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 1

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 2

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 3

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 4

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 5

6. Monthly Performance Review 6 Month Aug-11Days Responsible21.5 Cash Actual$ Goal% Goal%Score $1,915,277 $ 1,668,858 100.00% 114.80% 17.2 Number of Calls ExpectationTotal CallsAvg%Score 802506116.6 146% 20 Number of Contacts ExpectationTotal ContactsAvg%Score 42136663.5 151% 20 Account Audits Date8/11/20118/16/2011 Score 100.00%98.00% 16.5 Monitors Date8/11/2011 Score MM 16.7 E - Exceeds M - Meets DNM - Does Not Meet U - Unsatisfactory KPI Score:110.30% Rolling Quarter Information JuneJulyAugust GoalActual%GoalActual%GoalActual% 100.00%111.50% 100.00%109.40% 100.00%110.30% Rolling Quarter Score:110.40% Next Month Score need:65.30% Employee Signature Supv Signature

7. 7 Calls and Contacts Below is some information pertaining to the points awarded. The information is but not limited too: more calls = more contacts = more ptp’s = more collections Calls If your KPI's are based on the number of calls you make in the month, then this data is based on the number of calls either reported on your collector ID in facs or from the CXM reports based on the extension you called a from,divided by the number of says you were at work. Contacts If your KPI's are based on the number of contacts you make in the month, then this data is based on the number of contacts reported on your collector ID in facs divided by the number of says you were at work Worked Accounts Below is some information pertaining to the points awarded. The information is but not limited too: did we understand the core problem, was a resolution obtained, etc Worked Accounts KPI is based on the number of accounts worked in the month, data is based on the number of worked accounts reported on your collector ID in facs, or the number of accounts to work at the beginning of the day to clear your work queue, divided by the number of says you were at work Audit Compliance Below is some information pertaining to the points awarded. The information is but not limited too: was a commitment obtained, proper notation, were the 7-steps followed, etc KPI is based on the average total score of all side by sides given throughout the month. 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! 8

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 9