Mediation Brings About Conflict Resolution

Welcome to TrueNorth Business Consulting’s presentation of a Business Makeover. Each month will feature an idea that can help your business. True North focuses on helping businesses, especially health and wellness practitioners, maintain and grow their business using the areas of business law, marketing, insurance and project management.

Mediation is a form of alternative dispute resolution (ADR) where a third party neutral, or mediator, facilitates so the parties can come to a mutually beneficial resolution. Mediation is not binding, but a contract or an agreement can be the end result, which is legally binding.

One reason small businesses fail is because they cannot afford litigation, fear losing the business relationship with the contracting business, or misunderstanding of contract terms. The small business owners are experts in their own profession, but lack resources in conflict management. In normal business circumstances, conflict arises, and usually there is litigation. Mediation is less expensive and can preserve the business relationship.

Most businesses are not familiar with mediation or mediators. To be a mediator the neutral must complete a course, which is usually a 30 plus hour class. Mediators have all different backgrounds- law, psychology or industry experience. In choosing a mediator you want to be aware of their background so that you can have confidence in their ability. Family disputes would be better with a mediator with a psychology background, while business disputes may need a lawyer mediator.

However, the mediator does not make the decision for the parties—that is up to those involved. The idea is that when that happens, the parties will stick to the decision. In order for there to be mediation, a clause should be added to a contract which states the parties will use mediation along with naming a local mediation service or mediator. TrueNorth Business Consulting provides business mediation in Massachusetts.

The importance of good conflict resolution skills along with access and recognition of mediation services is critical. Many fiscal opportunities are lost, resulting in impacts to the community at large. Businesses strengthen a community with jobs and contributions when they are successful, businesses closure brings with it an increase crime rate and population decrease. Therefore for conflict resolution you should look into mediation first.