Rick Baker Thought Posts
Left Menu Space Holder

About the author

Name of author Rick Baker, P.Eng.

E-mail me Send mail
Follow me LinkedIn Twitter

Search

Calendar

<<  November 2024  >>
MoTuWeThFrSaSu
28293031123
45678910
11121314151617
18192021222324
2526272829301
2345678

View posts in large calendar

Recent Comments

Comment RSS

When you struggle to collect accounts receivable

by Rick Baker
On Jul 13, 2011
When an employee feels unprepared to collect money owed to your company something important has been missed.
 
The key is: seek out and find what has been missed.
 
Here are some things that are often missed:
  • No written process for collection. Collection should not be viewed as a single-employee function or even a department function. It is an 'enterprise' function. The exercise of thinking collection through and writing process out is important. Collection is not a problem when clear actions are taken at all the steps that 'precede the due date'…good credit process, good contracting process, good invoicing processes, etc.
  • Failure to set goals and metrics for measurement of collection success. Goals and metrics should span the hierarchy, from C-level through to the employee with the keyboard and the phone. Without collection goals and action metrics, often, collection becomes a fire-fighting exercise. Under the firefighting mode the task importance is escalated and that places [undue and often extreme] stress on the employee. Situations of escalated stress reduce employee performance and results.
  • Failure to make collection a shared priority…i.e., providing training and training-by-example. Collection is one of those tasks that are viewed as unpleasant. Often it is not delegated properly. For example, it is generally a mistake to delegate a task when the 'donor' of the task [the boss] can not or has not performed the task with success. Often, collection is simply handed over to the employee. That places the entire burden on the shoulders of the 'recipient' of the task [the employee]. Some/most people learn from watching others. Most people appreciate knowledgeable support…to backstop their efforts, to bounce ideas off, etc.
  • Employee not suited to the collection task. People have areas of personal Strength, i.e., Strength = Talent + Knowledge + Skills. Sometimes the collection person's Strengths are not tapped properly. If that's the case then the collection person needs to change the way collection work is done. That may mean the company's collection process needs to change to suit the incumbent employee. Sometimes the collection person's Strengths do not align with collection work. That means the person should not be performing collection work.
  • Failure to place a high-enough priority on collection. For example, many businesses rely on 3rd parties to handle cash-flow problems. Many businesses go about it this way: "If Clients don't pay then we don't pay our suppliers". This approach provides a series of band-aids, which cover up collection problems and reduce the likelihood collection problems will be handled. So, when the collection must be done it is always a piece of firefighting work.
  • Issues around Corporate Culture: Paying debts when debts are due is an admirable way of going about business. For any business this is a double-edged sword. And, both edges should be sharpened at the same time. I mean, a business needs to look at how it pays its suppliers at the same time it looks at how it is paid by its Clients. This is a matter of Integrity…which for us is about consistency, not about judging what's right or wrong [i.e., we do not use the word Integrity to judge right from wrong]. If the prevailing corporate culture accepts dragging accounts payable then it will be very difficult to excel at collecting. Conversely, companies that excel at paying suppliers on time have Clients that pay on time. Both edges of the sword are sharp.
When businesses want to do better at collection, a good starting point is Values.
 
Values-Culture-Communication-Value. It starts with Values and it ends with Value. When we truly deliver Value to Clients, Clients are more inclined to pay on time.
 
Here is a link to our V-C-C-V philosophy
 
Here is a link to our definition of Integrity
 
I hope the above thoughts are helpful.
 
Footnote:
Steps to Consider When Collecting A/Rs

Tags:

Delegation & Decisions | Entrepreneur Thinking | Pay! - a philosophy about money

Permalink | Comments (1)

Sales Tweet #258

by Rick Baker
On Jul 13, 2011
Sales Tweet #258 Don’t just get by, get more.
 
The Thinking Behind the Sales Tweet
That’s an appeal to those among us who are unmotivated. None of us is destined to just get by. Regardless of the difficulty we face we can do more than get by. As Napoleon Hill said – at the very least we can adjust the way we feel about and our reactions to the situation.

Tags:

Abundance | Thought Tweets

Permalink | Comments (0)

Constructive Criticism is an Oxymoron

by Rick Baker
On Jul 12, 2011
Objective, well-intentioned, well delivered criticism will still gnaw, rip, and tear thin skin.
 
Criticism will always gnaw, rip, and tear at thin skin.
 
That is a given.
 
The only question is: how will the thin-skinned person react as that thin skin rips and tears?
 
And, of importance will ‘motivation’ get dragged into the bloody discussion after the ripping and tearing of thin skin?
 
Yes it will.
 
Sometimes a voice will say, “You demotivate me” or something similar.
 
Other times the thought will be there, but it will be unspoken.
 
Regardless of who’s to blame, when skin is thin criticism will demotivate.
 
 
PS: Going one layer deeper, I think the 2 words ‘constructive criticism’ form an anti-oxymoron [which is a word I made up]. The words ‘constructive’ and ‘criticism’ are neither contradictory nor apparently contradictory. Quite the opposite: the 2 words appear compatible. That’s the problem. That’s why ‘constructive criticism’ is so widely used and so widely embraced as ‘good way to deal with other people’. Regardless, those 2 words ‘constructive’ and ‘criticism’ should never be paired. Together, they do not guide, they mislead.

Tags:

Change: Creating Positive Change | Criticism: Constructive Criticism is an Oxymoron

Permalink | Comments (32)

Sales Tweet #257

by Rick Baker
On Jul 12, 2011
Sales Tweet #257 The Boss wants a photographer to take staff photos…he wants someone with reproduction experience.
 
The Thinking Behind the Sales Tweet
Now tell me that ain’t gonna get him into some trouble!

Tags:

Ernest Seller | Thought Tweets

Permalink | Comments (0)

Sales Tweet #256

by Rick Baker
On Jul 11, 2011
Sales Tweet #256 The New Guy knows his preferred type of supervision…you can't do better that Superman's X-ray vision!
 
The Thinking Behind the Sales Tweet
Who is this New Guy? Well, he is the New Guy at Ernest Seller’s office. What does he do? Well, they are still trying to sort that out. Initially, The Boss had high hopes the New Guy could take Ernest’s role if Ernest finally read the writing on the wall or at least that sign above the door that screams out ‘EXIT’. But, that’s was then and this is now. Now The Boss is thinking Ernest must be near-sighted or something and maybe that’s not all bad. This New Guy isn’t quite living up to 37% of expectations.

Tags:

Ernest Seller | Thought Tweets

Permalink | Comments (0)

The Facts of Lies

by Rick Baker
On Jul 8, 2011
I read this recently and I had to smile…
 
Damn it – people lie.
 
All the time.
 
Rather than complaining about it, get on with living in the real world.
 
Get on with Selling.
 
Start understanding people.
 
Stop ranting about all the people who lie.
 
THINK

Tags:

Beyond Business

Permalink | Comments (0)

Copyright © 2012. W.F.C (Rick) Baker. All Rights Reserved.