management in credit & collection & risk?...psychology of credit and risk management what...
TRANSCRIPT
Management in Credit & Collection & Risk?
Stefanie DinklageAlexion Pharma GmbH
Take off at Credit Matters V
Content
Who am I
My Philosophy & Psychology of Credit, Risk & Collection Department
Organization of Credit Risk Management
Governance of Credit Department
Emotional relationship with customers
Q & A (Aperitifs and Digestives)
SwitzerlandCredit Management at Alexion Pharma
The NetherlandsTeacher in Social Science & Languages
Italy and Germany Hotel Management
USA - VirginiaPsychology (Transpersonal)
The Netherlands Credit Management at GBC Films
SwitzerlandCredit Management at Bombardier
United KingdomFinance & Accounting
My roadmap – Study and Practice
Co-founder of Charter
school “IBBO”
Member of the APA
American Psychology Association
Philosophy of Credit and Risk Management What does Philosophy mean exactly?
What is the philosophy of Credit Management ?
Knowledge: Credit in ancient times was given to persons they knew, they were related to or
they were acquaintances to, people they trusted based on knowledge.
Do we KNOW our Customers? Internal and External
Life – meaning of life: The meaning of life is to find your gift, the purpose of life is to give it
away. Pablo Picasso
Do we understand the MEANING OF LIFE of our department and customers?
Love Wisdom+ è
Knowledge Life
Fundamental Nature
Interpersonal connection brings dedication and motivation
Psychology of Credit and Risk Management What does Psychology mean exactly?
The purpose of psychology is to give us a completely different idea of the things we know best.
What is the psychology of Credit Management ?• Has the Credit Department been empowered with sufficient “breath” and “speech” ..• Is within the Credit Department sufficient “Life” and “Word-power” .. • Is there sufficient “Soul” (fundamental belief) and “reason” ..
Breath
Speech
Life
Word
Soul
Reason
A person has as much value as much we are willing to recognize to it.
OR OR
Paul Valery - a French poet
Translation of Company’s message
The Credit Management Department is subordinate to which level?
A. Order to Cash cycle
B. Treasury / Finance
C. Customer Relation Management
D. Commercial / Finance
Positioning of your company?What does positioning mean? - The art and science of meaningfully differentiating your company in the market landscape.
q Positioning is strategy - concrete and rationalq Branding is the expression of a company’s strategy in words, tonality, color, design, imagery, and
illustrations – emotional
Have you already defined the positioning of your company? - There are 4 steps to follow:
1. Understanding the company from the inside out—its DNA. 2. Capability to concisely articulate what the company does and why it matters. 3. Alignment with the rest of the leadership on an mutual understanding of the company fully embracing
corporate DNA4. Develop a message architecture and narrative that reflects steps one through three through all your
company.
Positioning ≠ Branding
Corporate DNA of your company1. How to define Company’s DNA? - Apply the corporate DNA model
q Customer-oriented companies q Focus on segmentation and experience
q Product-oriented companiesq Focus on product quality and value
q Concept-oriented companies q Focus on category creation and cult of personality
2. Reveal your DNA through these five lenses to understand and define your positioning:q COREq CATEGORYq COMMUNITY q COMPETITION q CONTEXT
Language
- CUSTOMER-DOMINANT:
- PRODUCT-DOMINANT:
- CONCEPT:
3. Why does positioning of your company matter for your Credit Department Team? A solid positioning of your company
q aligns your teams with company’s strategy, vision and mission q amplifies your messagesq removes friction q accelerates traction
4. Messaging and sharing the defined DNA with Credit Department. Clear defined …. q Credit Policy that reflects company’s DNAq Standard Operating Procedures (SOP) and Business Process Procedures (BPP)q Defining delegation of authority and Power of executionq Structure of ownership and responsibility q KPI’s and measurement matrix q Alignment between Commercial and Credit Risk language
Positioning of Company and Credit Management
Positioning of your company brings alignment and lean management
Your Logo
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Customer Creation Department
Invoice departmentCredit
Department
Customer Service
Cash Application Team
Credit Department
Credit Department
Credit Department enclosed in O2C Cycle
O T I
ITC
Leadership of O2C Cycle
How did you define the leadership of OTC? Who should lead the O2C - cycle?
A. Credit Management Department
B. Finance Treasury
C. Customer Operations
D. Other
While working in Credit Department what do you … ?
Communication and Connection
Think
u Do we recognize what we see?
Do
u Do we say what we think?
u Do we see what we do?
u Do we do what we say?
SaySee
Acknowledging Barriers and Blind Spots enhance proper communication and connection
SEE THINK SAY DO
Emotional relationship with internal customers
Who are your internal customers?
èè
è
Chef de cuisine
Sous –Chef
The Patissier
The Poissonier
The Potager
Chefs de partie
Waiter Bar tender
Garde-manger
Supply chain
Variety Departm
Credit Controller
Credit Director
Logistic Specialist
Invoice Departm
Dispute Specialist
Customer Service
The Saucier
Cash Apps.
Working in Credit Department is cooperation with a multitude of departments to keep preparing tasty meals
è
Credit Check & Risk Assessment
Customer Creation
Order Entry & Confirmation
Invoice Dispatch Collections Cash
ApplicationsReporting & Analytics
01 02 03 04 05 06 07
Cooperation for Credit Management Goals
AR Portfolio
Performance
Credit Department
Customer Onboarding
Customer Service
Invoice Department
Credit Department
Cash Apps. Team
Credit Department
Emotional relationship with external customers
While working in Credit Department what do you …
First identify who is your external customer?
When dealing with your external customer
- do you see the whole picture behind the customer
- what do you THINK when acknowledging the above
- Are you acknowledging and able to express your “SEEING” and “THOUGHTS”
- Are you ACTING upon what you SAY what you THINK you SEE?
SEE THINK SAY DO
“The definition of a customer is in the perception of the observer”
In the distinction between giving and receiving, giving and taking, owing and owning there will always be an emotion involved
