Tag Archives: business mediation

DEAL MAKING VS. MEDIATION

We’ve heard a lot about Donald Trump’s deal making skills lately and how he plans, as President, to make huge trade deals that will benefit the United States. However, after all this talk about how Trump will make these successful deals, I am left with the feeling that Trump is only interested in a deal that gives him what he wants with no regard to the needs of the other party. As an alternative to “deal making,” mediation provides an environment where there is an equal balance of power so that parties can reach a mutually agreeable resolution.

Deal making and mediation are similar since they both provide a process in which parties can reach an agreement or resolution. However, there are significant differences in how these procedures achieve this goal. The deal making/negotiation procedure tends to focus on how you can get your opponent to agree with your terms. That would be a successful agreement. On the other hand, mediation, with the help of trained mediators, encourages parties to have an open and honest conversation so that everyone understands the positions and underlying concerns being expressed at the table. Once that is achieved, the parties can then become creative and discuss a resolution that benefits both parties. A mediated resolution does not always mean that there is a compromise where a party has to give up something to reach an agreement. Rather, through mediation, the parties agree to terms that they both believe give them the best resolution, thereby establishing a win-win situation.

Unlike negotiation, mediation provides a process where parties are more likely to feel like they both got a good deal. Walking away from the table with that feeling can only ensure that the parties will comply with the terms of the agreement. More importantly, such good feelings will preserve the parties’ relationship, whether they are family members or business associates.

Ruth Weinreb