills” (107 very important), and “Negotiation Skills” (105 very important). All other areas received ratings under 80 for very important (the complete list of results appears below).
To keep things interesting, the dozen in-depth interviews with CMA’s Board of Directors reflected some of the results above, also placing high value on Communications Skills, Collection Techniques, and Negotiation Skills. However, the group of CMA leaders rated Financial Skills (analysis and forecasting) much higher than the larger member sample, and appear to place a higher value on Leadership and Management Skills. Interestingly, Legal and Compliance issues received average ratings of importance, but we live in a nation of laws and operate in a business environment that is prone to legal risk and liability, so we’re going prescribe legal and compliance training anyway for the overall health of our members.
So what does this tell us about the training needs of our members’ credit operations? We believe that an online credit training program that initially addresses six core disciplines will benefit the vast majority of members who are charged with creating and conducting credit training programs without having the often significant time, resources, and expertise that are required to take on that responsibility. The CMA Credit Training Program will offer skills training in 1) written and verbal communications, 2) credit fundamentals (customer investigations, credit decisionmaking, setting credit lines), 3) collection techniques, 4) negotiations, 5) financial analysis, and 6) legal and compliance.
Look for more details later this summer, but in the meantime, I have a request. Part of the success of our recent CreditScape events was the contributions that experienced credit practitioners made to the workshop discussions. Sharing success stories and career-long best practices have added significant and unique value to our in person education sessions, and I would like to bring that same dynamic to our online credit training courses. If anyone reading this message feels that they have valuable experiences related to one of the core disciplines listed below, and you would be willing to work with me and other members to share those experiences and best practices with CMA members through this new program, please reach out to me so we can discuss a possible contribution.
I want to thank you again for your participation, as I look forward to helping evolve our education program into one that provides members with the topics they value most.
CMA’s Mission: Make a difference in credit department performance by helping credit professionals maximize cash flow and manage credit risk.
I am always playing around with CMA’s mission statement. While it is seems impossible to fully capture everything that CMA does to support credit professionals and their teams, the above mission statement is true if not fully comprehensive. One of the ways that CMA can make difference and help credit professionals perform at a higher level is through education and training. For years we have offered credit education on the entire range of credit-related topics in a variety of different formats (seminars, webinars, in-person and online classes, summits, and conferences). In an effort to keep up with the changing (and increasing) demands of the credit function, we surveyed our Board of Directors to find out what core knowledge and skills are required for hiring, performance evaluation, and advancement within the credit department.
What we found was pain.
A dozen in-depth interviews uncovered a dozen core skills that are valued by most of their credit departments. CMA has traditionally focused on providing “education,” meaning general knowledge, on credit topics. The Association has not focused on “training,” which is the practical application of that knowledge to daily credit operations. Training has been left up to the member company to offer. A few Directors we talked with have in-house training resources (often referred to as the Company University), and a few others have support from their human resources departments, but the vast majority of member companies make all credit-specific training the sole responsibility of the credit department management. The pain comes from the often significant time, resources, and expertise that is required to take on that responsibility. Time, resources, and expertise that an already overburdened credit department does not have.
At CMA, we are in the process of trying to ease that pain by developing convenient, cost-effective, standardized training programs that can be used to train credit department personnel at all levels of experience and responsibility. Your volunteer leaders on the Board have given us a really good start, but we want to hear from all of our members about what core skills your company and your credit department values and believes will drive high performance and great results. Please take a few minutes to answer our brief one-page survey so that we can include your input in our program design.
CMA is proud to host the CreditScape Spring Summit 2016 next week in Newport Beach, with a significant focus on how technology can be leveraged to improve the efficiency and effectiveness of credit operations. Regardless of whether you are attending the event, we’d like to get a baseline for how much automation is being utilized across our member base today.
Click here for a short survey that will ask you about your challenges, where you are with automation and where you’d like to be. We’ve also got several questions about the time spent and value of some of the most common activities in the credit department. By helping us to better understand your challenges regarding automation and technology, we’ll be better able to craft conferences, webinars and presentations, and even alliances with technology providers, throughout the year that help support your goals.
We’ll be asking these same questions on a periodic basis to see how quickly our membership is adopting technology. We’ll also want to understand how else we can support your needs in this area and how well our efforts result in concrete improvements and reduction of manual labor at the member level.
The results of this survey are only available to CreditScape attendees and those who complete it – so please take a few minutes to tell us about your process. We’ll discuss the results at CreditScape next week!
Companies cannot ignore the fact that there is a whole world out there to sell to, and despite thct that current global economic conditions do not favor U.S. exports, there are tremendous opportunities for companies that can and have figured out how to sell to foreign markets on favorable terms. Global commerce is more than a trend – it is a certainty, and because export sales require the support of the credit operation, CMA will continue to include international credit in all education and training programs.
In an effort to determine how far CMA should go to support international credit sales, I have recently attended events that focused on the broader topic of exporting and events that addressed specific credit issues related to international sales. Here are a few things I’ve learned so far.
Most emerging markets are outside the U.S. Middle class growth and urbanization is taking place in China, India, and throughout Asia, not in the U.S. It is estimated that the global middle class will triple in size to 4.9 billion people by 2050, and they will spend an estimated $56 trillion by 2030. Two-thirds of that spending will come from emerging markets. This will create not only a huge opportunity for growth, but may put a demand on U.S. companies to sell into emerging markets just to stay competitive and not get left behind.
A surprising number of exporters are small and medium-sized enterprises (just like most of our members), and new free-trade agreements, like the Trans-Pacific Partnership (TTP), are giving SMEs greater access to emerging markets.
There are a surprising number of Federal and State agencies that provide free and low-cost assistance for exporters. U.S. Department of Commerce Commercial Services, Small Business Administration, Small Business Development Centers, Export Assistance Centers, the newly reauthorized EXIM Bank, and a vast network of partner programs are there to help your company export. The challenge is that there is overlap among these agencies and the overwhelming number of resources can be difficult to navigate. CMA has established strategic partnerships with the International Trade Administration (U.S. DOC), the SBA in Glendale, CA, and the EXIM Bank to better understand how to bring these resources to our members that currently export or plan to in the near future.
Due to the cost of Letters of Credit to foreign buyers, more international sales are shifting to open credit terms, which decreases barriers to sales but increases the risk. At CMA’s upcoming CreditScape Spring Summit and Annual Meeting, a panel of seasoned international credit managers will discuss why overseas customers are demanding more credit in 2016, tools for evaluating the creditworthiness of foreign companies, when to (or not to) extend higher credit limits or longer terms, what are the real risks today of giving payment terms abroad, and companywide credit strategies for growing international sales.
If your company already sells outside the U.S. and your credit department already has a solid process in place for managing trade risk, then much if not all of what I’ve said is not news to you. However, my guess is that many of you have little to no experience exporting, and chances are that if your company produces a product that is marketable to other countries, you will be asked to provide support for international sales. The question is, how can CMA help you find the knowledge, information, services, and professional training to ensure you are ready to take on the challenges of global commerce? As we continue to explore trends in international sales, let us know how CMA can offer assistance to your company to help you win in the global marketplace.
Like many of you, I made a number of New Year’s resolutions, and like many of you, I’ve already broken several (perhaps a 5-day-a-week commitment to go to the gym when it opens at 5 am was overly ambitious). At CMA, we have resolved to make mission and values a priority for this year and moving forward. Of course we have a mission and values, but we don’t spend enough time communicating them to our staff and to our members. Like many organizations, CMA revisits these mantras every few years at Board and staff retreats, but we don’t keep the spirit alive in the years between those manic word-smithing sessions. Many organizations and functional departments are guilty of this. Therefore, we at CMA resolve to make mission and values the reasons why we exist and why we do what we do.
Regardless of the actual words we will use to communicate our mission, it will stand for the idea that CMA is here to help credit professionals do their jobs more effectively and efficiently, which hopefully means making it easier to do more with less, and with greater speed and accuracy. There are many ways CMA can support credit professionals and credit operations – knowledge aggregated from the thousands of credit professionals who share their experiences through networking and publications, trade data from credit bureaus and credit group members, a variety of other third-party services, and professional education and training.
That last component of support, professional education and training, represents one of CMA’s deeply held values – a dedication to life-long learning. This is a value I wrote about before we launched our first CreditScape Summit last Fall. I am revisiting this value because we truly believe that continual education on basic and emerging credit topics, and regular training on skills related to day-to-day credit tasks, will keep credit operations sharp and well-oiled. Ultimately, any operating department within a company should focus on one thing, improving performance. How ever your company and department measures performance, you have to make changes to get better results (remember the definition of insanity?). We all know the reality of making change – it’s uncomfortable, it’s time consuming, it’s expensive – but if we are going to pay more than lip service to performance improvement, we have to take an honest look at our operations and determine where we can improve processes that will make a difference in performance.
We have designed the CreditScape Spring Summit and Annual Meeting, powered by UTA, to give our members an opportunity to get away from the daily distractions of the credit operation to focus on learning from other members who have successfully driven change within their credit operations that lead to improved performance. Many of the process improvements that will be discussed are related to technology solutions that have helped drive efficiency and accuracy by automating certain processes. During the opening address, attendees will hear from Michael Puccinelli, CCE, who has made a career out of process improvement by investing in his team (he requires that everyone be trained and NACM Certified) and investing in technology. At his last two companies, VeriSign and now Equinix, Michael has successfully leveraged a highly trained staff and technology to create what he refers to as systemic solutions to drive efficiencies and high performance throughout a global credit operation. It’s work like this that earned him the first annual NACM OD Glaus Credit Executive of Distinction Award and we know that he will have some valuable advice for CreditScape participants, regardless of company or credit department size or industry.
During the CMA Annual Meeting Luncheon on Day 2 of CreditScape, we will recognize and celebrate those credit professionals like Michael Puccinelli who have made significant contributions to their companies and to the credit profession through their dedication to process and performance improvement. To register, visit www.creditscapeconference.com. Hope to see you there.
The holidays are a time to reflect on the past year, and an opportunity to evaluate how successful CMA has been in accomplishing our goals this year. With Thanksgiving quickly approaching, your CMA staff has listed a number of things we can be thankful for.
First and foremost, we’re thankful for you, our members, who support the efforts of the credit management profession by actively participating. Whether it’s done through submitting your RFIs, submitting your full aging data, or even just attending Industry Credit Group meetings or events such as CreditScape, your contributions make the entire credit management profession better, and we’re grateful. Over the past year, we’ve taken steps to make it easier for members to participate by expanding the number of free educational events, anscers training sessions and opportunities for members (both new and returning) to learn how to maximize their membership with CMA. For those who have participated in any of these sessions, thank you!
We’re thankful for our partners in the credit information industry who have made it possible to provide our members with valuable, one-of-a-kind products. Thanks to our partners Bob Shultz, Keith Doyle, Dun & Bradstreet, Equifax, and Experian for helping us provide members with the “big picture” on any account with the anscersX multi-bureau trade credit report. Thanks also to our partners Ansonia and Southwest Business Credit for helping us solve the problem of gathering real-time title information with the most innovative credit report for the construction industry, The Construction Credit Report.
We’re thankful to our exclusive partner in third-party collections, AG Adjustments, which has recovered hundreds of thousands of dollars in unpaid debts for CMA members. We are thankful for all of our many other vendor member service providers for their assistance with international credit sales, UCCs, payment processing, and deductions management.
We’re thankful for Paul Beretz, CICE; David Osburn, MBA; Jim Menard, CCE; and a host of other dedicated instructors who have supported the professional development of so many of our credit professionals.
We’re thankful for our volunteers, those who have served on the CMA Board of Directors and on committees like Membership and Professional Development. Additionally, we thank those members who have provided CMA staff with lots of great feedback on topics of interest which have been used to create more relevant education and training programs.
2015 has been a really great year at CMA, and we have a lot to be thankful for. We’re looking forward to an even better 2016. Thanks again for your support, and Happy Thanksgiving to you and your families.
How can you play and get paid in the global marketplace? Over the last two years, CMA has been exploring how member companies can grow export sales using a variety of credit and trade finance resources to mitigate the risk of selling into other countries.
Today, I am attending Discover Global Markets, a two-day export conference hosted by the U.S. Commercial Service, the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration (http://export.gov/discoverglobalmarkets). I am looking for information and insights I can bring back to the CMA membership.
In the meantime, we have many other resources that can help you sell into the global marketplace. CMA established a strategic alliance with the U.S. DOC’s Commercial Services because its trade professionals in over 100 U.S. cities and in more than 75 countries help U.S. companies get started in exporting or increase sales to new global markets (http://www.trade.gov/cs). Regional Director Richard Swanson recently participated in a panel discussion on international collections at CMA’s Fall CreditScape Summit, and he has provided CMA members with guidance on how to access U.S. government export resources in many other countries. You can also find all the basics at www.export.gov.
When you conduct international credit investigations, CMA recommends long-time partner Skyminder which offers reliable, up-to date information on millions of public and private companies worldwide. Details on how to find them are here.
CMA has three upcoming webinars before the end of the year that will give you more tools for exporting your products and securing your receivables.
December 1, 2015: How to Achieve Procurement Using Foreign Trade Zones (Free Webinar) 9:00 AM PST
December 2, 2015: Financing Foreign Receivables (Free Webinar) 9:00 AM PST
December 3, 2015: Comparison of Credit Risk Mitigation Tools (Free Webinar) 9:00 AM PST
All too often our members tell us that they want to take advantage of benefits offered by CMA, but they are not in the budget. For companies on a calendar fiscal year, here’s your opportunity to begin thinking about those budgetworthy benefits for 2016. Even if your next fiscal year extends well into 2016, it’s never too early to start your wish list.
Above all, budget for CMA membership and if your company participates in a credit group, include group membership ($1665 total). Credit groups are still one of the best ways to maximize the value of your CMA membership because the unique combination of industry trade data, insider knowledge about common customers, and industry best practices often pays for your membership fees many times over in helping you grow revenue, reduce bad debt losses, and saves you valuable time in conducting due diligence. One of CMA’s newest groups focuses on developing processes to help the credit department evaluate supplier risk. If your company faces significant exposure from the risk of critical suppliers failing to perform on time (or at all if they go out of business), consider budgeting for membership in the Supplier Risk Credit Group ($1200).
CMA has already scheduled the next CreditScape Summit for March 24-25, 2016, and will soon schedule the Fall 2016 CreditScape, so be thinking about adding one or both events to your budget (CMA members pay $499 per person per event). CreditScape is a unique event focusing on process improvement for the credit department, providing the tools to allow you to act more proactively.
CMA will offer NACM Certification Courses for the CBA and CBF Designations starting in January. These will be offered once a year only, unless there is sufficient participation for additional classes, so if you plan to get certified in 2016 or early 2017, plan to register for the Certification Courses now and budget accordingly ($3000 for all courses per designation per person). Information for all professional development events can be found on CMA’s website and on anscers.com on the Education tab.
Before you budget for your credit information, consider whether you are getting the best value for your budget. Let CMA help you analyze your current credit reporting products– we might be able to save you money by suggesting a more cost-effective reporting strategy (pricing varies by report volume). CMA’s anscersX multi-bureau report combines proprietary scores and data elements from all three major credit bureaus (Dun & Bradstreet, Experian, Equifax) to give you a comprehensive look at the payment history of your customer or prospect ($65 (or less) per report). Budget for some anscersX reports to supplement your existing credit reports.
If you are a construction supplier, consider how using CMA’s Forms Filing Service can save you time and money. With services ranging from preliminary notices to lien warning notices, mechanics liens, bond claims and stop notices, CMA’s Form Filing Services often provide the lowest pricing and best service in the marketplace. You might also be interested in CMA’s new Construction Credit Report, providing title data, public record data, active trade lines, credit analysis and scores, collection agency activity and links to state contractor information, the only all-inclusive report of its type, at $29.95 per report.
Finally, CMA’s collections partner, AG Adjustments, offers third-party collection services at competitive rates on a contingency basis.
We hope this list is helpful as you consider your needs for 2016.
At CMA, we are so excited about the CreditScape program we’ve got planned for you, we wanted to give everyone a sneak peak at what you’ll be talking about. All next week, CMA will publish a series of briefs from thought leaders who will be featured at the Summit — Chris Rios, Bart Frankel, Scott Blakeley, Chris Ng, Eddy Sumar, Michael Dennis, and more.
When I spoke with Chris Rios, Director of Finance Operations for Dun & Bradstreet, about the whole collections process, he spoke about the importance of treating collections like sales, because you are “selling” customers on why they should pay their bills. The key to success is building and maintaining good relationships with your customers. He also stresses the importance of being “forward looking” and strategic in your approach to collections – using data and analytics to drive collection effectiveness.
Bart Frankel has been a member favorite with his “Phone Power” Collection Webinars over the years, and we’ve asked him to share the collection techniques he developed for the $7 Billion Order-to-Cash process for the Pratt & Whitney Division of United Technologies. Bart will be the first to tell you that collections starts with the sales call and he stresses the importance of getting the upfront process right the first time so you don’t have so many issues on the back end.
What if you are exporting and trying to collect from customers in foreign countries? Eddy Sumar, CCE, CICE, has plenty to share about his experiences collecting money from all over the globe, and he’ll be the first to tell you, collections starts with an understanding of the 6th C of Credit — Culture.
I am really excited about our newest program, the CreditScape Fall Summit, focusing solely on Collections. First of all, I have to thank all of our members who participated in the CreditScape program development survey. We have received almost 100 responses from you with very valuable feedback on the topics and challenges you feel are important for getting better collection results. We are committed to considering input from our members and creating curricula that addresses your challenges as we design all of our education and training programs.
Additionally, in talking directly with members and subject-matter experts about the main focus of CreditScape, collections, my own view of collections has changed. I always thought of collections narrowly as a process for collecting overdue invoices. I now see it as a broader discipline that begins as soon as a sale is made. So, in addition to the mechanics of making demands for payment, the CreditScape will include many other aspects to ensure timely payments and effective accounts receivables management.
I am also excited about the format of the Summit. I have now attended and hosted probably close to a hundred conference-style events, most of which were in classroom-style lecture presentations. Recently, I have attended several events where a concerted effort was made to incorporate audience collaboration into the learning experience, and when done well, gave participants a much greater sense of value for their time spent, and I personally got a lot more out of those types of sessions. Bringing that approach to CMA, while subject matter experts will still share their experiences with credit practitioners, much of the learning at CreditScape will come from practitioners sharing experiences with each other in workshop-style settings. This might be the perfect opportunity for credit and collections teams to get away from the office for a couple of days to pursue a journey toward process improvement.
Our goal with CreditScape is to provide an opportunity for credit practitioners with all levels of experience and expertise to come together to share successes and solve problems around collections and accounts receivable management. Everyone has something new to learn or something valuable to pass down that could help drive better results. You don’t know what you don’t know, and what you don’t know could be hindering your success.
And speaking of what you don’t know, I mentioned in my last blog that I had enrolled in the Business Credit Principles Online course. Since I am not a credit practitioner by trade, I have learned a lot about what credit professionals face every day, and the myriad of factors that have to be considered before a simple credit decision can be made. Clearly, it’s not that simple, which is why not just anyone with an accounting degree or with a general business background (like me) can perform effectively without a great deal of training and dedication to the profession. The real value in continuing education, even if it’s in an area with which you are already familiar, is that you don’t know what you don’t know, and I have had a great experience with instructor Paul Beretz discovering what I don’t know and putting it to good use.
By the way, I personally valued the Business Credit Principles course so much that I enrolled in Beretz’s Financial Statement Analysis course. Stay tuned…
CMA is proud to announce that it is collaborating with commercial collection partner AG Adjustments (AGA) to bring credit professionals an entirely new experience in collection and A/R management training. The CreditScape Fall Summit, which takes place September 17-18, 2015 at the newly renovated Tropicana Hotel on the Las Vegas Strip, features two days of workshop training, expert practical and legal advice, and networking with other credit professionals.
Part of this unique learning approach will involve subject-matter experts and seasoned credit professionals sharing their experiences through interactive case studies, and each session will dedicate time for participants to share their own experiences with each other. Sustainable learning is about shared knowledge and experiences, and this is one way that CreditScape Conferences will keep participants ahead of the curve in an ever-changing credit landscape. This will also be much more interactive than the typical teacher-and-classroom experience our audience is used to.
From discussions I’ve had with members over the years, CMA members are always looking for better ways to manage and maximize recovery of their receivables. CMA’s partnership with AGA has played an important role in satisfying that need, but we saw an opportunity to take that relationship to a higher level. By leveraging AGA’s deep expertise in commercial collections and vast network of contacts and resources in the credit space, we can deliver leading-edge tools, techniques, and best-practices in accounts receivable management. I also want to incorporate the latest techniques in content delivery for adult learners to create a thought-provoking and practical meeting experience that produces valuable take-aways and sustained value for participants and their credit departments.
AGA’s president Mark Gerstel has told me that his company has envisioned producing a training event focused on commercial collections because there is such a need, and that working with CMA on this event gives AGA an opportunity to help credit managers do a lot more to help themselves and help their outsource partners to get better results.
Preliminary discussions with CMA members and industry partners have uncovered various capabilities and core competencies that affect collection effectiveness, including automation tools, the quality of customer investigations and evaluations, building relationships with customers and sales, and differentiated collection approaches for large and small debtors. These are some of the subjects that will drive content and discussion at CreditScape.
CMA’s education subcommittee is currently developing the programming for the event, which is designed to propose best practices and methods to collect receivables from your company’s customers. Details about the program will be announced this summer.
I have always been a big proponent of continuing education. My degree programs gave me the opportunity to serve in my current executive role at CMA, and earning my Certified Association Executive (CAE) designation helped me continue to grow into this complex management and leadership role. Having spent the last 15 years working closely with credit professionals in dozens of different industries, I have observed that most credit management positions require a depth of knowledge across a broad range of disciplines – financial, legal, customer service, and organizational leadership. The first three require study and practice to gain a proficiency for effective management. Organizational leadership requires proficiency for the first three, plus the confidence that comes from experience.
To be leader in your organization, you need to be good at what you do, and you have to bring new ideas and prospectives to your team and to the company. When I was studying for my CAE, I read up on many areas of association management that helped fill gaps in my knowledge, but I learned just as much from my colleagues who took the course with me. Their collective experience greatly enhanced my learning and insights, and gave me new ideas to bring back to CMA. How often can you say that about an educational course?
CMA’s online course format was designed to deliver just his kind of experience. We wanted to make education convenient for time-challenged participants without sacrificing the live classroom-style interaction that is so valuable for real learning and the exchange of ideas. Lectures are delivered by the course instructor in a live webinar format to allow for real-time interaction with them and other learners. Course assignments are assigned weekly in a virtual classroom and completed by learners at their own pace and posted to the classroom for sharing.
Continuing education is really about sharing knowledge and experience. There is a great scene in “Good Will Hunting,” a movie about a brilliant young man who is afraid to confront his own life’s extraordinary potential. Will’s therapist tells him that there’s nothing he can learn about his patient that he can’t read in a book, unless Will is willing to share his thoughts, ideas and experiences with him. Learning is about shared experience. Some of that experience is captured in a text book, a linear, fixed perspective which forms the basis on which to understand the multitude of shared experiences you will encounter from the subject matter expert and fellow learners.
I believe in the value that continuing education creates for professionals and the companies they work for. I also believe that we should practice what we preach. Almost 10 years after CMA launched its first online certification course, I have decided to experience CMA’s online courses myself. I am currently enrolled in Business Credit Principles with the goal of earning a CBA designation.
With another Annual Meeting behind us, I was encouraged to see such a great turnout at the event last week. It was a pleasure seeing all who attended CMA’s Annual Meeting at Disneyland, and what made it particularly exciting for me was seeing that more and more of you are coming out of your offices to engage with other members and learn IN PERSON. It was nice to see credit managers reconnecting or getting to know each other for the first time, and learning from one another as they asked questions and shared experiences during the education sessions, an advantage of meeting in person rather than participating in online learning.
I noticed something else at the Annual Meeting that was very encouraging: experienced, senior credit managers brought their staff members with them to share in the education and networking experiences. I applaud this effort of good old-fashioned staff development, knowledge transfer, and succession planning, something that we don’t often think about in our daily routines, but is critical for the long-term sustainability of a credit department and the credit profession.
For those of you who were unable to join us at the Annual Meeting, look for more opportunities this year, as there are more upcoming in-person seminars, learning lunches and conferences. Additionally, NACM Oregon is hosting the NACM Western Region Credit Conference October 14 – 16 in Portland, OR. More details will follow after NACM’s Credit Congress in St. Louis next month.
My experience at the Annual Meeting re-affirmed for me why CMA is here for its members, customers, and other stakeholders. We believe, as you do, that credit management is critical to the success of any B2B company that sells on open terms, and we are here to help you grow revenue and reduce risk by providing, first and foremost, a vibrant community of credit practitioners with whom you can exchange experiences, best practices, and new ideas.
We hope you’re finding the educational and networking opportunities CMA is offering as useful to your business. Looking to learn more about a topic that we’re not currently offering? Let me know and we’ll try to help.
We hope to meet you in person at one of these upcoming events.