Weekly Blog by Philip King, CEO of the ICM - 'Stepping out of the bath'

After the good personal news I shared in my blog last week, there's been some heartening news on the economy this week.

The CBI's latest quarterly poll shows that the services sector, which accounts for two thirds of the UK economy, is growing at its fastest rate for six years. Last week, the Office for National Statistics lifted its second-quarter estimate for GDP growth from 0.6 per cent to 0.7 per cent. The EEF, the manufacturers' organisation, said that for the first time more members were reporting that the cost of new borrowing lines was falling than those reporting it was rising. The Bank of England's Deputy Governor suggested the Bank was sending a 'clear signal' that interest rates would not be raised any time soon reiterating the commitment made early in his reign by the new Governor Mark Carney.

 

The editor of our own magazine, Credit Management, drew attention to a number of other positive indices in his column in the September issue which hit doormats at the end of last week so perhaps the CBI is right in interpreting their numbers as evidence of a further build-up of momentum. Certainly, the conversations I'm having with businesses and organisations suggest an underlying sense of confidence that was missing a few months ago.

 

Few people seem to be overly buoyant but they do at least seem to  be moving from A glass half-empty to glass half-full mentality. In the early days of this recession when the debate was raging as to whether it would be V or U shaped, I remember one economist saying it would be bath-tub shaped, with the economy bouncing along the bottom for a prolonged period. It was a description I shamelessly stole and has proved to be pretty accurate.

 

I don't think we're off the bottom yet but I think we're looking upwards now rather than constantly looking behind us, and it does feel like momentum is building. Knowing how important confidence is to achieving recovery, let's do our bit by talking ourselves out of the bath tub.

Weekly Blog by Philip King, CEO of the ICM - 'Mixed Fortunes'

The last week and a half has been pretty amazing. I returned from a great two-week break touring the Scottish Highlands, I've had my 57th birthday, and my first grandchild has been born! The North West of Scotland has breathtaking scenery and it was brilliant to spend some quality time relaxing with Mary, my long-suffering wife. Apart from one afternoon looking at late payment issues and talking to a Financial Times journalist, I genuinely avoided emails and voicemails and it made a pleasant change. I'll skirt round my birthday since I've had so many of them now that there's not much to say!

The really exciting news is the arrival of my grandson which has brought back all the emotion that accompanied the arrival of our own children 29, 26, and 21 years ago, and has reminded me of the miracle that childbirth represents. My blogs aren't often personal but I couldn't let this event pass by without a mention, although I won't pick up my phone and start imposing pictures on you as I might if you were here!

On my office desk when I returned to ICM HQ was the StepChange Debt Charity Statistical Yearbook for 2012 and it brought me back to the real world with a bump. On average across the year, someone sought help from the charity every 78 seconds either online or by phone and we have to remind ourselves that StepChange is just one route for debt advice. There are numerous organisations offering support, help, and advice and – looking at the most recent Credit Action debt statistics – I see that Citizens Advice Bureaux in England and Wales dealt with 7,824 new debt problems every working day during the year ending March 2013. Worse still, the letter accompanying the StepChange report reveals that, for about a quarter of the clients they advised last year, they were unable to suggest a way forward because the client lacked the means to cover essential living costs while insolvency was inappropriate for their circumstances.

To help some of these clients StepChange has launched a new 'token payment' service, an interim measure of short-term relief allowing clients time to get their affairs in order where there is a reasonable expectation that their circumstances will improve in the reasonably short-term. Token payments, of course, are not new but this approach to their administration is, and it coincides with a pilot 'Sustainable Debt Advice Project' run by AdviceUK which is now being rolled out more widely.

Just as we all have cause to celebrate from time to time, so we all face problems and many customers get into financial difficulty because of a sudden or dramatic change in circumstances. We want to be paid what we are owed, and solutions giving customers who want to pay some temporary breathing space are to be welcomed, especially if the longer-term prospects are improved as a result.

Finally, it would be remiss of me not to thank Charles Mayhew, Sue Chapple, and Sue Kettle for their excellent guest blogs while I was away. I appreciate their support and enjoyed their contributions.

Guest blog by Sue Kettle, Director of Membership and Support Services of the ICM - 'Love and Passion? Can this really be credit management?'

As Philip’s guest blogger, I deliberated long and hard on the theme and title of my blog. Would it be appropriate? Will it be taken in the context it’s meant? 

 

It didn’t take me long to feel at ease when I spotted a recent discussion posted on LinkedIn by a fellow colleague entitled ‘I love…’. With a smile and no real surprise I began to read the responses to the post that confirmed my thoughts. “I love the challenge” and “I love making a difference” to quotea couple.

From day one of joining ICM, and for the past 14 years, it has been so apparent from conversations with our members that the passion, commitment and excitement for credit management is boundless.

 

My early career was spent in a variety of industry sectors and I can honestly say the only passion and love I ever saw in those days was from an 11 o’clock diet coke break or an early finish.

 

One story that has always stuck with me, and I won't mention any names, was during my early days in membership when an individual who as applying to become a Member, who was so passionate about his job and his enthusiasm to join the credit community, he felt the need to call me from the bath to tell me he had reduced the companies DSO to 12 days, would this contribute to him achieving recognition as a credit professional?  To this day, he is now a long serving Member, I can't look at him with a straight face!

 

I feel, from my experience, I can honestly say credit professionals love their jobs with a passion and they are a breed that are not precious about their knowledge they have a longing desire to share and help others develop in the same way they have.

 

To all in the credit community let's nurture the professionals of the future to continue this infectious passion.

 

Yes, this really is Credit Management.

 

Sue Kettle

Director of Membership and Support Services

 

Guest blog by Sue Chapple, Head of Revenue Management of EDF Energy Plc - 'No pain no gain?'

For three weeks in July every year, our household becomes totally and utterly obsessed with the Tour de France.  This is a relatively new phenomenon, which has crept up on us over the last five years – but still now, our total immersion with the event, takes even us by surprise.  The ‘phone goes unanswered, ironing builds to a veritable monster, the weeds gang up on us and the dog has to remind us he wants to be fed and walked!

 

So as the 2013 edition draws to a spectacular close and we are left feeling bereft, I wonder what, if anything, I can draw from the experience.

 

I suppose the overriding observation, every year, is the total and unswerving dedication to the cause.  The absolute commitment from every single rider, to every kilometre of the race, regardless of pain, weather, or gradient is remarkable.  Does this type of dedication exist at all, outside of the sporting arena?

 

Is it possible to harness just a tiny bit of this focus and desire and capture it for our own worlds? Or are the participants, by definition, simply a special breed that cannot be ‘recreated’ in any other environment?  Could we look at the Sky Team approach to ‘process improvement’ which, in the words of the great (Sir) Dave Brailsford, is all about marginal gain: if you work, methodically, to remove variances over which you have control and which have a negative impact, and aim to do 100 things one percent better – the impact in any walk of life will at the very least be noticeable and at best, incredible.

 

So far so good, now I wonder how my team will feel about the lycra suits………

 

Next week Philip King’s guest blogger will be Sue Kettle, Director of Membership & Support Services for the ICM.

Guest blog by Charles Mayhew FICM, Director of Moreton Smith Limited –‘Brass Bands and Bacon Rolls’

I was delighted to be asked to be a guest blogger by Philip some months ago, and was wondering what I could write.

How the late payment act is working? Perhaps some interesting stories about collecting debts in the Middle East and so on? So while I was reflecting on a topic, I started remembering all the fascinating people I have met in our Industry, and of course being involved in International collections, many different nationalities.

I was recently made a Fellow of the ICM and a very proud one also. So therefore, having been the recipient of what should be perceived as an Oscar, I am hoping to thank a few people and share some stories of my 20 years in Credit - so far! It’s not over by any means.

It all started in 1994 just after I returned from living and working in Abu Dhabi with my wife and two (then) young children. I was interviewed by a distinguished American Gentleman, Stanley Tulchin of STA Associates who introduced me to the collections industry. His favourite saying was “Volume without yield is an unnecessary expense”. Wise advice from a wise man. Stanley was a great supporter of the American Collectors Association and also the NACM in the USA and insisted that we became heavily involved with the equivalent UK organisation which of course we did. I was lucky enough to travel to Chicago for the NACM conference, the same as the Annual ICM at Gaydon but much larger.

I compared notes on the ICM with Ted Brown, who was spotted in window of the Hotel opposite me in a John Cleese type moment. We couldn’t believe the massive brass band marching through the exhibition halls, the amount of people in attendance, and the lavish stands that many companies had invested in. I also attended the New Orleans NACM conference a few years later, and that was an experience. Then coming back to the UK I remember well the Liverpool and Merseyside conference and Lynne Mills enticing us all to arrive promptly with the lure of Bacon Rolls, which were delicious. It was 1998 before I became an MICM and I actually remember saying to my older brother, himself a Lieutenant Commander in the Royal Navy, that I eventually had letters after my name.

My Mum was also impressed! I joined Richard Moreton and Mark Smith in 2003 and was grateful for my time at STA but the bright lights of London beckoned, and the opportunity to become a shareholder in a growing business. Again my previous colleagues at STA were household names, who I gained invaluable experience from. Colin Thomas and Kevin Terrel, all with great sayings such as “companies owe money but people pay bills” (I don’t think that’s copyrighted though).

Philip King, Brenda Linger, Stuart Hopewell, Larry Coltman were all encouraging me along with Richard Seadon especially to apply for my fellowship. 

I am delighted that I did, it has made me even more passionate about the industry we work in, and what it has always allowed me to do is to reflect on how many good people have had an influence on my career so far. Over the years and travelling around to see many credit managers as I do, people are always quick to give an opinion on the ICM. Another saying is you only get out what you put in.

I will continue to support our professional body, and perhaps even more importantly the people who are in our industry. Socialising with them is also a healthy part of it, we call it networking. Have a great summer.

Charles Mayhew FICM

 

Next week Philip King’s guest blogger will be Sue Chapple, Head of Revenue Management of EDF Energy Plc.