Innovation & Change Management Flashcards

A debt relief company wants to introduce a new fee structure. Under the TSR, which fee method is permitted once a debt is settled?

Answer: A fee proportional to the settled debt's share of total enrolled debt, or a percentage of the amount saved

The TSR allows fees only after settlement and payment, calculated proportionally or as a percentage of savings.

Which leadership behavior most strongly supports successful organizational change?

Answer: Leaders visibly modeling the new behaviors and communicating consistently

Visible sponsorship and consistent messaging from leaders drive employee adoption.

A firm considers using machine learning to predict which creditors will accept settlements. What is a key ethical concern?

Answer: Ensuring the model does not produce unfair or discriminatory outcomes for clients

Predictive models must be monitored for bias and must not replace required consumer disclosures.

What does 'change fatigue' refer to in a debt relief organization?

Answer: Employee exhaustion and disengagement caused by too many changes in a short period

Change fatigue occurs when the pace or volume of change overwhelms staff capacity.

Before switching to a new third-party payment processor for client dedicated accounts, the firm should FIRST:

Answer: Conduct due diligence on the processor's independence, security, and regulatory compliance

Vendor due diligence ensures the account administrator is independent, secure, and compliant.

Which of the following is an example of incremental innovation for a debt relief firm?

Answer: Adding automated reminder emails to an existing client portal

Incremental innovation improves existing products or processes in small steps.

A firm updates its sales scripts to reflect new marketing rules. How should it confirm the change is followed?

Answer: Monitor and audit recorded calls against the updated script

Call monitoring and audits verify that agents actually use compliant scripts.