When managing an underperforming third-party collection agency, I start by reviewing the data to identify performance gaps; such as recovery rates, aging trends, or compliance issues. I would also compared to agreed KPIs. From there, I take a structured approach by conducting a performance review, digging into call logs, recovery strategies, account types, and collector behavior to understand the root cause. Next, I would schedule a performance call with the agency to go over the data, re-align on contractual goals, and understand any challenges they’re facing. Implement Corrective Action Plan with clear, measurable targets. I typically require weekly updates during this period to track progress closely. If improvement doesn’t follow within a reasonable period, I escalate to contractual consequences, such as reallocating volume to better-performing agencies or suspending placements altogether.