Business Plan

Transcription

1 Business Plan

2 Message from the Chief Ombudsman we have modified and improved the original proposals to ensure they work more effectively for both applicants and FSPs. We have retained a strong focus on quality throughout the change, and it remains a key area of focus for our Business Plan. The changes to our disputes process will also be underpinned by a number of technology enhancements, including an improved document exchange portal and an enhanced online dispute form, to be introduced later in at a glance I am pleased to be able to report that we delivered strongly on all of the priorities in our Business Plan. Significant achievements included eliminating our backlog, streamlining our dispute process and continuing to improve the quality of user experience for both applicants and financial services providers (FSPs). Backlog eliminated We eliminated our backlog in case management by December 2014, and at all stages of our dispute process in June This meant that for the first time since FOS was established in 2008 we are operating without a backlog - a significant achievement, that saw us well placed to transition to our new streamlined dispute process in July this year. New streamlined dispute process Our new streamlined dispute process will deliver a simpler, quicker process and improved experience for both FSPs and applicants. It involves:» a new process to fast-track decisions for simpler and low-value disputes» a new registration and referral process» provision of specialist expertise earlier in the dispute process and the reduction of multiple touch points and process stages» a more efficient financial difficulty dispute process that provides for earlier contact, flexible pathways and consistent decision making, and» a new format for decisions that more effectively communicates the outcomes of disputes to both applicants and FSPs. I would like to thank all our stakeholders for their responses to our consultations, participation in the various pilot projects, and for working with us both directly, and through industry, consumer and other meetings. As a result of this, Progress of Independent Review recommendations With the implementation of the new dispute process on 1 July 2015 (along with changes that have been made to our Terms of Reference) the majority of the FOS Board endorsed recommendations from the Independent Review have been implemented, with the remainder to be finalised by September Our plans for the coming year Our objectives for maintain our focus on delivering an efficient and effective dispute resolution service, enhancing our stakeholder and continuing to develop our organisational capabilities and infrastructure. Our plans involve us keeping a strong focus on implementing our new ways of working, active with all stakeholders, and delivery of the planned technology changes. We are enhancing our quality assurance framework, improving early identification and action on systemic issues, and further developing the monitoring and compliance services we provide to the Code Committees. We are committed to making our service as accessible as possible for consumers, including taking into account the increasing interaction with us online. Our work in this area is a key priority over the next 12 months. Thank you This has been a transformational year for FOS. The steps we have taken to improve the timeliness and quality of our dispute service would not have been possible without the continuing commitment and hard work of FOS staff, the support of the FOS Board, our members, consumer organisations and a wide range of other stakeholders. I look forward to working with the FOS Board, FOS staff, and all our stakeholders in the year ahead as we build on what we have achieved over the last few years, and continue to improve the independent and impartial dispute service we provide to the Australian community. Shane Tregillis Chief Ombudsman Total disputes received (up by 1% from previous year) Total disputes closed (up by 4% from previous year) Financial difficulty disputes accepted (down by 12% from previous year) Systemic Issues resolved Number of investigations of alleged breaches of industry codes of practice with 238 confirmed breaches Number of members Phone calls handled by our contact team (down 5% from previous year) Visits to our website (up by 3% from previous year) 31,895 34,714 4, Licensees: 4,849 (up 0.1% from previous period) Authorised credit representatives 9,258 (down 11% from previous period) 210, ,542» BUSINESS PLAN 02

3 Mission Our * Strategic Plan Our mission is to fulfil an important community role by providing an independent dispute resolution service in which people can place their confidence and trust. This involves understanding all sides of a dispute and resolving it fairly and efficiently. Our Strategic Plan aims to meet the six external dispute resolution (EDR) benchmarks prescribed by the Australian Securities and Investments Commission (ASIC). Our focus continues to be on delivering an efficient and effective dispute resolution service, successfully managing our public role and stakeholder, and further developing FOS s organisational capabilities and infrastructure. We aim to be: Respectful Efficient Trustworthy Forward thinking EDR BENCHMARKS ACCESSIBILITY INDEPENDENCE FAIRNESS ACCOUNTABILITY EFFICIENCY EFFECTIVENESS How we help We resolve disputes between consumers and Financial Services Providers: in a cooperative, efficient, timely and fair manner with minimum formality and technicality, and as transparently as possible, taking into account our obligations for confidentiality and privacy. THREE- YEAR FOCUS WHAT WE WANT TO BE Delivering a more efficient and effective dispute resolution service A customer-centric service for consumers and financial services providers An organisation that monitors and improves its performance. Enhancing our public role and stakeholder A trusted organisation The authority on financial services disputes resolution and an influential voice on how to prevent disputes Ensuring organisational development and sustainability A smart, efficient and responsible organisation An organisation with passionate people, effective systems, clear plans and a conscience This involves understanding all aspects of a dispute without taking sides, and making decisions based on the specific facts and circumstance of each dispute. WHAT WE NEED TO DO» Set and meet time and service standards for all our dispute resolution services» Improve user experience» Maintain and enhance the quality of our dispute resolution services» Promote our service, actively engage and maintain stakeholder support» Share our knowledge, experience and insights» Raise community awareness of FOS» Routinely seek stakeholder feedback and act on it» Embed new ways of working as part of our desired behaviours and culture» Attract and develop highly skilled and engaged people» Develop, maintain and enhance e-enabled solutions that improve performance and deliver operational efficiencies * Our three year Strategic Business Plan has been extended by one year to reflect our continued focus on the three key priorities above.» BUSINESS PLAN 04» BUSINESS PLAN 05

4 Our performance in Our performance in Delivering a more efficient and effective dispute resolution service Enhancing our public role and stakeholder Our plans What we achieved Our plans What we achieved Eliminate dispute backlog by 31 December 2014.» Eliminated our dispute backlog across all dispute resolution teams. There are no disputes at FOS that have been unallocated for more than seven days at any stage of the FOS dispute process.» Introduced a new format for decisions that more effectively communicate the outcomes of disputes to both applicants and FSPs. Review and enhance our stakeholder strategy.» Actively engaged with FSPs and consumer organisations through the development and implementation of the new dispute process, using:» member e-newsletters» an interactive process map tool» videos» forums» webinars» stakeholder events» face-to-face meetings.» FOS organised or participated in more than 60 events for members and consumer advocates and other stakeholders.» Expanded our community outreach activities to include financial capability workers and community/legal representatives.» Undertook two stakeholder surveys to evaluate the level and quality of communications through the process changes. Redesign our dispute process to resolve disputes in a more timely, efficient and fair manner. Align the Systemic Issues function with improvements in dispute resolution process and approaches.» Redesigned our dispute process to provide specialist expertise earlier in the process and reduced multiple dispute touch points and process stages.» Introduced a new registration and referral process to give FSPs a final opportunity to resolve their dispute directly with their customers before the FOS investigation begins.» Implemented a new process to fast-track decisions for simple and low-value disputes.» Implemented a more efficient financial difficulty process that provides for earlier contact, flexible pathways and consistent decision-making.» Reviewed and amended our Terms of Reference to support the new process and jurisdiction.» Undertook four major quality reviews and four applicant surveys and improved the way we deal with disputes as a result.» Improved our reporting framework and analytics in line with the new dispute process.» Increased phone contact with FSPs and expedited the allocation of possible systemic issues.» Enhanced our internal quality assurance practices and encouraged the use of Plain English in all our communications.» Prioritised and enhanced the process for referring instances of serious misconduct to ASIC.» Eliminated the queue of possible systemic issues awaiting investigation. Improve the accessibility of FOS for consumers.» Commissioned a Web Content Accessibility Guidelines (WCAG) Audit and commenced work to enhance the way information is presented on our website and in publications» The FOS Accessibility Working Group developed new guidelines for FOS staff to improve the accessibility of our service with a focus on disadvantaged and vulnerable consumers.» Developed a new electronic statement of financial position and online dispute form to improve the accessibility of FOS forms.» Continued our efforts to reach community groups, such as Aboriginal and Torres Strait Islander peoples and culturally and linguistically diverse communities. Code: Enhance the Code monitoring function and processes.» Developed a risk-based assessment model to identify key emerging risks in each Code Compliance sector.» Developed electronic document exchange between the FOS Code Compliance Team and financial services providers. The online portal went live 1 July 2015.» BUSINESS PLAN 06» BUSINESS PLAN 07

5 Our performance in Our performance in Enhancing our public roll and stakeholder Ensuring organisational development and sustainability...continued Our plans What we achieved Our plans What we achieved Promote financial services providers understanding of systemic issues obligations and functions.» Actively engaged with FSPs to discuss systemic issues and raise the awareness and understanding of systemic issues obligations and functions.» Provided quarterly systemic issues reports to FSPs. Continue to develop our people s and expertise to support the reform of our dispute resolution process.» Implemented a new organisational structure and successfully transitioned all FOS staff to new roles and responsibilities.» Carried out change management training for all FOS staff and commenced our new ways of working.» Implemented a new learning management system and delivered staff training to ensure expertise in the new process.» Updated technical materials in line with the new process. Delivered staff training to ensure expertise in the new process. Code: Promote stakeholder understanding of Code Compliance.» Successfully transitioned Code subscribers (insurance broking and customer owned banking sectors) to their respective revised Codes of Practice.» Aligned secretariat operations and Code governance frameworks across all Code Compliance sectors. Continue to strengthen our internal governance and resource management processes to support the way we operate our business.» Reviewed and enhanced our internal governance practices and procedures to support the new process.» Consulted with our members and implemented a revised funding model which commenced on 1 July Deliver IT initiatives to support the new dispute resolution process.» Reviewed and improved our information management practices and IT infrastructure to support the new dispute process.» Developed a document exchange portal for both FSPs and applicants, to be launched in October 2015.» Improved and further developed our case management system to support the new dispute process. Code: Coordinate the Code governance and operational processes alignment.» Implemented a quality assurance process to ensure consistency, quality and continuous improvement.» Refined the secretariat function to ensure effective delivery of Code liaison activities.» BUSINESS PLAN 08» BUSINESS PLAN 09

6 Our strategic measures Our performance and our targets Strategic focus Success measures targets performance targets Delivering a more efficient and effective dispute resolution service Applicant satisfaction Percentage of applicants who report a satisfactory or better dispute resolution experience at FOS Applicant satisfaction level: Registered disputes: 95% applicants satisfied Closed disputes: 75% applicants satisfied Discontinued disputes: 70% applicants satisfied Applicant satisfaction results have improved since last reported. In :» 94% of applicants with registered disputes were satisfied with their dispute resolution experience.» 73% of applicants who have disputes closed were satisfied with their dispute resolution experience. In , we will implement measures to evaluate and improve the experience of applicants and FSPs in our new dispute process. Our aim is to lift overall applicant satisfaction levels as follows Registered disputes: 95% satisfied Closed disputes: 80% satisfied Discontinued disputes: 70% satisfied» 52% of applicants with a discontinued dispute were satisfied with their dispute resolution experience. Clearance ratio A retrospective indicator that compares how many disputes we closed with how many we received 103% 112% Our clearance ratio has increased significantly over the last 12 months as we eliminated our dispute backlog. 103% In we will not be lifting our clearance ratio, as the backlog of disputes has now been cleared and we will be operating our real time dispute resolution process. Projected overload An indicator that estimates how many currently open cases will not be closed within our 6, 12 and 24 month standards. 0-6,472 This measure will be discontinued given the elimination of our backlog. Age profile of open disputes Percentage of open disputes that are less than or equal to 365 days old Percentage of open disputes that are less than or equal to 180 days old. 95% 97% open disputes are less than or equal to 365 days old. 95% are less than or equal to 180 days old. Time to close disputes The age profile of closed disputes. 80% 180 days 95% 365 days 83% of disputes were closed within 180 days. 95% of disputes were closed within 365 days. For disputes received after 30 June 2015, 95% 180 days For disputes received before 1 July 2015, 100% closed by 30 June Disputes closed per quarter per dispute FTE This provides a measure of the dispute handling process at FOS. It does not account for changes in product type or dispute complexity Enhancing our public role and stakeholder Stakeholder survey responses Qualitative assessment of stakeholder satisfaction with level and quality of in the Dispute Process Reform program implementation Measure overall satisfaction that FOS is meeting the needs of stakeholders. Stakeholders indicate they are satisfied with the level and quality of FOS with them as part of the Dispute Process Reform program Respondents across 2 pulse surveys rated their satisfaction with the level and quality of with them as part of the Dispute Process Reform program as >7. This is on a scale of 0 (extremely dissatisfied) to 10 (extremely satisfied). 7.0 on a scale of 0 (extremely dissatisfied) to 10 (extremely satisfied) are satisfied that FOS is meeting their needs. In , FOS will be conducting a major survey similar to that conducted in Ensuring organisational development and sustainability Staff score Survey responses measuring the level of staff and alignment with our values and behaviours. Environment audit rating The National Australian Built Environment Rating System (NABERS) rating of organisation s impact on the environment Corporate Full Time Equivalent (FTE) to total FTE The percentage of support staff (corporate) to staff directly involved in dispute resolution <=15% 10% increase in the number of FOS staff who report feeling engaged in the workplace This is a biannual survey. The next one is due in star rating 5 star rating 5 star rating 15% 15% 15% 10% increase in the number of FOS staff who report feeling engaged in the workplace.» BUSINESS PLAN 10» BUSINESS PLAN 11

7 Our plans for Our plans for Delivering a more efficient and effective dispute resolution service Enhancing our public role and stakeholder Improve the experience of users of our dispute process» Implement, review and refine our new dispute process.» Continue to engage and collaborate with key stakeholders in the implementation of the new dispute process.» Sustainably reduce dispute resolution timeframes without compromising quality. Meet time and service standards for dispute resolution and enhance our analytics» Enhance the way we identify and respond to dispute trends and volatility of disputes received.» Set and monitor service standards for efficient and effective dispute resolution.» Develop tailored programs for FSPs or industry specific remediation programs to deal with significant events. Maintain and enhance the quality of our dispute resolution» Further develop and integrate our quality assurance function to improve the experience of both FSPs and applicants. Enhance our systemic issues function and approach» Continue to develop the early identification, management and reporting of systemic issues and serious misconduct. Code: Continue to develop the Code Compliance and Monitoring function and processes Review and enhance our stakeholder strategy» Promote the important role of FOS and consumer trust in financial services, in the broader community.» Continue to actively engage with our existing members and promote FOS as the external dispute resolution scheme of choice.» Enhance our strategy for our smaller members. Improve the accessibility and awareness of FOS for consumers» Continue to raise consumer awareness of FOS through outreach activities.» Build partnerships with key organisations such as community legal centres, financial counsellors and legal services.» Revamp our website to improve accessibility.» Ensure our dispute process is accessible for vulnerable and disadvantaged consumers.» Continue to measure stakeholder perception of FOS to enhance overall service delivery. Code: Promote stakeholder understanding of Code Compliance» Share insights from code compliance activities.» Ensure stakeholders are engaged and can access our code compliance function.» Improve code subscriber and consumer experience of code investigations and compliance monitoring.» Enhance effectiveness of code compliance and monitoring services.» BUSINESS PLAN 12» BUSINESS PLAN 13

8 Our plans for Ensuring organisational development and sustainability About the Business Plan Continue to attract and develop highly skilled and engaged staff» Deliver specialised training to support staff in the new dispute process.» Continue to develop management leadership and change management capabilities. Embed our new ways of working as part of the FOS desired behaviours and culture» Establish ongoing activities to embed our new ways of working.» Embed, review and refine our workforce planning to support the new dispute process. Develop, maintain and enhance e-enabled solutions that improve performance and operational efficiencies» Implement a new Human Resources Information System and Payroll System.» Review and improve our information management practices and current IT infrastructure in line with our e-enablement strategy. Code: Deliver training programs to equip Code staff in new Code Compliance and Monitoring processes» Deliver training programs for Code staff in new processes, procedures and protocols.» Continue to provide code training to all FOS dispute staff to support referrals of alleged code breaches to the code compliance and monitoring team. The Business Plan covers our performance in and our plans for The plan is available on the FOS website at To order printed copies, please publications@fos.org.au. All the data in this plan was correct at the time of reporting. About the Financial Ombudsman Service The Financial Ombudsman Service (FOS) Australia offers fair, independent and accessible dispute resolution for consumers who are unable to resolve complaints with member financial services providers. Our members include banks, insurers, credit providers, financial advisers and planners, debt collection agencies and other businesses that provide financial products and services. A not-for-profit, non-government organisation, FOS resolves disputes quickly and efficiently, providing a cheaper alternative than going to court. Our service is free of charge for applicants, with the costs of running the service being met by our members. We resolve disputes between consumers and FSPs: in a cooperative, efficient, timely and fair manner with minimum formality and technicality, and as transparently as possible, taking into account our obligations for confidentiality and privacy. This involves understanding all aspects of a dispute without taking sides, and making decisions based on the specific facts and circumstance of each dispute.» BUSINESS PLAN 14» BUSINESS PLAN 15

9 Contact us Our website contains comprehensive information about our services. You can also contact us by phone, or mail. Website Phone (1800 FOS AUS) (9am to 5pm from Monday to Friday) Mail GPO Box 3 Melbourne VIC 3001 ABN Published August 2015