Credit Management July and August 2020

OPINION
GREAT
EXPECTATIONS
Essential advice from the latest
Credit Managers' Playbook.
AUTHOR – Chris Sanders FCICM
EVERYONE is getting used to the
new video calling culture of
business, but despite this now
becoming normal we are not
getting better at it. Many look like
‘Crimewatch Police Informants’ –
a black silhouette on a bright background – or
have given a camera to a four-year old and asked
them to take a picture.
We need to get a bit more savvy with this
technology in the coming months, not least
as recruiters will be doing more recruiting
virtually and the expectation and how your
boss considers you can cope with this new
technology when presenting your numbers will
become more important. Only having the top of
your head showing in an interview or looking
like a ‘no publicity’ lottery winner would be the
virtual equivalent of turning up for a face-toface
interview for a manager’s job wearing an
‘I’m with Stupid’ t-shirt.
PRODUCTIVITY AND PERFORMANCE
Cash collections performance is still strong
in many organisations saying that they are
maintaining collections levels at between
80 percent to 90 percent plus of pre-crisis
levels. This excellent performance is of course
a double-edged sword, with organisations
considering current performance based on
current costs; is 80 percent performance OK
with fewer people and no building costs?
The most resilient organisations are those that
had already invested in automation, systems,
infrastructure and training. Removing manual
processes fundamentally improves resilience.
Time is running out. As we start to come out
of the lockdown phase into the new normal,
building resilience now is critical. Let’s not
forget this COVID-19 crisis may come back and
not all businesses will be able to survive second
time round. Building resilience now is a critical
business requirement going forward.
NEW NORMAL?
The #newnormal hasn’t been decided yet
but that shouldn’t stop us from planning for
whatever it is. Time is marching on and if you
haven’t started to consider what this new normal
will look like for your credit management teams
it is getting to the point where it is almost too
late. We have seen many organisations make
decisions on when offices will re-open and
some organisations have made the decision not
to go back to the office at all. Others are waiting
until the end of 2020 and others are looking at
phasing their return.
Credit managers have the attention of the
business leaders now, so be bold. Ask for stuff
including investment in systems and processes
and resources. One thing is clear: this crisis
has demonstrated that many companies
have historically under invested in credit and
collections. So, seize the day. It can take up to
12 weeks for a new system to be in place so start
now!
To date we have held 34 CICMQ Zoom Sessions
since the first one three days after lockdown
started, with over 725 delegates attending
from UK and International organisations.
So let me share some of the thoughts and
recommendations of this unrivalled CICM Best
Practice Network:
PEOPLE AND ORGANISATION
Many organisations now have a ‘Back to the
Office Plan’. From a staff perspective, certainty is
what is needed most. Any plan that is developed
must be shared with the team. If there is one
good thing that has come out of this it is that
there will be a mix of working practices in the
future: more flexible working, two-days a week
in the office, more job swaps, and cross training
will all be required in smaller companies as
the roles have to be shared. There will be less
travel, less congestion and less pollution. Asking
what the team want to do and their personal
circumstances has to be the way forward.
STAKEHOLDERS
Build a plan or a road map for the next 12 months
and articulate this to the senior leadership. This
will build trust and will demonstrate that you
and the team are on the case. If you haven’t
done this, you may be too late as decisions
are now being made potentially without your
operational input.
Your overriding question now and for the
rest of the 2020 must be ‘How do I maintain
the support of the senior stakeholders in the
Advancing the credit profession / www.cicm.com / July & August 2020 / PAGE 42