Weekly Blog by Philip King, CEO of the ICM - ‘Making a Difference’

This week has seen the quarterly meetings of the ICM's Advisory Council and Executive Board, and the regular forum of our Regional Representatives. We're into the second year of our governance cycle and that fact, together with a recent conversation with the editor of our Credit Management Journal, have made me think about the need for people to get involved in things.

 

Sean was telling me he'd decided to stand for election to a committee of his professional association (within the world of public relations) and questioning whether he'd be able to make a difference. My response was that he'd certainly make more difference if he stood than if he didn't, assuming of course that he was successful in the election! Stating the obvious I know but true nonetheless.

 

The reality of course is that organisations like the ICM depend on volunteers for effective governance and so much more. The willingness of individuals to give up their time and brain power is both valuable and vital. Seeing our governance in action this week has reminded me of how big a contribution they make. At times our members who get involved locally and/or nationally must question whether they make a difference but trust me they do, and their contribution and commitment are invaluable. Locally they run our network of regional branches and nationally they influence and shape our direction and strategy. In both cases they are enriching the ICM credit community and making it more powerful.

 

The countdown to next year's elections is some months away yet but let me plant a thought in the minds of those who might want to make a difference. My message is simple: when you see the invitation to stand for election to our Advisory Council early next year, please don't assume it's directed at someone else. It could just be your chance to make a difference!

Weekly Blog by Philip King, CEO of the ICM - 'Unearthing a hidden gem'

The government published its Information Economy Strategy last week (it can be found here: https://www.gov.uk/government/publications/information-economy-strategy).  The 57 pages set out the vision for a "thriving UK information economy enhancing our national competitiveness with, among other things, a strong, innovative, information sector exporting UK excellence to the world; UK businesses......confidently using technology, able to trade online, seizing technological opportunities and increasing revenues in domestic and international markets".  The intent and programme are ambitious yet vital if we are going to stay at the forefront of technological change and make the most of the opportunities that change will present in the years ahead.  I count myself among those who remember computer printouts being introduced as working tools in the late 1970s and I'm still struggling to grasp the concept of 3D printing as a form of manufacture so, like you, I've experienced the huge change over the past few years.  Indeed, it's not so long ago that the idea of me writing these words on an iPad sat in a car would have seemed the stuff of science fiction!

Anyway, back to the government report which has a real gem hidden away on page 23. It says government wants to make it easier for suppliers by encouraging the use of electronic invoicing.  Its aim is for central government to use electronic invoicing for all transactions.  While not mandating suppliers at this stage, it will look at ways to spread best practice and will track progress.  It goes on to say that, to realise the full benefits of e-invoicing, it is important that systems are easy to install and use, and the pricing is flexible enough to suit the needs of diverse businesses.

The ICM is increasingly engaging with the UK National e-Invoicing Forum which pulls together a number of e-invoicing providers, business organisations, and others with an interest in promoting the use of e-invoicing.  One of the interesting outputs from the Prompt Payment Code (hosted and administered for BIS by the ICM) is that the majority of complaints against signatories end up identifying administrative issues in either the raising and submission of the invoice, or the authorisation process at the recipient's end. I regularly talk to SMEs, and particularly micro-businesses, who still appear to fail to see the importance of raising invoices promptly and in line with the requirements of the paying organisation.  It can be a pain to jump through hoops to meet exacting demands of a customer but that pain fades into insignificance when set against the pain of running out of cash!

Implementing e-invoicing systems may seem daunting but, once in place, the whole process can become seamless allowing payment to hit on the agreed and expected day without further intervention.  The report is right in identifying that systems must be easy to install and use, and it's encouraging that providers have committed to look at ways to improve interoperability and accessibility.  Anything that helps add to the certainty of payment is good for business and will help support economic growth through improved cashflow.  The Prompt Payment Code (www.promptpaymentcode.co.uk) drives better payment behaviour.  Good credit management practice is vital, and e-invoicing too can play its part.  I'm looking forward to working with the UKNEF and the e-invoicing providers in the months ahead as their products evolve and awareness is raised.

Weekly Blog by Philip King, CEO of the ICM - 'The importance of being individual'

I had the privilege and pleasure of presenting the ICM's Meritorious Service Award to Laurie Beagle earlier this week at one of his forums. For those who don't know, the Institute of Credit Management introduced the Meritorious Service Award in 1982 to recognise people who have made a notable and commendable contribution to national or local Institute activities. Normally, two awards are made each year and the list of recipients includes some well-known and influential figures from across the credit industry.

Laurie is a worthy recipient given that he has been a member of the Institute since 1983 and a Fellow for over 20 years. The credit forums he organises and runs through P&A Receivables play a significant role in building and developing the wider credit community, which is why the ICM is happy to support them, and there are numerous credit professionals who would attest to the help Laurie has given to them in their jobs and professional development.

Reflecting on the award reminds me of how important our individual contributions can be. I often talk and write about the value of good credit management and the importance of professionalism but that professionalism, and the value that accrues from it, comes from individuals and we can all choose whether our contribution and impact on those around us is positive or not. We know the impact of 'one rotten apple' and we will all know people who brighten a room when they enter it, and others who seem to depress the mood by their very presence. This is a bit deep and philosophical for me but I remember being told as a child that I always had a choice as to whether to have a good impact or a negative one.

 

Sometimes we forget the influence we have and those of us who have been around for more years than we care to remember could do worse than remind ourselves of this. I've just resolved to try harder to stay positive and encourage those around me!

Weekly Blog by Philip King, CEO of the ICM - 'The real definition of professionalism'

A month ago I started a discussion on the ICM Credit Community Group on LinkedIn asking: "What does professionalism mean to you?" The question generated some great responses that used words and phrases including: fair; knowledgeable; focused; integrity; confidence; experience; seeing the bigger picture; keeping up to date; reputation; experience; considered judgment; ethics; calmness; credibility; and stability.

Yesterday I spent a long day in a London office meeting a series of people who demonstrated professionalism in credit management in the truest sense - they were credible, competent and could obviously apply their knowledge in the real business world. Although not the strict definition, I believe someone displaying professionalism is someone who exudes a sense of confidence in themselves and to those around them. After all, that confidence comes from all the qualities and attributes mentioned above. If I'm going to rely on someone in any walk of life I'm going to want them to be confident in themselves and I'm going to want to sense that confidence when I'm in contact with them.

The ICM in recent times has been particularly encouraging its members to be proud of their professionalism and not to be 'shrinking violets'. Good credit management is vital to the sustainability and success of businesses and we shouldn't be afraid to say so, nor to broadcast the value we add to our organisations. A recent web clipping of a survey by Marks Sattin, a recruitment organisation, shows that pay rises for credit managers averaged 7% last year and were three times greater than those of other accountancy professionals. The accompanying press release talks about the enhanced significance and greater prominence given to credit management and supports the Institute's argument that the contribution of credit professionals is invaluable and indisputable.

Sadly, we all see examples of people showing a real lack of professionalism (including from time to time by their comments and behaviours on LinkedIn discussion forums and elsewhere) but let's make sure that those individuals remain a small minority and that we can genuinely be proud of our profession. If you're an ICM member and want to demonstrate your pride by wearing an ICM Badge, please simply send an email to members@icm.org.uk quoting your correct email address, saying how many people currently work in your credit department, and telling us the single most important thing you value from your ICM membership.

Finally can I remind you that the ICM Member Survey is still open and you can complete it here. We've been overwhelmed by the response to date but the more responses we have, the better informed will be our future planning. Can I also remind you that the latest ICM UK Credit Managers' Index opened this week - so please join the panel and respond here.