|
Centers
for Disease Control & Prevention
Office of the Director
Alternative Dispute Resolution & Conflict Prevention
1600 Clifton Road
Mailstop D-67
Atlanta, GA 30333
(404) 371-5470 |
|
|
|
|
Executive's Guide to Managing Conflict
(by Michael J. Roberts)
|
Business executives are spending increasing amounts of their time and
money resolving legal disputes. When executives want to be concentrating
on sales and marketing, new technologies, financial and strategic
planning, they are instead dealing with attorneys and paying legal fees to
solve legal problems. Although solving legal disputes does not make money,
leaving them unmanaged causes costs to skyrocket, negatively impacting the
"bottom line" and leaving businesses vulnerable to litigation
that may last for years. Additionally, if disputes are not resolved
quickly, the parties may become entrenched in their positions and the
costs may escalate to the point where a business oriented solution is no
longer attainable. Unless conflict can be effectively managed to obtain an
early and practical solution, businesses may find themselves in the
quagmire of litigation and unmanageable legal budgets.
Executives are increasingly turning to mediation as a technique for
managing conflict early and in a cost-effective manner. Mediation is a
dispute resolution process in which a neutral mediator assists the parties
in reaching their own settlement of a dispute. The process is voluntary
and no binding decision will be made unless the parties themselves agree
to it. Unlike court where a judge or jury will decide for the parties, in
mediation the parties make their own decisions.
The mediation process itself generally consists of a private meeting
between the parties representatives and the mediator to discuss the
dispute and explore options for settlement. The process can be initiated
at any point during the life of the dispute. The mediator controls the
proceeding by establishing a structure in which the parties can express
their views and explore options for settlement while avoiding many of the
obstacles present in individual efforts. Most mediations are completed in
a day or less at a fraction of the cost of litigated matters. When a
skilled mediator is used, the negotiation will result in a settlement 80%
of the time. The obvious benefit is that it dramatically reduces the costs
of attorneys' fees, time-consuming litigation evaporates, and executives
can again concentrate on meeting business goals and increasing the bottom
line.
If executives are not aware of mediation as an alternative to litigation,
they may ignore this cost effective manner of solving problems early. It
is important to recognize the types of disputes that are appropriate for
mediation and to think of mediation up front as a mechanism for solving
these disputes. Many companies have adopted a policy requiring use of
mediation wherever possible, slashing legal budgets by as much as
two-thirds.
More companies are recognizing the dramatic impact of the "soft
costs" of unresolved conflict and, particularly, of lawsuits. These
soft costs include the use of the company's employees and other resources
to help in the dispute resolution process. Because executives and
employees are often required to spend days at a time testifying at
depositions, assembling and reviewing internal documents, and meeting with
attorneys to gather facts, plan strategy and review opposition papers, the
result is that a substantial cost to business is incurred over and above
the hard dollar cost of paying lawyers and other direct litigation-related
expenses.
You may be thinking that if you choose mediation you forego your right to
be represented by legal counsel. That is not true. Not only will you have
your choice of attorneys, but you need to understand that more and more
attorneys are embracing mediation as the best way to satisfy client needs.
In reality, mediation is a "win-win" situation for both the
attorneys and the clients.
So here is the new "bottom line" for conflict resolution:
contact an experienced mediator whenever a dispute is brought to the
attention of business executives and company attorneys. Mediators will
often provide valuable ideas and assistance in persuading the other party
to agree to use mediation. Sometimes a phone call to explain the process
will convince the other party to participate. After all, everyone's legal
dollars and time may be better spent on a day of negotiation rather than
months, perhaps years, of protracted litigation. Of course, sometimes
there are valid internal reasons a company determines that litigation is
the best course of action. But when that is not the decision, the
executive's first and strongest tool for managing conflict should be
consultation concerning the use of mediation.
|
