1. Excellence in IDR FOS Conference 2 nd and 3 rd June 2011 Bae Bastian and Meredith Walker

2. 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

3. 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

4. Challenges for IDR 1.Speed, effectiveness and efficiency of policy and process 2.Collecting the correct information 3.Showing efficiency and effectiveness 4.Effective Triage 5.Finding time for professional development

5. 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

6. 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 experience of sales person Important steps for achieving a resolution

7. Analysing What are the crunch facts? An action A documentA 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?

8. Skill Competency FairnessUses the law, good industry practice, principles of natural justice and commercial acumen to achieve fair outcomes to complaints Relationship managementCommunicates 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 issuesStays abreast of emerging issues in the regulatory environment Systemic & sensitive issuesIdentifies and escalates potentially systemic and/or sensitive complaints Skills of a Dispute Resolver

9. Fundamentals of Negotiation

10. 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

11. 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.

12. 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

13. 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

14. 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

15. 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.

16. Principles for communicating a decision

17. 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

18. 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

19. 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

20. 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.

21. 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

22. 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

23. 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

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

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?

26. 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 http://www.fos.org.au/centric/home_page/resolving_disputes/fos_terms _of_reference_e_learning_sessions.jsp Operational Guidelines http://www.fos.org.au/centric/home_page/about_us/terms_of_reference _b/operational_guidelines.jsp http://www.fos.org.au/centric/home_page/about_us/terms_of_reference _b/operational_guidelines.jsp Circular http://www.fos.org.au/centric/home_page/publications/the_circular.jsp http://www.fos.org.au/centric/home_page/publications/the_circular.jsp Order brochures online http://www.fos.org.au/centric/home_page/publications/publication_order _form.jsp http://www.fos.org.au/centric/home_page/publications/publication_order _form.jsp