Unveiling Effective A/R Staffing Models for Success

1. Does the Perfect A/R Staffing Model Really Exist? Presented by: Michael L. Daugherty, Vice President TRMG Fall Conference, St. Louis Synter Resource Group, LLC October 10, 2011

2. Starting Point:Understand/Change Staffing Variables/Responsibilities • Billing / Customer set up • A/P set up, billing requirements, ‘pitching’ of billing methods • Credit and / or Collections • Credit only, collections only, or both • Account Distribution for A/R Reps • Corporate/National – Non-Corporate/National • Region • Balance • Administrative functions • Retrieving / sending back up docs • Email • Dispute Resolution • Support or direct access to various other dept / sales

3. All staffing models to include; • Benchmark / Illustration of TODAY’s results • Must know where you are to improve • Identified “Realistic” Improvements / Goals • Stair-step it • Established & Quantitative KPI’s (key performance indicators) • Do not need to be complicated / KISS • Measurements / Illustrations of Results • Daily, Weekly, Monthly, Quarterly • Posters, graphs, newsletters, dept meetings • Accountability • Acknowledgment / recognition of good results • Consequences for not so good results

4. Staffing models & measurement ideas: 1. All inclusive responsibilities staffing model: • Full account ownership / responsibility • Measurement and KPI ideas: • Sales, DSO, aging by customer 2. Segmented responsibilities staffing model: • Customer Set Up • Measurement and KPI ideas: • Bill accuracy, % of rate issues, % of increase in e-billing, # of increase in ACH/EFT payments, etc • Credit • Measurement and KPI ideas: • Timeliness of credit decision, reduce by days or minutes • Tie in aging %’s, write-offs as a % of Rev, banko’s total # of % of Rev

5. Ideas continued; 2. Segmented Responsibilities Continued; • Collections • Measurement and KPI ideas: • >60’s, Avg-Days-to-Pay, calls, contacts, audits • See sample scorecard • Dispute Resolution • Measurement and KPI Ideas: • Volume and timeliness, accuracy, kick-backs • Admin support • Measurement and KPI Ideas: • Volume and timeliness of doc retrieval, # of checks applied & accuracy

6. Monthly Performance Review

7. Legend for Scorecard

8. What does all this mean? • To help understand the most appropriate staffing model: • Identify/clarify staff’s responsibility – clearly document what you want them to do • To retain good employees, drive down costs, and measure your success: • Illustrate / acknowledge where you are today • Might be good, GET BETTER - Might not be good, GET BETTER • Illustrate / accept where you want to go • Rome wasn’t built in a day • Establish / monitor ‘easy to follow’ KPI’s • Take the thinking out of it, keep it simple! • Measure, Measure, Measure results • Plain and simple • Performance • Recognize/reward GOOD results - Recognize/deal with NOT GOOD results Employees will appreciate and work harder for you by doing these things and you will hit your expectations!

9. Motivation, Recognition, Reward Ideas: • Flex-time • Arrive anytime between 8:30-9am, PTO vs sick, vaca, etc • Facebook • Post pics, good for recruitment, family feel, fun • Themed Meetings • 1 per month, based on season, news • E-Newsletters • Events committee • Pick on Management • Cookouts, Balloon Toss, Dunking Booth • Rewards • Employee Choice, Managers, Performance • And why do folks leave? See:http://pattyinglishms.hubpages.com/hub/Quit