When it comes to credit and collection training, it's common for departments to provide informal (spend-some-time-with-this-veteran-employee) training and supplement this with some outside training (e.g., conferences, classes, seminars). While these are important elements of credit and collection training, they may not be sufficient. What's lacking? Formal internal training.

"Our credit department has had annual two-day learning seminars for years," says one credit director whose company has asked not to be identified. A few years ago, the department experienced a significant turnover that caused it to rethink its training program. "A lot of divisions were picking up our younger analysts," explains the CD. "They were doing this because these analysts had a better background and training. Since so many new people were coming in, there was a need to get everybody on the same page at the same time."

In past seminars, the department would focus on a lot of information in just two days. It would take a look at bankruptcy law, accounting rule changes, how the accounting rules would affect its financial analysis, and it focused on different techniques.

• There is a higher level of consistency, a more satisfied workforce, and an improvement in the ability to retain people.

• The department has seen an increase in focus, and employees are doing more in-depth analysis on the higher risk customers. There is also a consistency on the less risky customers.

• It has allowed them to handle increased workloads as the company continues to buy additional divisions.