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Effective Delegation

The ability to delegate effectively is a critical skill for credit managers.  Many credit managers fear the repercussions when an employee fails to complete something correctly or on time.  Rather than working on improving their delegation skills, some credit managers take the path of least resistance and rather than delegate they do more of the work themselves. Many managers consider being overworked to be less of a problem (or a less serious problem) than having work done that might not meet the company standards or the manager's needs. 

An appropriate and healthy working relationship between the credit manager and their subordinates will reduce the need to give orders to members of the credit department staff. Some people find it difficult to issue orders, especially when the task being assigned is unpleasant. Credit managers sometimes experience resistance when they issue directives. When this happens, it is often the result of the fact that people are comfortable with routines and tend to resist change. The steps in the process of delegating are:

1. Planning
2. Preparing employees for change
3. Giving specific directives or orders
4. Verifying that employees understand the instructions they are given
5. Following up to make certain the orders are carried out
6. Creating consequences when employees fail to carry out directives.

One note of caution:  To some extent, the way the members of the credit department react to the credit manager's directives is a reflection of the way the credit manager reacts to the instructions or orders they receive. For example, to the extent that the credit manager questions or demonstrates reluctance to comply with the orders they receive, the members of the department staff are likely to duplicate this inappropriate behavior.

© 2009 by Michael C. Dennis.  All Rights Reserved.  Michael is the author of "Credit and Collection Handbook."