Recently as I drove down the freeway, I noticed my car pulling severely to one side. Upon further investigation, and with the help of some mechanically inclined friends, I discovered that my car had an alignment problem. When I first heard the phrase ‘out of alignment,’ I had little knowledge of what that meant. Did it mean the car would soon fall apart and find a new home in the local junkyard? Did it mean that several adjustments could make the car run better?

I came to discover that wheel alignment simply means that the suspension and all four wheels are properly configured and adjusted to give the car more accurate steering and longer tire life. In other words, it means that all the wheels and axels are working together to achieve optimum performance. Without proper alignment the car would still function, but might cause serious safety problems at high speeds and reduce fuel efficiency, as well as permanently damage the tires and severely reduce tire life. Both the front and back wheels could still spin independently of each other, but would not provide the desired result.

In collections, as well as in other industries, we must check the ‘alignment’ of our businesses to ensure they are operating in the most effective and efficient manner possible. There are different parts and functions within an agency, and at times we let them each work independently of the other functions. Each function or ‘wheel’ can spin by itself and help carry the company forward. If each function were aligned with the others, then the agency will move much better and will be ready for the challenges that lie ahead.

Three areas of focus that we need to align within our businesses are People, Processes and Technology. All three are an integral part of our success. They can each operate independently of the others, but when People, Processes and Technology are aligned, an agency has the foundation necessary to move past mere efficiency and begin effectively serving clients and improving the bottom line.

In order to explore how People, Processes and Technology can be properly aligned, we must first look at how they fit into the business independently.

People are the most important asset a company has. Each person, from high-level executives, to collectors, to administrative personnel, plays an important role in the overall success of the business. There are several areas in which we must ensure our people are on the right track in order to keep the business successful.

Properly trained employees make the difference between an average agency and one that excels. Employees must be trained thoroughly on their role and responsibility within the company. For example, each collector must know the laws, technology, and policies that will affect them in their efforts. Each administrative employee must know the policies that affect their role in the company. And each supervisor and executive must know the goals of the business and have an understanding of how they are to be reached.

Incentives and motivation play an important role in the overall success of every employee in the company. Properly motivated employees will work harder, will strive to understand their role in the company, and ultimately bring success to the company.

Each employee must have a firm and solid understanding of company policies and processes. Each policy that is in place within a company has a specific purpose and must be known by each employee in order for the desired result to take effect.

Employees must know how to use the technology that is available to them in order to become more effective in their role. Technology has the capacity to help us become more efficient; with each employee knowing the role of the technology and the processes behind it, success is imminent.

Employees must be empowered in order to be successful in collections. Technology must give them the opportunity to reach debtors, manage accounts, process payments, and manage their collection efforts. Once at that point, each employee must be empowered by company policies and procedures in order to efficiently and effectively collect.

Processes and policies must constantly be monitored so that they do not conflict with the goal of making money, the ultimate goal of any business. An agency once related an experience to us that illustrates the need for process monitoring:

In an effort to provide incentives for their collectors, “Agency ABC” instated a company policy that awarded a small bonus for every credit card payment a collector took over the phone. This policy was made in an effort to boost collections while cutting down on ‘the check is in the mail’ type situations. At the beginning, this policy seemed to work well for everyone. The collectors got bonuses and Agency ABC got less broken promises and more payments in the door; a win-win right?

Over time, the collectors started to find ways to increase their credit card payments. Payment plans were offered to debtors so that several credit card payments would come in over a period of many months. While this looked great to a collector, it caused headache for the agency. Not only did it take months for the balance to come in, but they also had to pay a transaction fee for every credit card payment. After a time, this policy got in the way of Agency ABC’s effectiveness and affected their bottom line. A suggestion was made that the policy be changed to provide bonuses to collectors who take full payment with a credit card. The new policy has empowered and motivated the employees while still keeping the best interest of the agency in mind. Polices must always guide the company toward increased success.

We must all agree that over the years technology has certainly made the industry more efficient. We now have the ability to contact hundreds of debtors in a day, process automatic payments, and manage our accounts with less effort than ever before. While we are now more efficient, does the technology alone make us more effective? Although there will be some debate as to the answer, I would say that technology alone has done nothing more than empty our wallets. In order for the technology to make us effective and help our bottom line, it must be aligned with both our people and processes.

We must have trained people who understand the capability and purpose of the technology, as well as have the company policies in place that will help us take advantage of all of the benefits the technology has to offer.