How to lower your cost to resolution with the continuum...
At the top of the new year, it felt appropriate to discuss the costs of conflict across the continuum and how to lower costs (both monetary and other). First, I wanted to share the Conflict Continuum to offer some perspective on the conflict resolution process. This continuum was first introduced to me by Dr. Phyllis Hildreth in graduate school and has become something I use with clients and workshop attendees to explain why I believe negotiation and mediation are important (and accessible!) tools to resolving conflict.
Keep reading to find out why…
Negotiation and Mediation
As you can see above on the continuum, negotiation and mediation come with a lower cost and more control over the final outcome. Negotiation can be free in monetary cost if you have the skills, desire, and cooperation of all involved. If you need a third party to assist you with your negotiation (aka a mediator), you can expect to spend $100-$300 per hour.
The complexity of the conflict will determine how long the mediation lasts. Some conflicts can be resolved in a couple of hours and others may take a couple of days. Mediations don’t always require the participation of legal counsel, but if they do you need to take that cost into account. Mediation facilitates a mutually beneficial (win – win) agreement that is binding on both parties. Typically, mediation agreements are longer lasting because of the process and circumstances.
arbitration and litigation
On the other side of the continuum, arbitration is a process similar to mediation in that a third party neutral (qualified arbitrator) hears each side of the conflict but differs in that the arbitrator makes a final decision instead of the parties. In some cases, the parties can work together to pick the arbitrator. Parties have less control over this process and outcome and it costs $1500-$2000 per day. The final outcome is legally binding.
Litigation is the process by which legal counsel represents each party and either settles out of court or goes to trial. In some simple cases, a settlement will result in $10,000 of legal fees and in more complicated cases that price can exceed $100,000. The parties involved really have zero control over the outcome if a case goes before a judge or to trial. Someone else will be basing the outcome based on the evidence and argument provided. This decision is legally binding and also hard (read: expensive) to appeal or change.
other considerations
Beyond actual monetary costs associated with conflict and each of the available resolution options, there are also non-monetary costs associated with conflict such as:
- Wasted time
- Violence
- Less productivity
- Stress
With the additional information about the available conflict resolutions processes, perhaps it’s easy to see why we promote and encourage mediation. It’s also why we are proud to offer Mediator in a Box™ so that parties can work together on their own time in a less formal environment to reach agreements and build communication skills.
If you have a nagging conflict that you’ve tried to resolve and have been unsuccessful, don’t hesitate to reach out today.