Credit management roadmap to improvement
This presentation is the property of its rightful owner.
Sponsored Links
1 / 50

‘Credit Management Roadmap to Improvement…’ PowerPoint PPT Presentation


  • 54 Views
  • Uploaded on
  • Presentation posted in: General

European Conference Amsterdam 14 th – 16 th April 2013. ‘Credit Management Roadmap to Improvement…’. The Credit Management Journey. ‘Building Credit Together’ One Team One Goal. Nick King, MICM Group Credit Director. HEADS or TAILS. HEADS. or. TAILS. 2. Setting the Scene. 3.

Download Presentation

‘Credit Management Roadmap to Improvement…’

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Credit management roadmap to improvement

European Conference

Amsterdam 14th – 16th April 2013

‘Credit Management Roadmap to Improvement…’

The Credit Management Journey

‘Building Credit Together’

One Team One Goal

Nick King, MICM

Group Credit Director


Heads or tails

HEADS or TAILS

HEADS

or

TAILS

2


Credit management roadmap to improvement

Setting the Scene

3


Credit management roadmap to improvement

Strong group brands

4


Business overview 4 divisions with shared support

Business Overview – 4 Divisions with shared support

BUSINESS DIVISIONS

SUPPORT FUNCTIONS

Plumbing

& Heating

General

Merchants

Specialist

Merchants

Retail

Marketing

Commercial /

National Sales

Supply Chain

Finance

HR

IT

Property

5


Renewable energy

Renewable Energy

SOLFEX energy systems is one of the UKs first and leading innovators and suppliers of solar energy systems.

SOLFEXAcquired by TP Group in Jan 2013

Allow TP to offer our customers an integrated approach to energy efficient building

6


Key figures

Key Figures

  • £5 billion t/o – 2012

  • Excluding retail = £3.6 Billion

  • Total Staff = 25,000

  • Total Branches – 2,000+ (over 19 brands)

  • 137,000 to 140,000 credit account Customers

  • Receivables Ledger of £ £300,500,000

  • DSO y/e 2012 = 56.45

  • Bad debt Provision - £5 million

  • 37,000 cheques per month total value of £85 million

  • 50,000 bacs payment per month value of £154 million

7


Organisation

Organisation

Bus Unit

Managers

Total Credit Services Staff = 253

8


From the beginning

From the Beginning

  • Started in October 2011

  • Follow in the Steps of Predecessor

  • Integration of New Business

  • Difficult Market Conditions

  • Insurance Renewal (BSS Group)

  • Change of Mind set

  • Art of Delegation

9


Integration of bss group

Integration of BSS Group

BUSINESS DIVISIONS

SUPPORT FUNCTIONS

Plumbing

& Heating

General

Merchants

Specialist

Merchants

Retail

Marketing

Commercial /

National Sales

Supply Chain

Finance

HR

IT

Property


Bss integration

BSS Integration

  • Staff structure

  • Insurance

  • Credit Limits

  • System and Process

  • “Them & US” Mentality

11


Perception

Perception


Tp group

TP Group

13


Perception1

Perception

  • Complacent

  • Lack of Investment

  • Low Engagement

  • Low to Medium Skill set

  • Not engaged with peers “credit industry”

  • Loyal

  • Knowledgeable about Industry

  • Low to medium attrition

  • Willingness to do well

  • Made best of a bad job

14


Perception2

Perception

Stale/

Fragmented

Minimum control/review

“Make do”

Worked

Understood and Accepted (with region)

Integrated into system

Does the job

15


Perception3

Perception

Outdated

Complicated

Manual

Not understood/communicated

Not flexible

Reward not seen as beneficial

Accepted

Delivered the results

16


Perception4

Perception

Lack control

Old technology

Fragmented

Poor reporting capability

Lack of investment

Does the job

Integrated into business

Has good collection capability

Opportunity to invest

17


Mountain to climb

Mountain to Climb

18


Then you will always get what you always got

Reality Check

IF YOU ALWAYS DO WHAT YOU ALWAYS DID

Then you will ALWAYS get what you always got


The credit management journey credit management roadmap to improvement

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

Differentiators

Customer Focus

Credit Strategies

Operational Excellence

Consistent MI

Professionalism

Process & System Standardisation

Enablers

One Set of Rules

Organisational Alignment

Fragmented

Credit Management

20


The credit management journey credit management roadmap to improvement1

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

Differentiators

Customer Focus

Credit Strategies

Operational Excellence

Enablers

Consistent MI

Professionalism

Process & System Standardisation

One Set of Rules

  • Single Organisation for Credit Management

  • Group integration

  • One Team mentality

  • Single Organisation Archetype

  • New Risk Department

Organisational Alignment

Fragmented

Credit Management

21


The credit management journey credit management roadmap to improvement2

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

Differentiators

Customer Focus

Credit Strategies

Operational Excellence

Enablers

Consistent MI

Professionalism

Process & System Standardisation

One Set of Rules

  • One-Credit Learning Programme

  • Group Credit Management Learning & Development Programme.

  • Competency frameworks

  • Professional membership (ICM Group membership)

  • Career Ladder

  • Reward Programmes

Organisational Alignment

Fragmented

Credit Management

22


Perception5

Perception

23


The credit management journey credit management roadmap to improvement3

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

  • People

Differentiators

Mentor

Credit Academy

Reward & Recognition

Career Ladder/Succession Planning

Professionalism

Right Person, Right Job

Enablers

Credit Management

Learning & Development Programme

Organizational Structure

Current Status

24


The credit management journey credit management roadmap to improvement4

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

  • People

Differentiators

Mentor

Credit Academy

Reward & Recognition

Enablers

Career Ladder/Succession Planning

Professionalism

Right Person, Right Job

Credit Management

Learning & Development Programme

  • Job v Correct Talent

  • Individual Assessment Programme

  • Myers Briggs Process Introduction

  • Management Attitude, Desire Job Review

  • Aligned Recruitment Process

  • Key Point Talent Attraction Rules

  • Job Evaluation/capability – Grid Programme

  • Support and mini mentor Programme

  • Recurring Review Process and realignment

Organisational Alignment

Current Status

25


The credit management journey credit management roadmap to improvement5

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

  • Process

Differentiators

Online Trading/Management

One Platform

Proactivness

Enablers

Reporting

KRA’s

Risk

Process Manual

  • Single Manuel that fits the Business

  • 1 single Group Updated Manual

  • Sign of by Executive Team

  • Awareness, roll out to Whole Business

  • Review Team and Time Frame

Credit Manual

Current Status

26


The credit management journey credit management roadmap to improvement6

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

  • Performance

  • Measurement

Differentiators

Linked KRA’s

Pulls and Push of Tolerance

Reward & Recognition

Enablers

Personal KRA’s (Development Plans)

Tolerance Levels

Influence/Non Influence

Time Lines

  • Single Measurement to Drive Performance

  • Review of current KPI’s

  • Align to Business

  • Drive continued Performance

  • Automated, Easy, Delivery

Measurable KRA’s

Current Status

27


The credit management journey credit management roadmap to improvement7

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

  • IT

Differentiators

APPS

Multichannel

Customer on-line

Enablers

Development

External

One Platform

System/s

  • Correct External Systems

  • Review all current external systems (do they add value)

  • Are their better alternatives than current offering?

  • What will happen if we changed ERP system?

  • Are we missing something? (right tools)

  • Review External v Internal (cost, support, development)

  • (* Include NEXUM and sales ledger and risk)

Equipment

Current Status

28


The credit management journey credit management roadmap to improvement8

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Professional &

Customer Focussed

Credit Management

Differentiators

Customer Focus

Credit Strategies

Operational Excellence

Consistent MI

Professionalism

Process & System Standardisation

Start Point

One Set of Rules

Enablers

Organisational Alignment

Fragmented

Credit Management

29


Achieving quality in credit management

The Credit Management Journey‘Credit Management Roadmap to Improvement…’

Achieving Quality in Credit Management

‘Building Credit Together’


Credit management roadmap to improvement

Our Journey So Far...

  • June 2012 – QiCM Project Team Founded

    • Criteria Discussed and Evaluated

    • Task Groups formed for Accreditation Areas

  • August 2012 – Stakeholder Group founded

  • Development Process

    • Pilots and Prototypes

  • Ongoing Execution and Further

    Development

31


Credit management roadmap to improvement

Credit Policy and Compliance

  • A New Credit Policy

    • Standardised throughout the function

    • Clarification

  • Revised Procedures Manual

    • Interlinked with the Credit Policy

    • Accessible to all Colleagues

  • Upload to iConnect

  • Credit Control Bulls-eye

32


Credit management roadmap to improvement

The Bulls Eye

WHAT WE STAND FOR

A leading Credit Management Function constantly striving to better itself. We provide an honest and reliable Credit Management Function with our customers and other Functions in mind at all times.

HOW WILL THE CREDIT MANAGEMENT FUNCTION MAKE OUR CUSTOMERS FEEL?

HOW DO WE WANT OUR CUSTOMERS AND COLLEAGUES TO THINK?

They Will Help Me

Valued

They Help Prevent Bad Debts

  • SERVICE

  • Our staff are helpful, friendly and knowledgeable

  • We provide an efficient and reliable service

  • COMMITMENT

  • We will develop relationships with our customers and branches

Credit Management Function

Supported

They Take Pride

In Their Performance

Satisfied

  • PERSONAL TOUCH

  • We will treat each situation on its own merits

  • We are people dealing with people

They

Provide Quality Service

Confident

WHAT OUR

CUSTOMERS WANT

Friendly

Helpful

Professional

Reliable

Understanding

PERSONALITY


Credit management roadmap to improvement

Personal and Professional Development

  • Increased 1-2-1’s

  • Enhanced Performance Reviews

  • Dedicated Competency Frameworks

  • New Reward Schemes and Incentives

  • Improved Training and Development

  • Bespoke Induction Process

34


Credit management roadmap to improvement

Example Competency Frameworks

Credit Management

Credit Management – Competency Framework


Credit management roadmap to improvement

Example Competency Frameworks

Credit Management

‘Building Credit Together’


Credit management roadmap to improvement

Example Competency Frameworks

Credit Management


Credit management roadmap to improvement

Customer Service

  • Customer Service Policy Introduced

    • Accessible as part of the Credit Policy and Procedures Manual

  • Customer Surveys and Questionnaires

  • Utilisation of Hold Music

  • Out of Hours Management

    • Message Service

    • Additional options for Out of Hours Payments

38


Credit management roadmap to improvement

Performance Measurement

  • Collation of Paper Reports

  • Adaptation of the KRA Screen to report on the Credit Management Function

  • Enable Management to Review and Improve team and Individual Performances

    • Time Saved accessing reports

    • A good starting point for Further Enhancement

  • Currently awaiting a project date from IT

  • Assessing other viable options for Uniformed Reporting

39


Credit management roadmap to improvement

Performance Measurement

KPI’s

  • Required to have financial reporting tool showing up-to-date figures

  • And Key Performance Indicators.

  • Recognised Key areas that required reporting on

40


Credit management roadmap to improvement

Roadmap

Personal and Professional Development

Credit Policy

Customer Services

Performance Measurement

12 Months

and Beyond

Review and Modify Policy

Review Policy and Benchmarks

Training

and Development Focus

9 Months

Credit Management Road shows

Credit Management Conference

Feedback on Dashboards and development to Live Screens

6 Months

Feedback on Functional Audits

All Staff to have Completed A 1-2-1

Benchmarking from Questionnaires

Expand, Educate and Incorporate Targets

3 Months

Compliance Process

1-2-1 and Performance Reviews Initiated

Future Customer Service Objectives Set

Receiving a Timescale from IT.


Corporate membership programme

Corporate Membership Programme

FELLOW

MICM/MICM(Grad)

ASSOCIATE AICM

AFFILIATE LEARNER

AFFILIATE / CORPORATE AFFILIATE

Member

Essential Skills

Training

Specialist Training

Conferences

Masterclasses

Management Training QICM Best Practice

Corporate Affiliate Briefings ICM Branch events Regional Roadshows

42


Recommended training essential

Recommended TrainingEssential

Optional Assessment: Level 2 CERTIFICATE

Recommended for credit management generalists, those working in operational roles or new to credit

Essential Skills

  • TWO knowledge units:

  • Credit Management

  • Business Environment

or

  • ‘Cash Collections’ plus THREE skills units

  • Front Office:

  • Telephone Collections

  • Negotiation and Influencing

  • Customer Relations

  • Back Office:

  • Introduction to Credit Risk

  • Debt Recovery

  • Business Communications

    • & Personal Skills

43


Recommended training specialist

Recommended TrainingSpecialist

Optional Assessment: Level 3 DIPLOMA AICM

Specialist

Recommended for credit management specialists, managers, supervisors and team leaders

‘Credit Management’ plus ONE of the following paths

  • Collections Path:

  • Developing Credit Management Skills

  • Team Leadership

  • Collections Management

  • Legal Path:

  • Business Law

  • Handling Small Claims

  • Insolvency and Bankruptcy

  • ICM Law Conference

  • Credit Risk Path:

  • Credit Risk Analysis

  • Advanced Credit Risk

  • Financial Analysis

44


Other initiatives the morning board

Other Initiatives The Morning Board

45


Credit management roadmap to improvement

The Event... M4M

  • M4M (March For Millions)

  • Average April Cash Collection = £260M

  • Ambitious Aim to Increase of £140M

  • A Minimum of 10 Day DSO Reduction

  • Business Wide Advertising Strategy

£400M

£350M

£300M

£260M

46


Where am i trying to get to

The End Game

Where am I trying to Get to?


End result

End Result

  • Travis Perkins Credit Academy

  • High Engagement

  • Qualifications

  • Centre of Excellence

  • Training centre for Customers

We Lead

We add value

48


Challenges

Challenges

“Nothing is stronger than habit.”

(Ovid).

“They always say time changes things, but you actually have to change them yourself.”

(A. Warhol).

“Nobody can go back and start a new beginning, but anyone can start today and make a new ending”

(Maria Robinson)

49


When it goes wrong

When it goes wrong.

50


  • Login