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Tip: Lead Change or Get Out of the Way. How do You Stack Up?

Tip: Lead Change or Get Out of the Way. How do You Stack Up?

As a Credit Manager, your role is highly visible to key company stakeholders, customers, and Senior Management. Perceptions of your performance and leadership drive your effectiveness and career potential. We are in a time of drastic changes in technology, AI applications, an evolving economy, global and e-commerce, virtual currencies, demographics, and regulatory dynamics. This requires continuous learning and the adoption of best practices. 

Managing credit and collections today is much different than just a few years ago. We can expect changes to accelerate in the coming months and years ahead. There are new business methods and tools. The heightened competition requires increased operating efficiency, the need for real-time access to data, and doing more with less. Managing these changes requires up-to-date knowledge and dynamic leadership. 

It is time to do a self-assessment. How do you stack up compared to the following six qualities of a good leader?

1. A well-informed leader initiates change:

Remain aware of best industry practices, competitive issues, company goals, and available resources to continuously improve the effectiveness of your department. Leverage the unique insights you have as a Credit Manager into the operation of both your company and your customers. Lead efforts to address operational and process issues affecting AR results and profitability. Continually learn and adapt. Take advantage of education and training opportunities. Network with peers, keep up with best practices and lead the changes and adaptations needed to keep your department and company successful. 

2. Set an example of high personal ethics:  

Your behavior and decision-making set the tone for your staff and others impacted by you. Earn a reputation for being honest and forthright through your actions and words. It is critical for you not only to demonstrate ethical behavior but to demand it from your staff and others you interact with.

3. Demonstrate your desire to help others be successful:  

A leader takes personal satisfaction in helping others be successful and meet their personal objectives. Recognize good performance. Considering and implementing the ideas of others demonstrates your desire to help others achieve their goals. By building goodwill, trust, and credibility, gain the cooperation needed to lead change. 

4. Remain positive and enthusiastic:

Change is stressful. This impacts morale and productivity. By overcoming the pressures and frustrating disappointments we all encounter a positive attitude can change the negative attitudes of those around us. 

5. Be willing to make difficult decisions:  

Credit Department performance is a pivotal element of every company's cash flow, and liquidity, creating the opportunity to grow and prosper. This is compounded by an environment of rapid change and heightened expectations. As a leader you have demands from all directions: Sales, Operations, Treasury, Senior Management, and Customers, all depend on your decisions and efficiency. Be willing to accept new ideas that improve upon your own. Take necessary risks with creative approaches. Investigate the facts before you make a decision. Listen to those who depend on the outcome. Explain the basis for your actions. 

6. Work as hard as your staff does:  

Set an example, and exhibit the high energy needed to meet goals. Project a realistic sense of urgency. Expect the same from your staff. 

Have a good sense of priorities: 

  • Look at the return on the time investment before prioritizing competing issues. 
  • What is critical to the company? 
  • What is time critical? 
  • Always keep your team aware of department priorities affecting them. 
  • Involve them in setting department priorities. 
  • Keep them informed of when and why priority changes are needed. 
  • Listen and act on their ideas and feedback.


A results-oriented leader sets reasonable expectations and plans how to reach the desired result. This requires an evaluation of the strengths and weaknesses of individuals on the credit team to determine training deficiencies and how best to deploy staff. Be sure the desired results are clear to everyone involved. When goals are achieved, celebrate the win.

Watch our course on Leadership Language Masterclass to build your leadership skills in communication, hosting, innovation, and many more.

 

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Editor, Highako Academy
 

Highako.com is a video-first micro-learning platform trusted by over 10,000+ Credit and Collections professionals. Leverage Highako to drive skill growth with role-specific expert video lessons, and hands-on assessments. Connect and collaborate with the largest credit community and get access to ready-to-use templates.