What are successful companies doing before debt collection system implementation in order to obtain great results?
Frequent approaches are somewhere between two extremes:
- Companies which implement a new system but want things to be operated the same as before.
- Some companies consider a new system implementation as a great opportunity to perform business process improvements. As you might guess, their strategy is far more successful and results can be seen faster.
What steps should you follow when employing the second strategy?
- Establish strategic operational objectives for business process improvement.
- Create a cross functional team with employees from all areas involved in debt collection flows.
- Map AS-IS processes, and analyze existing internal procedures to identify potential pitfalls and opportunities for improvement.
- Recommend quick fix solutions and provide guidelines on the business areas to be covered by the new system implementation.
- Set new KPIs to be reached. The gap size between the old KPIs and the targeted ones provides direction towards full process redesign or operational flow adjustments.
- Map the TO-BE processes and define the new approach for internal activities.
- Implement these refreshed processes and procedures in the new collection system.
Implementing a new system is a rare event and you will go through all collection activities anyway, so don’t miss the opportunity to revisit and improve existing operational business flows.