Beyond the Numbers: The Art of Measuring Modern Credit Department Performance
In the credit industry, there is rarely a clear right or wrong approach to any given situation. Credit professionals are tasked with using their best judgment to find solutions to complex problems. This makes measuring credit department performance both challenging and necessary.
Download the NACM Expert Credit Brief, Beyond the Numbers: The Art of Measuring Modern Credit Department Performance, to explore the wide range of formulas that exist to measure the ever-expanding list of tasks that fall under the responsibility of credit managers.
Key findings in this white paper powered by NACM Thought Leaders include:
- 65% of credit departments surveyed by NACM use DSO to measure performance despite its limitations.
- Metrics help define the grey areas within which credit professionals often work.
- Measuring the wrong results can have a negative impact on accounts receivable performance.
- The formulas used to measure efficiency have not changed, but the strategy to drive improvement using metric findings is different today and will continue to evolve.
- Every metric should drive an action in the credit department, otherwise it is meaningless.
