More and more often, credit managers are expected to be both generalists and specialists. As middle managers in an era of downsizing, mergers, re-engineering and reorganizations, credit professionals have of necessity developed a "can-do" and a "will-do" attitude toward new assignments and responsibilities. Credit managers are becoming generalists because it is in their best interest--and in the best interest of their employer--to do so. At the same time, credit professionals cannot afford to stop learning in the specialized field of credit management or to ignore their obligation to safeguard their company's investment in its accounts receivable.

Some of the additional assignments credit managers are often asked to accept include:

• managing the order entry function
• managing cash application
• performing cash forecasting and other treasury related functions
• collection of employee notes receivable, and other employee loans
• preparing monthly loan collateral reports for the bank
• performing rebate and credit memo reserve analysis
• collecting on inter-company and affiliate company receivables managing the customer support / help desk
• managing non-accounts receivable related lawsuits
• reviewing and approving expense reports
• working with cross functional teams on strategies to increase both domestic and international sales and/or to increase profits

As a result of these new assignments, workloads are growing and credit managers are working longer hours to compensate.

One of the biggest challenges credit managers face is managing new responsibilities without losing sight of their primary responsibility to manage accounts receivable. Credit managers who lose sight of this primary responsibility are unlikely to find that executive management will accept the excuse that they were distracted by extraneous assignments. Therefore, concentration and solid organizational skills are essential in handling the credit management function--and to accepting these special assignments.

Some credit managers thrive on these new challenges. They enjoy the visibility that special assignments give them and the acclaim they receive when the assignments are successfully completed. Some of the advantages of accepting new assignments include:

• the new assignments broaden the credit manager's horizons
• successfully completing assignments gives the credit manager more visibility to executive
• management, and ultimately it makes the credit manager more upwardly mobile
• new assignments, of any type, help prevent boredom and burnout
• companies are more willing to transfer or to promote someone with a track record of achievement in areas other than their core competency

Unfortunately, some credit managers are reluctant to volunteer to accept new assignments. Their main concerns include:

• not having enough time to give these assignments the attention they deserve
• not feeling that they do not have the skills necessary to complete the task properly
• finding it difficult to work with other members of the team they have been asked to join, or
• disagreeing with the team approach to problem solving

These "reluctant" volunteers should carefully consider these ideas:

• Delegating more of their work will give credit managers more time for special assignments.
• If they do not have the skills now to complete the task, chances are excellent that they will have them by the time the assignment is completed.
• Whether they like it or not, credit managers are part of the organization, not apart from it. Companies want "team players." If a credit manager has had problems with his or her co-workers in the past, this is probably a good time to start building bridges and mending fences.
• Most companies are enthusiastic about a team approach to problem solving, combining employees who are intimately involved with a specific problem with other employees who know next to nothing about it. The dynamics of this collaborative approach to problem solving often results in a better solution than one that was either (a) mandated from above, or (b) decided upon by one individual.

The dollar value of mergers and acquisitions over the past decade has increased tremendously. As most people know, layoffs and downsizing often follow mergers and acquisitions. Therefore, if there was ever a good time for credit managers to increase their visibility within the company, and to improve their skills this is that time.

Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, a newsletter purchased by Credit Today in 2006. This article originally appeared prior to 2000.

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