Continuing with the Council’s topic of the month, Ownership and Governance Structures, this week I want to focus on the importance of structures in impacting incident resolution and problem management processes.
Our research shows that when we receive customer complaints, many of us attempt to simultaneously resolve the complaint and uncover the root cause of the problem. However, since root cause analysis is often complex and time-consuming, this approach slows the institution’s response to the dissatisfied customer. Compounding the problem is that, since it takes a while to identify the root cause, this approach also leads to the same issue recurring multiple times before anyone can address its source. In a global survey we ran last year, almost 60% of dissatisfied customers indicated they experience the same issue more than once! We’ve uncovered a different approach; one that involves a slight change to organizational structures but has a significantly positive impact on the quality of issue resolution.
I’m referring to a best practice we profiled from an institution we call Shipley Financial, Tiered Service Management System. Shipley illustrates the need to establish separate teams to manage incident resolution and the root causing of those incidents. The tiered system helps the institution recover from service incidents in a more timely manner, while also removing the source of customer dissatisfaction to prevent the same incident from occurring multiple times.