Rich is a veteran of nearly 40 years experience in the credit management field. Following a career as a credit manager and director of credit, he's spent the past 25 years in the credit information business.
E-News: We understand that there are many changes afoot in the NACM sphere of influence. Tell us what you see happening.
RA: Indeed there are changes on the horizon, and in our case, these are much for the better. First, a bit of perspective. My first exposure to NACM was in 1980, when I was working as a credit manager in the lumber industry here in Phoenix. My company and my mentor, Jim Sullivan believed our local industry groups to be invaluable resources to our success. So, I began as a member, and in 1992 I had the opportunity to become President of NACM of Arizona. Back in those days, NACM national was under the leadership of Paul Mignini, Jr., CAE. Paul was a credit guy, who became NACM national president. He understood the needs of credit people. As I recall, NACM had over 30 affiliates then, and a bit over 40,000 member companies nationwide.
E-News: 40,000, that's a impressive number.
RA: It
WAS an impressive number. Today, it's around 10,000, and it's about to be much, much less.
E-News: Why less?
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Rich Adams |
RA: Well, that's along story, but I think I can summarize by saying that because the NACM business model has been broken for some time now, coupled with a definite lack of proper vision and leadership, NACM has been on the decline.
But back to the main point. It's important to understand that NACM affiliates are independent business entities. This is not a franchise model.
NACM has recently made some ill-advised decisions which have resulted in several affiliates leaving the fold, along with over 2,300 members. It began with the notion that a common logo was to be adopted, and that it would solve the member loss problem. That grew into a gross overreaching by NACM into the independent business operations of the affiliates, and that's when some of us said enough is enough. We, and other like-minded affiliates had grown tired of propping up NACM and receiving nothing in return.
Among other things, it's my view that NACM has adopted dangerous and terminal "circle the wagons" philosophy. An example is the National Trade Credit Report, or NTCR. It's my understanding that data this report compiles comes only from the ever shrinking pool of NACM member firms. Further, the system appears to be built on an old school platform and architecture. Yet, NACM is forcing its affiliates to promote this inferior product. SWBCS on the other hand utilizes the state of the art Ansonia Credit Data platform, and we gather data from any legitimate source we can find, including internationally.
E-News: That doesn't make any sense. Why would a credit management organization promote something less than a top drawer product?
RA: In my view, because certain influential affiliates have a vested interest in promoting the NTCR and its platform. This is a prime example of why the business model is broken. In addition, there are people making critical strategic business decisions for a national organization who lack the gravitas to be in those positions.
As an other example, we are watching NACM loose well over 2,300 members over a ridiculous dispute involving a logo and who gets to control what. I believe NACM 's primary role should be to serve as a resource to it affiliates, not an impediment and an expense.
E-News: Sounds bleak. So what does the future hold for you and SWBCS?
RA: Our future is far from bleak. Frankly, we should have cut the cord with NACM years ago when it became painfully apparent that NACM couldn't reverse the downward spiral. Those folks have been loosing members in alarmingly high numbers for 20 plus years, and they just dismissed over 2,000 more. Frankly, that defies logic.
As I mentioned, we're moving forward with one of the most technologically advanced platforms in the industry, compliments of our partners at Ansonia Credit Data. Moreover, we're strengthening partnerships with like minded organizations who have also cut ties with the dying NACM. We all hate to see that happen, but those folks at NACM seem bound and determined to stay their course. We wish them well.
E-News: Any final thoughts?
RA: Yes, indeed. The future is bright here at Southwest Business Credit. We're on the verge of rolling out our new online dashboard. Stay tuned, it's going to be the industry standard!
