Cost-Benefit of ADR, Including Ombuds

Bruce MacAllister, former Ombuds and business consultant, recently blogged about some objective data on conflict resolution systems he has collected over the years. With regard to an Ombuds program he writes:

In the years following the implementation of the Ombuds Office, my colleagues and I worked with literally hundreds of employees — 500 to 600 visitors annually. From its inception, there was significant anecdotal evidence that the Ombuds Program worked well for most visitors, and it demonstrated itself to be a highly effective alternative even as compared to other internal processes, such as the employee grievance procedure. In addition, statistics quickly emerged demonstrating that a formal review by an external authority such as an administrative agency or a court. Within the first year of its operation, new lawsuits dropped to zero, and formal grievances and charges with administrative agencies were literally cut in half.

MacAllister also compares the cost difference between two, very similar, employment dispute cases.  One was resolved by an Ombuds process, the other by a jury trial.  He notes that the relative Ombuds cost benefit, "would have funded the entire annual budget of the Ombuds Program involved for nearly three years."  (BizExTeam Blog.)

Related posts: Albuquerque Realtors Launch Ombuds Program; IFFOR Names Ombuds.