Mediation
Latin: Medius – neutral, conciliate
Mediation is a type of alternative dispute resolution frequently used to avoid costly lawsuits. The neutral mediator structures the process and leads the parties all the way through the conflict resolution. The goal is that the parties reach a mutual agreement that is beneficial to both parties. Usually the mediator does not suggest any solutions. Instead the mediator helps the parties in conflict to disentangle themselves from pure demands and focus on the individual needs thereby improving the mutual understanding. Throughout the process the parties stay in control. Decisions can only be made in consensus.
Benefits:
Cost-Efficient
Fast
Confidential
Individual needs can be considered (in contrast to a lawsuit)
After the conflict resolution the parties will keep an intact business relationship.
In contrast to a lawsuit the parties stay in control. Decisions can only be made in consensus. Each party can terminate the procedure at any time.
The Mediation Stages
1
DEFINE THE MEDIATION TASK
Explain procedure, lay down rules, set up the mediation arrangement
2
IDENTIFY THE ISSUES
Each party describes the conflict from their perspectives; structure the conflict
3
CARVING OUT THE NEEDS
Rather than insisting on pure demands the parties will describe and carve out their individual needs. By doing so, the parties will build on mutual understanding
4
GATHERING AND EVALUATING DIFFERENT SOLUTION OPTIONS
All solution options are collected and listed. The parties will then discuss and assess the options. The preferred solution will be analyzed and defined in detail.
5
MEDIATION AGREEMENT
The mutually agreed upon solution detailing the obligations of each party and essential terms of the agreement is written by the mediator. The agreement is signed by both parties. If desired, the agreement can be notarized.
Bottom Line
Business Mediation should be considered more often as an elegant way to resolve a conflict. As a matter of fact it is an additional chance! In case mediation fails the parties in conflict are free to take legal action.