Ever dismissed the phrase, “…and I think the time has come to change…..” as a figment of the boss’s overly paranoid imagination? Yes? Me too. And plenty of other credit managers have as well. Even my ex bosses have committed this error at some stage when their boss pontificated to them.

Once we crack the non-payment ‘problems’, (usually the easy low lying fruit), the job inevitably slips into a semi-automated function. Dangerous. And because we think we are on top of the job which we actually are nowhere near being, we tend to get the bucket of popcorn out, schlompf on the sofa and slip easily into auto-pilot mode. Meanwhile the juicy and deliciously complex and high value unpaid problems remain ignored. The sofa is way too comfy. This becomes your accepted performance level? You think it is as good as it gets? Really?

It’s a natural to think along these lines. We are only humans. Well guess what – bin the popcorn and burn the sofa because you need to snap out of it and start attacking the issues to improve your collections performance! And if you think you cannot crack it with the custome base you have, maybe you can swap customers with a colleague for some that suit your skillset and personality?

Meanwhile………..

Being a credit person I believe the very nature of the job means you are an advocate of change and want to jump off the sofa, chuck out the popcorn and ante up to gain the leading edge over recalcitrant debtors. Well guys, here is a key area where a tweak or a tune-up will have a positive impact on your KPI results.

THE PERSONALITY & SKILLS CHANGE: If you have a team of collections staff, you could begin with a review of your ledger splits. Depending on your view about the length of time a collector has tenure of a customer, you may want to select a few customer accounts to be swapped out among other team members. But not before you review the skill strengths and character of each individual in your team(s) and assign the customers accordingly. All too often this change results in better relationships as well as resolution to problematic payment trends. All due to making certain you fit the customer profile to the right controller. Yes, personalities and skills do make a difference. Do not forget to keep the relevant account/sales managers in the loop. They must input to the changes you want to make. And please, please never forget that the credit controllers concerned will be losing/exchanging part of their client-base. Your job here is to remember that these are your people and are all too human and so absolutely require to be treated with utmost respect and care. Involve them thoroughly and make the change as positive as possible.

Next time: Recalibrate: dunning strategies for effective cash collection performance

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