October 19, 2007

“Exceedingly good luck is his only shot.” 

Like it or not, most of us are familiar with financial reserves which are set aside as an allowance against doubtful accounts.  Unfortunately, not all invoices get paid.  Things like performance disputes, customer cash management “tactics”, bankruptcy, and sometimes, just plain old scruples (or should I say the lack thereof on the client’s part) require our attention to be focused on collecting receivables.    

One of my all-time “favorite” experiences in this regard occurred many years ago just a month or so after I became the director of business and financial operations for a $50M business unit.  A Chicago-based customer who owed us a rather significant amount of money was teetering on the edge of collapse.  In spite of early warning signs regarding this customer’s financial health, our company continued to perform work for them.  Costs had accrued over multiple months.  All attempts to collect monies due failed.  The inevitable came to pass when I received a letter notifying our company that this customer was in receivership, no doubt preparatory to a bankruptcy filing.

True to the custom of many Fortune 500 companies, all eyes turned to me saying, “You’ve got a problem.  You need to solve it.  If the dirt of this uncollected receivable gets on you, or prevents you from meeting financial targets, we obviously selected the wrong person for the job.”  As with all problems when you are new in a particular job or position, this situation seemed both hopeless and critical to me. 

I clearly recall a meeting with our business unit general manager and our company controller during which I outlined the steps I’d be taking to get us in line for payment.  At one point, I needed to step out of the office to take an urgent call.  As I did so, I overhead the general manager ask the controller, “Do you think Craig can get this collected?”  The response was quick and became an instant classic, “Exceedingly good luck is his only shot.” 

So it is with many things.  In this case, the story had a happy ending.  We finally did (albeit months later) collect.  In other cases, our luck runs short.  Either way, when we’re fully invested and all that remains between us and failure is luck, we must still take the shot.  Coupled with preparation and hard work, luck develops into a “shooter’s touch”.