Businesses can profit from mediation
It is the process whereby a neutral third party assists parties involved in a dispute to arrive at an agreed outcome.
What is mediation?
It is the process whereby a neutral third party assists parties involved in a dispute to arrive at an agreed outcome. Mediators assist in identifying issues and information needs, reducing obstacles to communication, exploring alternatives and focusing on the needs and interests of those most affected.
Unlike court proceedings, it involves the direct participation of the parties, who often work alongside instructed legal representatives.
What’s in it for business?
People are beginning to realise that litigation is often costly, both financially and in terms of organisational stress and time, for individuals across various parts of the organisation.
As the litigation process focuses on a strict interpretation of applicable laws, the outcomes produced often ignore the interests and needs of the parties – economic and business factors are not considered by the court. They are also beginning to realise that cost saving is not just a business imperative, but an ethical one as well. Mediation is increasingly being used as a more effective way of resolving disputes, simply because it offers advantages:
• Preservation of an ongoing business relationship or termination thereof in a more amicable way – a settlement that addresses all parties’ interests;
• Comprehensive and customised agreements – solutions can often be more creative and wider in scope;
• Greater degree of control and predictability of outcome – parties who negotiate their own settlements have more control over the outcome and more personal empowerment in the resolution;
• Rapid settlements – in an era when it may take as long as a year for a case to proceed to court and multiple years if it goes to appeal, the alternative often provides a more suitable option;
• Mutually satisfactory outcomes – as solutions are agreed rather than imposed by a third-party decision maker;
• A higher rate of compliance – as a result of the satisfactory outcome, parties are more likely to comply the terms of the solution ensuring that the agreement remains intact over time;
Research in the UK revealed that roughly 60 per cent of commercial disputes are resolved on the day with a further 20 per cent being resolved within two months. Those that do result in litigation are usually the ‘hard core’ cases where multiple parties are involved or a precedent is called for.
Who can mediate?
Costa Georghiades is an internationally accredited mediator (ADR Group Civil and Commercial Mediator – London UK) and serves as an independent mediator on the panel of the Africa Centre for Dispute Settlement of the University of Stellenbosch, in conjunction with the ADR Group (UK).Enquiries: www.thavma.co.za and click on mediation services.
