Basic tips on mistakes to avoid when managing subordinates in the credit department.

Answer: The pressure on credit professionals to deliver superior results has probably never been greater. In many companies, the credit department is viewed as a cost center and as a necessary evil. In general, credit managers seem to be too forgiving about mistakes made by their subordinates. Everyone in the credit should be held accountable for his or her actions.

Another common mistake that is easily avoided involves not setting goals for your subordinates or setting goals that are easily achieved. Goals should be challenging but achievable. Unless you establish "stretch goals" you are unlikely to receive the best your credit department can offer.

A third common error is to hold onto substandard performers for too long. Firing an employee is unpleasant. Failing to discard "dead wood" and replace them with someone capable and enthusiastic hurts department morale and damages your reputation and your credibility as a department manager.

The solution: Cut your losses when you find a subordinate is unable to perform up to your standards.

The information provided is not legal advice and is not a substitute for legal advise. Readers are encouraged to contact an attorney to discuss any questions that may arise after reading these questions and answers with their attorney to clarify any of the issues raised.