Deduction Resolution As a Change Agent.

Deduction resolution software can be a powerful tool, not only in its ability to track and resolve problems but also in preventing future problems. By employing deduction resolution software, you are, in effect, instituting a change management tool. Deduction resolution software gathers vital information, and if used properly, this information can lead to a higher operating efficiency.

However, without process improvement as the primary objective, the software will only serve to resolve problems, not prevent them. By using the reporting features of problem-tracking software to identify error-causing tasks and thereby involve the decision makers that effectively own the individual deduction issues, collectors and deduction specialists assume the role of change agents.

To be effective change agents, they need to have an intimate understanding of the business processes that cause deductions and have the ability to work with all parties associated with these processes. In the end, deduction management simplifies processes and initiates quality improvement. Using an automated system, the collector's specialized knowledge can be transformed from process management to process improvement.

The information stored in a deduction resolution system can be used to effectively raise the level of awareness to the actual and hidden costs of deductions, and to thereby enlist support of process improvements that will ultimately reduce the opportunities for customers to take deductions.

All too often, deduction resolution tools are only used to satisfy the more immediate goal of resolving a specific problem with a single customer. Yet, the outcome can be much more far reaching. If this same problem occurs with another customer, and then yet another, what does that tell you? How will you know? Moreover, what additional information are you able to obtain from the system? What are your major problem areas? Who typically resolves them? Where do the problems typically originate?

If you are using your deduction resolution system to solve isolated problems, you will not see long-term results in terms of process improvement. By using a reporting system with the deduction resolution tool, you will be able to extract key information, allowing you to target areas for improvement. The deduction resolution tool will evolve from a task-oriented system to a strategic system; it will become a change agent.

Experts have estimated that deductions are a $10 billion a year problem that is growing annually by 20 percent. Deductions are a major commercial-debt collection issue that extends to all areas of an organization. Deduction resolution can be an extraordinary tool for not only collectors but also credit management and customer relations.