Value creators and stumbling blocks
of mediation

INKOVEMA Roundup 2019 (#4)


Since the federal government's evaluation report (autumn 2017), it has been clear that mediation has not yet lived up to the hype and hope. In practice, it is – hardly in demand given the volume of conflict –. Mediators are by no means working to capacity. But a "bad word" about mediation is hardly ever uttered.

As an economic product, mediation as a whole is a "slow seller“, even though Germans have been taking (going) to court extremely less for years. But where do they go then? The few areas of application (court of arbitration, legal expenses insurance, consumer dispute resolution lawsetz – and in comparison to the volume of conflict in the isolated fields of application that are handled by private mediators) resemble the dark backyards of large cities. Difficult to find, even if they are sometimes charming, liveable and feel good far away from the hustle and bustle of everyday life.

That's why we once again asked practitioners and academics, university lecturers and tried-and-tested mediators about the three value creators and stumbling blocks of mediation. Here are their answers. 

1st Prof Dr
Caroline Meller-Hannich

Halle (Saale)


Chair of Civil Law,
Civil procedural law &
Commercial law,
Martin Luther University Halle-Wittenberg

Website:
www.jura.uni-halle.de


It is possible that the value creators and stumbling blocks are at least partially identical.


What are the 3 value creators that make mediation unique?

1. Take the time to create transparency, a mindful process and to penetrate the conflict.

2. Structure and procedure (respectful personal "setting") enable the mediants to meet as equals and find solutions independently.

3. Finding a joint solution to the conflicts behind the claims instead of fighting for justice in narrowly defined disputes with a loser and a winner.


What are the 3 stumbling blocks that make it hardly in demand?

1. Time-consuming, expensive, small-step process

2. A procedure for structural imbalances? In situations with mandatory law?   

3. No enforcement order as end of proceedings -> court proceedings can/must follow if there is a dispute about the outcome of the proceedings or refusal of fulfilment. Can the results of the confidential mediation proceedings be utilised?


2. prof.
Dr Jörg Risse, LL.M

Frankfurt


Frankfurt partner of Baker & McKenzie,
international arbitration proceedings
especially in the area of company acquisitions &
major technical projects;
According to Who’s Who Legal 2019, he is one of
the seven best mediators
in Germany


What are the value creators that make mediation unique?

1. Parties to a legal dispute underestimate the emotional cost of litigation – and they overestimate their chances of success for psychological reasons. A well-managed mediation can eliminate these misjudgements and thus create value for the parties: A quick agreement with little effort is better than a marathon trial. There is simple proof of this: the settlement rate in high-volume litigation and arbitration proceedings is very high - over 50 %, depending on the study. However, the parties usually only settle at the higher regional court stage at a time when they have already invested a lot of money and nerves in the conflict. As the initial dates of the conflict have not changed, this settlement would have been possible much earlier (usually years earlier). And this is exactly what mediation can achieve.

2. Distortions of perception and other psychological factors favour an irrational approach to conflicts. A good mediator brings objectivity to the discussion, for example by using the technique of process risk analysis. By visualising the conflict in this way, the parties often understand the dispute much better - and they also see = understand which (often important) factors a judge cannot and must not take into account when making a decision.


What are the stumbling blocks that mean it is hardly in demand?

1. Parties - especially in commercial disputes between companies - shy away from taking responsibility. In mediation, however, one party must take responsibility for the decision "in favour of settlement" and also justify this decision internally. It is often easier for the people involved to delegate responsibility to a court and put it on the back burner. And by the time the unfavourable court decision is finalised years later, the person involved has usually long since moved on to another area (or even company) and is no longer associated with the negative outcome of the proceedings.

2. The "win-win" promise is not accepted by the mediation movement - and it is usually disappointed in practice. Business disputes are regularly "only" about money and the amount of money is split in the end. This is painful for both sides - the advantage lies in the quick, cost-effective solution. However, parties to a dispute can rarely really understand the latter advantage - after all, they don't know how the conflict would have ended in lengthy court proceedings. This is why the advantages of mediation are so poorly recognised.


3 Dr Jürgen Klowait

Düsseldorf


Lawyer, Interim Manager,
Business mediator & business coach,
Co-founder of the Round Table Mediation &
Conflict management in the German economy

Website:
www.mediate-online.de



What are the 3 value creators that make mediation unique?

1. Only mediation offers the parties the opportunity to resolve their conflict in an interest-based and self-determined manner with the professional support of a neutral third party.

2. Business mediation in particular reduces internal and external conflict and procedural costs and makes a measurable contribution to the company's added value.    

3. No other conflict resolution method offers comparable potential for "de-interrupting" the communication between the parties, strengthening mutual understanding of the other party's point of view and motives and thus leading to a rapid and sustainable resolution of factual and relationship conflicts.


What are the 3 stumbling blocks that make it hardly in demand?

1. Too often, there is still a lack of knowledge about the process and the specific procedure of mediation - and thus, psychologically speaking, a reluctance to get involved in "something unknown".

2. Overwhelming scepticism and reservations among lawyers - especially in the legal profession - whose training is still geared towards conducting contentious court proceedings. A lack of knowledge of and experience with ADR proceedings - coupled with concerns about economic losses compared to conducting court proceedings - leads large sections of the legal profession neither to inform clients about ADR proceedings nor to advise them to do so, even where their implementation offers clear advantages for clients.     

3. The fact that knowledge of mediation and other ADR procedures is not mandatory in legal training prevents even the profession, which embodies the social "conflict contact point" per se, from being able to provide qualified advice on the question - rarely asked and even more rarely answered in an impartial and informed manner - "Which procedure is best suited to the conflict at hand?"


4 Jutta Kreyenberg

Frankenthal


Graduate psychologist, trainer,
Counsellor, coach,
Teaching trainer & supervisor
for transactional analysis
for the area of organisation

Website:
www.coachingsupervision.de

Jutta Kreyenberg, Coach


What are the 3 value creators that make mediation unique?

In my view, the three most important value creators of mediation are

1. The neutral person, someone from outside who has no interests in the game, is always welcomed.

2. Mediation not only increases the probability of a factual solution but also trains and develops social skills. In this respect, mediation is live training in conflict management and thus the ability to deal with future conflicts independently.

3. Last but not least, mediation often saves considerable costs (indirect, e.g. through transaction costs, non-achievement of objectives and direct, e.g. through court costs)


What are the 3 stumbling blocks that make it hardly in demand?

I see stumbling blocks primarily in:

1. The parties involved often have hidden political motives. If these are not discovered at some point or put to one side, this can make the process considerably more expensive or prevent it.

2. As a rule, those involved believe for too long that they can resolve the conflict on their own – using the usual means of fighting or remaining silent.

3. Overall, mediation does not have a „friendly“ image – here it is more about „illness“ and not about personnel development. On the one hand, conflicts are not socially acceptable, on the other hand, the proximity to the courts deters many from mediation. Avoidance is often the path of choice here.


5. dr.
Stephan Proksch, MAS

Vienna


Independent business mediator &
Organisational consultant,
Trainer, author
Group dynamics & systemic counselling

Website:
www.trialogis.at



What are the 3 value creators that make mediation unique?

1. Needs-based, self-responsible solutions

In mediation, we can work with our mediants to find solutions that correspond to their actual interests and needs and that they develop on their own responsibility without having to rely on the decision of a superior or a judge.

2. Short-term solutions

A mediation process leads to viable solutions much more quickly than court proceedings or putting the conflict on the back burner. In addition, the solutions can be worked out in a confidential setting, which avoids a public dispute.

3. Maintaining the relationship

A mediation process makes it possible to maintain or even improve a private relationship (e.g. in the event of separation and divorce) or a business relationship. A clean separation is also better in the long term than a "war of the roses".


What are the 3 stumbling blocks that make it hardly in demand?

1. Winning / wanting to assert yourself

People who are in a conflict situation often want to "prove" that they are in the right and look for procedures that promise them this. Admitting your own mistakes is more difficult than blaming the other person. Mediation therefore requires a self-reflective mindset.

2. Fear of conflict escalation

Many people I have dealt with are simply afraid of any encounter with conflict. This is more than understandable, as there is something inherently threatening about conflict. The more the conflict escalates, the more difficult it is to recognise the opportunity in the conflict.   

3. Lack of understanding / knowledge of the method

I often hear that people can't imagine how mediation can work. Even people who learn the basics of mediation - for example at a university of applied sciences - are not sure whether and how it actually works in practice.


6 Nicole Vogelsberger

Düsseldorf


Mediator,
Head of department &
In-house lawyer
at ARAG SE

Website:
www.ARAG-Streitschlichter.de



What are the value creators that make mediation unique?

The mere fact that conflicting parties deal not only with their own needs but also with the needs of the other side and also reflect on their personal conflict behaviour creates an often underestimated added value. In addition to the shorter duration of the process, the possibility of a holistic solution is the greatest added value of mediation. In other procedures, the resolution of a conflict is often reduced to the basis of the claim and the corresponding legal consequences. Mediation, on the other hand, offers a sustainable resolution of the conflict - by taking into account the past, present and, above all, the future. The solution is not imposed by a third party, overriding the interests and needs of the parties involved. Rather, the mediating parties work out the solution to their conflict independently and under their own responsibility. Creativity is only limited by legal requirements. No other procedure therefore leads to such highly individualised and satisfactory solutions.


What are the stumbling blocks that mean it is hardly in demand?

Unfortunately, mediation is still unknown for many life – and conflict situations in the population. The same applies to the process and the possibilities and opportunities of mediation. It is therefore not yet a demand product, but a supply product. The very strong legal lobby is still largely sceptical about mediation or even equates it with legal settlement negotiations. Courts also still too rarely offer mediation to the parties in conflict. This is also due to various statutory mandatory or optional provisions - such as the §§ 253 III p. 1, 278 a ZPO - change much. Coupled with the lack of political attention paid to this topic, it is and remains very difficult to significantly increase the demand for mediation as an attractive alternative conflict resolution option.


7 Christian Hartwig

Magdeburg


Licensed mediator and trainer (BM),
Transformative Mediator (ISCT),
Lecturer at the HU Berlin
Self-employed in own practice

Website:
www.streitvermittler.de



What are the 3 value creators that make mediation unique?

First of all, I made sure I knew what was meant by "value creators". An interesting play on words in relation to mediation, a term that makes you sit up and take notice. After all, who hasn't experienced it: how conflicts weaken our ability to make meaningful decisions, how they make us communicate with others in a way that we sometimes find disturbing and repulsive.

Mediation therefore derives its value first and foremost from the effective opportunity to help oneself gain a greater understanding of the reality of one's own life. The knowledge gained Clarity creates confidence in being able to assess the conflict-prone situation and strengthens one's own Decision-making ability. This was achieved Self-efficacy in turn enables us to be more open and responsive to others. The human connections created in this way are of great value to those seeking help. Ultimately, they inspire them to rethink their own points of view and see conflicts as a lifelong learning experience.

What are the 3 stumbling blocks that make it hardly in demand?

So why is mediation so little used in this country? A recurring, good question. One reason could be due to the unwillingness of mediators themselves to see mediation as the first method of choice in their own serious conflicts. Another reason could arise from the sometimes contradictory expectations of potential help-seekers and the associated and unfortunately still widespread portrayal by mediation providers that this is a process in which a third party takes control of the process. This simply does not fit in with the human endeavour to make as many decisions as possible about one's own life.

We prefer to have difficult conversations ourselves (if at all). After all, who would be more familiar with the reality of our own lives than ourselves? So I conclude a third reason for the reduced demand for mediation: we prefer to deal with our conflicts ourselves, because then we actually remain responsible for the results of our efforts and our striving for greater inner clarity and connection with others.