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Role Playing - For More Effective Debt Collection

Guest post by: Leonard Sklar

Article Overview: A good analogy to the value of role playing is how they make movies. Typically, the director of a movie shoots far more film than what shows up on the finished movie we see. The rest winds up on the cutting room floor - the "outtakes". Role playing is like the outtakes. You can make the mistakes in collecting where there is no harm done, through role playing. The end result is a professional collector who produces accelerated cash flow.

Role Playing - For More Effective Debt Collection



Role playing is the single most powerful tool for learning how to become far more productive and professional in either collecting overdue bills or sharply increasing selling skills. As a bonus, it is also the fastest way to discover if someone is not cut out for either of these activities and should be moved to do other work.

I will focus on role playing for collectors. Many people avoid role playing because they are afraid of "doing it wrong" and looking foolish. Others say that the exercize is not "real world", but I can assure you that the experience is real enough.

The purpose of role playing is to learn how to handle any debtor resistance to paying and to be willing to deal effectively with that resistance. The purpose is not to have a brilliant comeback to everything a debtor throws at you. Instead, you want to be actively listening to what's going on with the other person. More on that as we proceed. There are four main rules to follow:

1. Only two people get to talk. One is the person playing the debtor; the other is the collector. Everyone else has to be quiet, which won't be easy. Usually, things are said that cause laughter, or people will be tempted to shout out responses. Discourage all that.

2. Each player must stay in the role. Don't use phrases such as, "If I were in that situation, I'd say....". Say what you want for this situation. Each collection situation is unique.

3. The players don't have to look at each other. There's less stress if they don't.

4. Other members of the group must actively listen. They will determine if the collector is really communicating with the debtor or simply mouthing scripts or comebacks.

In a variation of the one-on-one approach, the whole group can participate by forming a circle of chairs. Two people begin the exercise - one as the debtor, the other as the collector. Eventually, one or the other runs out of something to say, and anyone in the group can pick up the conversation. The role playing begins with either the debtor or collector speaking. You may have members of the group write down collection problems they've encountered so that they can role play these problems. Examples include:

• I never got the bill.
• My spouse handles all the bills.
• I'll pay you when they pay me.
• I'm out of work.
• The check is in the mail.
• My insurance should take care of this.
• My attorney says not to pay.
• I can send you $10 a month (on a $250 bill).
• Your product was no good.
• Don't you threaten me

During the role playing, the debtor can be easy, hard-nosed, straight-forward or evasive, or any role he or she wants to play.

TIPS FOR THE COLLECTOR

1. Be willing to say NO to any unacceptable offer the debtor makes.

2. Always throw the burden back to the debtor. If the debtor wants you to talk to a spouse, lawyer, insurance company, or any other third party to the bill, tell the debtor to have that person get in touch with you. Clearing up the bill is the debtor's problem, not yours.

3. Never lose your cool. If you feel you might, end the conversation.

4. If the debtor is cooperative and makes a reasonable offer, you, also, cooperate. If debtor isn't cooperative, say what you'll do - and do it.

5. Your job isn't to have the right comeback for every debtor excuse; it's to have a clear understanding of the policy on payment and a willingness to communicate that. Essentially, your point of view is, "You got the product or service, debtor, and you haven't paid for it (or all of it) yet, so how do you plan to take care of that in a way that works for both of us?"

It is vital that both the collector and debtor improvise, making up responses as the conversation progresses. Collecting is a dynamic encounter by persons of divergent interests, not a monologue by a robot.

LESSONS LEARNED

When each role play is finished, the trainer guides the participants through a series of four followup questions.

1. The trainer asks both the debtor and the collector, "How did you feel going through that?" More often than not, the answer will be what they would have felt, not what they actually did feel at the time. Often, the feeling is anger, discomfort, embarrassment, or other so-called negative feelings. Just as often, the players will deny having had any feeling at all, in which case, the trainer should ask, "Did you enjoy going through that?" Some feeling will usually be admitted.

One purpose of role playing is to legitimize whatever feelings are being experienced, by either party. The feelings are neither right nor wrong; nor is it the collector's job to shield the debtor from discomfort, as many collectors try to do. On the other hand, some debtors are experienced at faking upsets to get the collector to back off.

2. Ask the group what collecting "techniques" were used, which could have been used, what seemed to work, what didn't, and why. These questions let everyone become more conscious of all that is happening in a fast-moving verbal encounter.

3. Ask the debtor and the group, "Was the collector in communication with the debtor, or was he or she just mouthing desperate replies?" My experience is that most of the group won't know! Being in communication is difficult - both to do and to observe. It requires a high level of awareness of what the debtor is thinking.

4. Finally, ask the group what they think the likelihood is that the debtor will pay, on a scale of 1 to 10, where 1 is hopeless and 10 is money in the bank. Experience has shown that most of them will make the right conclusion.

FINALLY

Be prepared for skeptics who ask, "What if the debtor said this, that, or whatever...." The answer is that you can respond only to what is said - not to what is not said. Anyway, since both sides make it all up; the dialogue is never the same. As you focus more on what the debtor is communicating and less on your own thoughts and comebacks, you will become a pro. It's not easy, and it takes time.

If you do these exercises systematically and skillfully, you can expect at least a 20% improvement in productivity.

Even though most people are reluctant to volunteer for role playing, once they get started, it can be awfully hard to get them to stop. It becomes fun!

In any role playing encounter, if the trainer senses that the conversation is going nowhere, it's OK to stop it. Role playing is also valuable for uncovering more clearly what your payment policies are or should be. I recommend weekly training or tune-up sessions with all the people involved in your business's credit and collection activities, and role playing should be your main training tool.

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Article Tags: accounts receivable, cash flow, communication, debt collection, role playing



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