Finding Hidden Gems in Your Organization, by Melissa Kobus, CCE

Melissa Kobus, CCE, is the Credit Management Association Chair and Regional Credit Manager for Anixter Inc., based in Anaheim, CA. She can be reached at 714-695-2219, or melissa.kobus@anixter.com
Melissa Kobus, CCE, is the Credit Management Association Chair and Regional Credit Manager for Anixter Inc., based in Anaheim, CA. She can be reached at 714-695-2219, or melissa.kobus@anixter.com

The role of credit is ever changing.   What credit professionals handle on a daily, weekly, monthly basis is challenging and can sometimes feel overwhelming.  The requests from your customers, internally and externally, require you to reprioritize at any minute of the day.  What happens when the requests outweigh the resources available?  How do you handle the workload?  What steps have you taken to help balance your day?

I recognize that every company is different, what is a priority at one may not be a priority at another.  As the workload changes, have you taken a moment to rank your tasks by importance?  Are there tasks that you do as a matter of course “it’s always been done this way”, that are no longer really required.  Have you asked those who you are supporting, if the action is still necessary?  Eliminating redundant or outdated activities will easily add time to your day.

A challenge that I face with regularity is keeping up with technology.  Our customers ask us to support any number of different platforms for billing services and customer research.  Having the time and knowledge to provide excellent customer satisfaction is important, so I engage weekly with our IT group.  They have strong technical skills and have helped us out of a bind in a number of cases.  They too lack resources but I have found a good relationship has been mutually beneficial.

Sometimes there are those special projects that seem to come out of nowhere.  What about those projects that have been on your to-do list since last summer?  I have found resources outside the credit department to be extremely helpful depending on the project.  I have engaged sales support and front office staff to assist in getting the job done.  They welcome the new experience and opportunity to be involved.  They become part of the credit department extended family.  Who knows, they might bloom into the newest credit team member.

Streamlining your main activities and prioritizing; partnering with other departments; and developing resources outside of your specific team will help in balancing the ebbs and flows of the credit dept.  Can you too find hidden gems in your organization?

Melissa Kobus, CCE, is the Credit Management Association Chairman and Regional Credit Manager for Anixter Inc., based in Anaheim, CA. She can be reached at 714-695-2219, or melissa.kobus@anixter.com

What’s the Bad News?, by Michael C. Dennis

Credit managers manage risk. Therefore, I think credit managers need to actively seek out “bad news” from their collectors. Small problems can be used as opportunities for credit administrators and collectors to learn more about how to manage risk and collect past due balances more effectively and more efficiently. It’s clear that credit administrators are far more likely to report good news than bad, but that tendency is exacerbated when managers tend to either (a) shoot the messenger, or (b) ignore bad news or (c) cannot offer advice and guidance about how to address and resolve the problem.

One resource that CMA members have to help them seek out this “bad news” is the Industry Credit groups which are intended to help companies in the same vertical market get the most complete picture available about their customers.

Actively seek out bad news and use the information as an opportunity to learn, and to train others, and to improve processes and procedures.

Have you used CMA’s Industry Credit Groups? Did they help? As always, I welcome your feedback.

Michael Dennis is the author of the Encyclopedia of Credit (www.encyclopediaofcredit.com), a free, fast, internet resource for credit and collection professionals. He is a consultant, and the author of “Credit and Collection Forms and Procedures Manual” as well as a frequent instructor at CMA-sponsored educational events. He can be contacted at 949-584-9685.

The True Cost of Hiring Good Credit Professionals, by Michael C. Dennis

A friend of mine was told by a headhunter that she was overqualified for a position.  What does it mean?  Usually, it is code for: (a) you are too expensive or (b) you are too old.  If we give the hiring company the benefit of the doubt, we are left only with (a).

In my experience as a consultant, many companies fail to understand the potential costs of a bad hiring decision in credit management, which include but are not limited to:

•         Higher bad debt write offs [not risk averse enough]
•         Missed sales opportunities [too risk averse]
•         Higher DSO and A/R carrying costs [inadequate follow up, or poor negotiating skills]
•         Damaged goodwill [with customers, and internal customers such as Sales]

There is an old saying:  If you think it is expensive to hire a credit professional, wait until you hire an amateur.

Michael is the author of the Encyclopedia of Credit (www.encyclopediaofcredit.com), a free, fast, internet resource for credit and collection professionals.  He is a consultant, and the author of “Credit and Collection Forms and Procedures Manual” as well as a frequent instructor at CMA-sponsored educational events.  He can be contacted at 949-584-9685.