We have experienced stress in our Credit Department roles over the past several years. The future business climate remains uncertain. It will surely bring on additional department workload and challenge. Managing through the times ahead will require solid and strategic leadership skills. As a Credit Manager, your ability to lead impacts your team, other stakeholders, customers, and ultimately your company's success. That is why it is time to look back and take a personal assessment of your ability to lead strategically. 

Strategic leadership in difficult times has the following six critical elements:

1. Have a clear vision and communicate it clearly. To maneuver through uncertainties be prepared to:

Consult with your team and other stakeholders.
Draw from similar situations that occurred in the past. How did your department deal with past downward economic trends? Is it time to review your credit policies and collection strategies?
Be creative and look for opportunities to adapt. How can you work with Sales in a more proactive way? What advice can you offer senior management on how to handle high-risk AR portfolio concentrations? Are there opportunities to automate manual processes that will improve your department's productivity? How can you increase awareness and transparency of looming risks? Are there additional securitization measures you can employ to maintain the credit lines of higher-risk customers? Don't be afraid to lead. Take action, even if the results are uncertain. 

2. Understand the challenges other stakeholders face. Make a concerted effort to listen to your counterparts in other departments. What impacts them? Gather different perspectives. Understanding is the bedrock of leadership. Positive leadership brings results.

3. Be a problem solver and decision-maker. Sometimes this means taking decisive risks. In the “real world,” we live in, there are multiple, and often competing issues, which need to be dealt with simultaneously. This requires a sense of realistic priorities. It requires quick and sometimes, bold action. The key is to be open-minded, fair, and ethical. 

4. Manage, motivate, and develop your team. As a leader in difficult and uncertain times, be the steadying influence. This takes an ability to inspire your team to take on new challenges with a commitment to succeed. Set reasonable targets, and expectations. Include your staff in decision-making. Help them feel a part of major issues, by delegating meaningful work. Recognize their success, help them with failures, and encourage the resilience needed to accomplish what needs to get done. 

5. Communicate effectively. Display your leadership publicly. This goes beyond your Credit Department. Meet with other stakeholders. Listen to what they have to say. Be empathetic to their needs. Make them aware of your department's priorities. Actively show your team you are their advocate.

6. Handle your personal stress well. In spite of pressures, maintain your composure. Exude a positive but realistic outlook. If things don't go your way, lick your wounds, think of acceptable alternatives, and move on.

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