Mediation means the effective and individual resolution of conflicts at the negotiating table.

“Mediation means a structured process for conflict resolution, whereby two or more parties to a dispute attempt by themselves, on a voluntary basis, to reach an agreement on the settlement of their dispute with the assistance of a mediator.”

This may be a somewhat brief and dry definition from the European Parliament (Directive 2008/52/EC dated 21.05.2008).

In actual fact the process emanating from the USA is also becoming increasingly more significant in the EU business community.

This is an “ADR” procedure (Alternative Dispute Resolution), in which, contrary to (arbitration) court proceedings, the chairman has no decision-making authority, but merely ensures that a solution is found in a structured procedure. The mediator is specially trained for this task, thereby reinforcing the expertise from his original profession, e.g. as a lawyer.

This procedure is repeatedly being discovered by business as a genuine opportunity for effective conflict settlement for the following reasons:

It saves resources, because the procedure is extremely successful: the procedure has a success rate of over 85 %.
It is particularly cost-effective: because a result is achieved after just a few rounds of negotiation, the costs for those involved are drastically reduced. This applies not only to the costs of proceedings, but also to the time that own parties to the dispute are tied up (management, clerical staff etc.)
Makes very creative methods of resolution possible: unlike court proceedings, where it is only possible to win or lose, parties in the mediation procedure have the opportunity to incorporate areas outside the actual subject matter of dispute and find independent solutions that are customised to their individual situations.