Spooktacular leadership: Mistakes to avoid

The shadows of ineffective leadership loom large, threatening to trap credit leaders in a web of pitfalls that could spell disaster for their teams.

Why it matters: Understanding and avoiding these common pitfalls can help credit managers lead more effectively, ensuring their teams are prepared to face any challenges that come their way.

#1 Delegating tasks ineffectively

One of the most challenging aspects of leadership is delegating tasks effectively. For example, leaders may over-delegate or under-delegate tasks to their subordinates, causing a disruption in workflow. “Over-delegating can make subordinates feel their leader isn’t contributing enough, leaving them to handle both their own tasks and the leader’s responsibilities,” said Derrick Swaney, credit specialist at MiTek, Inc. (Chesterfield, MO). “When leaders under-delegate, productivity stalls. Subordinates lack decision-making power, feel unimportant and often remain idle instead of completing important tasks.”

Solution: To effectivelydelegate tasks, it’s important to regularly check in with your team. “It’s important to make sure to constantly align their interests with the company’s goals,” Swaney said. “By giving subordinates important tasks, with decision-making ability, they will feel important and utilized, which helps with retention.”

Involve the whole team to foster commitment and collaboration, rather than shouldering all the responsibility yourself. “Sometimes, you may not realize that you are also a mentor to your team,” said Chris Delaney, credit manager at Richards Paint (Rockledge, FL). “When there’s a good flow of communication and understanding, and you can admit that you don’t know everything, it fosters a collaborative learning environment.”

#2 Not following up

Leaders often make the critical mistake of not following up with others. This oversight can lead to miscommunication, mistakes and significant losses for the company. “It’s easy to assume that everyone shares the same work ethic and thought processes as you, but that’s not always true,” said Somer John, AR team lead at Trinity Logistics (Seaford, DE). “In a previous case, our failure to follow up with a team member led to a costly error that could have been prevented.”

Solution: Regular check-ins, regardless of clear instructions, help mitigate risk and prevent financial losses. “A leader must be willing to acknowledge their mistakes, particularly to their team members, and take responsibility for them,” John said.

#3 Overpressure

One common leadership mistake is applying excessive pressure on the team. Elevated expectations or constant pressure can be detrimental and kill motivation. “I had pushed my team to take classes and attend seminars, only to find some weren’t interested,” said Yazmin Miller, CBF, CCRA, CICP, corporate credit manager at Feralloy Corporation (Chicago, IL). “It became clear that I was trying to compel them to pursue goals they didn’t value.”

Solution: Have open conversations with your team members to discuss and understand achievable goals. “I allow them to establish one sustainable and attainable goal on their own, along with a specific timeframe for achieving it,” Miller said. “This approach increases their accountability and empowers them to take ownership of their goals. By encouraging the team to contribute their ideas, the goals become more meaningful and substantial for their growth.”

#4 Avoiding confrontation

Oftentimes, leaders make the mistake of avoiding confrontation with both employees and customers, which can result in a toxic work environment and significant errors. “At a previous company, I admired a leader who fostered a family-like atmosphere where everyone collaborated closely,” John said. “However, his desire to maintain a positive vibe led him to avoid difficult conversations. This led to unresolved issues and resentment among the team because other people would see issues go unaddressed.”

Some common reasons leaders might avoid confrontation include:

• Fear of negative reactions:Worrying about upsetting team members or creating tension.
• Lack of confidence: Feeling unprepared to handle a conflict effectively.
• Desire to be liked: Prioritizing maintaining positive relationships over addressing problems.
• Time constraints: Feeling overwhelmed and not wanting to invest time in resolving conflict.

Solution: Holding people accountable promptly helps them grow and understand expectations, preventing repeated mistakes.

#5 Being unprofessional

Leaders often unknowingly exhibit unprofessional behavior that violates the organization’s code of conduct, negatively impacting staff, customers and the business. For example, mishandling social media through inappropriate content can harm both your and your company’s image, making you appear unprofessional.

Other examples of unprofessional behavior include:

• Oversharing personal information
• Gossiping and spreading rumors
• Inquiring too deeply into employees’ personal lives
• Showing favoritism in project assignments or time off
• Being overly friendly instead of appropriately leading
• Making inappropriate comments or criticizing appearances
• Overreacting to minor issues
• Verbally abusing staff or being overly critical
• Refusing to take responsibility for mistakes and blaming others.

Solution: How you present yourself professionally can leave a lasting impression. To improve your professionalism, treat everyone with respect, maintain a calm demeanor and be reliable.

Investing in educational programs builds self-awareness and professional growth. NACM webinars and educational programs, such as the Professional Certification Program and the Graduate School of Credit and Financial Management (GSCFM), equip credit managers with strategies and skills to lead their teams more effectively.

The bottom line: Trust your team to minimize mistakes on both sides. “You need to reassure your team that they can rely on you, and when they realize you genuinely trust them, it helps them grow and develop confidence in their abilities,” Delaney said.