revenue transformation: achieving your optimal potential identifying, visualizing, correcting and...
TRANSCRIPT
Revenue Transformation:Achieving Your Optimal Potential
Identifying, visualizing, correcting and securing current and additional municipal revenue
Defining Revenue Transformation0
Revenue Security
Revenue Alignment
Revenue Information
• Securing current revenue• Alignment of all stakeholders, departments,
policies and procedures that influence revenue chain.
• Continuous improvement of underlying information
• Generating dynamic exception reports• Achieving optimal potential = Revenue
Transformation
Revenue Transformation
Revenue Exceptions
Establishment of a Dedicated, Focused Revenue Transformation Unit
RTU- Revenue Transformation Unit
+ + + =
Key - Stakeholder Management
Local Government Challenges – “Case for RTU”
1. Rapid Development and Growth
2. Lack of resources
3. Increasing Bad Debts
4. Insufficient Funding
5. Rising Number of Indigents
6. Unfunded mandates
7. Meeting development objectives including LED
8. Balancing an unfair scorecard
1
Establishment of a Dedicated, Focused Revenue Transformation Unit
RTU- Revenue Transformation Unit
Revenue Raised
Revenue Needed
Balancing ActMeasuring Success
Typical reactions to revenue challenges
Focus on Turn Around Strategy1) Identify Need for Revenue Enhancement
Strategy
2) (A) Collection of Debt and (B) Cleansing of Data
A) Debt Management Initiative• Appoint Debt collection company• Focus on “Lost Income”• No Focus on underlying Issues• No Impact on “Future Collection Rate”
B) Data Cleansing Initiative• Appoint Data Cleansing company• No Focus on underlying Issues• Time based, and not sustainable• No Focus on “Value Chain”
2
Establishment of a Dedicated, Focused Revenue Transformation Unit
RTU- Revenue Transformation Unit
Excellence is not skill it’s an attitude. Ralph Marston
Billable Revenue Potential - 100%Rates, Water, Refuse, Sewer,
Electricity
90% 10%
Budgeted Revenue1 100%
Billed Revenue2 90%
Revenue ForegoneDiscounts / Rebates
Unbilled Revenue& “Internal usage”Revenue LeakagesAdjustments
A B
*
**
**
Collected Revenue
Bad DebtsPotential Fraud
3
Over-Billing
80% DC
**
Key
Reve
nu
e R
isks
Key
Reve
nu
e S
tag
es
Latent Revenue
Revenue growthCorrecting Data & find Missing Data Increasing overall potential
Revenue leakages
Dedicated RTU - Increasing Billable Revenue Potential
Secure Current Revenue and Unlock additional billable revenue& “New” Revenue
B & B StrategyVacant LandAgriculturalInterims
110%
100% Revenue potential is based on assumption that all information is correct and all properties are accounted for.
100% Budgeted Revenue based on 90% accuracy of underlying information
Stakeholder Management
110%
Revenue Reservoir4
0
Revenue Leakages
Revenue Security
Establishment of a Dedicated, Focused Revenue Transformation Unit
RTU- Revenue Transformation Unit
100
50
25
75
Rates
Leakages
Rebates Forgone
100 %
50 %
Income Tank
Basic Services / Availabilities
Leakages
Stakeholder ManagementMeasuring Success
100 %
50 %
Establish Dedicated Revenue Transformation Unit
Unique PwC Solution
Our experience tells us that a one size fits all approach to revenue transformation will not succeed.
Supported by innovative use of PwC technology - VIM
VIM - A location based methodology1
SHIFT THE FOCUS TO“LOCATION BASED
ACCOUNTING”& EXCEPTION REPORTING
ADDING A COMMONKEY TO ENTIRE DIGITAL
FOOTPRINT
BENEFIT: Increased Accuracy
& Revenue
GOAL: INCREASED REVENUE
International Support
National Support
Senior Off-Site Manager
Local Office with 2 Full-time staff members
Dedicated local team with a global reach
Establishment of a Dedicated, Focused Revenue Transformation Unit
Aerial Layer
Bulk Deeds Layer
Cadastral Layer
Financial Layer
TP Application
SG Approval
Deeds Registration
Interim Valuation
Building Application
Interim Valuation
Integrated Truth
Unique PwC Solution
a b
VIM – Key features2
Unique TechnologyRevenue Process Alignment
c dIntegrated Decision-making
Increased Revenue
Integrated window into existing systemsA common key approach to all erven allows VIM to extract information from all your current systems.
Align strategy and operationsEnables operations to be effectively aligned with organisational strategy.
Reduced decision making cyclesConstant involvement of various cross-departmental staff and the visual features of VIM enables reduced decision making cycles.
Increased Revenue The fundamental benefit to any municipality is increased revenue as depicted in the table below in the Knysna Municipality example.
Establishment of a Dedicated, Focused Revenue Transformation Unit
STEP 2ASSESSMENT
(Revenue Footprint)
STEP 1IDENTIFY NEEDS
(Apply Revenue Lens)
STEP 3PRESENT FINDINGS(Revenue Potential)
STEP 5RESOURCES
(People & Technology)
STEP 4APPOINTMENT(Establish RTU)
STEP 6CONSTANT REVIEW(Find New Revenue)
VIM – Step by Step process4
Establishment of a Dedicated, Focused Revenue Transformation Unit
• Focus on Revenue Security
• Holistic Data Integration
• Revenue Transformation Management
• Establishment of a dedicated focused Revenue transformation Unit
• Dynamic stakeholder engagement
• Revenue process improvement
• Sustainable solution
• Accurate and complete billing and debt collection
• Location based methodology tried and tested
• Transfer of skills
• Assistance towards a clean audit outcome
Why is PwC VIM Solution so UniqueWhat is difference and Benefits of PwC solution
FOCUS ON MUNICIPAL PROPERTY RATES ACT 6, 2004
ACT 6, 2004
EGOV WEBSITE
Objection FormsSec 49 Notice
INFOMATE SYSTEMVALUATION ROLL
Valuer's Notice
Appeal Forms
RATES IS ABOUT PEOPLE & NOT JUST PROCESSESCommunication & PR are vital components for a successful GV
Sec 52 Notice
Our national footprintPietersburg
Kimberley
Bloemfontein
Ladysmith
DurbanDe Aar
Saldanha
MosselBay
PortElizabeth
PRETORIA
IndianOcean
ac
Cape Townd
d
e
i
j
h
f
g
a
ce
b
a
Upington
Johannesburg
b
RichardsBay
a. Bitou
b. Amahlathi
c. Inxuba Yethemba
d. Khara Hais
e. Great Kei
a. Khara Hais
b. Drakenstein
c. Makana
d. Ndlambe
e. King Sabata
Dalindyebo
f. Sol Plaatjie
g. Ga Segonyana
h. Govan Mbeki
i. Mkhambathini
j. Big 5 False Bay
a. Greater Kokstad
b. KwaDukuza
Implementation -
MunicipalitiesAssessment -
Municipalities
Data Cleansing -
Municipalitiesb
STEP 6
Find New Revenue
“Continuous Change”
Bel
ow th
e Li
neA
bove
the
Line
STEP 1
IDENTIFY NEEDS
Apply RevenueLens
Show “Case for Change”,
STEP 2
ASSESSMENT
Focus RevenueFootprint
“Need for Change”,
STEP 3
Focus on RevenuePotential
“Potential for Change”,
STEP 4
Apply Common Key
“Committed to Change”
STEP 5
Maintain Revenue
“Implement Change”
Policy Review, Interview key personnel, and High level Rates Overview
Quick WinsKey findingsDepartment AnalysisAdded Value
APPOINTMENT
1
23
4 5
FINDINGSRESOURCES
Tariff ReviewPolicy Review,Rates ModelingCompliancechecking, Unique View
Hands on daily analysis, deal directly with ratepayers, secure revenue, change forms
Innovation, ideation, advanced visual information management
6
Bench Marking,Case Study,Financial Model and RevenueEnhancement Initiatives
Revenue enhancement never happens by accident you need resolve, vision and
be willing to make a long term commitment to quality information management
REVIEW
Where to from here : - You have already taken the first step are you ready for Step 2
“Commitment to change”
“Case for change”
PwC VIM Solution• Questions & Answers
• The way forward
Revenue Transformation never happens by accident you need resolve, vision and be willing to make a long term commitment to quality information management
Contact details
We thank you for providing us with the opportunity to present to you. We will provide any additional
information you may require and will gladly discuss any of the items contained herein.
19
Andrew Fick
Associate Director
E mail: [email protected]: +27 (0) 21 529 2363Mobile: +27 (0) 82 446 4390