WASHINGTON STATE

COLLECTION EFFICIENCY MODEL (E-MODEL)

Goal: Implement a mechanism to assist the Washington State Division of Child Support (DCS) to meet rising performance expectations and better utilize limited resources.

Description: The Collections Quality Improvement Team concluded that the Division needed a method to evaluate the efficiency and effectiveness of specific collection processes. The E-Model was created to do this evaluation. It also provides the basis for establishing an improved method to prioritize resources and to maximize performance. Potential benefits achieved from the implementation of statewide efficiency measures include the following:

• Identify areas in need of process improvement.
• Assess training needs of staff.
• Encourage ongoing experimentation.
• Focus on activities and resources and on key outcomes.
• Support possible standardization of workload and processes.

The E-Model Reports are expressly designed to report on collection actions and processes that impact key Division outcomes. The reports provide data at the Support Enforcement Officer level, the Unit and Supervisor level, and the Field Office level. Each report includes activity for the month as well as historical presentations of activity for previous months. Data is available from January 2001 and continues to be maintained.

The E-Model was developed to total specific incidents of a collection-related event or action, multiply that number by a weighed factor, and give a point total for the event. The point total is divided by the number of full time equivalents (FTEs) in the unit or office being evaluated, yielding an average points-per-FTE. This provides a basis for comparing one unit with another unit, one worker to another worker, or one office to another.

The report is divided into three major sections:

1. Work by Volume: This category represents the outcome measurement of the E-Model. The general objective of the Division is to increase the number of paying NCPs as much as possible; other incentive measures and key outcomes will also increase accordingly. This category breaks out NCPs into paying, partial-paying, and non-paying categories but gives positive credit for all NCPs with obligations. Positive credit is given for non-payers because they represent work that must be done whether there is payment or not.
2. Positive Considerations: This section of the report represents two basic categories of information - direct collection actions (i.e., specific forms that may result in the receipt of money), or the results of direct collection actions (i.e., determining if money was received after the form was sent). Positive points are also awarded for all orders entered for the month. Collections actions cannot begin until a support order exists. The weighted factor for each category generally relates to the importance of the action in the collection effort.
3. Negative Considerations: This section of the report generally contains reporting categories that can influence collections by improper utilization of staff time. These categories represent work processes that impact collections such as hard-to-collect cases.

Results: Data for the seven-month period - January 2001 through July 2001 - for all Field Offices was submitted to the DCS Management and Audit Program Statistics (MAPS) Unit for correlation analysis. The MAPS evaluation indicated a strong correlation between the outcome measurement - Percentage of Paying NCPs and Efficiency Points. The Correlation Coefficient for these two measures ranged from .77 to .94 for the 10 field offices.

Based on the analysis, and very positive increases in collections and collections actions, Division management directed that the E-model be used statewide as a tool to improve and evaluate collection processes. E-model results are a part of the annual evaluation of all collection staff, supervisors and managers.

Several innovative unit collection projects have been initiated by the Field Offices because they now have a tool to measure the success (or failure) of new ideas and projects. Thee include: segmented and specialized caseloads, e.g. caseloads containing only 'hard to collect' cases; assigning lower producing staff to work as a team with higher producer; and caseloads centered on other state social programs, for example, Washington State's Work First program.

The E-Model has given management the ability to measure the 'before' and 'after' of collection performance.

Location: This project was developed in Olympia, Washington and has been implemented in all DCS offices throughout the state.

Funding: Regular IV-D funding was used.

Replication Advice: DCS recommends that other agencies which use this model be sure to include all facets of collection efforts. If a tool or remedy is available, the model should measure the utilization of that tool.

Contact:

Aaron Powell, SEMS Project Manager

Phone: 360-664-5402

E-mail: apowell@dshs.wa.gov