The Dangers of a “Turf War”
While training and involving sales and credit more frequently in each other’s worlds can be productive, caution should be exercised so relationships don’t become strained, as sometimes the crossover can get out of control and embolden too much activity from one side or the other.
“You don’t want to give sales the idea they have too much of a role in decisions,” says Taylor. “I’ve seen that happen when you expand roles too far. They want to decide the credit limit, or how far past due an account can be before you stop shipping. The lines should be drawn and clear between credit and sales as to ‘what is my role’ and ‘what is your role’ in the process. Turn them loose and let them try to sell as much as they can, but they need to honor your ‘no’ when you have to say it,” he adds.
Another problem Taylor has encountered is salespeople discussing confidential information gleaned from a credit discussion. Each member of the sales team should be trained on applicable credit ethics and laws to know what kind of information is off limits to public discussion. “Sources of information are crucial; if you get cut off from your sources because someone betrayed a confidence, you’re dead.” He added that, if such an occurrence happens, it’s not the salesperson’s reputation on the line; it’s yours as the credit professional.
Despite her support of cross-training, Kathleen Quill, CAE, CBA, president of the National Association of Credit Managers for Gulf States, admitted Taylor’s concern about the sales staff getting carried away is one that can and has come to fruition. However, she notes there are likely other potentially bigger problems within a company’s leadership if this occurs. “I think the relationship is already wrong if salespeople feel empowered to dictate terms instead of being a partner,” she explains. “At some places, salespeople are treated as the ‘king of the hill.’ When management understands the function of credit, this doesn’t happen.”
Karpinski agrees, noting it is up to management to try and foster the right environment for workers in various departments to thrive and play off of one another: “People often have prejudices. The issues are real, and we must deal with them to create an environment that supports collaboration toward shared goals and success. This is a philosophy that can’t just be on a plaque in the entryway. It’s a philosophy that begs to be lived out daily from the top down.”
Still, if all else fails, why not try the social route? Barbara Brenner, CEO of the International Association for Credit Protection and Insolvency Law, finds organizing social opportunities between the two departments can play a huge role in cooperation. “What about a regular joint working party for credit, finance, and sales?”
Summarizing this strategy, Quill believes it’s much harder to be “ugly” when you have socialized or shared a meal with another team’s members. “I don’t know that it helps you understand their job, but it’s better than nothing.”
Reprinted with permission, National Association of Credit Management. Article originally appeared in Business Credit magazine. For more information visit www.nacm.org.
