To: All branch managers and A/R teams
From: Paula
Pump up the A/R
Bring the money in
Creating boundaries…and keeping them
We’ve all drawn a line in the sand at times only to relish running or walking on the beach to then find no traces of the line.
I have an ongoing battle with one of my closest friends, Susie* – we’ll call her the bulldog. She never accepts and respects my boundaries, kind of like a dog trying to get food from the dinner table. I get pushed further than I want or am comfortable with, and finally out of frustration create appropriate boundaries – perhaps too little and too late. (*The name has been changed to protect my friendship!)
Then the bulldog, who absolutely hates rules and regulations, works on breaking free from the leash of those boundaries and my resolve to maintain them.
Years ago I asked her to stop calling me at work, apart from emergencies. She was working from home and welcomed distractions from the boredom. For me, the phone calls just meant I had a harder time focusing and getting done what I needed to do…and that I had to stay at work later to complete what I could have done during the day.
So, within hours of my telling her to not call me at work, she calls to offer to babysit Schmutzie, the predecessor to Pepper the Schnauzer, when I went out of town….in 3 months! When I responded that this was definitely not an emergency, she barked at me, ” but it’s for your benefit!” Many discussions later, abrupt conversations, and the reiteration that I would speak to her after work, she is relatively well trained…………… Although she still has “accidents” on occasion.
So, here’s to training our clients to respect our boundaries, rules, payment terms, and our “judgment”:
1. Creating the rules – We have basic a/r guidelines. They are already built into your computer and your underlying understanding of your job. The client buys goods, and we get paid – pretty simple. Still, over the years, we have had a lot of people work towards changing/bending/and breaking those rules to their advantage.
“Oh, I know that I am 120 days overdue, but could you please release this one little order? I’d be so grateful?” “Can I have that on net 30 even though I haven’t made the first 4 payments of the machine I bought from you?” You know if there are specific areas where you are particularly wishy washy, go ahead and create a “rule” to reinforce your backbone in those areas. (You can always blame it on head office, the accountant, the computer, the president, the chairman of the board.)
2. Training the puppy – Now that you have your rules in place, you have to let new clients know the rules. If you train them early, life is easy. If you wait to have a relationship and then try to make them abide by the rules, well, good luck. This is a new relationship, you’ve got to let them know who’s walking who!
3. Give a treat – once you’ve established good behavior, you can reward it. How about increasing the credit limit for a well paying client with good references, waiving a restocking charge, the possibility of machinery on terms, not requiring prepayment for small special orders, etc.?
4. Give an “atta boy” – Thank clients for good behavior. Heap on the praise. One of my friends who was having difficulties communicating with her husband started watching dog training shows on t.v. and applied the lessons to her relationship. Now with the concept of good dog and bad dog, she has a lot more joy in her relationship, and a lot less frustration. You get a lot more with praise and positive reinforcement of good behavior always! If you set high expectations, people will rise to the occasion.
5. Teaching old dogs new tricks – just because you’ve allowed bad behavior to become the norm doesn’t mean you can’t work on training your clients to change. It will take a lot of work and a lot of discipline on your part. Be strong, be firm, be kind, be consistent.
6. Reestablishing the dimensions of the yard and the maintenance of the fence – you have your boundaries set. You have to check out your fence from time to time to make sure no holes have appeared. Repair them. Check your over 30 days A/R to see where the holes are beginning to form.
7. Marking your territory – no, I am definitely not asking you to pee on your clients! What I am asking you to do is to ensure that your clients know that when they owe you money that you are claiming and exerting the right to receive payment. Go up the tree and speak to those higher and higher up. Call, fax, e-mail, mail….and repeat until you receive payment. If all fails, send to collections or small claims court.
8. Stopping the barking – We’re not interested in barking at our clients, or them barking at us. With some consistent training, you can work with each other with respect, kindness, and professionalism. Dealing with issues early eliminates the need to raise our voices to be heard.
9. Play – Have fun! Enjoy the process! Be proud of your accomplishments! Go for a walk at lunch! Smell the roses! Scratch behind your ears!
WISHING YOU AN AWESOME AUGUST!
KBC Tools & Machinery 