Interpersonal Business

Vol. LXVI

Dear Manager,

With this issue, I would like to share some fundamentals that might assist in your own cash collection process. It’s such a festive topic; I’m surprised it has taken me nearly six year to address it!

Having worked with dozens of companies over the years, I have seen numerous styles and approaches to the collections process. Some were highly successful, some were heavy handed and adversarial, still others reflected total mismanagement and a skewed sense of priority to collections. Ones approach is critical to overall success and the continued growth and prosperity of the company.

In any business relationship, there is an assumed mutual commitment for performance. This assumption generally proceeds with little direct conversation or specific pledge. It is simply assumed that if I deliver, you will pay. All parties proceed on good faith, and with mutual benefit of the doubt.

Problems only arise when this assumption and commitment to fulfill ones obligation becomes compromised. In most cases this is a simple oversight or short-term aberration. We have all found ourselves in this situation. It is critical for credit managers to remind themselves of this daily. Having developed this foundation, I also believe that this benefit of the doubt has a brief window of opportunity! Accepting debt, commitment, and accountability, are all very personal issues.

We also have the individuals and companies that thrive in an arena of deceit, misinformation and failed commitments. This is where we will find a condescending approach by individuals looking to create a problem where none exists! These are the individuals to whom this issue is unfortunately dedicated.

In some instances, the parties might have the very best intentions, albeit very poorly conceived. In the absence of proper financial resources they have chosen to roll the dice. They are betting on the come; betting that they can find success prior to their creditors landing on their doorstep. Yes, they are using our valuable resources to finance their dreams! I believe this approach to business to be deceitful, self-serving and dishonest.

A COMMON THEIF

Had we, as managers, wanted to be in the financial industry we would have become bankers! What is the difference between purchasing with no ability to pay, and stealing? Very little. Individuals such as these operate under the guise of businesspeople, when in truth they are common thieves.

There are numerous effective and creative approaches to this type of individual. With practice, the process of dealing with them can become even entertaining in its ability to hold them accountable, for perhaps the first time.

THAT’S ENTERTAINMENT!

I always begin with a lot of questions in the hopes they will begin to dig themselves into the proverbial hole. Questions like: “Have we not fulfilled our original commitment?” or “Are you dissatisfied with the service we have provided?” or, “ I have had to assume that this is a situation of our making, as I know your intention was to fulfill your commitment to us!” It is critical that one approaches these probing questions with no preconceptions or edge in ones voice. You are asking for genuine answers to very fair questions!

This type of dialogue will, in the very least, open some doors and force their hand. If there are indeed financial problems, this is your opportunity to bring them to light. I would also ask, “Have you tried to contact us regarding your situation?

These individuals rely on “the con.” It is our job to gently but effectively use their words against them. Explain that you would like to be able to give them some additional time, but that your hands are tied. In fact, your own position is now being evaluated by their performance! Suggest that you truly need their help to get yourself “out of a jam.”

When asking for their payment plan, be ultra specific in your conversation and your notes. If payment is expected in ten days, does this mean it will be mailed in ten days or in your hands? Are they absolutely sure that this is “NOW” a commitment that they can fulfill? Do they understand that if they fail to do so, your mutual relationship will be in jeopardy?

One key to this conversation is to maintain an earnest and sincere approach to finding its resolution. If your approach is firm but fair, it cannot be judged critically. Do not give them any personal reason to justify not fulfilling this obligation. This individual will create any possible rationalization in order to defend their “dead-beat mentality.” Don’t do them any favors!

There are also individuals who in fact have the resources but have made the profound decision to bestow this financial burden on you. How gracious of them! There are two significant triggers that will motivate a response. The first relates to the fact that there are priority vendors. If a key vendor goes unpaid, they may suffer significant financial impact. This may impact their personal job security. Be sure to analyze your own position of strength prior to all conversation. Determine their prior order depth and purchasing cycles in addition to their prior payment history.

The second factor cannot be denied. Individuals oil the squeaky wheel. Become a squeaky wheel. These individuals live in the tomorrow, never the current moment, and are banking on your lack of follow through. Establish a very clear understanding that you are not simply going to go away. On more than one occasion an individual has suggested they would immediately write and mail me a check. Whenever logistically possible, respond with, “terrific, I (or one of my associates) will be over in an hour to pick it up!” Create a significant sense of urgency to fulfill this obligation, today!

Over the years I was confronted on occasion with a manufacturer we represented who made the choice not to pay the commissions due our organization and sales associates. I would proceed to explain that commissions are not just simply another accounts payable in their system. Commissions are payroll. It only seemed fair to ask, “How would you feel if you didn’t get your paycheck on time?”

These remunerations represented the livelihood of my team. Yes, it represents bread, butter, mortgages and braces. By the time a commission is due, we have completed our full investment in that sale. In many cases, the customer had already paid the manufacturer! Anything less than a full, complete and immediate payment was simply intolerable.

For me, the most effective approach and choice of words was: “Let’s not be confused. We have fulfilled our obligation, and you have my money in your pocket!”

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. LXV

Dear Manager,

When we have it, life is good, and obstacles are perceived as mere bumps in the road. There is no greater confidence than when you have momentum on your side!

EVERYONE WANTS TO BE WITH A WINNER!

This sentence suggests just how important momentum is. When “Big Mo” is on your side, at least for a time, you become a good fortune magnet. Some managers don’t take Mo very seriously, or have come to the conclusion that only fate will bring good fortune. Yes, even poor managers find positive momentum on occasion. Better managers create their own fate!

Great managers are in a constant state of striving to either maintain or recapture this often-elusive phenomenon. While we can always set the stage for it, we can rarely fully insure it. All the planning and preparation in the world cannot guarantee you momentum. Sometimes the planets must be properly aligned in your favor as well! This is not to suggest, however, that we should cast our fate to the wind, or enroll in a class on celestial configuration.

Now that we have better defined its attributes, how do we create this wave (I know, only the moon can affect the tides!), and ride it as long as possible? First of all, we must accept that we can only control the mental aspects of momentum. The mental performance of any company most effectively starts at the top.

WHEN YOU’RE HOT…

O.K., congratulations, Big Mo has tagged you and you’re it. Are you enthusiastically translating this heightened positive company image to your clients and staff? Momentum and confidence are very contagious. Now is the time to strike up the band, opportunistically taking full advantage of “the good times.” Build the biggest bandwagon you can find; you will be amazed at how fast everyone jumps on board!

When Mo is in your pocket, the question should be, just how great is our potential, how deep is the well, and how long is the rainbow? It is common for individuals to underestimate their full advantage in these “Mo”-mentous times. Remind yourself that there is no form of measurement for maximum potential; it is now time to pull out all the stops!

We must also remember that Mo can be fickle by nature. We should learn to not only understand it but to learn to court its many virtues. As suggested, this is your time to shine. With so many admiring your bandwagon, it’s time to recruit only the best to hop on board. Are there clients with major potential who would benefit from your team’s visible momentum? Are there individuals with significant skills whom you can entice to join you? Are there competitors that are particularly vulnerable at this time? Have you restructured your goals and objectives to reflect your enhanced and evolving potential? Often, our original objectives were developed and established in less momentous times.

The time to seize the prize is fleeting. This sense of urgency should only be equaled to that in the down side of your cycle! Yes, as with all aspects of life, your momentum will cycle from its frenzied highs. Take heart, I have seen cycles sustain their momentum for years, if not decades. Strong managers wake each day in a state of paranoia! At all costs, prolong it!

This can be accomplished with a complete analysis and understanding of what brought Mo to your doorstep. Was it a decision you implemented as a manager that worked in your favor? Is there an individual or group that inspired this trend? Are there competitors or market conditions that left the door open to you? Once you have defined its qualities, zero in on sustaining it!

AND WHEN YOU’RE NOT…

Oh yes, momentum can be very fleeting. Out of the blue, in the wink of an eye, high tide becomes low tide, just ask Alaska Airlines. For twenty-five years, they enjoyed a reputation as one of the most highly regarded airlines in the industry with a safety and satisfaction record admired and acknowledged by all. A number of years ago with the tragedy of Flight 261 from Puerto Vallarta, and in the months to follow, all of this changed. I was on an Alaska flight to Puerto Vallarta a week after Flight 261 was lost. The silence and personal reflection on this flight was deafening. No one wanted any part of this bandwagon!

In the weeks to follow, report after report of potential problems surfaced regarding possible mismanagement at the airlines. How much heart breaking news and publicity can one company sustain? Perhaps it is warranted, over a period of months and years they once again generally well thought of.

The point is in the fact that when things are on the skids, when momentum is against you, you are the most vulnerable. In fact, Big Mo has jumped ship leaving the pieces to Bad Mo. Yes, momentum can reverse its thrust and work against you! This is when you earn your stripes as a manager.

As a team you must first accept your current set of circumstances. Denial will only delay positive steps that need to be immediately implemented. Understand that the human factor for your clients and staff creates its own set of obstacles. Effectively, do your very best to reduce the emotional trauma of your current circumstances.

Communication and a measured response is the foundation for slowing the back-slide. Alaska, in fact, was noted for their timely, sincere and proactive form of communication. You can only earn a sense of benefit of the doubt! Their biggest problem was the weeks and weeks with little good news. As managers, we must shine the most positive light on any set of circumstances. If we don’t voice a positive and confident perspective, who will? This does not suggest we gloss over or be less than forthright with the reality at hand. Be empathetic to those who have also assumed their own losses in this process.

Proactively address all concerns or rumors that may present themselves. Understand that bad news travels fast, and there are those who will delight in your misfortunes. This is not a time for the weak of heart, or to be thin skinned.

Keep in mind that time heals most wounds. In fact, the grace of time and the natural cycles in life are on your side and may be your greatest ally.

Create a focus, define your target, and stay on it. When Big Mo was on your side, decisions may have seemed very simple; now they are all tough. Now everyone has an opinion and can second-guess all prior decisions. Listen to the same voice that confidently directed your decision making process in more successful times!

Big and Bad Mo will touch all of us in the span of our career. Our challenge is in protecting the good times, and minimizing their alternative.

Remember, as managers we are never quite as good as we are perceived on our best days, and we are never quite as bad as we are perceived on our worst days.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. LXIV

Dear Manager,

Personal growth, experience, and maturity certainly impact all of us. The question becomes: Is personal growth strictly a personal issue, or something that management should want, expect, and even demand from those they manage?

If we are to expect growth in others, we must also expect growth within ourselves. Similar to a commitment to exercise, all too often we allow this critical area to simply slide. We had intended to do more insightful reading, attend a seminar and class, or ask for consultative guidance, but life seems to be unfolding at accelerating rates. Perhaps many of us believe we have learned enough in school and on the streets. I am not suggesting that this is substandard. The question is, is it good enough?

With the current transitions in the world of business, will resting on your laurels of current growth service your future needs? I took some computer classes this past summer at a local community college. What an eye opener! Here were individuals committed to join the twenty-first century. Many were my age and older, often better prepared than I, taking their own steps in a new world. I left these classes shaking my head, not only in the limited knowledge I had grasped, but also in the amount of knowledge yet to be learned. I found it very humbling to re-enter an exciting world, one I had long forgotten.

I would be the first to admit that I could have done much more in the past thirty years relating to this issue. Most professionals simply accept the need to stay informed and to continue their education. For doctors, lawyers, accountants, or engineers, further education is understood as an accepted routine. Would you trust a doctor whose medical knowledge hadn’t been updated for ten years? Why isn’t a similar culture routinely accepted in American Business?

Once again, as managers, do we have the right to address personal growth issues with our staff? Do we have a right, as their employer, to expect them to accept responsibility for self-improvement? When these individuals were hired, it would be common for them to embellish their education, and areas of further education. This suggests their acceptance and understanding of its vital role to any profession. Should we not continue to expect more?

If in fact we have no right to expect a higher standard and continued growth, then the die has already been cast when the hire is complete. Effectively, we had better be damn good in the hiring process. In this scenario, we must assume that the current package “is as good as it is going to get!” More often than not, I believe this is truer than we would like to admit. How do we change this standard of mediocrity, in ourselves and in the assets we choose to manage? The current economic culture suggests the time is now!

Having now established the foundation, and the current deficiency, I would suggest that there are few of us, including those we manage, who could deny its significance. As always, the question becomes how do we turn idle conversation into a strategy that will affect change? I believe this comes with mutual participation, recognition, and a system that rewards individual efforts.

YOU DESERVE MORE!

This is an ultimate truth, that all of us can relate to and accept on a personal “income growth” basis. Many of those you manage have achieved success beyond their wildest dreams. This would also suggest they may have become satisfied with their current standard of living. Complacency sets in, and a loss of rhythm relating to self-analysis and improvement follows. These individuals must now be convinced that they have only begun to meet their potential, and the worth you hold for them in the future. This must be accomplished in its most sincere form, as it is absolutely true.

There is an element of fear in all of us relating to what the future holds for business in America. We see the Generation X-ers with seemingly so many more tools to effectively maneuver and succeed in this changing climate. What seems so out of our element often seems rudimentary to this next generation. For many, the anxiety of being left behind is indisputable, and creates a very real sense of urgency to get caught up before it is too late. Certainly this creates a significant and authentic opportunity to not only make your point, but to take a stand.

OUR INVESTMENT

Having benefited greatly from my recent experience back in school, I would suggest this is a very cost effective investment for you and your team. On a very reasonable budget, classes can be incorporated as one aspect of your company’s strategy and compensation package. I would not encourage you to simply roll out the checkbook, assuming full responsibility for their growth. You cannot force feed; you cannot want self-improvement for your staff more than they do. Perhaps your participation would include 50% to 75% of the tuition and books relating to approved courses, or reimbursement related to an acceptable grade. In some instances this might be a class that you and your staff could participate in as a team. Regardless, your objective is not only their participation, but also the buzz among the staff created by their enthusiastic participation.

As their manager, I would acknowledge those who participate to their peers. Certainly everyone would understand if these individuals were to be given favorable consideration should advancement opportunities become available. This was certainly part of the criteria when they were originally hired for their current position!

I am not suggesting that this agenda become an all out competitive assault. I am suggesting that we are all fighting for our collective futures in a whole new era of doing business. Either grow as individuals or fall further behind the national and international standards of what can be reasonably expected from a professional.

THE QUESTION BECOMES

What do you hope to earn this year? What changes do you plan to make to accomplish this objective? On reflection, what areas would you change from last year’s efforts? What areas of personal growth do you plan to address in the next six months? What are your three and five year objectives? How might these objectives also assist in enhanced personal time? What can we, as an organization and team, do to assist in meeting these objectives?

ITS OWN REWARD

To bring conclusion to a prior question, yes, as managers we have every right to assume and expect sustained and committed personal growth from our staff members. It is our only prospect for the continued growth and vitality of one’s organization and our individual and collective futures.

As managers, we all know the value timing plays in the success of any program or strategy we might pursue. There can be no greater personal reward than that of accomplishment. There can be no greater benefit than what you can bring to your organization and to each of your staff members on an individual basis. The time is right, the urgency is crystal clear; your future will be defined in the process.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. LXIII

Dear Manager,

There is no greater crisis for any manager than his or her own unanticipated termination. Having worked for myself sin
ce college, I realize I can’t fully appreciate or understand the feelings associated with this personal crisis. I recently helped a friend and business colleague work through this process, learning a lot about his feelings, anxieties, and the path he chose to a successful and fulfilling resolution. I’d like to share my perspective on a few of the lessons he learned along the way. It’s certainly much easier to read (and write) about this topic than it is to experience it firsthand!

My friend worked for a significant regional company in the Northwest, which had been purchased a number of years ago by a similar company based in another state. At that time, Phil (not his real name) assumed the role of General Manager for his division. It became very clear over a period of years that Phil had the talent and initiative to not only handle, but to excel in this role. It was also evident to most parties that Phil’s division would clearly outperform the division being managed by ownership.

Over a period of years, ownership became uncomfortable with Phil’s division’s position of strength and his exceptional competitive advantage over the company division. O.K., I can’t be objective any longer. Clearly ownership and their inflated egos couldn’t see the forest for the trees. Instead of using Phil’s talents as a model and resource for their own division, they began to impose greater control in order to trim the sails of their shining star! How is it possible that some owners don’t understand a good thing when it’s sitting in their lap? I also realize I was not privy to the day-to-day operations of this company, yet normally common sense prevails.

One had to assume, from a distance, that it was simply a matter of time for this issue to come to a head. After consistently poor performance in their “company-managed” division, ownership came to the conclusion that operating costs needed to be reduced. Phil was notified that his position would be eliminated. No one would have believed this chain of events had they not seen it unfold over a period of years, as I had.

Phase I

Disbelief, anger, bitterness and, at times, devastation; Phil experienced them all. Each few days brought its own set of emotions. I believe we would all first think of family, personal commitments, and responsibilities. The first phase always seems to lead our imagination straight down the path to the poor house. Why do we always seem to think in terms of “worst case scenarios” in our most difficult financial times? I found in early conversations, though, that Phil looked for indications of hope.

This early phase also seemed to be filled with “finding blame.” Phil felt his personal image had taken a shot, as would any of you reading this. In finding blame, it seemed easier to swallow, particularly if you can find someone other than yourself able to assume this role. After a few days, and from my purely non-emotional state, I suggested that Phil shouldn’t take this action quite so personally!

Yes, without question, ownership should have, could have; in a perfect world would have, taken steps to avoid this inevitable conclusion. Unfortunately, it didn’t happen, and Phil was a casualty. Ownership eventually took actions to save the financial assets of the corporation, but it was too late for Phil. “Finding blame” serves no purpose other than wasting ones creative potential in finding a solution.

Phase II

In this scenario, I also believe there would be times of loneliness and solitude for most all of us. Society often defines us by our ability to contribute to family and self. We have all “bought in” to this mentality to some degree. I shared with Phil an honest and sincere level of confidence in his abilities and career potential. In fact, I’d often gone to Phil for advice with my own business challenges. I suggested he literally “ talk to himself,” creating a sense of self-confidence in his own advice. In other words, what advice would you give to a friend under a similar set of circumstances? The value in this effort is in its ability to take the raw emotion out of the circumstances. I suggested that I would certainly rely on his advice if I found myself in similar circumstances. It was time that he do the same. What would he tell me to do? Listen to your own words then follow their truth. Once the personal emotions are put in their proper perspective, we can proceed both objectively and effectively.

Phase III

This phase comes with acceptance of one’s own reality. With acceptance comes the very first stage of rebuilding ones confidence. This is also the stage in which I believe we are most vulnerable. In the search for confidence, it’s easy to accept alternatives that aren’t in our long-term best interests. Similar to personal relationships, we are vulnerable to the potential “rebound.” Some early indications of new opportunities came Phil’s way within the first couple of weeks. One day, Phil would be elated, confident, and relieved at his good fortune. Days later, optimism crumbled to disappointment when the opportunity wasn’t nearly what was understood at first blush. This roller coaster had seemed to take on a life of its own.

We discussed staying on task. Each day’s agenda would be directed toward his efforts to develop fact on which to base future judgments. While there was initial relief in finding potential opportunities, he also had to look well beyond the surface of each of these opportunities. His considerable skills would be in demand, and there would be many who would like to “take away the pain” and acquire his services at well below market value. The relief in finding a “new home” was certainly not nearly worth the price of selling himself short, or compromising his family’s potential.

I suggested this was finally an opportunity for Phil to take the time to chart his future, as compared to allowing fate to simply push him around. It was time to take back control. Rather than jumping at an opportunity, Phil clearly needed to take the time to make perhaps his last and most important professional career judgments. All options, all scenarios; all potential possibilities should now be objectively reviewed. It’s clearly better to make an informed decision from an inventory of ten choices than it is from an inventory of one!

Phase IV

As the opportunities continued to flow in, I found great pleasure in seeing Phil’s excitement and anticipation grow. This stage finally allowed Phil to realize that, in fact, this time of change might have been the proverbial “blessing in disguise.” Phil hadn’t been completely happy with his former set of circumstances, and had actually considered leaving prior to their decision. The key difference was the fact that it occurred on their timetable rather than his.

Phil has actually become grateful for what he calls the “kick in the rear.” He is on an anticipated fast track as he builds his own marketing representative company serving a number of manufacturers in his former industry. This decision seems to be a perfect fit, as it allows him to draw on prior experiences and contacts that will only serve to enhance this decision. These are uncharted waters for Phil, but as an objective observer, I have no doubt that he will succeed.

As I suggested earlier, I fortunately (or perhaps unfortunately) have never personally endured these circumstances first hand. I believe its greatest lesson is in moving beyond the emotions of the moment. In consulting your own inner voice, you might even find a new best friend in the process.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM