When its time to leave...

What was my toughest business decision? Simple...handing in my resignation and leaving a 20 year employment at a large firm where I had (on paper), a successful career in Accounts Receivable Management.  In that 20 year career,  I began as a Credit Analyst, then promoted to Supervisor of Collections,  advanced to Credit Manager and eventually to Senior Manager of Credit (the highest position within Credit and Collections).

 

In addition to leaving...I was uprooting my family. We were moving from Southern Conn. to Southern New Jersey.  My family did support my decision.

 

Why do this? Simple....I was no longer in control of my organization. Attempts to automate the Collection process was being resisted. Folks were comfortable with the old paper process, my attempts to purchase a better "bolt on" system was rebuffed ...due in part to the IT Organization's promises to eventually build a better system for me (after some other projects were completed.).

 

Looking back...it was the best career decision I ever made.  Sometimes you have to leave....or stay and simply whither on the vine...so to speak.

 

Let me provide some details. My prior employer (the 20 year place) was a high volume billing organization.  You purchased equipment...followed by the accessories and support. The later were often small dollar (<$1,000) and their volume was in the tens of thousands per quarter.   Calling and manual faxing (mid 1990's) was labor intensive, slow and just plan inefficient.  Collectors fell hopelessly behind and trying to improve the DSO was a hopeless battle.

 

However....a Boston area company offered a "auto fax" system which "bolted on" to our Accounts Receivable system.  It sounded great.....you click on an invoice (s) ...and it automatically sent out a cover letter and invoice copy.     Wow...this is what I needed ! Get me out this Mt Everest of paperwork!

 

Curiously...my team and management were against it. They thought a collector's role was to be well organized (in handling paper) and this new system would only help those who were disorganized....weird logic,I thought. And, our IT Organization persuaded my management that they can build a comparable system ...eventually.

 

It was clear to me that I was no longer master of my fate.  So....the resumes went out....got a call from a California based software company (with a So. Jersey office) to interview forr first Corporate Credit Manager.  Got the job, got the automany...implemented a far reaching automated Collection system which went even farther than just faxing invoices.  It had built in strategies which streamlined the collection work flow from day of invoicing to collection.  The system paid for itself within 90 days. 

 

Sometimes you just have to leave......I never looked back....until today...and I do it with a smile !

 

What was my toughest business decision? Simple...handing in my resignation and leaving a 20 year employment at a large firm where I had (on paper), a successful career in Accounts Receivable Management.  In that 20 year career,  I began as a Credit Analyst, then promoted to Supervisor of Collections,  advanced to Credit Manager and eventually to Senior Manager of Credit (the highest position within Credit and Collections).

 

In addition to leaving...I was uprooting my family. We were moving from Southern Conn. to Southern New Jersey.  My family did support my decision.

 

Why do this? Simple....I was no longer in control of my organization. Attempts to automate the Collection process was being resisted. Folks were comfortable with the old paper process, my attempts to purchase a better "bolt on" system was rebuffed ...due in part to the IT Organization's promises to eventually build a better system for me (after some other projects were completed.).

 

Looking back...it was the best career decision I ever made.  Sometimes you have to leave....or stay and simply whither on the vine...so to speak.

 

Let me provide some details. My prior employer (the 20 year place) was a high volume billing organization.  You purchased equipment...followed by the accessories and support. The later were often small dollar (<$1,000) and their volume was in the tens of thousands per quarter.   Calling and manual faxing (mid 1990's) was labor intensive, slow and just plan inefficient.  Collectors fell hopelessly behind and trying to improve the DSO was a hopeless battle.

 

However....a Boston area company offered a "auto fax" system which "bolted on" to our Accounts Receivable system.  It sounded great.....you click on an invoice (s) ...and it automatically sent out a cover letter and invoice copy.     Wow...this is what I needed ! Get me out this Mt Everest of paperwork!

 

Curiously...my team and management were against it. They thought a collector's role was to be well organized (in handling paper) and this new system would only help those who were disorganized....weird logic,I thought. And, our IT Organization persuaded my management that they can build a comparable system ...eventually.

 

It was clear to me that I was no longer master of my fate.  So....the resumes went out....got a call from a California based software company (with a So. Jersey office) to interview forr first Corporate Credit Manager.  Got the job, got the automany...implemented a far reaching automated Collection system which went even farther than just faxing invoices.  It had built in strategies which streamlined the collection work flow from day of invoicing to collection.  The system paid for itself within 90 days. 

 

Sometimes you just have to leave......I never looked back....until today...and I do it with a smile !

 

Management.  In that 20 year career,  I began as a Credit Analyst, then promoted to Supervisor of Collections,  advanced to Credit Manager and eventually to Senior Manager of Credit (the highest position within Credit and Collections).

 

In addition to leaving...I was uprooting my family. We were moving from Southern Conn. to Southern New Jersey.  My family did support my decision.

 

Why do this? Simple....I was no longer in control of my organization. Attempts to automate the Collection process was being resisted. Folks were comfortable with the old paper process, my attempts to purchase a better "bolt on" system was rebuffed ...due in part to the IT Organization's promises to eventually build a better system for me (after some other projects were completed.).

 

Looking back...it was the best career decision I ever made.  Sometimes you have to leave....or stay and simply whither on the vine...so to speak.

 

Let me provide some details. My prior employer (the 20 year place) was a high volume billing organization.  You purchased equipment...followed by the accessories and support. The later were often small dollar (<$1,000) and their volume was in the tens of thousands per quarter.   Calling and manual faxing (mid 1990's) was labor intensive, slow and just plan inefficient.  Collectors fell hopelessly behind and trying to improve the DSO was a hopeless battle.

 

However....a Boston area company offered a "auto fax" system which "bolted on" to our Accounts Receivable system.  It sounded great.....you click on an invoice (s) ...and it automatically sent out a cover letter and invoice copy.     Wow...this is what I needed ! Get me out this Mt Everest of paperwork!

 

Curiously...my team and management were against it. They thought a collector's role was to be well organized (in handling paper) and this new system would only help those who were disorganized....weird logic,I thought. And, our IT Organization persuaded my management that they can build a comparable system ...eventually.

 

It was clear to me that I was no longer master of my fate.  So....the resumes went out....got a call from a California based software company (with a So. Jersey office) to interview forr first Corporate Credit Manager.  Got the job, got the automany...implemented a far reaching automated Collection system which went even farther than just faxing invoices.  It had built in strategies which streamlined the collection work flow from day of invoicing to collection.  The system paid for itself within 90 days. 

 

Sometimes you just have to leave......I never looked back....until today...and I do it with a smile !

 

Price and Value

A salute to Quickbooks !

 

Value....Quickbooks has it.  Low cost....functional....it does what it says it can do.

I admire what they offer and how its helped small to mid sized firms run their businesses

in a very cost effective manner.

 

But, I've often wondered...if something is too inexpensive ...does it infer it is inferior in quality? Being a serious runner (average over 30 miles per week)... quality running shoes are crucial to preventing injuries. And,  poor fitting shoe can make a long run a miserable experience.

 

At present,  you seldom see non discounted running shoes going for less than $100. Maybe a few for $95, but hardly any less than $90.  Check it out in any local running store.

 

So...are we the same about specialized software to run our largest business asset...our Accounts Receivables? At what point would be not purchase, or subscribe, to something that works?

 

If someone gave the software for free....would infer that it has no value? But someone put a price of a $1,000 per license on that same software...would it now infer its valuable and worth purchasing?

 

Something to ponder.....
 

Credit Management & The Great Gatsby

I've just completed rereading a novel I haven't read since high school: "The Great Gatsby" by F. Scott Fitzgerald. It is (in my opinion) the Great American novel. Its themes are timeless.  The "muse" of the novel is one Mr. Nick Carraway, Gatsby's neighbor on the north shore of Long Island, New York.  Though Carraway was a bond salesman on Wall Street (circa 1925) ....I am convinced he had all the makings of a great Credit Manager.   Here's why:

In my many years in Accounts Receivable Management,  I often found myself at the vortex of seeing  many operational problems end up as disputes.  Getting sales taxes wrong on an invoice? They end up in Accounts Receivable.  Pricing errors?  They're now in your bucket. Installation problems .....those too age on your books. And so on and so on.  As these disputes multiply and age,  they can easily add another 30% to your Days Sales Outstanding.  Left unchecked, I've seen disputes cause terminations of Credit Managers (such as my boss of long ago) if not quantified and reported effectively.  You don't want your career to get a premature end....like Jay Gatsby himself.

So..this brings me back to Nick Carraway...Credit Manager.   Throughout the novel, he's the only consistent voice of reason and fidelity.  Like John Lennon's "Fool On A Hill"....Carraway sees through all the blemishes,  errors, and inconsistencies found among the  novel's principal characters.  But....his fidelity to his friend, Gatsby,  is never in question.  In the very end,  he stood alone as the only friend of Gatsby at his funeral.

I like to think as Credit Managers as being made of the same "stock" as Carraway.  They hold a unique position in seeing all the similar blemishes, errors and inconsistencies often found in a company's operations.  These issues end up in the lap of the Credit Manager.  But, as rule, faithful to her/his company and Collection team, the Credit Manager strives to address these disputes, as best  she/he can manage, given the tools at hand.

Getting away from the arts...and into the realities of the business world, getting a handle on your disputes is paramount for anyone involved in Accounts Receivable Managements.  The software which drives your Collection needs an adequate dispute feature which can easily quantify,  report and assign ownership to the plethora of disputes and their categories.   Business decisions thrive on data analysis, and your ability to easily create executive style reporting of these dispute can prove the agent of change within your company.

As a Credit Manager, you see the world from the lofty perch of your Accounts Receivables.....as did Nick Carraway, who saw all of humanity (good and the bad), while also being Gatsby's neighbor and friend.      

Accounts Receivable Management...Micro or Macro Managing?

One of the recent Credit and Collections forums discussed the problems of micro management. Most thought micro managing is often demoralizing and shows lack of trust. 

 

I took a different view. While I agree that micro managing is, in the long term, not a good thing, it may have its place for a limited time. When you have a period that requires paying a significant amount of time to detail with an inexperienced team, I think its best to micro manage vs "going macro." Macro managing too often infers a lack of attention to detail... sort letting the team take the reins when undergoing a major change.   Even Colin Powell advocating "sweating the small stuff (i.e. details)."

 

Let me elaborate on 2 stories of when micro managing is good...and when its better "going macro."

 

About 10 years ago my Collection Team was under going a first time implementation of an automated collection system. No one on the team had experience in any type of software implementation. I had some experience in this area, albeit not specific to Collections Work flow automation. While I advocated the purchase of the system (with a hefty up front charge) and told everyone of the concept....getting the details nailed down was the crucial element.  I sensed my team's inexperience and insecurities as the implementation started.  So, because the moment dictated it,  I jumped in and micro managed the process.   This included setting up the strategies and even reconciling the Accounts Receivable balances to the General Ledger.  I wanted my team to focus on learning how the software operated, vs. getting bogged down in details. 

 

In the end, it all worker out perfectly. My team was relieved that I micro managed the implementation.  And, because they were more relaxed, it was easier for them to learn how to use the new collection system. Within 90 days, the system paid for itself. Within a year, our DSO was reduced 50%.

 

Now for macro managing...let me point to another story...outside of Accounts Receivable Management, but relevant none the less. 

 

In the winter of 1925, a diphtheria epidemic occurred in the isolated village of Nome, Alaska (right on the Bering Strait).   The only means to get a life saving serum to the village was via  relay teams of veteran dog sledders.  The worst leg (in terms of weather) was the final leg. The dog team, and driver (Gunnar Kaasen) had to follow a trail which became nearly invisible along side a ragging Bering Strait blizzard.  

 

Kaasen couldn't see the trail ...but the lead dog ....Balto...instinctively knew it.  With lives on the line, the driver decided that "going macro"  fit this situation.  Kaasen freed up on the reins of the sled, allowing Balto to drive the team on without his (Kaasen's) direction.   The rest...is history.  Balto drove the team (and the serum) onto Nome, the village was saved, Balto became immortal and the legacy of the serum drives lives on with annual Iditarod. 

 

At the right moment....Kaasen made the perfect management decision. He put his ego on the shelf and turned over the team's direction to a dog he trusted. Macro managing had its place and time.

 

Adapt as the situation warrants.  

 

Snowed Under?

I've lived in the Northeastern US all my life. Currently I live in the Philadelphia area. In all my life, I've never seen so much snow as I've had in the past 2 winter seasons. Last winter we had about 80 inches and we're approaching 35-40 this season, with February (the snowiest month) yet to come. This area normally averages 20-22 inches a year ! We're nearly at 120 inches for a 2 year period.  Talk about being snowed in !

So...going on that metaphor....ever get the same feeling....getting snowed under with excess paper and just trying to keep up with volume? Its like snow shoveling in a blizzard.

Until I overhauled our Collections Systems, and automated our Accounts Receivable Management processes, I must have spent half of my Credit career being snowed under with mountains of paper work. Paper work and me do not see eye to eye.  Folks would stare in wonderment on how ever found anything on my desk.  It looked like a perennial blizzard of paper hovered over my desk, even in the dog days of summer.  

That all changed dramatically with the implementation of a Collection System which virtually eliminated all paper.  Within a week my desk went from looking like John Belushi in "Animal House" to Cary Grant in "To Catch a Thief." You get the picture.

And, in a matter of days our Collectors were able to do their entire job without getting up from their desks.  No need to search for invoice copies ( for faxing or emailing).  Those documents were now available on line, within the new Collection Systems.    Our desks looked like a day in May...neat and airy.

Are you still snowed under?

You're Never Too Far Behind To Come Back

I was watching the NY Jets vs the Pittsburgh Steelers playoff game the other day.  In the end, the Jets lost and the Steelers are going to the Super Bowl. But, after being behind 24-3 at the half, the Jets came awfully close to actually winning the game. Pittsburgh's  margin of victory was less than a touchdown.

 

In the world of Accounts Receivable Management,  I often found myself against seemingly impossible odds. Quarterly DSO and/or cash goal targets appeared as goals in galaxies far far away.

 

Yet, my team often pulled through, performed the impossible and were able to achieve aggressive targets.

In one of my earlier blogs I referenced the art of celebration and its positive impact on team morale.

 

But, the circle of success is surrounded by other factors. Of course, without the right tools....you can tread water and not get anywhere no matter how hard you try.  Based on my own experiences, the right Cash Collections Software system was a vital issue in getting the job done.

 

Complementing an effective system is the human element...what motivates people to go beyond themselves?

 

During the Battle of Dunkirk, thousands of British soldiers were told that they were selected for not getting off and escaping to their home country.   Instead, they were told they've been selected to guard the perimeter of Dunkirk. They were ordered to hold out as long as possible, and surrender as the final resort (if they survived).    Sounds pretty demoralizing doesn't it? You'd have some serious morale issues in those companies..you'd think?

 

Actually the opposite happened.  Those guarding the perimeter felt an exhilaration of purpose and went well beyond the capacity of human beings to perform under the most terrifying circumstances.  Why?  These soldiers were communicated the nobility of their cause and understand they were part of something magnificent.

 

Don't we all want to be part of something magnificent ....a noble cause?  It would be shameful for me to have my collection team's heroics similarly compared to the heroics of the British at Dunkirk. We (in Collections) left the office in the evening to have dinners with our families, and no one shot at us during the day.

 

But, having a solid identity to a noble cause (getting in cash) allowed seemingly "average" folks to achieve the impossible.....time and again they went beyond themselves.   They felt themselves to be magnificent and were able to achieve aggressive targets time and again. No matter how far behind they were, they were never to far behind to come back.

 

Who sets out to be a Credit Manager?

When talking to Attorneys,  Sales folks, Accountants,  Financial Managers,  Journalists, and others, it seems that many of them wanted to be, what they are,  from the day they decided on a college major.

Speaking for myself,  I had never thought of being a Credit Manager as an undergrad....did you? I sort of fell into the position when accepting my first (and only) job offer right after college. I accepted a job of Assistant Auditor at a small independent bank in Connecticut.  About a year into the job, the bank formed its first Credit Department. I was asked to help start it,  and my title was changed to Credit Analyst.  From there on in,  I was in the Credit Profession.
Granted, I am not complaining.  Eventually promotions came, my salary increased, and it allowed me to provide a stable financial foundation for my family.  And, I was able to travel the world as a Global Credit Director. Not a bad life.

But...I often wondered if the Credit & Collections profession is something we zero in on as a career objective right out of college....or is it something we just fall into? And, is that really that much different vs other careers?