New international standard on complaints handling Bill Dee SOCAP International Symposium Melbourne 2004

Introduction Quality Management: Customer Satisfaction--Guidelines for Complaints Handling (ISO 10002). As an international standard it operates globally Recognises that complaints management is part of quality management Recognises complaints handling as part of customer satisfaction

Introduction Released by ISO on 8 July 2004 Standards Australia International considering its adoption.

How the standard can be used Set some criteria for a system to handle complaints from consumers; Set in place processes to be able to improve products and services and the complaint handling system itself.

Guiding principles Visibility Does the public know where to complain? How “visible” is your organisation’s complaint handling process. Is it easy for customers to know where to complaint ( Clause 7.1 of standard

Guiding principles Accessibility Do the public know how to complain? Is it easy to access staff who deal with complaints? Do customers have choice on how to complain ( Think segmentation: Youth through , SMS; Older consumers, phone, forms) Accessibility is about not what is convenient for you but what is convenient and easiest for consumers

Guiding principles Think of processes to make it easier to complain: besides numbers of choices ( , SMS, forms, letters,Phones) can assist by taking details electronically over the phone. Is it easy or difficult to complain? The more formal the complaints handling system the less accessible it is.

Guiding principles Responsiveness How quickly are complaints dealt with? Do you set time limits in which complaints are dealt with? Need to set realistic but challenging times to deal with complaints. Objectivity Complaint to be judged on its merits & fair to all concerned ( Annex C gives detailed guidance)

Guiding principles Customer-focused approach An organisation that adopts a customer- focused approach invites complaints & is committed to solving complaints. “ Your problem is our problem” Accountability Someone in the organization needs to take responsibility for complaints handling Reporting up the chain is important

Guiding principles Continuous improvement Collect data, look for root causes & fix them

Framework: What’s needed to set up a complaints handling system Commitment Top driven ( Board and CEO) Adequate resources Culture of fixing problems Complaints handling policy Need to set out why you do it and how to do its Staff need to aware of policy& procedures

Framework: What’s needed to set up a complaints handling system Responsibility & authority Top management must demonstrate active interest in setting up and reviewing the CH system All levels of management & staff must have allocated responsibility regarding complaints handling (“Who does what, When”) Need a senior manager responsible for ensuring that complaints handling is implemented and managed

Framework: What’s needed to set up a complaints handling system Large firms need a CH Manager to implement and ensure CH system functions effectively Line mangers need to be allocated relevant responsibility for CH and implement it CH/ front line staff need to be trained and have the right skills for CH. All staff should be aware of CH procedures and their role

Planning & designing the system Objectives Complaint handling objectives to be set at relevant functions & levels ( e.g Time limits, reports) Objective need to be measurable Set at regular intervals as performance requirements

Planning & designing the system Activities Planning of process to be carried out to achieve customer satisfaction CH process to be linked with quality management systems e.g. product & design inadequacies recognised through complaints feedback needs to be fed back into product & service design process

Planning & designing the system Resources Top management need to assess & provide adequate resources as needed May include personnel, training, procedures, documentation, specialist support, software & hardware & finances Selection,support & training of CH personnel is important

Operation: the day-today operation of the system Communication To invite complaints/problems need to have accessible material explaining the complaints process in plain language Complaints receipt Need to record relevant details of complaint Complaint Tracking Complaint should be tracked through entire process

Operation: the day-today operation of the system Complaint acknowledgement Need to acknowledge receipt of complaint Initial assessment Need to assess in terms of severity, safety implications, complexity, impact & need for immediate action.

Operation: the day-today operation of the system Investigation of complaint Need to investigate all relevant circumstances & info surrounding the complaint. Level needs to be commensurate with seriousness. Response to complaints Organisation should offer response after investigation e.g.correct the problem. Communicating the decision Need to communicate the decision as soon as it is made

Operation: the day-today operation of the system Closing the complaint If complainant accepts the decision action should be carried out & recorded If complainant rejects the decision complaint should remain open & recorded & complainant informed of any internal and external recourses available

Maintaining the system & improving products & services Information Collection Analysis & evaluation of complaints Satisfaction with the complaints handling process Monitoring Audit Continuous Improvement

Maintaining the system & improving products & services Management Review

Appendixes Guidance for small business. Form for complainant. Objectivity Complaint follow-up form; Responses; Escalation flow chart; Continual monitoring.

Appendixes Audit