Goal Setting for the Credit Department

The credit manager should share the goals of the department with every member of the credit team.  The goal is to focus the credit team's attention on the goals you feel are most important. Goals should be specific, not vague.  Goals should be measurable rather than subjective.  Short term goals should be linked to long term goals to the extent that achieving a short term goals should help you achieve one of your long term goals.

Credit managers should take the time to explain to each subordinate their role in helping the department to reach its goals.  Use graphs, charts and department meetings to make everyone aware of the department’s goals and more importantly focused on making progress toward achieving those goals. Involve your team in brainstorming to find ways to get things done faster, or about how to reverse a trend that is taking your department in the wrong direction.

Make certain your goals, your supervisor’s goals, your departmental goals, and the individual goals of every person in the credit department are interlocking and interdependent. Doing so gives everyone an additional incentive to work cooperatively together.  When your department achieves certain goals, or reaches certain milestones, take time to celebrate. Have the company sponsor a luncheon or some other event, ideally on company time, to recognize and reward the efforts made by your credit team.

Take the time to evaluate individual performance frequently. Make certain everyone understands their personal goals and is committed to achieving them. Recognize and reward superior performance. At least as important, be sure to counsel and caution employees who for whatever reason are part of the problem rather than part of the solution.

© 2009 by Michael C. Dennis.  All Rights Reserved.  Mr. Dennis is the author of "1001 Collection Tools and Tips."