Through a targeted review of debt processes and escalation pathways, we identified a ~£5m recovery opportunity for a B2B energy supplier. By segmenting a ~£20m debt book, improving workflow ownership, and introducing new performance KPIs, we enabled our client to take clearer, faster action on aged and previously inaccessible debt.
Client Challenge
A B2B energy supplier was grappling with high levels of aged and stranded debt across their commercial portfolio. Fragmented visibility and inconsistent performance management were leading to inefficiencies, unclear accountabilities and missed opportunities for debt recovery.
Several systemic issues were driving the challenge:
- Exception rules excluded significant debt volumes from standard escalation routes
- Pots of stagnant, aged debt were not being progressed due to a lack of ownership and manual workflow barriers
- No central performance framework existed to track how well the debt processes were working, nor what outcomes they were delivering
- Cross-functional misalignment was building due to conflicting interpretations of the debt landscape
The supplier needed a clearer view of their debt book, stronger governance, and a defined plan to unlock value quickly and sustainably.
Our Approach
BFY was engaged to complete a targeted diagnostic of the supplier’s B2B debt processes, focusing on stranded debt and the performance of escalation routes.
Our team worked to:
- Break down a ~£20m debt book into actionable segments, aligned to tailored recovery strategies
- Quantify the opportunity to accelerate recovery, including identifying a ~£5m cohort suitable for escalation routes
- Uncover process and governance gaps that were allowing debt to stagnate in the system
- Implement a performance management framework to provide end-to-end visibility
Crucially, we introduced a set of four bespoke, C-suite KPIs designed to track the health and impact of each escalation route - bringing alignment, accountability, and transparency across departments. Alongside this, we developed a new workflow management structure to drive ongoing ownership and decision-making.
Outcome
Our partnership provided the supplier with a refreshed understanding of their debt landscape, exposing the root causes of stranded and aged balances.
With the new insight and governance structures in place, the business was able to:
- Unlock ~£5m in stranded debt, with ~£2m of this resolved successfully through targeted escalation routes, and a clear plan established to recover the remaining ~£3m beyond the initial engagement with BFY
- Implement a performance framework enabling ongoing visibility and continuous improvement
- Restore cross-departmental alignment on priorities and recovery strategy
- Identify an additional ~£2.5m annual opportunity in debt avoidance, by introducing process improvements to act earlier and prevent debt accumulation
This formed the basis for a broader transformation of their debt recovery approach, ensuring more effective and efficient outcomes in the future.
Interested in uncovering hidden opportunities in your debt portfolio? Contact Kevin Scott to explore how we can help you improve performance, enhance visibility, and drive measurable value.
