Resolving Conflicts Among Business Partners Why Businesses Need Mediation by Lincoln and Morgan

1. Resolving Conflicts Among Business Partners Why Businesses Need Mediation by Lincoln and Morgan Mediation is timely, immediate, and a fraction of the cost of litigation, which means less disruption to business operations. The main purpose of business is to make a business, not disputing. When business partners and business leaders find themselves at an impasse in their relationships, they have several options for resolving their predicament: litigation, arbitration, negotiation and mediation. Courts and litigation are important parts of our systems but trial in the court system is unfortunately focused on winners and losers. The major difference between mediation and litigation is that settling through mediation is a voluntary agreement between the parties, in contrast to litigation that results in a binding decision outside of the parties’ control. In many business disputes, the risks are not limited only to winning or losing a monetary judgement; bud also could involve loss of reputation, pride, employee time, or tense relationships with customers, bad publicity. Mediation offers businesses a less expensive and quicker way to resolve business disputes that also aims to preserve relationships. Mediation is an efficient, cost-effective process of problem-solving where the disputing parties work together to find a solution.

2. Mediation is a flexible process based on specific processes that usually involve the parties meeting together with a mediator in a neutral setting to work out the issue. Mediation offers businesses few main positive benefits: Does not have the destructive side effects or adversarial outcomes that often accompany litigation Keeps the focus squarely on the present and future Does not dwell on who did what to whom in the past Mediators assist partners in collaborating with each other and in repairing or strengthening relation Adds a new value to the business Mediation may take place at one or more meetings lasting from one to several hours, attended by the parties to the dispute and the mediator(s). The parties may attend alone, or be accompanied by a legal advisor or another person whose presence is considered useful. The mediation process is based on confidentiality. So mediation works best because it offers the business partners privacy guarantees so that important and crucial relations with creditors, suppliers, customers, and employees are maintained. Business partner disputes contain a complex mixture of financial, legal, and business factors. To best handle with this is using mediator team with lawyer and financial specialist or business consultant or with psychologist, depending of the mediation case. The main role of the mediator is to help the parties communicate better so that they can come up with an agreement with which they are both satisfied. A good mediator can get parties talking to each other, can help identify common goals, and find a resolution that works for all. Mediators receive special training in conflict resolution skills. They help to identify the interests of the parties. They use this information to help guide a negotiation between the parties that will provide them with mutual benefits. Mediation may take place before, during or after legal proceedings.

3. The parties to the dispute are responsible for defining the terms of a settlement that is satisfactory to all parties. Mediating business disputes is not just about money. A conflict does not necessarily mean the business relationships must end. Mediation focuses is on resolving the matter in a way that keeps relationships intact. Parties used to be partners, used to act together to fulfil their common interests, but have now lost faith in each other. Using mediation is a method that can help restore dialogue and confidence. Many business leaders understand the importance of using mediation to build and keep good customer and employee relationships. Mediation is timely, immediate, and a fraction of the cost of litigation, which means less disruption to business operations. The main purpose of business is to make a business, not disputing. Contact Lincoln and Morgan for more information.