process improvements: how to begin to transform your collections organization
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Process Improvements: How to begin to transform your collections organization. Ted London, Vice President, CGI. May 5, 2010. Agenda. Background Getting started: Operational review Sample Process Improvement Success Stories Questions. Realities of today’s environment. - PowerPoint PPT PresentationTRANSCRIPT
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Process Improvements: How to begin to transform your collections
organization Ted London, Vice President, CGI
May 5, 2010
Confidential
Agenda
• Background• Getting started: Operational review• Sample Process Improvement Success
Stories• Questions
Confidential
Realities of today’s environment
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…but despite these challenges
• Government will continue to be expected to do more with less
• Significant accomplishments can be made through Process Improvements
• True Transformation is Possible
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Agenda
• Background• Getting started: Operational review• Sample Process Improvement Success
Stories• Questions
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Recognizing the need to change
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How to start the transformation?
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Collections Operational Review
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Operational Review Results
Provide areas where the agencies’ practices are consistent with or leading current best practices
Provide opportunities for improvement• Processes• Staff utilization• Tools
Provide approaches to achieve the improvement Provide an estimate of the ROI if recommendations
are implemented• Estimate would include a timeline for the achievement of
benefits
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Operational Review Benefits
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Agenda
• Background• Getting started: Operational review• Sample Process Improvement Success
Stories• Questions
Confidential
CGI’s approach to process improvements
Right Account
Right Resource
Right Time
Right Tools
Right Results
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Sample process improvement success stories
1. Looking for lost cases
2. Gather asset information automatically
3. Large account group
4. Plain-talking letters
5. Revisit collections statutes
6. Mandate electronic funds for payment agreements
7. Credit card payments
8. Consolidated debt collections
9. Predictive modeling
10. Active PCA management
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1. Looking for lost cases
• Many collections workflow processes grow over time
• While cases are worked diligently up-front, productive cases can be under-worked later
• Through analysis these “lost” cases can be identified
• Sometimes payment can be made simply by calling the right individual at the right time
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2. Gather asset information automatically
•Government typically has many ways to gather asset information for free•Other agencies
•Data supplied to government
•Historically, gathering asset information has been manual
•Agencies are now capturing asset information directly from remittance equipment
•Through automated asset gathering and advanced workflow, cases can be automatically prioritized based on available asset information
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3. Large account group
Work large dollar accounts more timely Give agents additional time to perform
skip trace activities on large dollar accounts
Assign fewer cases to these collectors who can therefore focus on them
Often working with attorneys and CPA’s Assigning the right individuals to this
group is key
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4. Plain-talking letters
• Letters often written by attorneys– And can only be understood by attorneys
• Experience has shown letters need to be:– Simple– Straightforward– Focus the debtor on what is owed,
how to pay, and what are the consequences of non-payment
• Significant increase in collections through plain-talking
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5. Revisit collections statutes
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California and Minnesota reduced
defaults from the 40-50% range to the3-5% range
6. Mandate electronic funds for payment agreements
• A number of governments have found that EFT can dramatically reduce the default rate
• Private sector typically only takes EFT
Benefits Allows departments to increase
their “wallet-share” Can be a customer service benefit Frees staff to work other cases
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7. Credit card payments
Allows payment when the taxpayer does not have liquid assets
Vendors will work with Government so the taxpayer pays the credit cards fees
Brings in money quickly and efficiently
Moves the collection risk from the Government to the credit card company
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8. Consolidated debt collections
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9. Predictive modeling
Move from “Treating all taxpayers the same” to “Treating all similar taxpayers the same”
Use yield instead of strictly dollar amount
Order cases for phone call based on risk score
Alter rates paid to PCA’s based on risk score
Assign to staff based on risk score
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10. Active PCA management
Find appropriate usage of PCA’s
Review portfolio for best timing for PCA assignment
Use primary and secondary placements
Alter assignments based on scorecards– Encourages healthily competition– Change percentage of cases going to each PCA
each month/quarter Monitor PCA’s closely and have authority to
terminate the contract easily if performance warrants
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Other opportunities
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Agenda
• Background• Getting started: Operational review• Sample Process Improvement Success
Stories• Questions
Confidential
26
Ted LondonVice PresidentTax, Revenue and CollectionsCenter of Excellence
(916) [email protected]/tax
ISO 9001 Certified
About the Presenter 17 Years with CGI exclusively
working with State, Federal and Local tax and collections agencies
Leader of CGI’s Global Tax and Revenue and Collections Practice
Experience with more than 20 different revenue agencies
Experience with enhancing collections, audit and tax accounting systems and business processes
Oversees estimation and measurement for CGI’s benefits funded tax projects
Contact Information
Confidential
26,000 IT and BPS professionals
26,000 IT and BPS professionals
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About CGI
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