CLEVELAND -

One of the most recent case studies shared by Automotive Personnel founder and chief executive officer Don Jasensky focused on what finance companies can do when they have an underperforming collections manager.

Along with delving into five considerations before replacing this individual, Jasensky set the stage for a scenario that might not be too unfamiliar to top executives.

Suppose a subprime finance company had a collection manager overseeing a trio of collection supervisors and 30 collectors. Jasensky then explained the department began to underperform, and the trend continued for months. 

“As you could imagine, each month the finance company lost revenue it should have collected. Big problem,” he said.

Jasensky’s scenario also included the element where no one at the finance company was as knowledgeable about collections as the current collection manager.

“There was no one to mentor him or provide any substantive assistance,” Jasensky said. “This is typical in small through midsize companies.

“Senior management had to make the difficult decision and replace their collection manager,” he continued.

Before making that drastic decision, Jasensky recommended that finance companies take a moment to consider five questions, including

• Does employee need more training?

• Better oversight?

• A mentor to work with?

• More support?

• Do you have the ability to provide these if needed?

“The right answer can depend on circumstances, but a general truth is that you should consider “upgrading” when an employee is incapable or unwilling to perform up to the company’s needs,” Jasensky said.

Jasensky also offered one last suggestion regarding the manager who was eventually dismissed from the company.

The collection manager who was terminated would be well served to go to work and report to a director of collections who could provide more mentoring, training and skills development,” he said.

“I see so many executives who should replace a manager who is ‘in over their head’ or has personal issues that are hurting their performance and affecting other employees and of course, the company’s bottom line,” Jasensky continued.

“But remember, it is lonely at the top and tough decisions sometimes need to be made,” he went on to say.