Marketing Your Program to Decision Makers

Charlie HelmsNorth Carolina Department of Revenue

Agenda

• Building a successful program• Capturing and using

performance data• Managing relations with

elected officials and other decision makers

• Building and making your case• Share your experiences

Collection Programs - 4 Keys to Success

1. Cost effective treatment streams

2. Be easy to do business with

3. Maximize data and information available about debtors

4. Effective goal setting and management reporting

1. Cost Effective Treatment Streams

• Every case is not the same!

• Determine collection flows using

– Debtor’s Risk and the

– Potential Yield of case

• Automate collection actions

• Enhance cost effectiveness and reduce complaints

2. Be Easy to Do Business With

• The carrot verses the stick– Penalty waiver policy

• Make it easy to pay!– Web and IVR enabled EFT and credit card

payments

• Bank drafted payment plans– Web and IVR enabled, applying business

rules and restrictions

• “Firm but Fair” collection philosophy

3. Maximize Debtor Data

• Information is the Life Blood of collections!

• First choice methods– Data warehousing integrated with

collections systems– Acquire regular feeds of data from various

sources into warehouse

• Subscription services

Data Management on the Cheap

• MS Access databases– Great, cheap way to compile, compare

and use data feeds from various sources– Many recent college grads have basic

Access skills– Can be built and maintained by “Non-IT”

resources

Potential Data Sources

• County records• IRS information• State tax• Unemployment

insurance• State motor vehicles• State/local vendor

payment files • Postal service• Free web sites

• Subscription services• Financial institution

ticklers (FIDM)• Statewide lien &

judgment records• Credit bureaus• State wildlife

licenses• Internal info• The list is endless

4. Effective Goal Setting and Management Reporting

• Don’t be afraid to set goals!

• “You get what you measure” … “If you don’t measure it, it’s not important”

• Be careful … watch for unintended consequences!

• Mainframe performance data can be manipulated with reporting applications such as SAS or MS Access

• Build score-card and dashboard reports

Managing Relations with Decision Makers

• Determine key decision makers– May not be as obvious as you think– Legislative/Executive branch staff are

often key

• Provide first class constituent services

• Use all interactions as relation building opportunities

• Be patient and persistent

Managing relations with decision makers

“It’s not personal, it’s business! … It’s not personal, it’s business!”

-Tom Hagan, The Godfather

Building and Making Your Case

• What’s the Big Idea?– Explore many options for improvement

• Build business case– Determine costs (if any)– Determine return on investment (ROI)– Look for other agencies where similar

methods have been successful

• Design your “blue-print” for accomplishing your objective

Calculating ROI

• Investment (costs) / Benefits (collections) = ROI– For every $1 expended, the state will receive

$XX in additional revenues– Also, look at average collection

• Consider using a “Marginal Rate” of increase to compensate for law of diminishing returns

 

Field Office Collections    Yield   Average

Collection per employee

   

e Durham 8,351,612.31     20.400   755,422.22    

e Elizabeth City 4,804,246.75     25.504   1,054,590.75    

e Fayetteville 13,709,714.79     32.081   1,246,337.71    

e Greenville 7,928,551.44     24.358   1,049,367.10    

e Raleigh 19,538,073.78     34.102   1,373,770.81    

e Rocky Mount 4,925,889.11     19.804   820,981.52    

e Wilmington 10,041,910.52     21.648   832,969.54    

  Eastern Region $ 69,299,998.70    26.288   $ 1,042,976.57    

           

w Asheville 12,006,943.87     28.619   1,200,694.39    

w Charlotte 28,805,624.10     20.626   810,158.18    

w Greensboro 17,114,082.57     19.604   814,956.31    

w Hickory 11,947,273.74     21.810   888,640.20    

w Interstate Collection Unit 18,104,341.45     66.117   2,586,334.49    

w Winston-Salem 7,178,959.79     17.328   717,895.98    

  Western Region $ 95,157,225.52    24.244   $ 981,002.32    

           

 

Statewide Field Office Totals $ 164,457,224.22    25.065   $ 1,006,196.48    

          

                 

  Average per month $ 27,409,537.37    25.065        

  Average per office $ 12,650,555.71    25.065        

  Average per employee $ 1,006,196.48    25.065        

                                    

Funding Options

• Appropriations – Traditional method

• Fees– Fees for “services” – Fee assessed at point in collection process

• Benefits based funding– Typically used for large IT projects

Solicit Support

• Include key stakeholders in developing plan– Do your homework internally– Include any external agencies/businesses

impacted by change– Negotiate up-front with the expected

loudest voices of opposition

• Work with friendly decision makers to support and promote plan

• NC’s Large Projects– Project collect 1 (2001)– Collection assistance fee (2001)– New call center (2002-03)– Project collect 2 (2005)– Enhanced garnishment and other

law changes (2007)– TIMS project (2008-2012)

• New technology infrastructure (CA fee & appropriations funded)

• Collection case management System (2009-2011) (Benefits funding)

– 2010 legislative agenda

2010 Legislative Agenda

• FIDM (Financial Institution Data Match)• E-Garnishment• Expanded refund offset• State vendor payment offset• Accelerated collection process

GREATPeople Talk

About IDEAS

AVERAGEPeople Talk

AboutTHINGS

SMALLPeople Talk

AboutOTHER PEOPLE

Summary

• Build a creditable program/Be a credible leader

• Gain support of decision makers using data

• Develop great ideas and build your case using data

Discussion

• What examples do you have of influencing decision makers?

• What has been key to your success in influencing decision makers?

• What questions do you have for me or your colleagues?

Contact Information

•Charlie Helms, Director, Collection DivisionCharlie.helms@dornc.com

•Collection Division AdministrationPO Box 27431, Raleigh, NC 27611(919) 715-6468 (Office)(919) 280-4935 (Mobile)