Tuesday, January 4, 2011

Product policy which is logical and contextual

One of the mistakes that businesses make is:
1. Adopting dogmatic policies which are difficult to interpret
2. Remove the product policy discretion from staff

Consider the following negative feedback that Air NZ has experienced over the way it handled the flight of a child with chicken pox. Read the story here. It is silly to suggest that people should have travel insurance, and they ought to pay these costs. Why? It incentivises non-disclosure, and actually encourages us to deceive when:
1. The consequences are dire
2. It is easy for people to deceive
3. It conveys that you have no interest in the well-being of the passengers, and are only interested in off-loading responsibility onto others. This is a particularly bad policy given the consequences.

This is about Air NZ trying to justify poor, dogmatic policy (divorced from context) and high charges.
Andrew Sheldon www.sheldonthinks.com