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Wednesday, May 14, 2008

 

VIEWS FROM A BRIT
By Mike Wootton
Accurate billings?

 
It has taken me a long time to realize that here in the Philippines, bills from major utilities and service providers are frequently incorrect. This is a major cultural difference; in Europe it would be very unusual to receive a bill that was incorrect, but here it appears to be an accepted fact of life (and of course they all come monthly, so there are lots more of them).

Dealing with this apparently small quirk requires a lot of wasted effort to address. To get a statement of say a year’s billings and payments is a major challenge; shouldn’t information like this be issued as a matter of course? From an annual statement it is easy to see if the same number of payments have been made as have been billed.

Poor billing accuracy and timeliness is one thing, but when combined as it is here with aggressive debt collection efforts it becomes a nightmare. Don’t pay, cut you off, whether the bill is right or wrong! One service provider agreed recently that they hadn’t sent a bill but asked that we pay the amount first, after which they would send it! Telephone queries generally just beget standard “scripted” answers.

Greater efficiency in this sort of thing would bring about better cash flows (perhaps?) accurate data.

I suspect that at the root of this problem is a quality issue, basically you “get what you pay for.” Employing 5 mediocre people at the minimum wage is not necessarily as good as employing 2 very competent people at P20,000/month. To say that the procedures and training will allow for the employment of people at the lowest wage rates is to miss the point, and to depend heavily on IT systems for generating billings and debt collection (such as the SMART telecomms) systems is a mistake. So basically this is a management issue and put the way I have put it above is a management issue which has longer term disadvantages to the Philippines economy. The Philippines prides itself, and rightly on having a friendly generally English speaking workforce, used to working with foreigners etc, and there is no doubt that in many sectors the quality of Filipinos is world class in terms of technical competence—the medical profession for example. But Filipinos generally blossom best when working outside the Philippines.

The quality issue here is not with the professional grades, it is with the administrative levels who in many cases appear to be subordinate to computer systems and not given the opportunity to develop—“why would we do that when a computer system can do the job as well (or better)?” It’s another aspect of infrastructure, a quality administrative capacity and capability is needed in order to make things work properly—if a foreign investor has to employ more people than it would elsewhere, purely to check frequently erroneous billings from organizations that would be expected to know better and do a better job in this area, then does it really matter that labor is cheap? I think not, foreign investors need a ready availability of competent administrative people, and to have this in the Philippines needs “incubators” where lots of good quality administrative people can be developed. So rather than letting the ever increasing capabilities of IT systems completely take over the administrative function let’s please see a few opportunities for growing administrative quality. Wouldn’t it be nice to talk to a real live human being when calling PLDT or SMART, banks, or any of the other organizations who operate those irritating computerized telephone enquiry services which now, to add insult to injury also include advertisements which have to be listened to before you can even get to the menu. You never know this may even create a few more job opportunities for those without specialized skills!—and lots of those are needed, in the Philippines as in other less developed countries there is a need to provide job opportunities rather than reduce the high costs of employment, by replacing people with “machines” as is the case in the developed world—hope I don’t sound too much like a Luddite!

___

Mike can be contacted at mawootton@gmail.com

  
 

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