Business mediation has enormous potential. Conflicts arise every day in the business world and are inevitable when people with different interests come together. In many cases, this creates potential for positive change and further development within the company. However, if the parties to the conflict are unable to find a solution- and interest-oriented approach, this can lead to considerable economic losses and prevented value creation, depending on the significance of the dispute and the level of escalation.
Delays in projects, confrontational attitudes within teams, endless discussions during working hours, restrictions in communication, courting supporters, postponement of overarching common goals, blocking of decisions, avoidance of cooperation, sick leave, unnecessary restructuring, loss of quality, dissatisfied customers, loss of revenue, employee turnover, damage to the company’s image, high legal costs and many other consequences associated with disputes mean that the costs of conflict can quickly reach enormous proportions.
Conflict costs are not listed in the profit and loss statement. If this were the case, the shareholders and managing directors of the company would realise the enormous scale that these types of costs can take on.
Conflict costs in the business sector in particular are becoming a significant cost factor for companies. According to a conflict cost study conducted by a large auditing firm, every company could potentially save 15-20% of its personnel costs by resolving conflicts. Conflict costs include all directly calculable costs, such as those incurred in terminating an employment relationship or recruiting a new employee. In addition, there are all estimable expenses, such as those for lost business opportunities or customer turnover, for example because the employees responsible were tied up in the conflict.
Areas of application for commercial mediation include:
Conflicts between shareholders:
- in the context of succession planning
- due to differing objectives for the company
- loss of trust
Conflicts within the company:
- between employer and employee(s)
- between management and works council
- between colleagues
Conflicts in the business relationship:
- between companies and suppliers
- between companies and customers
Conflicts between companies and public authorities/neighbouring companies:
- Environment, emissions, taxes, etc.
- Disputes with other companies of any kind
Through the targeted use of business mediation, you can improve your corporate climate in the long term, increase employee satisfaction and save on conflict costs.
Business mediation is therefore increasingly being used as the preferred form of dispute resolution.
Your benefits:
- provides a safe environment in which to discuss even difficult topics,
- offers quick, unbureaucratic and confidential solutions without legal recourse
- creates clarity in conflicts
- empowers all parties involved to find solutions on their own responsibility
- ensures a high level of acceptance and transparency among all parties involved
- maintains relationships
- improves communication among all parties
- keeps the focus on the issues at hand
- focuses on interest-based win-win solutions
- reduces conflict costs
- increases productivity
- identifies potential and need for change
- retains good employees
- is solution-oriented and produces sustainable results
- binding, future-oriented agreement that applies to everyone