- Issues were highlighted by our Debt Maturity Assessment, contributing to poor debt book performance at a large energy supplier
- We removed process gaps, improved organisational structure, and introduced tools to develop performance management capabilities
- As a result, the supplier established an efficient debt operation, supported by greater visibility and control of the collections journey
Challenge
We supported a large energy supplier with improving their debt book performance, after our Debt Maturity Assessment highlighted gaps in their ways of working and organisational design.
Process flaws were present within the collections journey, while a lack of reporting made it difficult for the supplier to understand debt book activity. As a result, key areas of the debt lifecycle were receiving insufficient attention, and the supplier was overly dependent on third parties.
A refined approach was needed to improve the inefficient debt operation, which was worsened by a lack of internal collections skill and customer management tools.
Our approach
Over a six-month period, we delivered a series of improvements to the supplier’s processes, also enhancing their ability to manage performance internally.
We removed gaps in the customer journey to create a consistent collections process, which was supported by a new work allocation tool and further debt book segmentation, ensuring that the resolution of key accounts could be prioritised.
Management also benefited from the introduction of playbooks and performance reporting. This provided a framework of appropriate actions at different stages of the debt journey, and gave managers the ability to monitor their impact.
On top of this, we improved the supplier’s organisational structure, leveraging third parties to support internal teams in the most effective areas, addressing the previously unbalanced focus along the debt lifecycle.
Results
During this project, we successfully addressed the process gaps identified through our Debt Maturity Assessment, helping the supplier to establish a stable debt operation that performs efficiently.
As a result of our support, managers gained greater visibility and control of debt book activity, leaving the supplier well-placed to continue these improved ways of working in the long term.
