Mediation: The Civilized Way to Resolve Disputes

Disputes occur every day but the way they are resolved can have a huge impact on the business, it’s relationships and profitability.  That is why mediation makes business sense.

Traditionally conflicts and disputes are managed and resolved through adversarial argument or process.  Often this begins with the way we communicate or talk with one another and translates into the types of process we select to resolve conflicts and disputes at a more formal level.  The aim is to persuade others to agree with our position or point of view and the need to win is a powerful source of self-esteem.

There is one crucial factor that makes mediation different from most other forms of dispute resolution.  Nobody tells the disputing parties who is right and who is wrong.  The need to establish blame or to win the argument is completely removed.  Instead the mediation process concentrates on helping the parties to focus on the best solution to their problem so that they can get on with their lives.

Mediation can best be described as an assisted negotiation.  The role of the mediator, rather than being judicial and deciding who wins and who loses, is to help both parties to achieve a solution that meets their own and the other party’s needs and interests.  In practice this may be far wider than a purely financial settlement, particularly where there is a possibility of restoring old or creating new working relationships or opportunities.

The key benefits of mediation are that it is:

• Voluntary – unless mandated by the courts or required as a condition of a contract the parties are present because they wish to achieve the best solution possible in the circumstances
• Non-binding – options for settlement can be tried and discarded until the right formula for settlement is achieved and an agreement is signed (when it becomes binding in contract)
• Private – the parties can discuss options for settlement openly and in confidence with the other parties and/or with the mediator in private without prejudicing their position if (rarely) the case does not settle/goes to court or arbitration
• Informal – mediation is not bound by complex procedural rules, it is an informal and inexpensive process that can be set up at short notice and rarely last more than a day.

Parties come to the mediation willing to take “time out” from the formal dispute resolution process that they are embroiled in and to see whether they can achieve a worthwhile settlement; whilst saving the time, costs and considerable angst involved in pursuing their case to the bitter end.  If unsuccessful it is “as if the day had never been” and the case proceeds as before.

The majority of mediated commercial disputes (between 80% and 90%) will result in a settlement.
Mediation is effective because the mediator is both independent and neutral.  He or she does not have a stake in the outcome of the dispute but acts as a catalyst, helping the parties to settle on the best terms possible.
This powerful dynamic:

• Gets the right parties to the table
• Identifies real issues and needs
• Deals with emotional blockages
• Focuses on commercial agenda not legal argument
• Moves parties from the past to the future
• Gives control of outcome to the parties
• Encourages co-operation not blame
• Increases options for settlement
• Preserves or restores relationships

Mediation offers people involved in managing conflict and disputes a means of resolving issues in a civilised and co-operative way.

Roger Pickles | Former Membership Services Manager