First Report From Standard & Poor's Ombuds Raises Questions About Usage

S&P's Ombudsman, Ray J. Groves has published the first annual report summarizing the activities of his office. The report does not provide the total number of cases handled in 2009, but says that 85% were from external sources; 85% were from the U.S.; 50% concerned S&P's ratings; and only 12.5% requested anonymity.

In the report, Groves explains that the program was created in January 2009 "to address concerns about potential conflicts of interest and analytical and governance processes that are raised by clients, employees and market participants who use S&P products, services and opinions" anywhere in the world. The Ombuds promises confidentiality to inquirers who wish to remain anonymous and offers a balanced and independent approach. (S&P Office of the Ombudsman.)

Related post: Standard & Poor's Appoints Ombuds.

The most curious aspect of the S&P Ombuds report is that it does not provide the total number of cases.  Moreover, all of the data is significant to no less than 2.5%.  In other words, it is possible that the program handled as few as 40 cases.  This would be surprising indeed.  The S&P Ombuds program was widely covered in the financial press and the company took out advertisements in the NY Times, Wall Street Journal, and Washington Post. The company itself has over 10,000 employees and serves nearly two dozen financial markets around the world. Most corporate Ombuds programs that serve internal and external constituents handled hundreds of cases annually. So, there are two questions: Why didn't the S&P Ombuds office have more cases? or, if it did, Why didn't it report the number of cases?

Job Posting: Federal Bureau of Investigation

The FBI is hiring a Supervisory Ombudsman to work in Washington, DC. The GS-15 position serves as the Chief Ombudsman and consultant to the Director and FBI Executives, and as an expert advisor to managerial, supervisory, Special Agent and professional staff personnel throughout the Bureau.

The Chief Ombudsman also directs, develops and administers the FBI's informal conflict resolution program.  The position pays $123,758-155,500 and is open to internal and external candidates. Applications are due May 11; internal applicants should use the appropriate vacancy posting. (FederalGovernmentJobs, vacancy nos. 00-2010-0080 and 00-2010-0087.)

Related posts: (Internal) Job Posting (2009); CoFO Elects Officers; Federal Court Holds That Complaint to FBI Ombuds Does Not Satisfy Prisoner's Exhaustion Requirement.

Indian Software Lobby Urges Companies to Create Ombuds Programs

The National Association of Software and Services Companies, the Indian trade group for software and outsourcing industries, has just released a report on corporate governance practices that includes an endorsement of Ombuds.

NASSCOM's Governance and Ethics Committee listed several recommendations "to establish highest standards of probity and corporate governance within the IT-BPO industry." These suggestions include the call for companies to implement whistle blower policies and create Ombuds positions.  The report describes the Ombuds as follows.

Ombudsperson concept

It is important for organisations to provide a robust structure for stakeholders across the globe to raise their concerns. Organisations can introduce the concept of an ombudsperson to give stakeholders the confidence and accessibility to raise their concerns.

An ombudsperson is one who investigates reported complaints, report’s findings and helps to achieve equitable settlements. An advocate of ‘fairness’, he/she is expected to resolve conflicts and employee concerns in the organisation, guided by the principles of justice, objectivity, confidentiality and independence.

The ombudsperson should preferably be a person from the company’s senior management. The key characteristics of an ombudsperson is his/her impeccable reputation for integrity; they should be known as a just and trustworthy person. It is also necessary for an ombudsperson to have excellent problem-solving and conflict resolution skills. He/she should be an excellent communication conduit between conflicting parties to find a solution. An upholder of human values in the organisation, the ombudsperson should possess the sensitivity to view a situation from different perspectives.

The responsibilities of an ombudsperson are listed below:

• Providing options to whistleblowers with ethics concerns. The ombudsperson is responsible for resolving ethical dilemmas by interpreting policies and procedures
• Evaluating the situation, helping stakeholder/s organise their thoughts, assessing their feelings, and deciding on what is important and relevant to the specific circumstance
• Ensuring that the stakeholder/s blowing the whistle are protected against any abuse, bias or improper treatment
• Ensuring confidentiality of the stakeholder/s, if desired by them
• Investigating the concerns raised by the stakeholder/s and reporting the findings of this investigation
• Taking appropriate action to resolve the issue
• Working towards strengthening the policies and procedures based on his/her understanding and the outcome of the investigation.

(PC World; NASSCOM.)

Some will find the NASSCOM Ombuds model surprising, since it incorporates elements of both the Organizational and Classical Ombuds models.  For example, the NASSCOM model is confidential, as are both Classical and Organizational Ombuds.  The duty to investigate is shared with Classical Ombuds; whereas the duty of neutral conflict resolution is more akin to the role of Organizational Ombuds.  Most striking, is NASSCOM's recommendation that the Ombuds come from the ranks of senior management.  By contrast, the Classical and Organizational models assert that Ombuds should report to senior managment, but have no conflicting collateral duties.  Yet, it cannot be said that one model is "better" than another.  Indeed, there are more similarities than differences.

Related posts: India Moves Forward with Health Ombuds; New Handbook of ADR in India Touts Role of Ombuds; India Commission Recommends Ombuds for New Universities; Job Posting: Eaton Corp. (India).

Werner Institute Opens Portal for ADR Community

The Werner Institute for Negotiation & Dispute Resolution at Creighton University has created a site for ADR-related news, events, and information: ADRhub.com. Jeff Thompson, who blogs at Enjoy Mediation, is force behind the portal, which is open to academics, practitioners, students, and others interested in dispute resolution. The site is emerging as a great resource for the field. (ADRhub.)

I am proud to say that I am one of the featured bloggers (although much of my content is derived from the Ombuds Blog).

Related post: Ombuds News Round Up at Enjoy Mediation.

OO Blogger Reviews Online Dispute Resolution Technology

Clayton Gilman's latest post at the Organizational Ombudsman Blog explains that all of his clients to date have used ODR. After trying several applications, he now endorses Juripax "because of its emphasis on proper preparation at the time of intake and focus on ethical and transparent procedures." (Organizational Ombudsman Blog.)

Related posts: ICANN Ombuds Explains On-Line Dispute Resolution; International Forum on Online Dispute Resolution; Army Launches Online Ombuds Program; Prior posts about OO Blogger.

Summer Institute on Conflict Management in Higher Ed Will Feature Ombuds

Dorothy Graham, the Ombuds for Kennesaw State University, will lead a workshop at the retreat sponsored by the Consortium on Negotiation and Conflict Resolution. The tenth annual institute takes place July 26-30, 2010 at the Jekyll Island Club Hotel in Georgia and includes a range of programs for college and university administrators.

Graham's workshop, "Less Stress, More Success: Handling the Problem," is offered on July 28.

This class is for anyone whose job is to handle complaints and resolve problems. Participants explore the nature of complaints, listening effectively to complaints, skills for problem solving, creating alliances for complaint handling across the institution, and navigating in an intercultural environment. This interactive class includes discussion, exercises, and case studies.

Graham is an active member of the International Ombudsman Association and currently serves on the editorial board of the Journal of IOA. She also serves as ADR Campus Liaison to the University System of Georgia Board of Regents. The cost is $190 for USG employees and $265 for all others. (CNCR 2010 Brochure.)

Congress Must Resolve Ombuds Issue Before Passing Financial Reform Bill

As the U.S. Senate grapples with legislation that would overhaul financial regulation, two proposed Ombuds programs could become an issue. The recently approved House bill would create Ombuds programs for the Securities and Exchange Commission and the Public Company Accounting Oversight Board. As currently drafted, the Senate bill does not.

In December, the House of Representatives passed the Wall Street Reform and Consumer Protection Act of 2009 (HR 4173), which included new Ombuds programs for the SEC and PCOAB. These two Ombuds programs would act as confidential liaisons between the agencies and individuals or firms with concerns regarding regulatory activities. As such, the Ombuds programs would would be similar to the Office of the Ombudsman for the Financial Industry Regulatory Authority.

Although some in the financial services industry have been calling for Ombuds program for years, the pending Senate bill (S 3217, "Restoring American Financial Stability Act of 2010") does not mention Ombuds. If the Senate bill is passed, a conference committee would need to resolve the differences between the two bills, including the proposed Ombuds programs. (Open Congress bill information: HR 4173, S 3217.)

Related posts: SEC Affirms Role of NASD Ombuds; NASDAQ and Banking Lobby Endorse Ombuds for Accounting Oversight; House Passes Bill to Create Two New Federal Ombuds Programs; Ombuds as Solution to the Financial Meltdown.

Note: It's Gordon Gecko.