As a business owner or entrepreneur, you may find conflicts and disputes an inevitable part of doing business. Whether it is a disagreement with a vendor, customer or even a business partner, these conflicts can quickly escalate and damage valuable relationships if not resolved properly. This is where mediation can be an invaluable tool in your arsenal.
What Is Mediation?
Mediation is an informal negotiation process assisted by an impartial third party (the mediator), who helps the disputing parties find their own mutually acceptable solutions. Unlike litigation or arbitration, mediation is typically non-binding, and the mediator has no authority to impose a decision. Instead, their role is to facilitate communication, identify interests and guide the parties toward a resolution they can both agree on.
A willingness of all parties to work together collaboratively will greatly influence the likelihood of a successful mediation outcome.
Tips for a Successful Mediation
Identify your goals. A dispute is a disagreement over specific issues, while a conflict involves a breakdown in the relationship itself. Mediation can help resolve both disputes and conflicts, but it is important that you identify the nature of the contention in your preparation. Your plan should address the appropriate goals for the mediation — issue resolution, relationship reconciliation or both.
Identify your non-negotiables. Remember to distinguish between the elements that are absolutely essential to you to reach resolution and those that are negotiable. This will help you stay focused and be more creative in finding solutions. Additionally, ensure that you gather all the relevant materials you will need in order to have all the necessary information to make informed decisions about potential resolutions.
Keep your emotions in check. Keep in mind that disputes and conflicts can be emotionally charged. The purpose of this process is to come together with the other party to reach a mutually agreeable outcome, so try to work through any negative emotions beforehand so they do not become obstacles during mediation.
Be willing to compromise. Ultimately, the key to a successful mediation is the willingness of all parties to collaborate and find a resolution that addresses everyone’s core interests. No settlement can be reached without mutual consent, so it is crucial to prepare beforehand, and approach a mediation session with an open mind and a commitment to finding a “win-win” solution.
Mediation is a great tool for entrepreneurs and business owners seeking to increase the likelihood of preserving valuable business relationships after a breakdown occurs, and it offers the parties an efficient and cost-effective alternative to dispute resolution and continued growth. The American Arbitration Association (AAA) offers dedicated mediation services to best meet your specific mediation needs, and our National Roster of Mediators is comprised of industry leaders and experts. For more information on the AAA’s mediation services, please visit us at adr.org/Mediation.
Yamilee Jeudy is with the American Arbitration Association.
