excellence in idr fos conference 2 nd and 3 rd june 2011 bae bastian and meredith walker
TRANSCRIPT
What we will cover: What is best practice? What are the key challenges for IDR as we see it Important steps in the process for achieving a
resolution - considerations for any process Professional dispute resolution behaviours Fundamentals of negotiation Principles for communicating a decision
Excellence in IDR
1. Visibility
2. Accessibility
3. Responsiveness
4. Objectivity
5. Free of charge
6. Confidentiality
7. Investigation of complaints
8. Customer focused approach
9. Resolution of complaints
10. Accountability
11. Continual improvement
What is best practice? AS ISO 10002
Challenges for IDR
1. Speed, effectiveness and efficiency of policy and process
2. Collecting the correct information 3. Showing efficiency and
effectiveness4. Effective Triage5. Finding time for professional
development
Engaging
Letting the customer know you are investigating the complaint
If someone is acting on behalf of the customer, confirming this and then engaging with the representative
Understanding
Using the customer’s words to describe the complaint rather than words that reflect a corporate process
Finding out up front what the customer wants to resolve the complaint
Making sure you have a copy of any document the customer relies on
Important steps for achieving a resolution
Gathering
Considering whether a chronology would help
Assessing what best industry practice is in the circumstances of the complaint
Collecting all of the information from all areas eg: loan file, collections notes, financial difficulty team’s notes, relationship manager’s emails, marketing material, PDS, policies,
extent of experienceof sales person
Important steps for achieving a resolution
AnalysingWhat are the crunch facts?
An action
A document
A legal principle
A principle of best industry practice
Resolving
What would fairness dictate should be the outcome?
What is the appropriate financial compensation?
Is non financial compensation payable?
Can you negotiate a resolution of the complaint?
Can you make a decision?
Skill Competency
Fairness Uses the law, good industry practice, principles of natural justice and commercial acumen to achieve fair outcomes to complaints
Relationship management Communicates with clients in ways that are respectful of their individual circumstances and conveys they are valued as customers
Speed, Communication, File Management
Keeps clients informed, meets time frames and treats complaints with appropriate urgency
Emerging issues Stays abreast of emerging issues in the regulatory environment
Systemic & sensitive issues Identifies and escalates potentially systemic and/or sensitive complaints
Skills of a Dispute Resolver
Why does a complaint become a dispute? People have fixed expectations Conflict of interests Beliefs and perceptions Each side defends their own position Bad communication Defensive spiral
Getting to “yes”
Separate the people from the problem
“It’s not important who is right and who is wrong.
We have a complaint, how can it be resolved”
Understand the parties’ interests – needs, wants,
fears and concerns.
Review entire dispute – after following Important steps for achieving a resolution– Understand what the customer is complaining about
and what specific action has given rise to the dispute?– What issues arise from the claim? Eg
maladministration, misleading conduct, mistaken payment
– What are areas that the FSP could have improved on which may have resulted in a different outcome?
– What is the customer seeking? Is it within your scope to provide?
Peel back the onion
An effective negotiator will take the party through the Past, Present and Future
Past– Advise what your understanding of the dispute is– Allow time for them to discuss what has happened – Active listening (time to listen to their perspective)
Making the first call
Present– Reaffirm where the matter is up to now and what the
purpose of your call is, what is your role in the process;– What is the outcome of any review you have made.
Can you clarify any aspect of their dispute? What is within your scope to resolve?
– Discuss what information you may require to progress the matter;
– When appropriate – move to the next stage
The Future– What do they consider may resolve their dispute?– If that was not possible are there any other things that
they have thought may resolve the matter?– Appropriate to suggest anything if you think it may
address their interests.
Mindset You are probably trying to persuade someone
to understand something that is new to them but familiar to you
You are probably trying to persuade someone to accept something that it is not what they want
The more emotionally stressed a person is, the less capacity they have for understanding complex issues
Mindset You need to convey that you have tried to be thorough
and impartial
You have to imagine that your letter may be looked at by: the customer, the customer’s family, friends, lawyer, accountant and the media
You are trying to ensure that you retain the customer
The customer wants respect and individual attention
You are trying to fulfil the standards for best practice in complaint resolution
What will persuade A sense of having been heard and understood Logic Organised information Incontrovertible facts supported by appropriate
documents Clearly identified decision turning points
How does a customer read?There are basically 3 different ways in which a reader will read when looking for information:
Skim read the whole document for understanding Thoroughly read the whole document from top to bottom for
understanding Skim read the document to find the one piece of information
they are interested in
You have to write to suit all 3 types of reader because you do not know which kind of reader the customer (or the customer’s partner, friend, lawyer or accountant) is.
Memorise these 25 numbers
99, 32, 55, 78, 908, 23,11, 4, 889, 235, 22, 74, 77, 91, 56, 876,12, 47, 68, 37, 75, 84, 97, 88, 91
Memorise these 25 numbers
1, 4, 8, 9, 19, 2, 15, 12, 25, 10, 13, 11, 20, 23, 14, 16, 24, 17, 6, 21, 18, 7, 22, 3, 5
Memorise these 25 numbers
1, 2, 3, 4, 5, 6, 7, 8, 9, 10,11, 12, 13, 14, 15, 16, 17,18, 19, 20, 21, 22, 23, 24, 25
Sample letters
What do you think the problem was - what had occurred?
What was the customer complaining about?
What was the real issue?
Do you think the response answered the customer’s complaint/concerns?
What would you do differently?
www.fos.org.au FOS Terms of Reference Elearning sessions
http://www.fos.org.au/centric/home_page/resolving_disputes/fos_terms_of_reference_e_learning_sessions.jsp
Operational Guidelineshttp://www.fos.org.au/centric/home_page/about_us/terms_of_reference_b/operational_guidelines.jsp
Circularhttp://www.fos.org.au/centric/home_page/publications/the_circular.jsp
Order brochures onlinehttp://www.fos.org.au/centric/home_page/publications/publication_order_form.jsp