Building stronger credit teams by leading through service 

Picture this: a scout leader perched at a mountaintop, shouting directions through a megaphone. The team reaches the summit quickly, but they’re exhausted, disoriented and less prepared for the next climb.   

Now, picture another scout leader walking alongside their team on the mountain trail, clearing obstacles, sharing the map and helping each person reach the summit at their own pace. The team follows, growing stronger with each step, learning and adapting together. Now ask yourself, which leader would you rather follow?  

Why it matters: Whether you’re leading a handful of people or an entire organization, leadership always comes with a choice. You can choose to lead through power, relying on authority and enforcement, or through service, by building trust and respect with your team to inspire action. Credit professionals who practice servant leadership, the idea that the best leaders serve their teams first, are able to build stronger teams.  

The servant leaders’ mission  

Servant leaders are guided by strong principles and are committed to developing their team. “The mission of building authority by serving those for whom the leader is responsible could give that leader a real vision of where he, or she, is headed,” writes James Hunter, principal consultant of J.D. Hunter Associates (Rockwood, MI), in his book, The Servant: A Simple Story About the True Essence of Leadership. “The work of kindness, active listening, giving appreciation, praise, recognition, setting the standard, clarifying expectations, holding people accountable to the standard—this is indeed the daily mission.”   

Servant leadership in action  

By taking a more selfless approach, credit professionals can help their team feel supported, building trust and improving their team’s overall performance. “As a servant leader, I seldom forget to give credit where credit is due,” said Jennifer LeMaster, CBA, CICP, AR and credit supervisor at Lhoist North America (Fort Worth, TX). “Appreciating my team motivates them, which in turn, fosters stronger commitment to their roles. I also found this validation empowers the team to continue to seek new opportunities and learn new skills.”  

Establishing a relationship with your team is the heart of servant leadership. Even if you’ve led them for years, getting closer can reveal exactly what they need to grow. “Once I found out that my team wanted to learn more, I started providing sufficient training and resources to help them develop professionally, and in the process, they became leaders themselves,” said Tim Lane, credit and collections manager at Arcosa (Norman, OK). “I’ve already seen a shift in my team—they’re doing more research, asking better questions and being proactive.”  

A servant leader also leads with integrity, by being honest, consistent and guided by strong values. This type of transparency improves communication and builds trust, creating a safe environment to grow. For example, having open conversations with team members about areas for growth can significantly strengthen performance. “I help my credit team tackle difficult situations daily, turning them into coachable moments and encouraging them to learn from the task so that they can successfully navigate a similar situation in the future,” said LeMaster.   

Servant leadership also means taking responsibility for your team’s mistakes. When they see you’re willing to take the fall, they’re more likely to learn from it and respect you for it. As James Hunter writes, “When people see that you lead with character, they’re more likely to trust you and follow your example.”