Mediation helps to establish and maintain successful working relationships. In today’s ever-changing business environment, the difference between success and failure is often a function of the quality of the relationships within an existing business as wells as between businesses.

The results stand the test of time. Research shows that people are more likely to follow through with a mediated agreement and are less likely to engage in future litigation because they are involved in the solution.

What is the role of the Mediator?

The Mediator is a facilitator appointed by the parties. The Mediator does not decide who is right or wrong or issue a judgment in favor of one party. The Mediator’s function is to support the process, gather information and assist in problem solving.

The Mediator seeks to isolate the issues, help the parties to evaluate the strengths and weaknesses of each other's case and encourage the parties to work cooperatively towards settlement.

What are the Key Advantages of Business Mediation? – Financial, strictly business

Control - Confidentiality - Flexibility & Commerciality - Time & Financial Saving

• Mediation is based on both parties taking control. ‘Ownership’ of the dispute and the outcome remains with the parties. They are actively involved and can express their own points of view throughout the entire process. By taking control and finding a solution that works for them, both parties avoid the risk of having a less satisfactory solution imposed on them by the Court.
• The process is confidential and without prejudice to any proceedings. Information and documentation shared privately with the Mediator cannot be passed to the other party during the Mediation without express permission. Furthermore, the outcome of the Mediation is only publicized if the parties so agree.
• Mediation concentrates on commercially based settlements and focuses party’s minds on the realistic resolution of problems. Parties are encouraged to make nonbinding concessions and to propose their own formulae for resolving the dispute. Mediation provides parties with an opportunity to negotiate a tailored solution that will suit their mutual needs; often the solution will deliver more for both parties than any Court judgment could. It is a particularly valuable process where there is an ongoing commercial relationship, which parties wish to preserve.
• Business Mediation offers a speedy alternative to litigation. Typically, the Mediation will take place within four to six weeks of the Mediation Agreement being signed and in urgent situations even more quickly.
• Business Mediation provides an economic alternative to litigation. Given the speed of the process, it enables parties to move on with their businesses more quickly and the resulting saving in terms of management time can be very significant. Equally, the legal costs and expenses associated with the process are significantly less than the costs of litigating a dispute to trial. The expenses include the Mediator’s fee, the cost of preparatory work undertaken and overheads for the day. The Mediator’s fee and overheads are usually shared between the parties. Each party bears its own costs and expenses.

Why use mediation?  - Corporation, telecom, personnel etc

Mediation has the following advantages over other methods of conflict resolution:

• Keeps decision-making in the hands of principals—where it belongs. People often confuse mediation with arbitration, but the two are as different as night and day. Arbitration is a judicial process in which partners turn over the decision-making to someone else—someone who may have little appreciation for the nuances of their business. Mediation is a negotiation process in which the decision-making stays in the hands of the owners.
• Move partners from positions of combat to positions of cooperation. In litigation and arbitration, the goal is to win and, as a result, partners become adversaries. Mediator help partners work together again, even if it's only to figure out how to separate. Restoring a spirit of cooperation can make all the difference.
• Keeps the focus squarely on the present and future, not mired in the past. Mediation emphasizes what can be changed now to resolve the problem and what can be done in the future to keep it from reoccurring. Not dwelling on who did what to whom makes it easier to sustain relationships.
• Is private and confidential. Public knowledge of a dispute can wreak havoc on a business. Critical relations with creditors, suppliers, customers, and employees can become strained when private conflict becomes public. Mediation gives people the opportunity to work things out in private.
• Keeps negotiations from being bogged down. Mediation involves direct discussions and shuttle diplomacy. By combining these two approaches, mediators help partners negotiate effectively and solve problems creatively.
• Continues only if everyone agrees that progress is being made. Mediation is a voluntary process and can stop at any time. The initial commitment is typically only a few hours.
• Almost always costs less. Letting conflicts simmer is usually much more expensive and risky than many people realize. Choosing to address conflict is the first step toward saving time and money. When partners are stuck in their own negotiations, skilled mediators can help them reach agreement and get back to work. Compared to arbitration and litigation, mediation is usually faster and more economical because it does not involve time-consuming depositions and discovery.
• Ends with a written agreement, signed by all parties. Although mediation is an informal process, agreements are always detailed and committed to writing. This ensures that everyone involved has a common understanding of what was decided in mediation. It also means that partners do not need to rely on their memories of how things were resolved. Months and years later, they can refer back to their written agreement for clarification.

What are the disadvantages of mediation?

Because mediation is voluntary, if one party refuses to mediate, there will be no mediation. In addition, even though the parties come to mediation, there is no certainty that they will reach an agreement. Thus, there can be some lost time and money pursuing mediation but not reaching agreement. Also, one party may use mediation to find out the thinking of the other party, without intending to work out an agreement.

Someone considering mediation should weigh the pros and cons. Many people believe that the risks are minor because you can always leave mediation and pursue whatever rights you had prior to starting mediation.

Mediation is a preferred way of conflict resolution, because it offers both sustainable solutions and the possibility of strengthening long-term relationships. Especially in business mediation, one can avoid "value destruction"!

What are the advantages of mediation?

Conclusion 1

Privacy is one of the main advantages of mediation. What is said in mediation is generally not disclosed.

Another major advantage of mediation is control. Because all the parties to the disagreement must agree to any agreement reached in mediation, the parties retain control. No decision is forced on the parties. The parties are free to reject any resolutions suggested and to seek a trial or use other means available to them.

A third major advantage of mediation is the ability to design resolutions that fit the needs of the parties in disagreement. The more honest both sides are willing to be concerning what they need, the more creative the parties can be in designing a solution that meets their needs. A judge or jury may not have that creativity.

Mediation can help parties resolve disputes earlier. Resolving matters early saves time and money. Also mediation is less formal than court proceedings; many people find mediation less stressful.

The mediator may stop the mediation when in the opinion of the mediator, no further purpose will be served in mediation. Even where no agreement is reached, though, mediation can help to narrow the issues in dispute or outline possible resolutions to consider or help the parties plan for their next steps.

Conclusion 2

Mediation has many advantages over traditional approaches, including the following:

• A “win-win” result is often achieved because the agreement is satisfactory to each person.
• New businesses can move forward more quickly as the principals have a clear, specific agreement about roles, responsibilities, goals and objectives.
• Existing businesses can continue to grow and thrive, no longer hampered by unresolved problems or unclear agreements.
• The parties ability to preserve an existing business relationship is enhanced.
• It is less costly and less stressful than other alternatives, especially litigation.
• A final settlement can usually be reached more quickly.
• It provides a more confidential, informal, convenient and comfortable atmosphere in which to address the decisions that need to be made.

Business Mediation Can Prevent Partnership Disputes

Business mediation is recognized as an excellent means to resolve disputes and pending litigation. It is now being used to prevent disputes from arising among management teams, business partners, shareholders and professional associations. Although the opening positions are couched in terms of lack of profits, broken agreements and so on, business mediation determines that these disputes are seldom the real cause of the problem. In business mediation there is no not attempt to change personalities. We help people to understand their own interests, needs and goals and the interests, needs and goals of the others. Then, with our guidance, they work out a plan for working together. To implement this approach, business mediators have separate confidential interviews with each person. We cannot disclose anything they tell us unless they authorize us to do so. During the interview, we show them how to air their gripes in a non-adversarial and productive manner. When we complete the interviews, we have a complete picture of the relevant issues. We learn about each person's perceptions and the hidden agendas that seldom surface when they meet on their own. We therefore have a picture that none of the partners has seen. Our task is to help them develop this picture for themselves during our business mediation conference.

Prior to the group meeting, we give each person a set of questions, developed from what we learned in the individual interviews. We review their answers and prepare for the conference, in which we facilitate a discussion of all that was previously unspoken.