Building an Effective Credit Management Team

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People l Process l Outcomes

Building an Effective Credit Team

Presented by Steve Mitchinson LICM

Director, BBB Advisory Pty Ltd

Director, AICM

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Investing in Teams

Ponder this discussion:

CFO asks Credit Manager: "What happens if we invest in

developing our people & then they leave us?"

Credit Manager: “What happens if we don't, and they stay?"

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Let’s agree two hypothesis

You should hire for attitude, train for skill – This is not a credit skills session

– A group of credit experts is not necessarily an

effective credit team

Leadership is the most important driver of performance – People don’t leave their employers, they leave their leaders

Today I want to put forward some strategies on how we might: – improve our leadership

– develop our teams

– deliver improved results

– challenge our thinking

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Individualism versus Collectivism How well do you deal with this internal conflict

But I cant do this on my own so I

need others to help me...

We need to work on this as a team

supporting one another, making

group decisions and sharing in the

rewards

But we need to avoid “group think”

and encourage individual excellence

so that our group goals are met or

exceeded...

I need to excel and be recognised for

my efforts and individual excellence

Individualism Collectivism

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There are two types of teams…….

Homogeneous Heterogeneous

Group Thinking Diversity of Thinking

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There is Power in Diversity Your challenge is how you harness it

Whole Brain Thinking™ and the HBDI ™ are registered trademarks of Herrmann International. For more information visit our website

http://bbbadvisory.com.au/think-for-success/

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Differences in Processing Modes We think, speak & listen differently because…we are different



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What do you bring to your teams



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Differing Approaches to the Team Process How might you better leverage the diversity in your teams



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The 8 C’s of Great Teams Building on the Four C’s of Credit, how would you score?

Cooperation

Do teams have positive relationships with key stakeholders? Do you know who they are?

Clear expectations

Have clear and specific team objectives been set? Are they achievable?

Change Acceptance

Does the team accept and understand the need for

change

Are they capable of change

Control

Has the power to make decisions been devolved, accepted and supported?

Competence

Has sufficient training investment of team individuals occurred? Is ongoing mentoring and coaching in place

Constructive feedback

Are there appropriate systems in place to ensure honest performance feedback?

Composition

Is the team combination effective?

Do we have the right leader(s)

Cultural Change

Do organisational structures stifle team efforts?

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High Performing Teams

Failure

• No consensus, people pulling in all directions

• Disbelief and cynicism - “flavour of the day “ accusations

• Communication takes place in the corridor or behind closed doors

• UGR’s

• Risk averse - “Don’t rock the boat”

• Refusal to participate in in shared responsibility:

“It’s up to you”

“It’s not my job”

Success

• Team has a clear focus on agreed criteria and consensus on priorities

• Prepared to be open, frank, self critical and mutually supportive

• Members talk freely at team meetings - no feeling of intimidation or threats

• Team evaluates risks and takes considered decisions

• Actively searches for different and imaginative approaches

• Commitment to success and confidence to take responsibility for the team’s decisions

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Achieving Discretionary Effort It only comes with engagement, it sets great teams apart

Drivers of Engagement

Trust & Integrity Personal

relationship with Manager/Leader

Co-workers / Team members

Employee Development

Career Growth Opportunities

Nature of the Job Pride About the

Company

Clear link between Individual &

Company Performance

Based on major research, there are some 26 or more drivers of engagement, however there are

8 generally recognised factors that significantly impact on how engaged an employee is…

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Employee Engagement Potential Approaches for improving engagement

Organisational Interventions

Communications Development Interventions

Managerial Interventions

1. Flatten managerial and decision-making hierarchies. Increase autonomy and empower with decision-making authority. [Complexity Split]

2. Using cross-functional teams 3. Demonstrate how individuals contribute to

organisational goals (strategic communications)

1. Keep promises / follow through 2. Open and honest 3. Tell it like it is – even when bad news or a difficult

topic 4. Walking the Talk 5. Rewarding the right people for the right reasons

1. Building one on one relationships / trust 2. Employee Surveys 3. Consistent, regular and lots of face to face

communication – the essential e-mail rule 4. Honestly respond to what is heard from employees

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• Usefulness - Can the measure appraise the most important results? • Sustainability - Can the measure accurately forecast the trend of results into the future? • Measurability - Can the measure be calculated from readily available data and would

different judges makes the same calculation? • Controllability - Can those being measured truly impact the results gauged by the

measure? • Communicability - Can the measures be explained easily to staff & other audiences? • Universality – Is there linkage – are measures cascaded downward from the corporate

level to the operating units? • Timeliness - Can the measure be produced now – when the result is produced? • Comparability - Can the measure be related to past performances and to competitive

performances?

Criteria for evaluating measures of team performance What gets measured gets done – are your measures driving the right results

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If your actions inspire others to dream more, learn more and become more, you are a leader

- John Quincy Adams

How do you define a leader Are you a leader?

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• There are many tasks and many methods. It’s important for leaders to understand that the tasks and methods are things which contribute to an overall purpose.

• Methods are more likely achieve purpose, although tasks rarely will.

Your Role as a leader What is the purpose of your role

1. RTM, Monitor

25%

2. Coaching,

PM25%

3. Planning20%

4. Admin20%

5. Other10%

Perception Reality

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Drop

• Tasks that can be dropped altogether. Consider the impact if it not done anymore?

Delegate

• Tasks that could be handled by someone else. Does it really need to sit with you? Few tasks really have to sit with the leader. (Note: do not delegate tasks before you have considered Dropping them first.)

Defer

• Can you get the same outcome by reducing the frequency? Consider managing by exception

Do

• The remaining work is work that you must do yourself. Consider whether there is a more time efficient way, e.g. if you could automate things that you do manually

Your Role as a leader Moving from Task to Method – achieving the 70%

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Feedback can be the hardest task of a leader (or anyone) Here is a simple yet effective model

Purpose Observation Feel Response[employee response] Expectation Suggest Support

Sadly we see similar

approaches far too often

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Balanced Leadership Points Calculator

Performance Task Management Points

I gave clear instructions on a ask or job I needed

with time deadlines and priority

I met with someone to review and discuss their/

our progress on agreed actions or targets

I was efficiencies with my time this week

I was efficient with money and/or resources – or

found a way to reduce /improve they way they are

used

I felt stresses or under a lot of pressure this week

Vision/Transformation points

The actions and decisions I made or meetings I

attended this week contributed to achieving our

vision

I communicated clearly with someone about our

vision

I influenced or changed someone or something

toward changes we are or have been introducing

I left people confused or uncertain about my

ideas

Strategic Goal Management Points

I did two or more things this week that definitely

contributed to our strategic goals

I was able to influence or make progress on

getting resources for our project or section activities

I spent time determining, clarifying, or planning

our long term goals and objectives

I conveyed in word or actions the most important

priorities for our section for the next 4 weeks

I spent more than 80% of my time on my

technical area rather than leading or managing

People Leadership Skills

I facilitated a worthwhile discussion or resolved

conflict between two or more people

I gave excellent service or improved our services

to our customers this week

I listened and gave my full attention to at least

two staff members for at least 15 minutes this week

I gave praise to at least two colleagues

I spent at least 215 minutes with a team member

coaching them to do something important to them

and our team

I got irritated, critical or negative about something

or someone this week

F A C T F O R M

F U T U R E F E E L

Total “Made a Difference” points -________

Complete weekly – 5 points for each tick – deduct 5 for red answers

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Where to from here……

Values, behaviours, expectations and rituals define the culture and sustain the community Vision without action is simply daydreaming, Action without vision is just a nightmare

- Ken Everett, Ken Everett International

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Thank You

For further information contact: Steve Mitchinson Director, BBB advisory Herrmann® Certified Facilitator E: [email protected]

“There are five fundamental qualities that make every team great: communication, trust, collective responsibility, caring and pride. I like to think of each as a separate finger on the fist. Any one individually is important. But all of them together are unbeatable.” Michael Krzyzewski ( “Coach K”) owns the record for the most wins by an NCAA division 1 basketball coach

mailto:[email protected]

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BBB Advisory What we do

People are the essential ingredient in any organisation and their empowerment and engagement at all levels is

vital to your organisations success. Our methods

constantly deliver on these critical outcomes. All bbb people are hand picked for

their knowledge and experience in bbb outcome

delivery areas .

Effective process has a dramatic effect on

organisations in many different ways. bbb advisory

has evolved it’s own unique practices and processes to assist a wide cross section

of private and public sector organisations throughout

Australia achieve improved operational efficiency.

BBB Advisory focuses on three areas: people, process and outcomes.

BBB Advisory applies these principals to it’s own business and aims to be a centre of excellence for business process reform and organisational efficiency.

www.bbbadvisory.com.au

By following our unique practices and processes,

bbb advisory achieves exceptional outcomes for

organisations delivering dramatic improvements in efficiency, customer

satisfaction and financial performance.

http://www.bbbadvisory.com.au/

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Building an Effective Credit Management Team

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