Page 34 - 2018SpringSpectrum

Guest Column

As well, it’s worth looking at future forecasting. If the • Get the management out of the office, and on to the floor.
collection agent is recovering for the client $10,000 a Hewlett-Packard called it ‘walking management’, and it
month, but has pre-authorized payments or credit card helps observe the work in process by the collection team
information to recover $100,000 over the next 12 months, and ask the team what is really happening on a daily
that 1% liquidation a month can be forecasted to a future basis
10% liquidation, if nothing goes sideways. • Have regular, small meetings with the team. Not chew-
your-own-arm-off board meetings that are a waste of
Fallout, Side Effects, And Slash and Burn Farming time, but a quick 5-10 minute huddle with the team and
Collections is a remedy when things go wrong, and that can other members of the company and get feedback on one
mean lost customers, bad debt that affects the company’s or two discussion points.
bottom line, negative Google business reviews, sales staff • Set up a mailing list, and share information both ways –
not explaining terms and agreements, or poor management can share updates or ask
credit granting practices or a lack of upkeep questions, and team members can ask
on information. So while the collection staff questions or float ideas publicly in front
are trying to claw back doubtful accounts, of the whole mailing list group
they are also going to have insight after the • Set up a task board, such as Trello
fact and see patterns where the relationship (www.trello.com) to track problems and
with the customer broke down. Using projects and give feedback to the
that information and intelligence, if team. It’s free, and has benefitted
the credit and collection staff are our company in problem solving
involved in process improvements, and sharing process improvements
they can help firm up sales immeasurably.
agreement terms, presentations to
customers, credit adjudication and more, Conclusion
all of which are valuable in a proactive company. I’m a huge fan of the big picture, and getting
everyone who wants to be involved engaged in
Welcome To The Future! higher brain functions. By doing this, your employees
Collections isn’t just about money – it’s about are more engaged and have opportunities to improve
communication tools, social media reviews, brand reputation, your company and grow into managers, and your company
and speed of response when sharing information with stays nimble and is constantly improving. If you would
delinquent clientele. Your collection staff can share with like to discuss information sharing, Agile management, or
you, if you ask, where pain points are in technology. technology that can improve your company, I’m always happy
to talk and hear your thoughts. Feel free to drop me a line
I was hired many years ago as an Operations Manager for a or email me.
collection agency, and one of the first things I did was put on
a headset and sit on the collection floor for a week. What Blair DeMarco-Wettlaufer of KINGSTON Data & Credit has
I immediately noticed was it took upwards of 10 minutes worked in the credit and collections field for 26 years, and
to take a payment with the software available to collection is leading Kingston Data and Credit as a new model of
staff. By finding a problem in the process and technology, accounts receivable management to replace the traditional
and beating the IT team with a wet noodle, I was able to get collection agency, with branches established in Cambridge
that down to 1 minute to process a payment – and of course, and Montreal. He has trained over 300 collection agents,
revenues went up about 10%. It wasn’t about convincing registered an agency under ISO 27001, and worked with a
people to pay, it was about the ability to process payments. number of companies as a partner and advisor to help them
build a better business. He has also tried to treat consumers
How To Share What We Know? who owe debt with respect and courtesy, helping to remove
There are a lot of ways to bring your collection team into themselves from collections, and better their financial
the big picture and sharing information. Here are a couple of situation.
ways to pass knowledge and collaborate, depending on your
company’s structure.

34 www.cambridgechamber.com
Spring 2018