A few years back I wrote a column that created a bit of a stir. In it I suggested that the information obtained through the credit investigation process be shared with others in the company, especially sales, in order to reach a general consensus of what the company should do. Several readers were outraged by the suggestion and not only wrote to me but also Rich Hill.

Others went so far as to attack the proposal on other web sites without giving those who had not read my article the opportunity to hear both sides of the argument [obviously a lesson learned while attending the William Randolph Hearst School of Journalism]. I did, however, hear from many publications outside the credit community asking to reprint the article and from that I received invitations from several noncredit organizations and companies to speak on the subject.

I not only accepted those invitations but created a presentation on the interdependency of sales and credit. It has always been my firm belief that the conflict between the two functions is self created and the way to eliminate misunderstanding is to communicate. The easiest way to communicate is to share with each other what the other is doing. In the presentation I discuss what happens when the order is received in the credit department, the way the customer's credit is investigated and the reasons for the information requested on the credit application.

I elaborate on the credit investigation and the evaluation of the account and how when more information is made available the decision not only becomes easier but also quicker. To date, the response has been favorable and the sales people I have had the pleasure of spending time with inform me they now understand that the role of the credit department is not to prevent a sale but rather to maximize profitable sales expeditiously and make their job easier.

The absolute enormity of the role of the credit department in creating profits will be more understood and recognized by other members of the organization only if we begin to remove the barriers we have erected so that the lines of communication flow more freely.

I wish you well.