Open book credit management
At Springfield Remanufacturing, one of the businesses currently using open book management, employees have an equity investment— and this style of operating is consistent with the owners’ interests. If company owners share their profit motive with workers, then they’ll profit, too. Jack Stack, the company founder, believes so strongly in partnering with all workers that [...]
Strategic framework for payday loans
Historically, since each organization institutionally saw the other as a competitor, it was important that the leaders develop the kind of working relationship that would enable them to work closely on this project. To accomplish this, they met and formed a strategic framework for the partnership. During the period they worked with me, I saw [...]
Credit examination is not about weaknesses
Three criteria make trust possible: telling the truth, taking the time to develop a relationship and explore each other’s needs and expectations, and being personally accountable for doing what you promise. Most of us in business don’t intend to lie to our partners. But we sometimes avoid telling the whole story to be polite or [...]
Accelerating pace of loans changes
In the example of Carole and Tom, the conflict created energy, and they used that energy to create something better than they had at the start. They did so by creating a situation in which both of them won. Successful businesses know how to create win-win situations, too, whether they involve employees, departments, suppliers, or [...]
Internet allows for a credit almost everywhere
The internet enables sales to be made everywhere, all the time, which means that the business is available round the clock to sell and communicate with customers, constantly adding value. The goal is often to make an organisation the most accessible and the easiest to do business with. Surveys have suggested that as much as [...]
Using the internet to boost credit options
Using the internet to sell has many advantages, and not simply the obvious one of connecting with more customers across a wide spectrum. However, the internet is also a source of strong, hidden undercurrents that can blow plans off course or drown them in technology. The internet reduces sales costs, broadens customer reach and has [...]
Dell sell well: Dell Computer’s credit techniques
In 1988, Dell Computer started competing aggressively with IBM and Compaq, the market leaders. Dell’s strategy was to provide good-quality personal computers at low (but not the lowest) price, backed up with friendly and reliable after-sales service. But the key to Dell’s success was that it carefully targeted its product by getting to know its [...]
Ways of dealing with credit problems
Consider cross-selling other products to existing customers and focus on increasing the value derived from individual clients. Discounts and special offers need not be offered to everyone; they are most effective when targeted at specific clients or groups of customers. Build customers’ loyalty to your business and respect for your brand. If there is something [...]
Making the right credit decision
Sales decisions are tough and unforgiving, as one wrong move can easily hand the initiative to competitors. Moreover, customers’ perceptions, once formed, can be difficult to alter. Decisions should be informed by an understanding of and feel for how customers will react to a proposition, a commitment to service and a focus on profitability. It [...]
Extending activities with strategic credit partnerships
Alliances are an extremely effective way of testing a new market or establishing a new product in an existing market. They can be attractive when entering specialist or distant markets, for example in reaching little-known export markets. Partnerships may include distribution and agency agreements, licensing agreements, franchising or joint ventures. Other things to consider when [...]