Critical Business Functions:
Misunderstood, Underutilized, and Undervalued
Part One: Credit and A/R Management
Charles Chewning Jr. and Abe WalkingBear Sanchez - February 2, 2005

Introduction

What is the best value proposition for the credit function in business? If we consider the most common key performance indicators (KPI)--Days Sales Outstanding (DSO) and percent of bad debt—it would seem that the major role of credit is risk management. However these measurements and the thinking behind them are flawed, out-of-date, and potentially detrimental in today's business world...