Conflict Management Systems

The Nature of Conflict Management Systems

Conflict Management Systems comprise the cultures, policies and procedures used by organisations to prevent, manage and resolve problems, complaints, disputes and conflicts.

At the heart of each system lies an Internal Complaint Handling System.

Internal Complaint Handling Systems manage two classes of problem - internal and external. 

Internal problems include workplace disputes between:

•  Employees and employees.
•  Employees and management.
•  Management and management.
•  Directors/partners and other directors/partners.

External problems include problems with customers, clients and other stakeholders.

Internal Complaint Handling Systems provide an additional facility for resolving disputes quickly, informally, inexpensively and constructively.  They do not replace or exclude any of the options normally available to complainants, such as recourse to the courts however, properly run systems prevent the vast majority of complaints from ever developing into disputes that could be referred to litigation.

We design best practice conflict management systems to suit the needs of individual businesses, organisations and professional bodies.  In each case we empower the organisation to resolve most grievances, complaints and disputes by using their own resources (ie: properly trained personnel), working within a clearly defined system of processes and authorities.

We are currently working on a major project to introduce Complaint Handling Systems into selected doctors' surgeries in Victoria as a "grass roots" response to the medical indemnity crisis.  The idea is to detect and rectify patients' problems much earlier - so there simply won't be any need for medical litigation.  Accordingly, the doctor's new Complaint Handling Systems are regarded as essential components of risk management and as an opportunity to improve their standards of patient relationship management. 

When problems can't be resolved safely and efficiently using internal resources, Dispute Solutions provides additional support services, including external dispute resolution options and facilities, such as expert appraisers and mediator and arbitrator panels.

Conflict Management System Components

A comprehensive conflict management system has three main components:

•  Dispute Prevention
•  Complaint Handling & Dispute Management
•   Dispute Resolution.

Stage 1 - Preventing Disputes

There is no substitute for doing business well and this includes minimising the risk of disputes arising in the first place.  Major causes of disputes include dissatisfaction with goods and services and commercial/personal relationship breakdowns.

Dispute prevention requires effective quality control over goods and services and effective relationship management at all levels in an organisation - in respect of both internal and external relationships. 

While the first is a conventional management challenge, the latter depends on having and using appropriate policies, procedures and training - designed to create a positive and open culture, focused on accountability, service and respect.

Stage 2 - Complaint Handling

Defensiveness and lack of accountability are indicators of the type of poor organisational attitudes that often lead to corporate vulnerability, especially in workplace matters.

Complaints should be encouraged and regarded as free market feedback. They should be treated as a gift from staff, customers and other stakeholders – at least they cared enough to let you know how they feel about your products, services, management or workplace!

Effective complaint handling is at the leading edge of modern dispute resolution systems.  As the first point of contact, it should be visible, accessible, user-friendly and effective.  Over 95% of all complaints and potential disputes can and should be inexpensively resolved at this level by properly trained and empowered staff.

Stage 3 - Dispute Management

Unresolved complaints should be advanced to the next level in the system for a more structured response.  This will usually be a form of mediation process.

A third party, usually a person of higher seniority who should be properly trained in problem solving and negotiation, gets involved at this stage.   Their role is to provide a more structured response to the problem and to its resolution.  Their involvement is usually taken by the complainant as confirmation that their complaint is being taken seriously.  This, in itself, is an aid to resolution.

Stage 4 - Dispute Resolution

If mediation fails the organisation should offer at least one further resolution stage.  This may be a form of arbitration – where (in this context) the process can impose a binding determination on its own organisation/respondent, but not on the consumer/complainant.

If the complainant accepts the determination, it becomes legally binding on all parties and the dispute is settled.  If the complainant rejects the determination, all normal options (eg: litigation, small claims tribunal etc) remain available to them. 

However, the determination may be admissible as evidence in any such proceedings.  This can be very helpful as it prevents vexatious litigants from proceeding with unmeritorious cases as they will be liable for costs if they lose, or fail to significantly improve their positions through the additional action.