Change: major obstacle in Credit Management projects
Resistance to change is common in transformation projects, especially when new practices disrupt long-established habits, both internally and with customers. Scarlett Favre-Verand highlights that credit management practices in France are often still influenced by traditional methods, where monitoring customer receivables and asset turnover are not prioritized. She observes that in some companies, employees are attached to “punitive” collection methods or rigid and hierarchical processes.
One of the biggest obstacles is getting employees to see late payments as a shared responsibility between the client and themselves, not just as the client’s fault.
explains Scarlett.
To shift these perceptions, Scarlett focuses on demonstrating that modern credit management goes far beyond simple debt collection. It aims to anticipate risks, streamline transactions, and optimize customer relationships. She emphasizes the direct benefits for companies: improved cash flow, reduced collection costs, and more sustainable customer relationships.
Engaging leadership for a successful transformation
For Scarlett, support from executive leadership is essential to the success of a credit management transformation project. In her consulting missions, she insists on the importance of including top management in the decision-making process and helping them understand the challenges and benefits of the project, so they can drive the change. Credit management transformation projects cannot be led by the finance department alone. They require governance support because these are company-wide projects that affect multiple departments and often require deep cultural shifts.
she explains.
With leadership involvement, it becomes possible to create a company-wide momentum for change. When leadership supports and champions the new practices, they set an example and reduce resistance within teams. Scarlett notes that the most lasting and impactful transformations are those where governance is actively engaged, making success a shared goal across all business and finance functions.
Training as a lever against resistance
Another key lever to reduce resistance to change is employee training. Scarlett is convinced that comprehensive and well-adapted training is essential to help teams understand and embrace new practices. By training employees on modern credit management techniques, she helps them recognize the benefits of change and progressively buy into it. It’s essential to train teams and show them how new methods will make their jobs easier while delivering tangible results. This reduces reluctance and helps them better understand the project’s objectives.
says Scarlett.
She often takes the time to explain how digital tools like My DSO Manager work and their impact on collections and customer relationship management. Once trained, employees become more confident in using these tools, which boosts their engagement in the project.
Adapting change to company culture
Scarlett also stresses the importance of adapting new practices to the culture and specific characteristics of each company. She explains that every company has its own DNA, and implementing change cannot be done with a one-size-fits-all approach. It is crucial to understand each organization’s cultural and operational specifics to tailor credit management processes and policies accordingly.
What works for one company won’t necessarily work for another. You need to adapt methods to the needs and culture of each organization so that change is accepted.
she says. For example, in some family-owned businesses, the client relationship is so valued that unpaid receivables are seen as a sign of trust. Scarlett addresses this mindset by showing that implementing best practices in collections doesn’t jeopardize the customer relationship—on the contrary, it reinforces trust and transparency.
She often cites a popular saying: No one ever lost a client for talking about invoices. You lose a client because of product issues, poor service, pricing, or poor communication—not because you asked them about unpaid bills to understand payment delays and find solutions.
Establishing success metrics to assess impact
Finally, Scarlett recommends implementing success indicators to measure the long-term impact of new practices. These KPIs allow teams and leadership to track progress and visualize the gains from the transformation project. Key indicators include DSO (Days Sales Outstanding) reduction, improved collection rates, and fewer bad debts. Clear metrics help motivate teams and convince skeptics. When they see the positive results, employees are more willing to accept and support the change.
Scarlett explains.
These success indicators also help fine-tune practices when results fall short of expectations, offering a solid foundation for continuous process improvement.
Conclusion: transform to sustain Credit Management
Overcoming resistance to change is essential to ensure a lasting transformation in credit management. Scarlett Favre-Verand shows that with a methodical approach—including governance involvement, employee training, and adaptation to company culture—it’s possible to create a change-friendly environment. Companies that succeed in this transition are better equipped to meet economic challenges and benefit from optimized cash management.
Thank you for following this interview series with Scarlett Favre-Verand. We hope her insights and experience have inspired and enlightened you on the world of credit management.
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