Covering Business Credit Logo Home   About Us   Services   Credit Articles   Q&A   Contact  

  Business Credit Articles  

Credit Management Articles
All Articles •  Home

Problem Solving in the Credit Function
By Michael C. Dennis, MBA, CBF
and Steven Kozack

Let's assume that you as the credit manager have been given a major assignment by senior management such as to reduce the total number and the total dollar value of outstanding deductions within one month. The use of a systematic approach to problem solving can help you to accomplish this goal by avoid the pitfalls of ineffective problem solving techniques. Here are some of the more common problems in the problem solving process include:

  • Failing to gather critical data

  • Failing to involve people that would be critical to a successful outcome - either because they refused to participate in the process, or because you neglected to invite them

  • Failing to plan how to implement the solution [or solutions] once a solution has been identified and validated

  • Jumping to conclusions before analyzing all aspects of the problem

  • Not having the authority necessary to mandate that other departments make the changes necessary to reduce the number of deductions taken each month

  • Not getting access to all the information you need to understand the scope of the problem, its historical context, and the root causes of the problem which often have already been identified - but set aside for fear on stepping on the toes of an influential department manager or an important job function

  • Trying to resolve problems that are beyond your influence and control

  • Working on problems that are either too general, too big, or are not well defined

Your effectiveness as a problem solver based in part on:

  • Attention to detail

  • Enthusiasm for the assignment

  • The support of your manager

  • The support of senior management for completing the assignment

  • Your ability to build consensus

  • Your ability to influence others within the company to accept your ideas or recommendations

  • Your ability not to be seen as a threat to the authority or the autonomy of other departments in the company.

© 2002 All Rights Reserved

Share |

Business Credit Articles
Send to a Friend
Ask A Credit Question
Questions & Answers
Business Credit News
Your Privacy
Site Map