In a recent presentation at the Western Regional Credit Conference, Joanne
Dunn, a management recruiter specializing in the placement
of credit and collection professionals 'turned her hat around'
and offered attendees the following advice about why companies
decide to change credit managers. Ms. Dunn's goal was to educate
the attendees about what they can and should do to keep their
present jobs. Ms. Dunn said that in her twenty years of experience
the most common reasons for changing credit managers were:
The current credit manager has not developed
a positive working relationship with senior management
in general, and with senior sales management in particular.
The credit manager is not aware of changing
business conditions affecting his/her employer.
They have poor interpersonal skills, poor
negotiating skills, and/or poor problem solving skills.
The credit department has failed to achieve
the goal or goals established for it by senior management.
The credit manager is seen as an impediment
to sales growth.
The credit manager is too risk averse meaning
he or she does not take enough chances because he or she
fails to appreciate the company's appetite for credit risk.
The credit manager has offended or alienated
The job has outgrown the credit manager's
limited abilities; and he or she has not been involved
in any form of ongoing professional development and training.
There is a sense that the credit manager
is looking for excuses to reject applicants and hold orders
rather than for reasons to approve credit applications
and release orders pending.
The credit manager is seen as intransigent
rather than innovative or creative.
The company has experienced higher than
expected bad debt losses and/or higher than acceptable
There have been numerous complaints filed
by internal and external customers about the credit department's
decision, its actions and its approach to customers.