Post on 11-Jan-2016
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© CGI GROUP INC. All rights reserved
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
Confidential
…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
Confidential
Agenda
• Background• Getting started: Operational review• Sample Process Improvement Success
Stories• Questions
Confidential
Recognizing the need to change
Confidential
How to start the transformation?
Confidential
Collections Operational Review
Confidential
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
Confidential
Operational Review Benefits
Confidential
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
Confidential
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
Confidential
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
Confidential
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
Confidential
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
Confidential
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
Confidential
5. Revisit collections statutes
Confidential
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
Confidential
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
Confidential
8. Consolidated debt collections
Confidential
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
Confidential
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
Confidential
Other opportunities
Confidential
Agenda
• Background• Getting started: Operational review• Sample Process Improvement Success
Stories• Questions
Confidential
26
Ted LondonVice PresidentTax, Revenue and CollectionsCenter of Excellence
(916) 284-7277Ted.London@cgi.comwww.cgi.com/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
100+ offices serving clients in
16 countries
100+ offices serving clients in
16 countries
F2009 results: revenue
$3.8b
F2009 results: revenue
$3.8b
End-to-end services
End-to-end services
100+ business solutions
100+ business solutions
NYSE: GIBTSX: GIB.ANYSE: GIBTSX: GIB.A
Customer satisfaction score
of 8.9 (1)
Customer satisfaction score
of 8.9 (1)
6th largest independent IT services provider in
North America
6th largest independent IT services provider in
North AmericaFounded in 1976Founded in 1976
Focused industry expertise
Focused industry expertise
About CGI
(1) 2009 ranking out of 10; part of CGI’s ISO 9001:2000-certified Client Partnership Management Framework
Confidential
CGI Experience in Tax and Revenue
Internal Revenue Service
Grand TotalOver $1.6 Billion
Grand TotalOver $1.6 BillionMissouri
$55 MillionMissouri
$55 Million
Canada Revenue Agency
Australian Tax Office
New York City
• Over 300 Subject matter experts and delivery personnel
• 25 Years experience
• Global presence
• National, State, Provincial and Local clients
• Product Agnostic
• Proven experience generating revenues
CGI Tax and Revenue Practice
Benefits Funded Collections projects
Other Collections projects
Other Tax and Revenue Projects
California$570 Million$176 Million$41 Million$37 Million
California$570 Million$176 Million$41 Million$37 Million
Kansas$182 Million
Kansas$182 Million
Virginia$231 Million
Virginia$231 Million
Hawaii$252 Million$73 Million
Hawaii$252 Million$73 Million