Excellence in IDR

FOS Conference 2nd and 3rd June 2011

Bae Bastian and Meredith Walker

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

Fundamentals of Negotiation

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.

Principles for communicating a decision

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

Providing Information Manageable chunks Organise Advance organise Sign post Number List White space

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