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.