A trained mediator has the skills to guide a negotiation that first focuses on the parties’ interests and then generates a set of options that can benefit all involved. Where there are conflicting interests, a solution will be chosen based on objective criteria.
There are parallels between commercial negotiations and dispute mediation. During a negotiation (for example for a sale and purchase) the parties find themselves in a situation of interdependence in which they must deal, on the one hand, with parallel or at least compatible interests (willingness to sell and willingness to purchase); and, on the other hand, with potentially conflicting interests (as to price, delivery time, guarantees, etc.). Agreement has to be found on the conflicting interests before a deal can be concluded.
Although commercial negotiation (unlike dispute mediation) is less likely to involve negative emotions that disrupt effective communication, the experience gained by an accredited mediator in dispute mediation can be very valuable in negotiating commercial contracts.
A mediator is a specialist in reestablishing effective communication between the parties so that they can focus on the future and identify what their interests are from that perspective. Identifying interests with an eye to the future should allow the parties to brainstorm possible options leading ultimately to a mutually acceptable solution.
“Principled negotiation” a method which Harvard professors Roger Fisher and William Ury founded, is built around four fundamentals:
1. Separate the people from the problem
2. Focus on interests, not positions
3. Find options that are mutually beneficial
4. Use objective criteria in case of conflicting interests