|
Category |
The Old Agency |
Today's Agency |
The New Agency |
Your Agency |
|
Theme |
Results at any cost |
Justify the results |
Do the right thing, results
will follow |
|
|
Culture |
Lie, cheat, steal |
Push the envelope |
Rigorous honesty and integrity |
|
|
Business Practices |
Substandard |
Standard |
Best Practices |
|
|
Association Standards |
CAC No Membership |
CAC: Passive membership |
CAC Leadership role |
|
|
Client Servicing |
Overpromise, not delivered |
Overpromise, under delivered.
|
Promised over delivered. |
|
|
Sales |
High pressure |
Features and benefits only |
Consultive selling |
|
|
Marketing Focus |
Vendor Status |
Preferred vendor status |
Partnering with clients |
|
|
Financial Management |
Borderline illegal |
Loosely organized |
Rigorous controls, reporting
documentation |
|
|
Collections |
Abusive |
Random communication |
Standardization of
presentation, ethics |
|
|
Hiring/Firing |
No criteria |
Criterion not enforced |
Clear profile, screening,
evaluation |
|
|
Training |
No investment |
Inconsistent |
Ongoing, continuous education |
|
|
Services |
Collections |
Collections with related
services |
All aspects of collections,
receivables management, training and consulting. |
|
|
Automation |
Manual procedures |
Half manual-Half automated |
All aspects of collections,
receivables management, training, and consulting.
|
|
|
Strategic Planning |
Not understood |
Lip Service, no real action |
Leading edge, automation and
communication |
|
|
Growth Expectations |
In contraction, no growth |
Static, slow or growth |
Exponential growth |
|
|
Margins |
Below industry benchmark |
At industry benchmark |
Above industry benchmark |
|
|
Supervision |
Nonexistent |
Ad-hoc |
Consistent, structured |
|
|
Performance |
Poor: the unacceptable is
acceptable |
Mediocre |
Peak performance only |
|
An agency is like any business organization, it has a unique
culture. A culture suggests the underlying assumptions and
values that drive primary attitudes and behaviors in an
organization and specifically, in your agency’s culture? As
agency principals, what are your underlying assumptions and
values?
At my agency, we had a culture committed to:
- Profitability
- Excellence
- Exceptional Customer Service
- Teamwork and Team Support
- Continuous Learning
- Technological Innovation
- Product and Service Diversification
There are two basic core values that all
our people share. It is how I work. It is how I live. It is how
I run my agency. Those values are honesty and integrity. I will
discuss how these values play out in a New Agency paradigm. Can
you short-cut the process? Sure you can. Will you compromise
yourself, your clients, your employees, and our industry? Will
you compromise you own family? Yes you will, if you shortcut the
process!
My example concerning the reimbursement for the copies
illustrates the difference between my agency culture, values,
ethics, and business practices, and other lesser responses. My
New Agency paradigm is a commitment to honest and integrity. My
agency’s growth culture supports these core values. As a result
of this, my staff and I have a commitment to standardization
around what we call “best practices.” That was illustrated in my
response to my client which exceeded his expectation. Just
meeting expectation i.e. reimbursing him 50%, would have been an
example of standard practices. Withholding the information, or
lying, would have been example of substandard practices. For our
purposes in the following paradigm (see chart) these different
agency practices will be understood under “The Old Agency,”
“Today’s Agency,” and “The New Agency.” In “The New Agency,”
honesty and integrity permeate the organization from the top
down and the bottom up. My staff’s organizational consistency
mirrors our commitment to a common culture, common values, and
common “best practices” business standards.
How far do people short-cut? As far as they
can rationalize, equivocate, and like to themselves. A
few years ago, I interviewed and ambitious collector who was
smart, and had good persuasion skills on the phone. He talked
about “flexibility.” Flexibility meant that during a 15 day
pre-commission phase, monies coming in between the 13th
and 15th day could be “held” (if the dollar amount
warranted it), until the account converted to a commission
basis. At this point, it was clear our version of flexibility
was different. I physically escorted this man to a mirror in our
office and asked, “Whose money was that: yours or the client’s?”
He answered, “I get the point” So did I. He was excused on the
spot.
Attorney Ron Sargis, respected advocate of our industry, tells
us to exercise caution! “Pigs get fat, but hogs get slaughtered”
Ron Sargis’ counsel in positioning ourselves in debtor
negotiation is excellent advice. When it comes to business
practices and ethics, we are again reminded to set our sights
high. We simply cannot afford the alternative. Pigs get
slaughtered, too!. We do not grow animals for slaughter. We
grow, people and we grow the numbers the right way: with honesty
and integrity.
Today’s business climate, our clients, our
employees and our best competition in the industry, except this,
and deliver on this level.
How well do you deliver? Which agency model
best describes your agency? How committed are you to a New
Agency model? All of us are accountable to ourselves, our
business, to CAC, and to our industry at large. In Closing, I
ask you to look in the mirror…
Collector’s Inc/April 1997
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