In This Edition
Measuring success solely by outcomes—payments, promises to pay, or closed accounts—is tempting. After all, results are what keep the lights on. But I think that this view is short-sighted. What if a process-based approach, one that prioritizes how we work over immediate outcomes, could yield better results in the long run?
Today we'll explore why recognizing and rewarding a perfect process, even when it doesn’t result in the ideal outcome, isn’t just a nice idea—it’s a strategy for sustained success. Sometimes you just have to Trust the Process!
While we’ll focus primarily on collector-related processes, the principles discussed here are broadly applicable across departments and organizations. Whether it's refining workflows, improving team communication, or ensuring compliance, process-based evaluation can drive meaningful change in any context.
📈 The Case for Process-Based Evaluation
Collections is more than a transaction; it’s a relationship. A collector who follows the script perfectly, uses calibrated questions, demonstrates empathy, and maintains compliance builds trust. These behaviors create the foundation for goodwill - and payments. They’re also replicable, scalable, and trainable.
Processes are measurable and controllable. Outcomes, by contrast, can be heavily influenced by factors outside your control: a consumer’s financial situation, timing, or even their mood that day.
"If you focus on results, you will never change. If you focus on change, you will get results."
Let’s channel our inner Ron Swanson: "Never half-ass two things. Whole-ass one thing." This philosophy fits here—commit fully to the process, and the results will follow.
⚠️ Impatience and the Lure of Immediate Results
We live in a fast-paced world where instant gratification is the norm. In collections, this mindset translates into a relentless pursuit of immediate payments. Managers want numbers now. Collectors feel pressured to close on every call. And when those payments don’t come, frustration mounts.
This impatience leads to common pitfalls:
Micromanagement: Focusing on short-term results fosters a culture where collectors feel scrutinized rather than supported.
Burnout: The relentless chase for payments can lead to stress, high turnover, and disengagement among team members.
Short-Sighted Strategies: Overemphasis on immediate outcomes discourages long-term thinking, like building rapport or improving skills that yield dividends over time.
Compliance Risks: Rushing for results often tempts teams to cut corners, risking violations of the FDCPA, Reg F, or other critical regulations.
Does this sound familiar? Possible within your team’s environment? If so, it’s time to rethink your approach.
Every rushed call that prioritizes a quick win over genuine connection erodes trust. Consumers may feel pressured, defensive, or even hostile. Those quick wins that you’re pushing so hard to find will dissolve in front of you.
When your team’s focus narrows to just today’s metrics, you’re blind to the bigger picture. That’s like cutting down a fruit tree to harvest one season’s yield without planting for the future. The long-term result? Lower recoveries, higher compliance risks, and a less motivated team.
⚙️ Shift the Mindset with Process-Based Frameworks
So, how can you reconcile the desire for immediate results with the benefits of process-based evaluation? Here are practical steps to create balance:
Define the Ideal Process. Clearly outline what a “perfect” call looks like. This might include:
Opening with an empathetic tone.
Verifying details efficiently and respectfully.
Asking calibrated questions
Handling objections without pressure.
Documenting the interaction thoroughly and compliantly.
Use these benchmarks as your team’s guide to success.
Train and Coach with Intent. Continuous training is essential. Use call recordings to highlight examples of perfect processes, even when no payment was made.
Reward the Right Behaviors. Shift incentives from purely outcome-based metrics to a combination of process adherence and results. For example:
Bonuses for collectors who consistently meet process benchmarks.
Recognition for those who de-escalate challenging calls or leave consumers with a positive impression.
Embrace Data-Driven Strategies. Use a funnel-based approach to track progress (e.g., total calls → right-party contacts → payment discussions → payments secured). Share the data with your team and emphasize how each stage—including “perfect calls”—contributes to the end goal.
Reframe KPIs. Instead of focusing solely on payment volume, add metrics like:
Process adherence score.
Consumer satisfaction or sentiment.
Long-term payment trends from accounts touched by the collector.
Communicate the “Why”. Help your team see the bigger picture. Share success stories where perfect process calls led to payments weeks or months later. Celebrate incremental wins, like moving a hesitant consumer one step closer to resolution or “perfect process” hours/days.
🤔 Closing Thoughts
When you focus on the process, you’re not just improving today’s numbers—you’re cultivating a culture of excellence that drives sustained success. A well-executed process is like planting seeds: each perfect call nurtures trust, strengthens relationships, and sets the stage for future recoveries.
By committing to this approach, you’re building a team that values consistency and quality over quick wins. The result? A department that doesn’t just chase payments but creates lasting impact, one interaction at a time.
🎓 Links for the Learners
📖 CUToday: Credit Unions are gearing up for challenges to their tax exempt status
📖 This week’s Deepseek revelations shed more light on the security and externality concerns created by AI.
💡Tip of the Week
I firmly believe that the vast majority of people don’t choose to fall into to debt. If they could pay, they would.
If we believe that circumstances cause many (most?) consumers to be unable to pay, shouldn’t we then also build systems for contacting them when their situations improve?
There are many vendors in our space that offer tools to help us identify when consumers’ circumstances have improved. Propensity to pay scoring, income/job change triggers, even sentiment-based triggers based on social media posts - all these tools are readily available.
Give these tools a look!
⌛ Last Week Lowdown
ICYMI: Highlights from last week’s edition. Click here to view the entire post.
Negotiation strategies from the perspective of a hostage negotiator:
Why “No” signifies the start of a negotiation rather than the end of one.
How to use calibrated questions to crack open the conversation
How to validate consumers’ emotions through labeling them.
Are we on the same wavelength? Check out EngageARM.com for free resources, networking, and in-depth tutorials to help you build a highly-effective recovery department.
I’d like to close this with a quick ask. If you enjoyed this, please share with a colleague. Even better, take advantage of the referral program (linked below). If you disliked it, let me know why. All feedback is good feedback, after all.
Cheers,
Nate
