A new slant on the Cs.(management of business credit)(Viewpoint essay)

I love to read books about business. I like books written by business leaders and about business leaders. Books inspire me to think differently.

While I don't agree with everything in his book, Where Have All the Leaders Gone?, Lee Iacocca lays out some pretty interesting concepts about leadership. In fact, his writing inspired me to think about the similarities between the five Cs of Credit and his nine Cs of Leadership. I'd like to share what I've been thinking.

I believe, as Iacocca does, that leaders are made, not born. I also believe that true leadership is easy to spot in times of crisis. Today's crisis is the business environment. Think back to any crisis you've experienced; as people, we need to look to someone for guidance and leadership.

A leader must have COURAGE. Iacocca says that courage doesn't mean posturing and bravado but rather is a commitment to sit down at the negotiating table and talk. Credit professionals are among the most courageous--you must demonstrate courage each and every day as you negotiate with your management team about whether an account is worthy of an extension of credit and you demonstrate courage as you negotiate with your customers for payment. You must also have the courage to ask for your company's support as you pursue the education and networking you need to continue to keep your finger on the pulse of today's business environment. Be courageous when you ask for funding to attend this year's Credit Congress. Be courageous when you fight to maintain your credit group membership.

Iacocca says that a leader has to show CURIOSITY by listening to people outside of the "Yes, sir" crowd in his inner circle. We all know that if we never step outside our comfort zone to learn new information or ideas, we'll stagnate. Credit professionals, by nature, are curious. You're curious about your customers and about your customers' business. You are in the business of listening carefully for clues about your customers.

And of course, curiosity leads to COMMON SENSE. As humans, we have the ability to reason because of our common sense. As credit professionals, you're able to reason whether an order is acceptable because of common sense. Common sense also teaches us that we must continue to expand our knowledge and information base. You wouldn't think of making a decision to extend credit based upon old information, so why wouldn't you want to update your knowledge through continuing education? To be the best, you've got to be at the top of the knowledge game.

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