Arum’s Managing Director focuses on the increasing need to find a happy equilibrium between collecting debts and retaining customers in a competitive market.
The new business paradigm of Cost, Customer and Conduct is making it more critical for companies to become innovative in their approach to collections and recovery.
Arum has developed a ‘Prime Framework’ which focuses on 3 Outcomes, 7 Attributes and 11 Functions that, utilised effectively, will create a best in class collections operation. Here, we give a sneak peek into this Framework.
The most successful Collections operations will have 3 main outcomes in their sight – Strong Collections Revenues, Good Stakeholder Satisfaction and Optimised Operating Costs.
In order to achieve these outcomes, businesses will need to display 7 key attributes, demonstrating that they are people centric; intelligent and insightful; lean – effective and efficient; flexible, agile and progressive; fair; compliant and right first time.
Within Collections and Recoveries there are 11 key functions that need harnessed in order to meet and exceed the three outcomes and drivers. These are – the organisation; stakeholder assurance; policy; data; analytics and insight; strategy, segmentation and prioritisation; communications optimisation; operational delivery; outsource; IT platforms; and continuous improvement
By adopting this Framework, the focus is on creating future value and advantage. We will take a closer look at the above areas in our series of blogs starting with insightful data and analytics, which should be at the heart of every Collections operations – an organisation cannot build an appropriate operational strategy on a foundation of quick sand. Look out for the next blog on how good data and analytics creates intelligent design.
Aleks Tomczyk, Managing Director of collections & recoveries specialists, Arum