High ratio of bad debts
Is this caused by: (a) Taking on too many risky clients? (b) Not providing the services promised? (c) Or not chasing the accounts quickly enough?
(a) If it from taking on too many risky clients, this could arise from the existing risk strategy not being communicated to sales people clearly. But if no decision has been made of what is risky and what is not, it is more likely a Strategic issue.
(b) But, if the company does not provide the quality of services expected, this is a Production or an Accountability problem.
(c) Yet, it could be purely an accounting issue.