If your organization has
not changed its credit department procedures in the last 24 months perhaps you should
consider doing so now.
This is often a large undertaking and one where there is not sufficient time
to take on such a project. I have written several procedure manuals in the last several
years under contract for other organizations and know first hand the difficulty in
bringing credit personnel together to agree on the steps necessary, especially where
branch offices are involved. I have always held the opinion that the key to writing and
implementing successful credit procedures is to let other departments in the organization
do it for you.
It is generally overlooked that everything we do in credit and collections
involves and affects everyone else in our organization. The primary reason for conflict
between credit personnel and other department personnel is that we are often not in
agreement with procedures. I suggest that we offer others in the organization the
opportunity to submit their ideas as to how these procedures should be implemented.
To do this, we only need to create a list of the subjects that we are
creating or giving thought to changing. Next, we provide this list to the department heads
that will be affected by these procedures and ask them to submit their ideas as to the
steps that should be taken. Once received, we then take the best of their input and write
This provides us the following:
1) it eliminates us from having to budget time to address, create &
change; 2) it reduces future conflict with company personnel who are affected by procedure
because they have had input in the procedure.
A full list of subjects that should require written procedures can be found
in the PPC publication "Credit & Collection Manual for Small Businesses" and
is available to Club members at a discount by calling 800-323-8724 and mentioning
"Creditworthy", or you can e-mail me and I will forward you a list of topics
that should require input from other departments.
In next weeks column we will discuss department procedure topics that should
be written but do not generally require input from other departments within the
I wish you well