Recoveries Corporation Group Limited
2015 â€“ 2016
A night to remember Recoveriescorpâ€™s 25th Silver Anniversary was celebrated in style at the Myer Mural Hall with staff, senior management business partners and special guests on Thursday 18th August 2016. As you can see from this selection of photographs, it was indeed a glamorous and entertaining occasion with memorable presentations and performances. We extend our appreciation and special thanks to all those who attended and helped to make the night so special.
About This Report This annual report for FY 2015/16 is the second issued by Recoveries Corporation Group. Having commenced operations in 1991, the report celebrates our 25th anniversary and provides insight into our current performance, people and financial objectives. As we continue to grow and develop, we invite you to learn more about the company’s origins as we prepare for further success in the next 25 years.
Index Chairman’s Message
Our Leadership Team
Managing Director & CEO’s Message
Celebrating 25 Years in Business
Voice of the Customer
Our Vision and Purpose
Our Strategic Direction
Our Culture and Values
Corporate Social Responsibility
Consolidated Financial Performance
Performance at a Glance
A TIMELINE To acknowledge the past 25 years of recoveriescorp, we include an historic timeline of events that travel throughout this annual report. We look back with fondness and appreciation on all those people and events that helped to make us what we are today. If you have been following our progress as an organisation you might recognise some of the people and events the timeline references.
2015 Recoveriescorp wins the ANZIIF Service Provider to the Insurance Industry Award.
As we celebrate our 25th anniversary at recoveriescorp, it gives me great pleasure to once again report a year of continued growth and development in all aspects of our operations. With a new era upon us and a very strong financial position, we proudly reflect on times of new beginnings, when founders, David Mond and Leon Sholl, began a journey which today, unites a growing business operating in Australia and Fiji. The commitment our people have to living and breathing company values forms an integral part of recoveriescorp’s strong performance and is fundamental to our success and reputation. As we expand and further develop, we continue to engage our partners and set ambitious goals centered on our values. The Executive Leadership Team led by our Managing Director, David Mond continues to deliver successful outcomes to all of our stakeholders - not only through the delivery of good strategy and thought leadership, but through the commitment to the industries we service and the value we bring to our clients. We have indeed evolved our offerings specific to the needs of our clients and this is truly what sets us apart from others. Our core business units have continued to produce impressive results – Recoveries Corporation Pty Ltd – our main operating entity and Mason Black Lawyers – our legal arm operating nationally. On behalf of clients, we recovered in excess of $733m in the year, and our overall financial performance in FY15/16 exceeded expectations.
In recent times the Board endorsed a three year Strategic Plan. The process of development of this plan involved the contribution of leaders across the business. The successful implementation of this plan will ensure that we continue to provide sustainable profitable growth. Out of the process we also acknowledged that with the emergence of the digital economy and development opportunities in our business we understood that we need to be able and willing to adapt and transform the way we do things. Corporate governance ensures proper oversight and accountability, strengthens relationships, builds trust with stakeholders and promotes the interests of our partners. It is with this sentiment that we continue to build, develop and celebrate our successes. In this regard, I thank our Board members for their energy and support throughout the year. We have a wonderful business that has grown from small beginnings in 1991. John Wauchope
Managing Director & CEO’s Message
From humble beginnings and an idea, to a business which employs over 500 staff, we celebrate a milestone in reaching our 25th anniversary.
Our reputation is renowned in the marketplace for its values, culture and people. With values aligned to those of our clients and a Corporate Social Responsibility program that directly addresses the needs and issues of our industry, I am indeed proud to be a part of an enhanced business we look to actively contribute to the community and the offering that services clients with a level of sophistication and environment. quality that is second to none, at the highest end of our competitive field. Our Chairman John Wauchope, who has announced his retirement as Chairman effective 31 December 2016, We achieved a transition during the year, from working with recently received an OAM for which we are all extremely a hosting company in Suva, Fiji to the opening of our new proud. John has been a magnificent supporter of this state-of-the-art call centre, with a capacity of 380 people. company – not just of the directors and executives, but This necessitated the creation of a subsidiary company every person in the organisation. He has shown tremendous RCL Services, which will facilitate growth in both debt and care, consideration and leadership for the last 20 years. I non-debt recovery work across a broad range of clients. would like to thank him for his tireless efforts, his direction The inception of this new subsidiary company marks the – particularly in matters of governance and strategic intent. beginning of asserting our position as a globally competitive, He will continue as a director of the Group. shared services organisation. Personally, I’ve been in the position of MD and CEO for over The new appointment of a General Manager to Mason Black nine years and in terms of planning for growth, we are in the Lawyers signals foreshadowed growth in the business in both process of expanding our strong Executive Team to deliver Melbourne and Sydney, with the opportunity of opening sustainable management expertise and outstanding results. offices elsewhere. We look forward to a year of growth and consolidation in I would also like to report an annual performance of $6.7m 2016/17 and beyond, and trust that not withstanding EBITDA. foreshadowed economic headwinds, recoveriescorp will always find a way to perform, outperform and deliver With contribution from the Board, a major strategic review opportunities and great outcomes for all of our stakeholders. conducted for recoveriescorp and Mason Black took place. The review was led brilliantly by fellow director, Joan Fitzpatrick and involved the Executive Leadership Team and a detailed, three year strategic paper which will serve as a blueprint for the group.
Managing Director & CEO
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David Mond, CEO and Leon Sholl singing up a storm at recoveriescorp’s 25th Silver Anniversary event.
CELEBRATING 25 YEARS IN BUSINESS In 1989, Leon Sholl commenced Sholl Nicholson, a legal practice conducting legal work for major insurance companies. David Mond was Leon’s accountant at the time. In 1990, David bought a small debt collection agency, which collected premium debt for life insurance companies. The following year whilst on a visit to the dentist, Leon read an article in an American Journal about an American company offering a service to major insurers in Texas, to conduct a ‘claims leakage’ review. This company conducted warehouse audits on motor vehicle claims files to identify situations where recovery officers failed to recover: uncollected premiums, insurance excesses, missed recovery opportunities and major duplicate payments. Leon had a lightbulb moment. In 1991 David Mond, Leon Sholl and David Nicholson formed a partnership to explore opportunities in the Australian insurance market to conduct finalise claims leakage warehouse reviews at no fee cost to insurer and Exclusive Mercantile Agency Pty Ltd was formed.
Today, Recoveries Corporation Group Ltd as an Australian owned and operated business, provides comprehensive life cycle credit management through subsidiaries: • Recoveries Corporation Pty Ltd (recoveriescorp) • Mason Black Lawyers • Advanced Collection Systems Pty Ltd • Reminder Call Services Pty Ltd • RCL Services Pte Limited In our journey from inception in 1991 with 5 people, we are now a contact centre specialising in debt recovery and insurance claims recovery services, with more than 500 staff and offices in Sydney, Melbourne and Suva. We lead the way in delivering innovative and tailored end-to-end solutions for our clients and have key expertise in Federal, State and local Government, Insurance, Banking and Finance, Telecommunications and Utilities sectors.
In 2006, Leon and David bought out minority shareholders and set the business on a major growth path.
Founders David Mond and Leon Sholl create Exclusive Mercantile Agency Pty Ltd.
Exclusive Mercantile Agency Pty Ltd creates its own cost-effective recovery model that helps insurers reverse ‘claims leakage’ problems, particularly through audits of finalised files.
“…Recoveriescorp ensures that every individual is respected and valued throughout the Group.” – Staff Engagement Survey participant, 2016.
VOICE oF the CUSTOMER Demonstrating strong engagement at operational and relationship levels, recoveriescorp’s Net Promoter Score (NPS) of +52 puts the Group in the top quartile of benchmarked results. With NPS satisfaction scores in the top 5%, clients of recoveriescorp confirm that senior personnel have a very strong understanding of the their business (83) and the industry (88).
Top 5% satisfaction
1992 Sholl Nicholson expands into debt recovery advice and litigation.
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Our Vision The leading partner in contact centre solutions and business process delivery throughout Australasia.
Our Purpose We help our community build a financially sustainable future.
Exclusive Mercantile Agency hires its first employee, Rod Peace.
The recovery model is expanded with a new strategic direction: a specialist insurance recoveries business branded Insurance Recoveries Australia.
Our Strategic Direction This year, we reviewed our business strategy by seeking input and contribution from our business leaders to develop a new set of strategic objectives which would grow recoveriescorp and help us continue to be successful and sustainable. Our five new key strategic objectives are: • Market driven and customer focused • All of our relationships are mutually beneficial • Generating sustainable growth • Excellence through digitisation and automation • Profitable business which allows re-investment for growth
OUR KEY FOCUS AREAS Our Strategic Business Plan is framed by the core business drivers that are relevant to every business:
PRODUCTS AND SERVICES
PEOPLE AND RELATIONSHIPS
SYSTEMS AND PROCESSES
FINANCIAL STRENGTH “…Recoveriescorp has a focus on achieving results for clients and a strong commitment to motivating people.” – Staff Engagement Survey participant, 2016.
1996 John Wauchope is invited to join the Board of Directors.
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Acknowledging the culture and values of all, a â€˜Bush Tucker outback Christmasâ€™, 2015.
Exclusive Mercantile Agency purchases the ACS (Accounts Collection Software) System to develop as its proprietary software.
Recoveriescorp recognises the need to diversify its business model from insurance and expands into general receivables management.
“…Recoveriescorp appreciates that it is acting as the public face of the client and is always professional in the way it treats debtors.” Client Listening Project, 2015.
We believe that our people are our most valuable asset. Our individual and collective behaviours influence the way in which we interact with our colleagues, clients, third parties and the broader community. Our culture is anchored around 5 core values:
2002 Exclusive Mercantile Agency Pty Ltd is re-branded RCL Mercantile Pty Ltd.
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Our Culture & Values At recoveriescorp, we are committed to the development of our employees and promote a working environment where achievements are recognised and rewarded. We aim to create a workplace where our employees: • enjoy working
Amazing Race participants, May 2016.
• take pride in their performance • work together to achieve success for our clients • feel valued for their contribution • see a future for themselves • recommend a career at recoveriescorp to others.
RCL Services celebrating Bula Day together in Fiji.
2003 Sholl Nicholson is rebranded Mason Black Lawyers. Mason Black Lawyers establishes an office in Sydney.
CORPORATE SOCIAL RESPONSIBILITY OUTLINE AND PURPOSE First launched in 2014, the aim our Corporate Social Responsibility (CSR) Program is to make a difference and create an organisational culture consistent with our icare values, where staff are encouraged to contribute in an active manner to the community and the environment. To enable CSR objectives to be met, paid volunteering days are awarded to all recoveriescorp team members, enabling them to participate in a cause or contribute to a charity they have a connection with.
OBJECTIVES OF THE CSR PROGRAM With a number of business, ethical, social and leadership objectives, the CSR Program aims to: • D emonstrate that the Board, senior leadership team, leaders and staff across the Recoveriescorp Group are connected in their commitment to the community • Increase staff engagement at recoveriescorp • Demonstrate good corporate citizenship
Children’s Tumour Foundation ‘BeUnique Photography’ competition entry by talented team member and finalist, Amaran.
Our CSR partners for 2015/16 Create Foundation, Children’s Tumour Foundation, and Asylum Seeker Resource Centre (ASRC).
• A ttract staff to recoveriescorp who have a personal alignment with our values • Extend staff loyalty • Provide another avenue for collaboration across teams • C ontinually enhance our workplace relationships – a tight-knit, homogeneous environment • Increase brand awareness • Contribute to achieving an Employer of Choice status • B uild leaders who are able to create socially responsible, ethical and community minded teams.
Recoveriescorp is awarded its first major Banking and Finance client.
After launching successfully into the banking and finance sector, recoveriescorp is awarded its first major government contract.
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Performance at a Glance FY14
HIGHLIGHTS 30 June 2015
Mason Black Lawyers
To support our customers and educate them about the benefits of meeting and532 employees fulfilling their debt obligations, while treating them with respect at all times.
To support and strengthen our clients’ businesses by working with third parties to settle outstanding claims that they are legally and morally obligated to pay.
To position the firm as the ‘trusted legal partner’ for commercial, 532 employees insurance and individual clients.
• Customer web portal optimised for mobile devices
• Specialised people search training delivered
• Experienced an overall growth across all services
• Diallers expanded into commercial business unit
• Staff engagement increased by 19%
• Merged with Raboy & Associates
• Voice analytics software pilot program
• Implemented improvements identified through a cycle time
• Enhanced Quality Improvement Program piloted
• F inalist in the Auscontact Awards in the Team Leader/ Team Manager category
No. of Files
• Achieved high volumes of new instructions in workers comp team and commercial team 30 June 2015
Outsource/Insource program becoming preferred model for management of sensitive and secure environments.
• Strengthen uninsured recovery rates • Reduce cycle times through analytics and innovation
Becoming appointed with Lloyds of London and joining their syndicate to increase the referral work from underwriters.
RCL Mercantile Pty Ltd is re-branded Recoveries Corporation Pty Ltd.
David Mond is appointed Managing Director.
30 June 2016
• Increase in town agency work from outlying towns in NSW, VIC and QLD
$2,150,093,162 $2,500m $1,786,128,017
Government & Commercial
To create a workplace where people enjoy working, have a pride in their performance, work together to achieve success for our clients and feel valued for $733m their contribution.
To maintain trust of all stakeholders in the To plan and manage our finances though sound policies and practices, to maximise way our business is managed and our net return to clients and safeguard our controlled. continued financial sustainability. 699,022
• Staff Engagement remained the same as last year at 61%
ISO re-certifications for 4 standards:
• 50 leaders participated in leadership $690m $684m programs development
• 295 new staff completed induction training
• Achieved EBITDA of $6.7M
ISO 9001 ISO 14001
• 15 high potential staff graduated from the Aspire program
• 85 staff participated in accredited customer service training
30 June 2015
30 June 2016
We collected almost $3 million per business day during FY16, or around $733 million for the year • Continue to build staff engagement 532 employees • Deliver staff training pathway
Continue to operate effectively and efficiently and mitigate risks.
Continue to achieve business and 532 employees revenue growth. 453 employees
$5.9m $4.6m 453 employees
30 June 2015
30 June 2015
30 June 2016
2008 Reminder Call Services Pty Ltd, a subsidiary of the Recoveries Corporation Group is born to diversify operations. $5.9m
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Our Leadership TEAM Board of Directors & Executive Team John Wauchope Oam, Chairman
David Mond Managing Director and CEO Chairman of Recoveries Corporation Group Limited since 2007, John has extensive experience in the insurance/finance sector. He holds board positions with private and not-for-profit companies involved in legal services, risk management, partnership marketing and community health.
A founder of Recoveries Corporation and its former Chairman, David was appointed Managing Director and CEO of Recoveries Corporation Group Limited in 2007. A member of the company’s Audit and Risk committee and Chairman of the Remuneration committee, David is passionate about driving the growth of the Group businesses and continually enhancing client services and the use of technology.
His public sector experience includes local and state government, with a number of board appointments to statutory bodies including the Country Fire Authority and Western Water Corporation (Deputy Chairman).
David holds a Bachelor of Economics degree, is a Fellow Certified Practising Accountant (FCPA), specialising in Taxation. He is also a Fellow of the Tax Institute of Australia, a Member of the Australian Institute of Company Directors and is a registered tax agent and Chartered Tax Advisor.
John is a Fellow of both the Australian Institute of Management and of the Australian Institute of Company Directors. He was awarded the Order of Australia Medal (OAM) in the 2016 Queens Birthday Honours.
John looking very dapper while celebrating his daughter’s wedding. (1991)
David’s youthful enthusiasm when setting up the business. (1991)
Recoveriescorp holds the Project Productivity and Performance theme and competition encouraging innovation.
The Directors of the Recoveries Corporation Group Ltd invest in Nimrod Finance Pty Ltd, a debt purchasing service provider.
Leon Sholl Director
Joan Fitzpatrick Director Joan is an experienced company director and leader. Her executive and director experience covers the corporate, government and not for profit sectors and she has a strong track record for working collaboratively across different stakeholders.
Leon has practiced as a Litigation Lawyer for 40 years in all jurisdictions of Australia. A founder of recoveriescorp and Mason Black Lawyers, Leon has built long standing relationships with recoveriescorp’s clients and has been a key driver in the company’s success.
Joan has a reputation of achieving successful business outcomes in complex change environments. A qualified barrister, she was attracted to a management career which began at 20th Century Fox’s fast moving consumer goods enterprise in London. Joan went on to hold senior management roles in heavy manufacturing industries, large start-up projects in Europe, and international insurance operations in Asia. For over 16 years, she worked as CEO and Director of the Australian and New Zealand Institute of Insurance and Finance (ANZIIF).
Leon is heavily involved in the daily management, particularly all legal matters, compliance and governance. Leon has represented the following insurance companies at different times over the last 35 years: T & G Fire & General, CML Fire & General, GRE General, HIH Insurance, FAI Insurances, Switzerland & General, Zurich Insurance, Lumley Insurance, QBE Insurance, Western QBE Insurance, MMI Insurance, RACV Insurance, NRMA Insurance, CGU Insurance, AAMI Insurance, Suncorp, GIO General Limited and HBA Insurance.
Few people would recognise the regal, wise Director that we see today. (1991)
Joan in her early career in the insurance industry. (1991)
Joan has a diverse portfolio of non-executive director roles, consulting and pro bono charity work. She is the Chair of ARPC, the President of ESS Superannuation Board, and her concurrent non-executive directorships include, CCI, Defence Bank, MIGA, Sacré Coeur, and SAFA. Joan is a Member of the World Vision and Greenfleet Business Advisory Councils and consults across a wide range of organisations in the areas of strategic planning, leadership, governance and risk.
2009 Recoveriescorp is a finalist in the ANZIIF Service Provider to the Insurance Industry Awards.
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Our Leadership TEAM Executive Team Nicholas Harrak Head of Government and Commercial
James Higgins Group Manager Finance and Administration
Nick joined recoveriescorp in January 2000 and is an excellent example of our policy of promoting from within. Possessing a results-oriented philosophy and a hunger for innovation, Nick has encouraged continuous improvement within our operations and client relationship teams.
James joined recoveriescorp in 2010 as the Group Finance Manager. With over 20 years of experience working as a Chartered Accountant, James has worked with some of Australia’s leading Insurance and Financial Services organisations in a variety of roles, covering both operational and strategic responsibilities.
Nick’s operational background teamed with his client relationship skills makes him well rounded across all facets of the business.
James is responsible for the Group’s varied financial and business support functions and direction.
Nick’s role is to lead the end-to-end Government and Commercial business unit with a focus on the continued improvement of service delivery, growth, profitability and people development.
A sweet and innocent Nick at his Year 10 deb ball. (1991)
Not much has changed with this laid back, cool, finance manager. (1991)
Recoveriescorp is successful in obtaining its first major telecommunication contract.
Recoveriescorp manages its first Debt Purchase Ledger contract.
Trudie Balthazaar Group Manager People, Culture and Marketing
Jonathan Agnew Head of Insurance With more than 16 years of experience in the Insurance industry, Jonathan possesses a broad understanding of operations and strategic management at all levels. Jonathan brings with him a wealth of experience in the management of large teams, business critical projects, supplier relationships, budgeting and financial management.
Trudie has more than 25 years of experience in senior leadership roles across the government, insurance and finance sectors. She is an experienced organisation development manager with proven background in strategic planning, change management and leadership development. She has a key focus on aligning the people and culture strategy to the business strategy of an organisation.
Jonathan’s role at recoveriescorp is to lead the end-to-end Insurance Recoveries Operations with a focus on the continued improvement of service delivery, growth, profitability and people development.
Trudie leads a team of HR, Recruitment, Learning and Development, and Marketing and Communication specialists to enhance and promote the brand of recoveriescorp and to develop a values based work environment.
Jonathan left recoveriescorp in August 2016, after 8.5 years of service. Since his departure, the business has integrated insurance to fall within Nick Harrak’s new mandate as Chief Operating Officer.
The hair was even bigger in the 90’s for Trudie. (1991)
Jonathan enjoying some down time in his ‘bach pad’. (1991)
2010 New tagline “More than just impressive numbers” is launched.
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Our Leadership TEAM Executive Team Ziggy Frankenfeld General Manager Strategy
Craig Rowe Chief Information Officer
Ziggy has worked with recoveriescorp management since January 2008, assisting with business strategy. He has spent more than 20 years in executive leadership roles, and became finance director at one of South Africaâ€™s largest IT companies, founded an IT infrastructure and systems business, was appointed CEO to an Australian telecommunications company and has since worked in a range of industry sectors.
Craig is a skilled IT professional with 20 years of experience in a variety of technical and leadership roles. For 15 of these years he has been working directly for recoveriescorp and Advanced Collection Systems. With a background in software development, Craig has been instrumental in implementing innovations in our collections system (ACS) and associated interfaces, driving business process improvements. His experience and understanding across different industry sectors has allowed him to effectively manage various client and IT relationships at all levels.
Ziggy is responsible for the development and implementation of new strategies including related M&A activities to ensure recoveriescorp continues to achieve best practice, operating to its maximum capacity.
A distinguished gentleman, even in his early years. (1991)
Craig is responsible for Information Technology operations and the strategic direction, ensuring current and future requirements are met.
The exquisite grooming and sense of style was evident even in Craigâ€™s early days. (1991)
Recoveriescorp wins the ANZIIF Service Provider to the Insurance Industry Award.
Recoveriescorp achieves ISO 14001 and OHAS 18001 certifications.
2017-19 Stategic Business Planning (May 2016).
Recoveriescorp celebrates its 20th year anniversary.
Recoveriescorp expands its operations to Suva, Fiji.
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Recoveriescorp achieves ISO 27001 and ISO 9001 certifications.
icare values launched.
“A drive for quality processes, integrity and values is the backbone of this business.”
Our Services In 1991, David and Leon formed a company to offer a contingent claims leakage audit service to Australian Insurance companies. This innovative concept presented a unique selling proposition that meant insurance companies would receive unexpected bottom line growth as these files were dead and buried in long forgotten warehouses.
It was at this time the Board decided to diversify and expand from insurance based collections to what was then known as General Recoveries. Between 2003 and 2005, we were successful in a number of major tenders and quickly evolved into one of the leading insurance and general recovery agents in Australia.
David and Leon recognised that the life span of a pure finalised audit business was limited. As a result, our current Chairman, John Wauchope was invited aboard in 1996, to assist in the concept development of “New Way”- a full recoveries outsourcing solution to Insurance companies.
Today, Recoveries Corporation Group Ltd specialises in the following services:
We wanted to distinguish ourselves from competitors by adopting a highly professional approach reflecting Leon’s legal background and David’s CPA and Tax Agent history. This led to a drive for quality processes and values as the backbone for a successful and respected business model.
• Insurance Claim Recovery
• Reminder Call Services • Debt Recovery Solutions
• Insource • Trace & Collect • Litigation Management While our services are adaptable to all industries, we have strength and extensive experience servicing the Banking, Finance, Government, Insurance, National Utilities and Telecommunications sectors.
icare Award is implemented.
New PDR system is introduced.
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OPERATIONAL SUMMARY GOVERNMENT & COMMERCIAL Digital Optimised our customer web portal providing greater integration with digital technology to streamline our collection process. We also enabled our web portal for all mobile devices enhancing functionality for clients.
Developed a program to better understand the reasons customers have failed to comply with their contractual payment terms. Our objective is to assist our clients to understand the issues faced by their customers and enable them to take preventative measures to reduce the escalation of debt.
Insurance Quality and training
Technology Expanded our latest version of diallers into the commercial business unit, maximising our collection capacity and allowing more staff to connect and speak to customers at the same time.
Partnered with Detective Desk to implement people search training for all staff. Detective Desk is Australia’s leading people search database. The valued partnership with Detective Desk has enabled us to upskill our staff so they have a better understanding of location technics and maximising search databases.
Quality and training Designed and piloted an enhanced Quality Improvement Program (QIP), heavily focused on effective delivery of customer service and active listening. This empowers our staff to have natural, free flowing and respectful conversations with customers.
Analytics We conducted and implemented improvements identified through a cycle time project on our early stage work. By applying the Lean methodology on early stage tasks, we were able to reduce the files cycle time, implement automation within the process and achieve higher efficiency and productivity rates.
Undertook a pilot program with voice analytics software, which uses speech and emotion detection to evaluate calls in real-time, providing useful and timely feedback and quality control, insights on staff performance and improved consumer experience. Redesigned our communication suite, using behavioural economics, to effectively engage with customers.
Recoveriescorp wins the ANZIIF Service Provider to the Insurance Industry Award.
New tagline “connect. engage. succeed.” is launched.
MASON BLACK LAWYERS Operating Revenue From a background of insurance and debt collection, Mason Black Lawyers has grown its Commercial Litigation Insolvency business to critical mass. $5.92m
Excludes interest and FBT Income
Mason Black Lawyers, Sydney Team (2016)
Mason Black Lawyers moves their office to Level 5, 505 Little Collins Street.
First staff engagement survey and focus groups introduced.
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Recoveriescorp 2015 Spin Cycle Challenge event held in conjunction with Commonwealth Bank Tour de Cure – Riding to Cure Cancer. Learn more at tourdecure.com.au
Induction Rebadging and developing our induction program – ‘Ignite’, the program has been enhanced to provide practical job-ready training, mapped to staff who receive a nationally accredited Certificate III in Customer Engagement.
Our People Staff Engagement The results of the staff engagement survey provides us with data relating to engagement levels and this year, the survey was expanded to include more breadth. Whilst engagement scores remain the same as last year at 61%, this represents a positive result in that we experienced a period of growth and significant change through the year. Our practice is to hold team focus groups to present survey results and involve staff in recommendations to build aligned engagement across the group. In order to ensure effective icare values role-modelling, separate focus groups involving the senior leaders were also held.
We’ve worked hard on a buddying booklet and enhanced our mock-calls to provide realistic experiences and views. The implementation of hand-over process, which involves the Team Leader, Learning & Development Trainer and the new Team Member meeting to discuss training, their performance and their new role. Stress & Resilience sessions have also been developed and implemented to aid team members through induction periods.
Learning Management System We continue to use our internal Learning Management System to full capacity, developing a corporate online induction, ongoing compliance training, with a particular focus on ISO requirements and post-course training evaluations sent after every course. Demonstrating continued success during audits, we continue to receive excellent feedback from trainees in ease of use and efficiency of ‘Greenlight’.
Health and Wellbeing Program is implemented.
New quarterly Interacts are introduced.
Proud ‘Aspire’ Program graduates.
2014 Recoveriescorp wins the prestigious NAB Supplier Awards in the Product/Service Excellence category.
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Our People continued Leadership Development The third ‘Aspire’ program was launched in December 2015 to a group of 14 emerging leaders. The program commenced with a highly challenging offsite experiential designed to take our emerging leaders out of their comfort zones. The program then continued with workshops on emotional intelligence, situational leadership and team development. The program will continue until the calendar year end, with modules aimed at developing the communication, feedback, coaching and presentation skills of participants to prepare them for leadership roles.
A group of 15 emerging leaders graduated from the second ‘Aspire’ program in November 2015 in a ceremony, which enabled them to present their learning and growth through the program in a highly engaging and fun manner. A number of these graduates achieved promotions to leadership roles either during the course of the program or immediately after completing the program, which again demonstrates the ability of the program to build confidence, emotional maturity and leadership capabilities to equip staff for leadership positions. New Team Leaders and Team Support Officers participated in the ‘Inspire’ program designed to build the leadership bench at recoveriescorp. Senior leaders and executives participated in ‘Lean Thinking’ and ‘Personal Branding’ workshops.
Victor, leading the way for other ‘Aspire’ program graduates.
Mason Black Lawyers joins forces with Kempsons Lawyers and expands its services into individual markets.
Joan Fitzpatrick joins the Board of Directors.
2017-19 Strategic Business Planning (May 2016)
Operational Training Technical skills coaching has been implemented throughout the business to support our teams and leaders. The coaching framework sees staff setting their own SMART goals alongside call coaching, shadowing and self-reflection through call calibration.
Accredited Training We continue our partnership with a local RTO to deliver a dual Certificate IV in Customer Engagement and Business. Along with the development of a learning pathway, we renamed our Effective Conversations program to Catalyst. We have worked closely to customise content for our staff completing the course to make sure it is relevant to their roles. Content has also been streamlined so that all our programs speak the same language to staff ensuring a consistent message. We consistently receive great feedback on both the approach and facilitator abilities with a particular love of the session on Personal Leadership. The Catalyst program complements the learnings from our Ignite Induction and is the next level in AQTF standards.
Corporate Learning & Development Calendar The Corporate Calendar saw sessions on running effective meetings for operational staff. This session was developed to enhance and build on their core capabilities in an area which had previously never been focussed on before. As part of our Absenteeism strategy, Positive Mindset and Self-Motivation sessions assisted staff in this identified area. A Presentation Skills program was delivered to 30 staff across the Group in an approach to raise their capabilities and confidence in this core skill.
2014 First Client Listening Project is completed with recoveriescorp receiving an NPS of +48.
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Nearshore Expansion In the 2015-16 financial year, recoveriescorp commenced the next stage in our near-shoring relationship with Fiji. An investment of more than $2 million in our own state-of-theart facility enabled the organisation to take our hybrid resourcing model to the next level, giving us direct control over recruitment, training and quality assurance.
blended between our Melbourne and Fiji operations based on the profile of the account, enabling us to manage sensitive data on-shore while benefiting from the cost efficiencies of limited off-shore activity. This next stage of investment in Fiji will not only allow for an increased capacity of up to 400 seats over the next two years, but uniquely positions recoveriescorp to provide business process outsourcing (BPO) services to existing and new clients.
Recoveriescorp commenced our Fiji operation in August 2011, allowing us to offer our client partners a resourcing allocation in Australia complimented by a dedicated team in Fiji to manage enhanced strategic components of the When combined with the continued growth of insourcing collection workflow and increase penetration and contact services provided to our clients in the 2015-16 financial year with customers. This model assists us to provide enhanced and our traditional collections service offering, this expanded recovery rates and a greater net return to our client partners. BPO capability provides recoveriescorp with options to assist The true value of the hybrid model is that the client contract our clients with an even broader array of their outsourcing requirements. is managed from Australia and all outbound calls are
â€œOur $2 million state-of-the-art facility will enable the organisation to take our hybrid resourcing model to the next level.â€?
Corporate Social Responsibility program is launched.
Recoveriescorp wins the ANZIIF Service Provider to the Insurance Industry Award.
Technology Australia is a country of early adopters when it comes to new technology. Likewise, recoveriescorp takes pride in our ongoing commitment to ensuring our organisation remains at the leading edge of technological innovation in the collections industry. The 2015-16 financial year has seen recoveriescorp continue to invest in the maintenance and development of our industry leading, collections management platforms, including our collections based CRM and workflow tool for operators, automated and self-service reporting systems and our integrated digital interfaces.
In addition to the continued development and improvement of our central platform, providing the highest standard of information security is of utmost importance to our clients. â€˘ W e have again been Information Security Management ISO 27001:2013 certified and maintain a tightly controlled information security environment that is audited both internally and externally on an annual basis. â€˘ W e continue to invest in industry leading Business Continuity and Disaster Recovery infrastructure procedures that offer our clients certainty of service delivery.
Our information technology department includes over twenty dedicated resources, ensuring we have the agility to offer our clients innovative solutions without compromise. Weâ€™ve invested over $10m in systems development as part of our commitment to continuous innovation. This has enabled us to work collaboratively with our clients to deliver a platform that can rapidly deploy large scale collections projects as and when our clients need us to.
2015 Abhijeet Waghmode wins the 2015 Victorian Auscontact Contact Centre Professional of the Year Award.
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Corporate Governance Recoveriescorp is committed to operating effectively and efficiently, mitigating risks and safeguarding our future.
Recoveries Corporation Group Ltd Board As the governing body of Recoveries Corporation Group Ltd (RCGL), the Board recognises and acknowledges its obligations to its shareholders, employees and others such as those that it has contractual arrangements with, to ensure that RCGL conducts its activities in accordance with the highest professional and ethical standards.
Corporate Governance In discharging its overall corporate governance responsibilities the Board ensures that: • the affairs of RCGL are managed in a proper manner • the financial accounts and the annual report of RCGL are approved • p rocesses and systems for achieving proper accountability, probity and openness in the conduct of RCGL are in place • there is appropriate transparency in its dealings and that there is effective communication of appropriate information
The Board is responsible for the proper governance of RCGL, its strategies and policies, monitoring organisational • processes and procedures are in place through an effective and management performance, appropriate resource and efficient Committee process to inform and facilitate the allocation, risk management, compliance with statutory Board’s decisions obligations and appointment of key positions and appropriate • appropriate delegations to management are in place to delegation to management to ensure that RCGL statutory ensure that the decisions of the Board can be properly duties are achieved. implemented and that statutory or other requirements can The Board’s role is one of stewardship, not management. be complied with. This includes the following primary functions: The role of each Board member is to add value to the Board’s Strategic Direction responsibilities as described in the Board Charter. The Board sets the strategic direction of RCGL. This includes: • a pproval and continuous review of the strategic plan designed to deliver shareholder objectives, meet stakeholder needs and ensure the continued growth and success of RCGL • a greement as to the risk profile of Recoveries Corporation and its risk mitigation strategies • a pproval of budgets to ensure that there is appropriate resource allocation
Members have an obligation to comply, at all times, with both the spirit and the letter of the Board’s Code of Conduct. This includes requirements relating to confidentiality and conflicts of interest. To assist the Board in discharging its stewardship role, the Board has appointed specialist committees to focus on particular Board responsibilities. The committees provide informed advice and feedback to the Board and where appropriate, make recommendations. The activities of the each specialist committee can be found on pages 34 – 36.
• reviewing the performance of the CEO.
Julie McNamara wins the 2015 Victorian Auscontact People’s Champion Award.
ATO Insource project commences.
Career Planning Program is launched.
First annual report is developed.
Recoveries Corporation Group Limited
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Audit and Risk Committee The Audit and Risk Committeeâ€™s responsibilities encompass oversight of the risk management process including compliance, external audit (so far as this is practicable) and internal audit. The Committee met three times over the year to undertake the responsibilities detailed below. The Audit and Risk Committee also provided advice to the Board on specific matters that the Board referred to it for consideration and advice.
Audits a) reviewed and approved both the internal and external audit plans b) met with PricewaterhouseCoopers to discuss and sign off the annual financial statements.
Risk Management Framework a) reviewed the amended risk management framework for the company and made recommendations for further research b) received management reports on business continuity and were informed about the planned disaster recovery test c) reviewed the Business Continuity Committee charter.
Compliance a) met with management to ensure that RCGL has instituted appropriate monitoring of compliance activities b) made appropriate enquiries to satisfy itself that all regulatory compliance matters, related to the business of RCGL, had been considered in the preparation of the financial statements. The Chair of the Committee for the financial year was Joan Fitzpatrick.
Recoveriescorp achieves an NPS of +52.5 and sets a benchmark for B2B organisations.
ISO recertifications for four standards:
Remuneration and Capability Building Committee The Remuneration and Capability Building Committee has been established to take specific responsibility for recommending to the Board of Recoveries Corporation Group Ltd the policy and practice for appointments, remuneration review process and, terms and conditions for all employees. The Remuneration and Capability Building Committee, through the Chair, manages the appointment process of the Chief Executive Officer (CEO) and will make recommendations to the Board in relation to appointments and remuneration, including that of the CEO. The Remuneration and Capability Building Committee also advises and makes recommendations to the Board on employment issues. Over the financial year, the Remuneration and Capability Building Committee met on two occasions and carried out the following delegated responsibilities: • r eviewed and considered reports from the Group Manager People, Culture and Marketing in relation to employment issues, including staff recruitment, engagement and retention • r eviewed and noted the annual review of key HR related policies for the Recoveries Corporation Group • r eviewed the results of the annual staff engagement survey and considered the action plan developed by management to address the key issues identified • r eviewed and noted a new performance plan template for executives across the Recoveries Corporation Group • r eviewed and considered a management report incorporating an annual market review of salaries and noted recommendations for salary increases for employees for the 2016/17 financial year • r eviewed and made recommendations to the Board on the remuneration of the CEO for the 2016/17 financial year. The Chair of the Committee for the financial year was Joan Fitzpatrick.
Recoveriescorp reaches 500 employees.
Mason Black Lawyers merges with Raboy & Associates.
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The Committee also monitors legislative changes affecting the business, monitors progress against compliance policies and initiatives, sets the required actions to ensure compliance with all legislative requirements and delegates responsibility for implementation of the required actions to management. With focus on continuous improvement, the Committee reviews compliance results on an ongoing basis to set new strategies and policies.
The Compliance Committee has been established to drive the legislative compliance direction of the Recoveries Corporation Group Ltd. The Compliance Committee identifies, assesses and implements actions to ensure compliance with current legislative changes and recommends the overall strategic direction for the Group around compliance. The Committee comprises membership of key personnel across the Group who hold roles that have The Compliance Committee met on two occasions over the a direct influence on the ability of the Group to ensure a high financial year to undertake its duties and approve degree of compliance in all of its activities. compliance related Group policies and procedures. The Chair of the committee for the financial year was Leon Sholl, Corporate Counsel / Solicitor Director
Driving the legislative compliance direction of the Group, the Compliance Committee monitors legislative changes affecting the business.
New company in Fiji is created called RCL Services.
Julie McNamara is appointed National Manager â€“ Fiji.
ISO Certification Recoveriescorp is committed to the continual improvement of our internal processes to ensure enhanced business performance for our clients. This commitment is demonstrated by our certification to four international standards: ISO 9001 - Quality Management Systems (QMS) ISO 27001 - Information Security Management Systems (ISMS) ISO 14001 - Environmental Management Systems (EMS) OHSAS 18001 - Occupational Health & Safety Management System (OH&SMS) These certifications are highly valued by our clients, and importantly they guide our day-to-day activities and support a culture of excellence and integrity. Everyone working at recoveriescorp is expected to meet the compliance requirements of these standards and they form part of our employment contract with all staff. The following summarises the benefits of each standard: ISO 9001 – Quality Management: This standard ensures that our work procedures are clearly documented so that we can apply them consistently and deliver the same outcomes every day. This standard also provides the framework for constantly looking for improvements to the way we work to improve service delivery, effectiveness and efficiency. ISO 27001 – Information Security: Protecting our clients’ data is a fundamental requirement especially in a business that deals with Personally Identifiable Information. This standard provides the framework for this protection. This standard is a very important and difficult one to implement and we are proud that we have been able to maintain this certification over the last 5 years. OHSAS 18001 – Health and Safety Management: Ensures we are safe at work. ISO 14001 – Environmental Management System: Ensures we consider the impact of our business activities on the environment. As per the ISO requirements, we undertook both an internal and external audit every year for all our four certification standards. We successfully met the requirements for all recertification audits, and were re-issued with certifications. These will be valid for the next three years. Each one is monitored via a surveillance audit conducted annually.
2016 Recoveriescorp celebrates its 25th year anniversary.
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Consolidated FINANCIAL PERFORMANCE OVERALL FINANCIAL POSITION The Groupâ€™s revenue continues to increase every year and this year has been very successful. Representing a 22% increase from the previous year and 4% above budget, our income exceeded $40m for the first time in our history. The Group remains in a strong financial position, having reported EBITDA for the financial year ended 30 June 2016 of $6.7m, which is a pleasing considering the cost of investment required to set up our new Fiji stand-alone operation. Our balance sheet remains strong with a working capital ratio well above our target of 1.00. Debt levels are manageable (and reduced over the year), while overdraft facilities were not used during the year.
Revenue FY13 $m
Insurance Mason Black Lawyers
increase IN REVENUE
25,000 20,000 15,000
Our current assets are predominantly cash and accounts receivables. Our cash position continues to remain strong with over $5m held at the end of the financial year. The Groupâ€™s account receivables have increased in line with our increased revenue for the year however our working capital ratio has improved. This is due to our current liabilities being maintained at prior year levels with borrowings kept lower and all creditors being paid on time and within applicable terms of payments. We continue to invest for the future with a maintained spend on Property, Plant and Equipment, plus one of costs associated with the set-up of our Fiji operation.
1.20 1.00 0.80 0.60 0.40 0.20 0.00
EXPENSES Salaries and wages continue to be our largest single expenditure item, and comprise around 63% of our total expenses. Total Expense were again within 5% of the budgeted amount for the group. All stakeholders take full responsibility for their budget area and ensure that resources and funds are spent wisely.
Receipts from Clients (000s)
Recoveriescorp is the main operating business within the Recoveries Corporation Group Limited. The Group had positive net operating cash inflows from operating activities of $2.6m and $5.6m in the last two financial years.
Although the Group has access to bank overdrafts, these have been used sparingly over the last few years due to the strong cash flow position of the Group.
30,000 25,000 20,000 15,000 10,000 5,000 0 FY13
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Acknowledgments David and Leon would like to thank our staff, clients and business partners for their loyalty, continued support and long lasting memories over the last 25 years. We look forward to the continued success on our journey together.
Recoveries Corporation Group Limited Phone: 03 8627 0600 www.recoveriescorp.com.au