Business conflicts can cause operational disruptions. If business partners find themselves arguing with one another about company operations, the entire organization might suffer. If a supplier or service provider doesn’t fulfill a contract, their failure to uphold a written agreement could have major implications for the business relying on them.
Business conflicts can also damage a company’s reputation. The other party might start spreading gossip to other major players in a specific industry or might post negative information about the business on the internet. Leaders embroiled in business disputes often operate under the assumption that litigation may be one of the only solutions available to them. However, mediation can also be a way to resolve business conflicts. Choosing mediation before turning to litigation can offer a company a host of benefits, including the three described below.
Mediation protects organizational privacy
The information that comes to light during a business dispute could do real damage to a company’s reputation. Perhaps the company wants to enforce a restrictive covenant against a former worker. Maybe there are allegations of professional misconduct that a company does not want to reach the local news or social media. Mediation is generally a confidential process. The parties involved in the dispute can discuss their concerns in a private setting and settle everything without the details of the issue becoming public record.
Faster conflict resolution
Depending on the complexity of the disagreement and the current number of cases waiting for a hearing in front of the civil court judge, business dispute litigation could potentially take more than a year to complete. Company leaders may not be able to perform to the best of their ability with the stress of the outstanding issue hanging over their heads. Mediation can lead to a much quicker resolution of disagreements, as there is no need to wait for a date in court. Quicker resolution of business disputes can help organizations get back to normal operations as soon as possible.
Control over the outcome
If a business dispute goes to court, a judge decides how to resolve the matter. Neither party has control over what the judge ultimately rules. In some cases, both parties may leave the courtroom feeling frustrated and disappointed with the outcome of their legal matter. When leaders tackle organizational disputes in mediation, they have the final say in the terms set. They have the ability to compromise on details that aren’t a priority for them and to hold firm on matters that are of the most importance for the company’s future.
Proposing business dispute mediation can also help preserve the working relationship between the parties currently embroiled in a dispute. Business leaders who understand the benefits of mediation may be open to alternative dispute resolution instead of feeling bound to take their concerns to court.