Woolley & Co E-Zine - August 2004
Tips and ideas for keeping your business on the right side of the law

Welcome to the August 2004 Woolley E-Zine. As the heat of summer sets in we have advice this month on how to avoid tempers boiling over.

We welcome your feedback – if there is any particular legal issue you’d like to see covered send the details through to marketing@e-lawfirm.co.uk.

Andrew Woolley
Andrew Woolley, Principal, Woolley & Co
Some Simple Rules for Avoiding Disputes
Starting a business is not easy and running it on a day to day basis is equally trying in today’s ultra competitive climate. It is to be expected in such a scenario for the everyday gripes and grudges of staff, customers and management to boil over and for such issues to escalate rapidly into a fully blown commercial dispute. What therefore can be done to avoid and manage such a risk and eventuality?
Mantra 1: live and let live
Manage your emotions to manage your clients.
Yes I know we all have them: “The clients from hell” – those demanding individuals who never stop asking for more or who are serial complainants about the most trifling matter.

Regardless of your own personal preferences our advice would be to deal with the issues not the personalities no matter how irritating the characters may be. Allowing personality and “grudges” to cloud your financial and legal judgement is a recipe for disaster. Quite often you can turn the complainant to your advantage by using the individual to provide you with a customer focus group on how the service/product might best be improved. “Grasping the nettle” here is preferable to fobbing them off with weak excuses and with customer help lines that provide no respite.

Be brave - face up to the storm and seek to turn it around to your advantage. Remember: the best PR and cheapest advertisement is word of mouth.

Mantra 2: be flexible - lose the battle to win the war
Be prepared to admit your mistakes wherever possible and to provide rebates if service or goods are not up to scratch.

The service level agreements should hence be manageable and should be clearly expressed so as to leave nothing to doubt. Ask a friend, work colleague or solicitor to look through these with the aim of trying to find ambiguity and “holes” which could either be exploited in the future or which could lead to ambiguity and dispute.

Clients will know instinctively when there is sincerity of response and when there is not so be prepared to compromise in order to keep the customer content even where strictly there is no legal requirement for you to do so. Winning on a legal technicality may make you feel better but the effect may only be temporary as the client undoubtedly will take his/her business elsewhere.

A client will appreciate honesty and straight talking and will inform his work colleagues, family and friends of a situation redeemed even if the job done was perhaps not A* class so long as a fair and reasonable response subsequently was achieved.

Mantra 3: clarity counts with customer complaints
Clarify your customer service objectives generally and your complaints procedure specifically. Ideally you should have a code of conduct on dealing with complaints that would form part of your contractual relationship with your client. This might cover:
  • Response times to acknowledge and respond to any complaint.
  • Investigation procedure and timing.
  • Escalation procedure (from manager to director level if then unresolved).
  • Alternatively, agree that a person acceptable to both of you gives an opinion, makes a final decisoion or deals with the issue by “arbitration”. If you both agree to this procedure then a Court case is most unlikely.
In drafting these objectives input from potential/actual clients at the outset would be critical in order to get feedback as to the approach.

Good complaints handling will provide you with an opportunity to make amends and to show that good service is provided at all stages. It might in the end win over an irate customer who otherwise might take their business elsewhere. Waiting endlessly listening to some tortuous repetitive music on an interminable customer complaints answer phone to a call centre in the other end of the country (or increasingly the other side of the world) is highly unlikely to win many friends. So investing adequate management time and effort here is essential in order to provide a non-technical and practical solution to the problem.

Seeking to impose unfavourable/draconian complaint terms without customer involvement is inadvisable however. Not only would it be imprudent in terms of general business sense but also it could fall foul to DTI guidelines on fair trading and the general law as to applicability of exclusion and liability clauses. Hence it pays to take legal advice here which should pay dividends in the long run.

These are just some of the things to bear in mind in your relationships with customers, suppliers and your staff. If however you find you are already in a dispute our advice is to take good legal advice quickly and to follow that advice carefully.

To discuss any of the issues raised by this article contact Andrew Woolley on 01789 267377 or email aw@e-lawfirm.co.uk.

TPS – STOP PRESS
To clarify information provided in last month’s e-zine.

Whilst the new rules do prevent business to business cold calling (or faxing) to those companies registered with the TPS there is an exception in place for calls made to conduct legitimate market research.

So if you are in the business of market research you can still make that call – unless of course the company you are calling had made a specific request to your organisation.

More information can be found at www.dma.org.uk.

To find out more about these and other legal issues visit the Woolley & Co website at www.e-lawfirm.co.uk.

The Woolley & Co E-Zine is sent monthly to subscribers. Feel free to pass on to friends and colleagues. To subscribe, click here.

This E-Zine is mailed to subscribers monthly. If it has been sent to you in error we apologise, if you wish to unsubscribe to the Woolley & Co E-Zine click here.

©Woolley & Co. All Rights Reserved