Become a better leader: tips for inspiring peak performance.(extra credit)

In addition to handling responsibilities related to administering and enforcing credit and collections policies and procedures, much of the day-to-day work of credit managers involves motivating and managing staff members. Credit managers may even have to work a little harder in this area than some to mitigate the often stressful demands of credit and collections work on their team members.

Credit professionals must be adept at defusing adversarial people and situations and negotiating solutions while maintaining a professional attitude and staying productive. To help staff members continually rise to these challenges and function at peak levels, managers may need to rededicate themselves to improving their own performance. Through stronger leadership, you can help your employees become more motivated and successful in their jobs. Here's how:

Initiate opportunities to listen to employees. Go beyond advertising that you have an open-door policy. No matter how responsive you are as a manager, employees won't always come to you with their problems, suggestions and concerns. Therefore, make a point of initiating conversations with your staff members. Rather than inviting them into your office for a talk--which may seem intimidating--or stopping by their workstation--which may lack privacy--it's better to look for a neutral place for a casual conversation, such as the lobby of your building or a nearby coffee shop.

These one-on-one sessions can deliver numerous benefits. They keep you attuned to the challenges facing team members and the level of their morale. Also, they can help you learn of problems in your department before they affect performance or result in turnover. In addition, these meetings allow you to solicit ideas for keeping your staff members motivated and working effectively. Reaching out to your team in this way helps ensure that everyone has a voice in the department's operations, which leads to greater employee engagement and, ultimately, better performance.

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Increase employee empowerment. Although the idea of empowering employees has become so familiar that it may sound like a management cliche, the notion behind the concept remains powerful. At its heart is the idea that employees should be given the tools and support they need to make good decisions, then given as much control and autonomy as possible in carrying out their responsibilities. In an empowered environment, individual judgment becomes the mechanism for decision making, replacing inflexible "rules" and "procedures."

Employee empowerment is often credited with helping Nordstrom, the department store chain, earn a reputation for outstanding customer service. The company's directive to employees is a simple one: "Use good judgment in all situations." As a manager, consider whether you can do more to give staff members greater discretion in carrying out their duties. For example, can you offer them more latitude in determining work priorities, raising credit limits or working out terms with customers? Keep in mind that employees who enjoy a sense of autonomy in their jobs and feel trusted to make good decisions are generally more productive, resourceful and responsive to customer needs.