CMA Daily News

Leading With Feeling - The Four Keys of Emotionally Intelligent Leadership

True or False: Feelings play a key role in effective leadership. True. Emotions, not intellect, naturally connect and inspire people, and the best leaders know how to leverage their feelings to build bonds and achieve business goals. This emotional self-awareness, as well as being in touch with the emotions of others, is called emotional intelligence, and accounts for nearly 90% of the difference between average and highly successful leaders.

What about IQ? Doesn’t intelligence equal success? Being smart is important, but it is not enough. According to Dotlich and Cario, authors of “Why CEOs Fail,” leaders, no matter how brilliant, will derail if they fail to make a real emotional connection with others. As leaders acknowledge their feelings and use them in making wiser decisions, they help create a culture of openness and trust, and thus drive business results.

So, how do you know if you are an emotionally intelligent leader? Ask yourself these questions:

* Do I motivate others by creating a positive emotional tone that is fueled by optimism and hope?
* Am I in touch with my own thoughts and feelings and those of others?
* Am I mindful—authentic and present in the moment—and agile in the face of challenge?

Based on Daniel Goleman’s decade of research and model of emotional intelligence, here are the four keys of emotionally intelligent leadership:

1. Self-Awareness. Self-awareness is the basis of emotional intelligence. Leaders with this competence:
* Are mindful of which emotions they are feeling and why
* Understand the link between their feelings and thoughts and behavior
* Recognize how their feelings impact their performance

2. Self-Management. How we manage our internal state can be the difference between achieving goals and derailing. Leaders with this competence:
* Manage their impulsive feelings and distressing emotions
* Remain composed and optimistic in stressful situations
* Stay focused, adaptable, and agile during times of change

3. Social Awareness. Being in touch with the feelings of others and the organization’s climate gives leaders an edge in achieving business objectives. Leaders with this competence:
* Are empathic—sensing others’ feelings and perspectives and taking an interest in their concerns
* Recognize and develop key internal networks
* Leverage diversity and attend to customer needs

4. Social Skills. Managing professional relationships well leads to improved communication and greater influence. Leaders with this competence:
* Inspire and motivate others
* Develop others through feedback, reward, mentoring, and coaching
* Manage crucial conversations and conflict
* Champion and manage organizational change

Raising emotional awareness takes commitment and practice. Leading with feeling cascades down through an entire organization, benefiting everyone through collaboration, greater focus on business objectives, higher performance, and increased bottom-line results.

Ken Giglio has over twenty years of experience in business in leadership positions in the financial services industry and as a leadership consultant and executive coach. A Hudson Institute Certified coach, Ken's expertise includes one-on-one executive coaching, executive team development and coaching, design and facilitation of leadership retreats, change management, and leadership development. For more information about how Ken can help your organization, visit http://leadershipmomentumgroup.com

Job Tenure and Your Career

Today's credit professionals are more likely to change jobs multiple times during their careers than their predecessors. While a change can be an exciting possibility, it may also have its drawbacks, however, if pursued too frequently. As you consider making a leap, it's important to weigh how it could affect your future employment opportunities.

In a recent survey by Robert Half International, 87% of chief financial officers said that a candidate's tenure with past employers is a key factor when evaluating that person for a position. Here are some issues to consider if you're contemplating a move:

• How will my resume look? Whether your goal is a higher salary, better working hours, or a different location, it's smart to evaluate how future employers will view a job change. Hiring managers may see tenure as a sign of your professional loyalty. Remember, short tenure in multiple positions, particularly when the moves are in rapid succession, may raise a red flag with hiring managers and damage your future job prospects.
• Is a new firm necessary? Often the urge to change companies is rooted in a need for new professional challenges. However, satisfying this need doesn't always require a move. You might discuss with your supervisor your desire for more responsibility or a new type of work, and ask whether such opportunities exist within your firm. If you are seeking increased compensation, raise the issue, particularly if you have performed well or feel you are underpaid.
• Maintain positive relationships. When you decide it's time to leave your current position, be sure to do so on good terms. An open, upbeat conversation with your supervisor — perhaps highlighting how your job has helped you grow professionally as well as why you've decided to move on — can soothe any uneasy feelings regarding your choice. It's smart not to burn bridges, as you may need a positive reference or even decide you'd like to work for your boss or the firm again in the future. A frank, positive conversation can go a long way in ensuring that your departure is professional and that you're leaving in the best possible light.

Source: Robert Half Financing and Accounting and Accountemps

25 people on the NACM WRCC Network so far...

Come on over and join us for Pre-Conference chatter and networking about the 20th Annual NACM Western Region Credit Conference. http://nacmwrcc.ning.com

CMA New Member - Flex Fund

From their website: Flex Fund Financial Services provides inventory financing that enables car dealers and salvage buyers to maximize their success. Our products and services are the fuel that drives profitable growth.

CMA New Member - Creative Drinks

From their website:

Creative Drinks has been serving the specialty coffee needs of customers nationwide since 1992. We offer a wide array of products, equipment, and services to restaurants, cafés, bars, nightclubs, and theme parks. Our top-quality products and renowned services are what make us different from other distributors. We strive hard to meet the needs of our customers, so we offer a wide selection of the best beverages and equipment. And, we offer delivery service in the Bay area as well as nationwide shipping.

Creative Drinks was referred to CMA by Natalie Nelson of Henry Wine Group and Debra Florez of Southern Wine & Spirits.

CMA New Member - Oracle

From their website: Oracle (NASDAQ: ORCL) is the world's largest enterprise software company.

Three decades ago, Larry Ellison saw an opportunity other companies missed when he came across a description of a working prototype for a relational database and discovered that no company had committed to commercializing the technology. Ellison and his co-founders, Bob Miner and Ed Oates, realized there was tremendous business potential in the relational database model—but they may not have realized that they would change the face of business computing forever.

With the agility of a much smaller company, Oracle has proved throughout its history that it can build for the future on the foundation of years of innovation, intimate knowledge of its customers' challenges and successes, and the best technical and business minds in the world. The company has shown both the ability to leverage its immense size and strength to serve its customers, as well as the capacity to make decisions that upend conventional wisdom and take its products and services in new directions.

After 30 years, Oracle remains the gold standard for database technology and applications in enterprises throughout the world: The company is the world's leading supplier of software for information management, and the world's second largest independent software company. Oracle technology can be found in nearly every industry, and in the data centers of 98 of the Fortune 100 companies. Oracle is the first software company to develop and deploy 100 percent internet-enabled enterprise software across its entire product line: database, business applications, and application development and decision support tools.

Oracle was referred to CMA by Bill Hall at Advent Software. Thanks Bill your $25 Target GiftCard is on the way!

LLCs provide key financial benefits

To be an LLC or not to be an LLC? That is the question for a growing number of small businesses.

Whether to adopt the relatively new limited liability company format or to set up under the more traditional form of a corporation, partnership or sole proprietorship is a key decision for a small-business owner.

"An LLC is an important option for small businesses," said Jonas M. Grant, a business attorney based in Burbank. Interest in the format is high, he said.

The benefits of an LLC seem almost too good to be true.

Read the full articles in the LA Times, click here.

WRCC Pre-Conference Chatter and Networking Online

Join me on a new interactive site for the Western Region Credit Conference.

Through software designed by a company called Ning we can socialize with each other before the Conference even begins.

I am going to be doing a big push to get all the speakers online so you can ask them some questions before the Conference.

Click through and join the NACM WRCC group and let's start the Conference early.

Creditors Get Sound Legal Advice on Bankruptcy Issues

Knowing the law can help creditors enhance their chances of getting paid or overcoming a preference demand from a bankrupt customer. Important legal tips and advice on the subject were provided to attendees of an NACM educational teleconference July 16, 2007 entitled, "Bankruptcy — The Nuts and Bolts for Credit Professionals," presented by Robert Mercer, Esq.

Mercer, partner in the national Bankruptcy & Financial Restructuring Group at the law firm of Powell Goldstein, LLP, has an active Chapter 11 practice, which includes the representation of unsecured creditors' committees. A large portion of Mr. Mercer's practice is focused on representing trade creditors around the country both inside and outside of bankruptcy.

A number of strategies to better position creditors for payment from a financially distressed or bankrupt company were offered. For example, when using a Letter of Credit (LC), Mercer advised including language in the agreement with the issuing bank that will trigger payment in the event of a bankruptcy, rather than in the agreement with the customer. Such language should define that payment on the LC is to be made from bank funds. Also, Mercer said, "Make sure there are no notices that have to be given or no approval that has to be made [from the customer]." Such notices or approvals could tie up funds due to the automatic stay provision in the bankruptcy law. As for guarantees, Mercer said that a provision should be placed in the guarantee that "the guarantor is responsible for [payment] if the customer sues the creditor for a preference." On security deposits Mercer said, "The beautiful thing about a security deposit is that if it is larger than any debt at the time of bankruptcy, it will ensure you get paid and insulate you from your preference claims."

Mercer outlined a number of strategies to use in order to manage preference exposure. One way to help eliminate preference exposure is to not extend credit to a financially distressed company but instead get paid in advance or COD. "Make sure when you get paid, you get paid by your customer," he added. He pointed out that if a debtor gets paid by an insolvent subsidiary of the customer, it could result in a successful preference demand. Another tip he offered was that if an insolvent debtor makes a payment, the creditor should apply the payment to the most current debt, not debt outstanding on 60 or 90 day-old invoices. By doing this, Mercer noted this could bolster the claim that the payment was made in the ordinary course of business, which is one of the defenses against a preference claim. He also advised requesting payments by phone instead of in writing. "There's no reason to create of paper trail of evidence demanding payment." He also recommended keeping good records of payment history, especially within 90 days of the filing of bankruptcy by a company. Even if a debtor is to get paid by a bankrupt company, Mercer advised checking PACER (http://pacer.psc.uscourts.gov/), the online source of the Administrative Office of the U.S. Courts, for that particular bankruptcy filing status to make sure the payment was included in the budget by the bankruptcy trustees.
Source: Tom Diana, NACM staff writer

anscers Business Credit Report Pricing - starts 9/1/07

Credit Reports are still in Beta and are free until September 1, 2007

To offer your company the best value for anscers Business Credit Reports, you only pay for the number of tradelines that appear on a given credit report, up to a maximum amount per report (see pricing below):

NACM Members - 0.99 per tradeline, up to a maximum of 9.99 per report.

Non-members - 1.99 per tradeline, up to a maximum of 19.99 per report.

For information about how your company can become an NACM member, contact Customer Support at (800) 541-2622 Option 6.