notified soon after a statement is issued , or when payment is made .
Maybe it is wise to understand the sources of disputes in a commercial concern , for easy of understanding , the major categories of disputes are : The quality dispute which is about disputes concerning the quality of products and services performed , the pricing disputes related to price differential between the charged and the one negotiated by the client , there is also administrative dispute related to the problems of missing or poorly written documents such as invoices , purchase orders and packing list , the next type of dispute is event date dispute for example an invoice issued so that the material was not sent to the client , also the missing goods dispute which is about differences between what was billed and actually delivered and lastly double billing dispute relating to a delivery that is billed twice by mistake .
In many organizations today the credit department has been delegated the core responsibility of resolving customer disputes . This brings to fore the question of what policies and procedures does your company have in place to ensure compliance and a dispute resolution process ? The answer lies with coming up with a whole process of dispute resolution .
Dispute management process
Any organization that takes serious issues of revenue and profitability must establish a process of disputes management to determine the roles and responsibilities of each department involved and ensure proper consideration of the disputes by the organization noting from the nature of disputes it is obvious that they originate from various departments depending on the organization structure .
It is crucial to establish a policy and formal process to manage disputes . The formal process should have defined work flows , procedures , roles and responsibilities , and ownership . Training should be conducted for all participants in the process and users of the reports , so the objective and operation of the process is understood . All participants must understand their role in the process and its importance .
For effective dispute resolution process the organisation can apply the following steps
Understanding the problem is the first step , it is known that sometimes conflicts occur not because of one person being wrong or the other being right , it is just a matter of varied perception that creates disagreement . Understand the problem and the underlying issue , let the other party state the problem as they perceive it . Questions must be asked to extract facts . Avoiding making assumptions so that you may then state the problem as you see it without accusation or sounding judgmental .
Secondly it is wise to listen as when you ask questions commit to listen with the intent to find a solution . This trait solves the problem , we mostly like to interrupt , talk and complete people ’ s sentences and are busy planning our response rather than listening to fully comprehend what the other person is trying to say . Make notes and paraphrase during the process so that the other party envisions you to be the person who seems to be interested and one who lends an ear to their concern .
Thirdly having empathy signals you are willing to understand the situation . Hence if apt show empathy . Do not prejudge or lecture . Keep communication clear and open .
On the fourth note agree there is need to establish and tag the real issue that needs to be resolved and get the other party ’ s acknowledgement on it . Ask the other party as to what their expectations are in resolving the dispute . State your concerns if any . Review alternatives . Build the consensus around the solution , with or without concessions seek common grounds again with or without trade-offs .
The next step is proposing a solution as the solution that you propose may appear biased to the other party therefore strategically appear to be on their side , reach a solution that both parties can agree upon . Adopt a win-win strategy to gain cooperation . Any trickery or deception will trace its steps back to a greater conflict .
The last step is to execute , follow-up and follow through . It is important not to promise what cannot be delivered . Make the implementation of the solution time bound and in return get a firm commitment of payment .
Indeed , when a dispute is quickly resolved , the seller shows to the buyer the consideration he has for him and gets a commercial advantage and the end result is that the outstanding amount will be paid . The organisation should decide which individual or department it makes sense to pass these issues to , and make sure all parties are aware of the policies you have in place . This will ensure that the dispute resolution process is streamlined .
Wasilwa Miriongi is a Certified Credit Professional currently working as the Managing Director , Del Creder Credit Management Limited . You can engage him on this or related matters via email at : WMiriongi @ gmail . com .