In Focus Risk
Engaging a credit team
Getting the best from your people means trusting them and making them feel that they are part of a wider operation
Danielle Fotheringham Senior credit controller, Pentland Brands
danielle.fotheringham @
pentland.com
Credit controlling is a little like raising a teenager. You must make tough calls, often hear how your decisions are incorrect and unfair from those who might not know the job so well, occasionally get shouted at, and, although it is often very rewarding as a job, sometimes you have to look really hard to see those rewards. (Seriously, it is a real toughie at times!). One thing I think anyone in credit would
agree on, is that we have a real balancing act on our hands as credit teams. We are trying to do what is right for the company commercially, help drive up sales – all the while keeping the debt to a minimum, getting the money in to boost cashflow, and minimising risk to the business. Generally, the people we deal with are
customers who want goods (and often resent calls from us chasing money they owe), and sales people who want to get stock out the door (who often, despite the best relationships, will resent blocked orders, limit restrictions ,and all the other choices we have to make). Given that it is all such a balancing act, it
really is key to keep teams positive, passionate and engaged in what they are doing – to make it worth more than just a pay slip each month and drive great collection results. So how do we do it?
KPIs KPIs are a simple enough concept. Give people targets and they will want to hit them. Well yes, but KPI culture needs to be right.
KPIs should encourage the team to push for always being a little better, even maybe having a little competitive edge to them – be it with themselves or team members. They also need to be monitored in a way that is realistic. There is no point in having
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www.CCRMagazine.com I have found that personally, and from
Do the controllers know what the company goal is, be it long or short term? Do they know what challenges the sales team are facing, or what exciting changes to strategy are coming up?
a KPI that is unrealistic and leaves morale low – and that can happen just as easily as a hit target increasing morale, if not more so. Getting the KPI balance right, and the
way it is appraised and challenged, will need to be adapted based on your company and industry, but regardless of the how, getting it right is key.
Ownership and trust Also driving great engagement is ownership and trust. Be it a specific country, region, or division, the controller must own the accounts they look after. This means encouraging them to build those crucial relationships with all stakeholders involved, both external and internal.
what I see in my team, giving them each the trust to look after an area without interference promotes a real excitement for their own results and likewise a drive to make a positive impact. Regular team catch-ups, where the focus
is on success and future challenges, also help with engagement, as it gets the team talking about what is going on but away from behind their desk and computer screen. This means the topics of discussion are associated with more than ‘just a job’. It becomes, and remains, interesting and relevant to them.
The wider company On top of these two key points, I would say that the wider company you are in also plays a role. Do the controllers know what the company
goal is, be it long or short term? Do they know what challenges the sales team are facing, or what exciting changes to strategy are coming up? More to the point: do they know much
about the goods or service they are chasing money for? All these things have a great impact on
making a credit team feel like they are part of a bigger picture, and a much bigger purpose. It makes them feel like part of a company-wide team, as opposed to a credit function alone, and that, in my experience, is enough for anyone to take an increased amount of pride and passion in their role – and this is certainly something I think should be done more within companies to involve their credit team. This will only ever, in my opinion, improve
your team’s engagement and, therefore, results! CCR
May 2018
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