Transforming the Collections Operating Model

For Ministry of Justice

The Ministry of Justice's goal was to enable faster collection of fines at lower cost and deliver a better more consistent service to every person who relies on the collections system.

Problem

Up until 2010, the amount of fines owed by New Zealanders was ballooning and fines were not working effectively as a sanction. Ministry of Justice collection systems were mostly paper-based and lacking flexibility. Collections staff were dispersed in 28 courthouse sites around New Zealand.

Solution

Davanti and the Ministry began with the customer in mind and considered how to design a good experience for them. Customers who owed fines were segmented into groups based on their willingness and ability to pay and their attitude towards compliance.

The team envisioned the future business state and the business capabilities that were needed to deliver a better customer experience, one national work queue that is automatically prioritised based on business rules, work automatically routed to the first available staff member, and real-time business activity monitoring.

Davanti helped the Ministry select a consortium to deliver an intelligent work distribution (iWD) solution to address the business challenges identified with the goal being to deliver on a number of key objectives:

  • Use workload, workflow and workforce management to prioritise, distribute and route work on a national and geographically independent basis;
  • Enable measurement and reporting on key activities using outcomes based KPIs, and deliver effective analysis at the business unit level.

The solution and new operating model was implemented in 2011. In 2013 it was selected as the joint winner of the Treasury Award for Improved Public Value through Business Transformation in the 2013 IPANZ Public Sector Excellence Awards 

Result

The results since the Davanti designed operating model was implemented have been impressive:

  • Collections debt has decreased from $807 million in 2009 to $555 million in 2013.
  • The percentage of overdue fines has reduced from 58 per cent to 42 per cent
  • Operating costs have dropped by $2 million a year.
  • The time it takes to process applications for disputing a fine has been cut from up to one month to less than three days.
  • The collection of fines via mobile Eftpos has increased 250 per cent more per month since the system was introduced.

Perceived service quality, as measured by the Kiwis Count Survey, has increased from 54 per cent in 2007 to 63 per cent.