Conflict Management

Overview

"Conflict Management" has become a buzzword in modern business.  It has both positive and negative connotations:

Negatives

A dramatic increase in litigation (volume and value of liability claims) in recent years has generated crises in indemnity insurance in many professions, eg: medical, auditing, engineering etc. 

While Conflict Management has been regarded as integral to effective risk management in the US for many years, Australia has been relatively slow in its adoption. 

Some major industries, such as banking, insurance and telecommunications, have introduced Ombudsman schemes to handle consumer complaints as an outsourced, institutionalised mechanism for self-regulation and litigation-avoidance.

Codes of Conduct and Consumer Complaints schemes have generally been introduced through Regulations, supported by Trade Practices legislation, rather than through voluntary adoption (eg: the franchise and film industry schemes). 

In many cases Government has led the charge, which is commendable in itself, but disappointing in terms of the comment it makes about Australian business.

Some professional groups have begun to embrace conflict management as the systematic, "human response" side of risk management.  Again, this is generally a reaction to risk, rather than a pure practice improvement initiative.  

Positives

Conflict Management can also be used positively, as in the "a complaint is a gift" approach to customer relationship management (CRM).

This approach encourages business : customer / client interaction on the basis if there is a problem, the business is better off knowing about it so the problem can be fixed, rather than lose a customer and/or sustain a damaging claim.

AAMI provides a well-known example of a major business that has adopted and promoted itself through its customer charter as a form of service differentiator - with significant success.

Conflict Management Systems

Conflict Management Systems can be established in businesses and organisations of almost all sizes. 

Dispute Solutions is one of Australia's most experienced systems designers.  Read on for more information:

• Concepts - Conflict Management Principles 
• Applications - Conflict Management Systems
• Certification - Conflict Managed Organisations