In today’s business landscape, disputes are almost inevitable.
Whether they arise from contractual disagreements, employee conflicts, or customer grievances, handling disputes effectively is essential for maintaining business continuity and reaching faster and more affordable resolutions.
By proactively integrating Alternative Dispute Resolution (ADR) strategies into their operations, businesses can not only prevent disputes but also handle them more efficiently when they arise.
What is ADR?
Generally speaking, ADR refers to various methods for resolving conflicts outside of traditional litigation. That includes methods of resolving disputes such as mediation and arbitration.
Unlike litigation, which can be time-consuming, expensive, and adversarial, ADR offers businesses a more flexible, cost-effective, and collaborative approach to resolving conflicts. Learn more in our Guide to Mediation and Arbitration here.
How to Proactively Integrate ADR Strategies into Your Business Operations
By planning ahead, businesses can minimize the negative impact disputes have on their bottom line and on the important relationships involved.
Here are five tips on how to incorporate ADR strategies into your business operations:
- Develop ADR policies and procedures: It is advisable for businesses to establish clear policies and procedures for handling disputes, and outline when and how ADR processes will be utilized. That will ensure that all employees are aware of the company’s approach to conflict resolution.
- Include ADR clauses into your contracts: Including ADR clauses in contracts with vendors, clients, and employees can help streamline the dispute resolution process by outlining the steps required should a disagreement arise. A typical clause might state that in the event of a dispute, the parties agree to first attempt to resolve the issue through mediation or arbitration before resorting to litigation.
- Educate and train key stakeholders about ADR options: Providing training and resources on ADR methods and processes allows businesses to empower their stakeholders to resolve disputes collaboratively. At a minimum, ensure that managers are included in any training. Managers should be educated in “soft skills” that encourage dispute resolution, such as problem-solving, communication, and cultural competence. If possible, share information about the use of ADR methods in your business with relevant clients, vendors, suppliers, and partners as well. Talking openly about alternative methods of dispute promotes a culture of constructive dialogue when disputes arise.
- Select ADR champions inside and/or outside your business: To ensure that ADR strategies are implemented in an effective way, consider appointing individuals in your business to serve as points of contact for resolving disputes. It is also beneficial to select outside partners, such as a trained mediator to consult if you need a dispute resolved through mediation.
- Review and update your ADR policies on a regular basis: Conduct assessments of your business’s ADR strategies periodically, including asking stakeholders for feedback. By evaluating your policies, you can easily make improvements when needed.
It takes time and effort to incorporate ADR strategies into your business operations, but most businesses find that the return on that effort is well worth the investment. A well-planed dispute resolution process is likely to lead to better morale and a more productive workplace.
If your business has a dispute to resolve and you need help, book a consultation with a skilled mediator now.
