Metrics matter.(business credit executive )

If you don't measure it, you can't improve it.

This old adage is certainly true for our ever-changing profession. But have your measurements kept up with the changes in your role, or the challenges faced by your business?

We all track the normal measurements having to do with DSO, percent current or past due and bad debt expense. Some of us go further with Best Possible DSO, Average Days Delinquent and the Collections Effectiveness Index. These are all long-established ways to evaluate our performance, and they're fine, but they only go so far.

As our business credit executive role has expanded to include more ownership of the "order-to-cash" process, our measurements need to expand. The metrics we use should not just keep pace with that expanding role, but should stay ahead of it. And in many cases, these "future measures" are becoming more operational in nature, reflecting our broader organizational involvement.

Here are some examples based on identified trends that are impacting our profession. Consider that while all of them may not apply to you yet, they might soon.

Credit Card Processing. Most business credit executives report an increase in the number of customers paying by credit card. Being a business credit executive today means becoming your company's internal expert in credit card processing, chargebacks, and antifraud measures. How much more in credit card business did you do this year versus last? Has your chargeback volume increased? Own this area--and the relationship with your card processing service. Don't take credit cards? Drive the change to adopt this important payment method!

Systemic vs. Manual Processing. We, as a profession, continue to review and revise processes and procedures, often driven by new system implementations or SOX compliance requirements. As we peel back the onion of legacy procedures, it's a great opportunity to eliminate non value-added work.