‘Credit Management Roadmap to Improvement…’ The
Description: Credit Management Roadmap to Improvement The Credit Management Journey Building Credit Together One Team One Goal European Conference Amsterdam 14th 16th April 2013 Nick King, MICM Group Credit Director 1 HEADS or TAILS HEADS or
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slide1. ‘Credit Management Roadmap to Improvement…’ The Credit Management Journey ‘Building Credit Together’
One Team One Goal European Conference
Amsterdam 14th – 16th April 2013 Nick King, MICM
Group Credit Director 1<br>
slide2. HEADS or TAILS HEADS or TAILS 2<br>
slide3. Setting the Scene 3<br>
slide4. Strong group brands 4<br>
slide5. Business Overview – 4 Divisions with shared support General
Merchants Specialist
Merchants Retail BUSINESS DIVISIONS SUPPORT FUNCTIONS Supply Chain Finance HR IT Property Commercial /
National Sales Marketing Plumbing
& Heating 5 5<br>
slide6. Renewable Energy SOLFEX Acquired by TP Group in Jan 2013 SOLFEX energy systems is one of the UKs first and leading innovators and suppliers of solar energy systems. Allow TP to offer our customers an integrated approach to energy efficient building 6<br>
slide7. 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<br>
slide8. Organisation Total Credit Services Staff = 253 Bus Unit Managers 8<br>
slide9. 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<br>
slide10. Integration of BSS Group General
Merchants Specialist
Merchants Retail BUSINESS DIVISIONS SUPPORT FUNCTIONS Supply Chain Finance HR IT Property Commercial /
National Sales Marketing Plumbing
& Heating 10<br>
slide11. BSS Integration Staff structure
Insurance
Credit Limits
System and Process
“Them & US” Mentality 11<br>
slide12. Perception 12<br>
slide13. TP Group 13<br>
slide14. 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<br>
slide15. Perception Stale/
Fragmented
Minimum control/review
“Make do” Worked
Understood and Accepted (with region)
Integrated into system
Does the job 15<br>
slide16. Perception Outdated
Complicated
Manual
Not understood/communicated
Not flexible
Reward not seen as beneficial Accepted
Delivered the results 16<br>
slide17. 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<br>
slide18. Mountain to Climb 18<br>
slide19. Then you will ALWAYS get what you always got IF YOU ALWAYS DO WHAT YOU ALWAYS DID Reality Check 19<br>
slide20. The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Organisational Alignment Customer Focus Consistent MI Professionalism One Set of Rules Process & System Standardisation Credit Strategies Operational Excellence Enablers Professional &
Customer Focussed
Credit Management Fragmented
Credit Management Differentiators 20<br>
slide21. Organisational Alignment Customer Focus Consistent MI Professionalism One Set of Rules Process & System Standardisation Credit Strategies Operational Excellence Enablers Differentiators Single Organisation for Credit Management
Group integration
One Team mentality
Single Organisation Archetype
New Risk Department The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Fragmented
Credit Management Professional &
Customer Focussed
Credit Management 21<br>
slide22. Organisational Alignment Customer Focus Consistent MI Professionalism One Set of Rules Process & System Standardisation Credit Strategies Operational Excellence Enablers Differentiators One-Credit Learning Programme
Group Credit Management Learning & Development Programme.
Competency frameworks
Professional membership (ICM Group membership)
Career Ladder
Reward Programmes The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Fragmented
Credit Management Professional &
Customer Focussed
Credit Management 22<br>
slide23. Perception 23<br>
slide24. The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Organizational Structure Mentor Career Ladder/Succession Planning Professionalism Credit Management
Learning & Development Programme Right Person, Right Job Credit Academy Reward & Recognition Enablers Professional &
Customer Focussed
Credit Management Current Status Differentiators 24<br>
slide25. Organisational Alignment Enablers Differentiators 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 The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Current Status Professional &
Customer Focussed
Credit Management Mentor Career Ladder/Succession Planning Professionalism Right Person, Right Job Credit Academy Reward & Recognition Credit Management
Learning & Development Programme 25<br>
slide26. Credit Manual Enablers Differentiators 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 The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Current Status Professional &
Customer Focussed
Credit Management Online Trading/Management Reporting KRA’s Process Manual Risk One Platform Proactivness 26<br>
slide27. Enablers Differentiators Single Measurement to Drive Performance
Review of current KPI’s
Align to Business
Drive continued Performance
Automated, Easy, Delivery The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Current Status Professional &
Customer Focussed
Credit Management Measurable KRA’s Linked KRA’s Personal KRA’s (Development Plans) Tolerance Levels Time Lines Influence/Non Influence Pulls and Push of Tolerance Reward & Recognition 27<br>
slide28. Enablers Differentiators 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) The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Current Status Professional &
Customer Focussed
Credit Management Equipment APPS Development External System/s One Platform Multichannel Customer on-line 28<br>
slide29. The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Organisational Alignment Customer Focus Consistent MI Professionalism One Set of Rules Process & System Standardisation Credit Strategies Operational Excellence Enablers Professional &
Customer Focussed
Credit Management Fragmented
Credit Management Differentiators Start Point 29<br>
slide30. ‘Building Credit Together’ Achieving Quality in Credit Management The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ 30<br>
slide31. 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 Our Journey So Far... 31<br>
slide32. 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 Credit Policy and Compliance 32<br>
slide33. Credit Management Function HOW WILL THE CREDIT MANAGEMENT FUNCTION MAKE OUR CUSTOMERS FEEL? HOW DO WE WANT OUR CUSTOMERS AND COLLEAGUES TO THINK? PERSONALITY 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. Valued Confident Supported Satisfied Friendly Professional Reliable Understanding Helpful They Will Help Me They Help Prevent Bad Debts They
Provide Quality Service They Take Pride
In Their Performance 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 PERSONAL TOUCH
We will treat each situation on its own merits
We are people dealing with people WHAT OUR
CUSTOMERS WANT The Bulls Eye<br>
slide34. Increased 1-2-1’s
Enhanced Performance Reviews
Dedicated Competency Frameworks
New Reward Schemes and Incentives
Improved Training and Development
Bespoke Induction Process Personal and Professional Development 34<br>
slide35. Example Competency Frameworks
Credit Management Credit Management – Competency Framework 35<br>
slide36. Example Competency Frameworks
Credit Management ‘Building Credit Together’ 36<br>
slide37. Example Competency Frameworks
Credit Management 37<br>
slide38. 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 Customer Service 38<br>
slide39. 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 Performance Measurement 39<br>
slide40. 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<br>
slide41. Roadmap 3 Months 12 Months
and Beyond 9 Months 6 Months Credit Policy Personal and Professional Development Customer Services Performance Measurement 1-2-1 and Performance Reviews Initiated Compliance Process Future Customer Service Objectives Set Receiving a Timescale from IT. Feedback on Functional Audits All Staff to have Completed A 1-2-1 Benchmarking from Questionnaires Expand, Educate and Incorporate Targets Credit Management Road shows Training
and Development Focus Credit Management Conference Feedback on Dashboards and development to Live Screens Review Policy and Benchmarks Review and Modify Policy 41<br>
slide42. Corporate Membership Programme AFFILIATE LEARNER MICM/MICM(Grad) FELLOW AFFILIATE / CORPORATE AFFILIATE ASSOCIATE AICM Member Essential Skills
Training Specialist Training 42<br>
slide43. Recommended Training Essential Essential Skills Recommended for credit management generalists, those working in operational roles or new to credit or 43<br>
slide44. Recommended Training Specialist Specialist Recommended for credit management specialists, managers, supervisors and team leaders Optional Assessment: Level 3 DIPLOMA AICM 44<br>
slide45. Other Initiatives The Morning Board 45<br>
slide46. 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 £260M £400M The Event... M4M £300M £350M 46<br>
slide47. Where am I trying to Get to? The End Game 47<br>
slide48. End Result We Lead
We add value Travis Perkins Credit Academy
High Engagement
Qualifications
Centre of Excellence
Training centre for Customers 48<br>
slide49. 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<br>
slide50. When it goes wrong. 50<br>
One Team One Goal European Conference
Amsterdam 14th – 16th April 2013 Nick King, MICM
Group Credit Director 1<br>
slide2. HEADS or TAILS HEADS or TAILS 2<br>
slide3. Setting the Scene 3<br>
slide4. Strong group brands 4<br>
slide5. Business Overview – 4 Divisions with shared support General
Merchants Specialist
Merchants Retail BUSINESS DIVISIONS SUPPORT FUNCTIONS Supply Chain Finance HR IT Property Commercial /
National Sales Marketing Plumbing
& Heating 5 5<br>
slide6. Renewable Energy SOLFEX Acquired by TP Group in Jan 2013 SOLFEX energy systems is one of the UKs first and leading innovators and suppliers of solar energy systems. Allow TP to offer our customers an integrated approach to energy efficient building 6<br>
slide7. 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<br>
slide8. Organisation Total Credit Services Staff = 253 Bus Unit Managers 8<br>
slide9. 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<br>
slide10. Integration of BSS Group General
Merchants Specialist
Merchants Retail BUSINESS DIVISIONS SUPPORT FUNCTIONS Supply Chain Finance HR IT Property Commercial /
National Sales Marketing Plumbing
& Heating 10<br>
slide11. BSS Integration Staff structure
Insurance
Credit Limits
System and Process
“Them & US” Mentality 11<br>
slide12. Perception 12<br>
slide13. TP Group 13<br>
slide14. 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<br>
slide15. Perception Stale/
Fragmented
Minimum control/review
“Make do” Worked
Understood and Accepted (with region)
Integrated into system
Does the job 15<br>
slide16. Perception Outdated
Complicated
Manual
Not understood/communicated
Not flexible
Reward not seen as beneficial Accepted
Delivered the results 16<br>
slide17. 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<br>
slide18. Mountain to Climb 18<br>
slide19. Then you will ALWAYS get what you always got IF YOU ALWAYS DO WHAT YOU ALWAYS DID Reality Check 19<br>
slide20. The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Organisational Alignment Customer Focus Consistent MI Professionalism One Set of Rules Process & System Standardisation Credit Strategies Operational Excellence Enablers Professional &
Customer Focussed
Credit Management Fragmented
Credit Management Differentiators 20<br>
slide21. Organisational Alignment Customer Focus Consistent MI Professionalism One Set of Rules Process & System Standardisation Credit Strategies Operational Excellence Enablers Differentiators Single Organisation for Credit Management
Group integration
One Team mentality
Single Organisation Archetype
New Risk Department The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Fragmented
Credit Management Professional &
Customer Focussed
Credit Management 21<br>
slide22. Organisational Alignment Customer Focus Consistent MI Professionalism One Set of Rules Process & System Standardisation Credit Strategies Operational Excellence Enablers Differentiators One-Credit Learning Programme
Group Credit Management Learning & Development Programme.
Competency frameworks
Professional membership (ICM Group membership)
Career Ladder
Reward Programmes The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Fragmented
Credit Management Professional &
Customer Focussed
Credit Management 22<br>
slide23. Perception 23<br>
slide24. The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Organizational Structure Mentor Career Ladder/Succession Planning Professionalism Credit Management
Learning & Development Programme Right Person, Right Job Credit Academy Reward & Recognition Enablers Professional &
Customer Focussed
Credit Management Current Status Differentiators 24<br>
slide25. Organisational Alignment Enablers Differentiators 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 The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Current Status Professional &
Customer Focussed
Credit Management Mentor Career Ladder/Succession Planning Professionalism Right Person, Right Job Credit Academy Reward & Recognition Credit Management
Learning & Development Programme 25<br>
slide26. Credit Manual Enablers Differentiators 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 The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Current Status Professional &
Customer Focussed
Credit Management Online Trading/Management Reporting KRA’s Process Manual Risk One Platform Proactivness 26<br>
slide27. Enablers Differentiators Single Measurement to Drive Performance
Review of current KPI’s
Align to Business
Drive continued Performance
Automated, Easy, Delivery The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Current Status Professional &
Customer Focussed
Credit Management Measurable KRA’s Linked KRA’s Personal KRA’s (Development Plans) Tolerance Levels Time Lines Influence/Non Influence Pulls and Push of Tolerance Reward & Recognition 27<br>
slide28. Enablers Differentiators 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) The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Current Status Professional &
Customer Focussed
Credit Management Equipment APPS Development External System/s One Platform Multichannel Customer on-line 28<br>
slide29. The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ Organisational Alignment Customer Focus Consistent MI Professionalism One Set of Rules Process & System Standardisation Credit Strategies Operational Excellence Enablers Professional &
Customer Focussed
Credit Management Fragmented
Credit Management Differentiators Start Point 29<br>
slide30. ‘Building Credit Together’ Achieving Quality in Credit Management The Credit Management Journey ‘Credit Management Roadmap to Improvement…’ 30<br>
slide31. 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 Our Journey So Far... 31<br>
slide32. 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 Credit Policy and Compliance 32<br>
slide33. Credit Management Function HOW WILL THE CREDIT MANAGEMENT FUNCTION MAKE OUR CUSTOMERS FEEL? HOW DO WE WANT OUR CUSTOMERS AND COLLEAGUES TO THINK? PERSONALITY 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. Valued Confident Supported Satisfied Friendly Professional Reliable Understanding Helpful They Will Help Me They Help Prevent Bad Debts They
Provide Quality Service They Take Pride
In Their Performance 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 PERSONAL TOUCH
We will treat each situation on its own merits
We are people dealing with people WHAT OUR
CUSTOMERS WANT The Bulls Eye<br>
slide34. Increased 1-2-1’s
Enhanced Performance Reviews
Dedicated Competency Frameworks
New Reward Schemes and Incentives
Improved Training and Development
Bespoke Induction Process Personal and Professional Development 34<br>
slide35. Example Competency Frameworks
Credit Management Credit Management – Competency Framework 35<br>
slide36. Example Competency Frameworks
Credit Management ‘Building Credit Together’ 36<br>
slide37. Example Competency Frameworks
Credit Management 37<br>
slide38. 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 Customer Service 38<br>
slide39. 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 Performance Measurement 39<br>
slide40. 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<br>
slide41. Roadmap 3 Months 12 Months
and Beyond 9 Months 6 Months Credit Policy Personal and Professional Development Customer Services Performance Measurement 1-2-1 and Performance Reviews Initiated Compliance Process Future Customer Service Objectives Set Receiving a Timescale from IT. Feedback on Functional Audits All Staff to have Completed A 1-2-1 Benchmarking from Questionnaires Expand, Educate and Incorporate Targets Credit Management Road shows Training
and Development Focus Credit Management Conference Feedback on Dashboards and development to Live Screens Review Policy and Benchmarks Review and Modify Policy 41<br>
slide42. Corporate Membership Programme AFFILIATE LEARNER MICM/MICM(Grad) FELLOW AFFILIATE / CORPORATE AFFILIATE ASSOCIATE AICM Member Essential Skills
Training Specialist Training 42<br>
slide43. Recommended Training Essential Essential Skills Recommended for credit management generalists, those working in operational roles or new to credit or 43<br>
slide44. Recommended Training Specialist Specialist Recommended for credit management specialists, managers, supervisors and team leaders Optional Assessment: Level 3 DIPLOMA AICM 44<br>
slide45. Other Initiatives The Morning Board 45<br>
slide46. 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 £260M £400M The Event... M4M £300M £350M 46<br>
slide47. Where am I trying to Get to? The End Game 47<br>
slide48. End Result We Lead
We add value Travis Perkins Credit Academy
High Engagement
Qualifications
Centre of Excellence
Training centre for Customers 48<br>
slide49. 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<br>
slide50. When it goes wrong. 50<br>