Business mediators are professional neutrals who facilitate discussions between business parties to settle a dispute. They are typically trained in the law and can provide objective information about the legal and factual issues in a dispute. They also help the parties identify their interests and goals and work with them to formulate potential resolutions that may be acceptable to all. While mediation is not a substitute for the law, it provides a valuable alternative to litigation when it is a good fit for the parties and their situation.
The goal of business mediation is to help the parties reach a settlement that satisfies their interests without the need for legal action. It is often less expensive and time-consuming than a trial and allows the parties to control the outcome of the dispute. It also preserves the business relationship between the parties. In contrast, litigation tends to exacerbate the conflict, harden positions and stoke emotions. Litigation is also a public process, whereas mediations are typically held in private conference rooms and the outcome can be kept confidential.
Although conflicts between businesses are inevitable, the way a business handles a dispute can have long-term effects on its reputation. For example, an employee or customer who hears that a company is arguing with a competitor may decide to shop elsewhere. In addition, the cost of legal fees and lost revenue can add up quickly. Business owners who use a mediation service can save money and avoid a negative reputation by resolving their disputes through the process of negotiation.
Small and medium sized businesses (SMEs) are more likely than larger companies to face disputes. Despite this, many SMEs are reluctant to take legal action because they believe it is inefficient and costly. A negotiated settlement through business dispute mediation is far more cost-effective than litigation and allows parties to be creative in their settlement terms. It also removes the need to go to court, which can eat up a lot of management time and, if solicitors are involved, money.
The mediation process is non-adversarial and, while it may involve some acrimony and resentment, the purpose of mediation is to get the parties to air their grievances in a controlled, neutral environment that enables them to find solutions that will satisfy both sides. A skilled mediator can help the parties recognize and deal with the frustrations and emotions that are driving the conflict, allowing them to move past these counterproductive patterns toward a businesslike, problem-solving mode.
The best business dispute mediators are experienced in commercial and industrial disputes and understand the nuances of the commercial and employment contexts where disputes arise. They have strong negotiating skills and are able to help both parties to find creative ways to resolve their differences. They are also able to keep the process moving forward and prevent stalemate by using creative problem-solving techniques and a range of dispute resolution methods. In addition, they are able to draw on their experience to bring a fresh perspective to the discussions.