The ZapaBlog - Mediation, Negotiation, and Fast Business

ANNOUNCEMENT - ZapaBlog Pause

2008-07-13T22:33:00.000-04:00

Hello!

First, I would like to thank you all so much for checking in to the ZapaBlog. I hope it's very informative, entertaining, and pertinent to your everyday life. As always, if there's any way I can improve the site, please don't hesitate to let me know!

I want to let you know that I will not be posting for a few weeks. I will be traveling, and my internet connection will be spotty at best. Rather than leave you hanging from day to day, I have decided to simply pick things back up once I return in early August. I wouldn't want to miss a post, get them to you late, or leave you wondering when the next edition would be out!

Again, for those of you that subscribe, thank you for signing up to get updates delivered. And for those of you that check in purely from the web, thank you so much for stopping by. And don't worry - I'll pick up exactly where I am leaving off! Have a fantastic few weeks, and I'll be back writing before you know it!

-Brandon

THE BUSINESS PLAN GAME (Part III - The First Steps)

2008-07-12T00:52:00.000-04:00

Today's Focus: THE BUSINESS PLAN GAME (Part III - The First Steps)

By now, we've covered some of the basics: why a business plan is extremely useful, and some good ways to think about it. Now, let's start to dig into the specifics... how do you put it together?

PIECES OF THE PUZZLE

COVER PAGE: Your plan should, unsurprisingly, have a neat and attractive cover. This seems simple, but not everyone remembers... so I might as well mention it! Also, try customizing the cover for the lender you're presenting to - it'll create a great image. Include a separate title page. Put the name of your business, the names of the principals, the business address, and phone number. If you've got a good looking logo, include it here - and make sure it looks professional!

THE SUMMARY: This provides the reader with an overview of your plan, as well as the financing you're looking for. Don't let this get buried in the middle of your plan - be clear up front! You should describe the legal form of your business (LLC, C Corporation, etcetera), the amount of money you're looking for, why you're looking for it, the repayment schedule you're requesting, the amount of equity you're putting in as the borrower, and the equity-to-debt ratio after the loan, collateral, or security is offered. Basically, make it really easy for a lender to see what you want and what you can offer. This way, the lenders can quickly figure out if your business is right for them. You both save time!

LENGTH AND ORDER: Try to keep the summary under a page - short and sweet. If you've got an especially complex loan, it might be longer - but try to condense it down. Next, put in a table of contents. It's important that this is after the summary - again, so no one wastes their time. You'll probably need to prepare this last, but insert it into your plan here.

DIGGING IN

GENERAL BUSINESS DESCRIPTION: Now that you've got your introduction laid out, it's time to get a little more specific. Is your business a specialized startup? An already developed franchise? A buyout? Describe the industry that you're getting into - including present outlook, future possibilities, market segments, and new developments that will affect your business. Make sure to clarify if you're a service, retail, manufacturing, or wholesale operation. Repeat the legal form of the business.

MORE DETAILS: Be sure to include more detailed information. If you're buying a business, you've got a lot to work with. Talk about the founders, previous owners and managers, when it was started, and why they're selling the company. In addition, be very clear on how you will improve the business.

DAY TO DAY: Talk about some of the everyday operational procedures. What are the hours of operation? What days of the week is the business open? Is there seasonal variation? What about employees and manpower? This is still an overview, but don't make it too fluffy - you'll want some real facts.

WRAP-UP

The first part of your business plan is very important - it's the first thing an investor sees. If you put together an excellent summary, attractive cover page, organized title page and sensible table of contents, you'll have a much better chance at getting your lender to read on.

In the next edition of Small Business Saturday, I'll continue with my coverage of business plans by digging into market research. Thanks!

-Brandon

**I'd like to thank Arnold S. Goldstein, PhD, for his contributions to this article. For more great advice, check out his book, Starting on a Shoestring.

NEGOTIATION POWER IMBALANCES (Part IV - BATNA Nuances)

2008-07-10T16:02:00.000-04:00

Today's Focus: NEGOTIATION POWER IMBALANCES (Part IV - BATNA Nuances)

Now that we've covered how to develop and use your best alternative to a negotiated agreement (BATNA), let's cover a few more nuanced techniques. This advice can really come in handy in a pinch, and will make you even more effective at the table!

EXPOSING YOUR BATNA

A TRICKY GAME: Should you let the other side know what your BATNA is? That's a tricky question. Remember first that knowledge is power. How much power you have, though, greatly depends on the strength of your BATNA. Sometimes, keeping the other side in the dark is the best move. However, if you have an extremely strong alternative waiting, it's probably best to let the other side know. It will increase your leverage. This is especially true if they don't believe you have any other good options.

THE FLIP SIDE: However, if you don't have a very good alternative, it's probably wise to keep it to yourself. This is especially true if the other side believes you have some great options waiting in the wings. You don't want to reduce your leverage by showing that you desperately need the current deal. Don't let them see you sweat!

LIES?: Some people will say that you should 'inflate' your BATNA when revealing it to the other side. I definitely do not recommend this. First, it's dishonest. Secondly, it can come back to bite you very quickly and forcefully. For instance, I've been in negotiations where the other side lied and I recognized it: in my mind, they instantly lost all of their credibility. It's hard to deal with someone you know is lying to you. On top of that, word gets around. You don't want that reputation.

THE OTHER SIDE'S BATNA

A MORE COMPLEX EQUATION: In addition to weighing your alternatives against what's on the table, it's really useful to consider their BATNA as well. They might be overly optimistic about their alternatives; there's a decent chance they haven't fully explored their options. Also, they might fall prey to the 'happy grouping' phenomenon that we talked about a couple of weeks ago. In other words, they will consider all of their options in one big group, which will make non-agreement look much more attractive.

KNOW THEIR OPTIONS: Spend some time considering their BATNA. If you know their alternatives, you will have a much better idea about what you can get out of a negotiation. If it seems like they're overvaluing their BATNA, try to sharpen their perspective by asking them specifics about their alternatives. You probably won't know everything about their options, but you should be able to figure out enough to get you in the ballpark.

STRENGTH: Sometimes, the other side will have an extremely strong BATNA. In fact, it might be stronger than anything you can reasonably offer them. In that case, be prepared for them to walk away. If this is the case, you might need to explore other options other than negotiation to get where you want to be.

MUTUAL STRENGTH: Occasionally, both sides will have very strong BATNAs. In fact, they might be so strong that agreement is a bad option. In this case, don't feel upset walking away from the table. It's better for you (and for them). This type of situation doesn't need to be contentious - in fact, the more amicably you can come to this realization, the greater the chance that you will be able to work together in the future.

WRAP-UP

When the other side is strong, negotiations can be tough. But by properly assessing, developing, and using your best alternative to a negotiated agreement, you can effectively counter their strength. By effectively implementing these methods, you can rest assured that you'll never get beaten up at the negotiation table.

In the next edition of Better Bartering Thursday, we'll start to get into more specific techniques on how to deal with tricky bargainers. Thanks!

-Brandon

**I would like to thank Roger Fisher and William Ury for their contributions to this article. For more great reading on the subject, check out their book, Getting to Yes.

STYLISH MEDIATORS (Part VI - Facilitative-Broad Mediations)

2008-07-07T15:10:00.000-04:00

Today's Focus: STYLISH MEDIATORS (Part VI - Facilitative-Broad Mediations)

We've spent the last few weeks talking about different frames of reference for mediations - in both problem definition and mediator styles. Now let's tackle the fourth and final 'quadrant' - the Facilitative-Broad (FB) style.

THE BASICS

STRATEGY: Typically, the Facilitative-Broad mediator will help the parties define the subject matter of their dispute in terms of their underlying interests, and help them develop and select their own agreements (which respond to those interests). They believe the parties to be the experts in their own cases, and so leave control of the dispute's resolution in their hands.

TRANSFORMATION: Many facilitative-broad mediators also consider their style 'transformative.' In this facility, they help the parties find opportunities to educate or change themselves and their communities. This might include personal empowerment, growth, improving the situations of others, or making changes in their institutions. This is most common in a FB mediations, because the parties develop their own knowledge bases, options, and agreements - which can be very enlightening. On a smaller scale, a mediator might help the parties to repair their relationship, or increase empathy between conflicting sides. Once the parties understand each other and their interests, they can recognize where the other side is coming from - a key part of mending broken ties. If this sounds broad in scope, it is - the possibilities are nearly limitless.

METHODS

UNDERSTANDING INTERESTS: The facilitative-broad mediator will typically help the parties understand their own (and each other's) underlying interests. To this end, the parties, not just the lawyers, are encouraged to attend and dig into the many causes of a dispute. Since the parties and the lawyers craft their own agreements, the mediator helps the parties educate themselves and each other (rather than the mediator) - after all, they have to live with the agreement! Because of this, the facilitative-broad mediator will typically use more joint sessions than private meetings, since they are more likely to engender mutual understanding.

SCOPE DEFINITION: The FB mediator will also help the parties define the scope of the problems to be tackled at the table. Often, this includes exploring interests that other mediators will not. 'Narrow' mediators will typically accept the most obvious problem as the one and only issue to be solved, and 'evaluative-broad' mediators define the problems to be handled themselves. This is the only style in which the parties are actively encouraged to discuss and explore their underlying interests to whatever extent they desire.

HELPING THE PARTIES CREATE PROPOSALS: The facilitative-broad mediator will help the parties develop broad, interest-based options for settlement. Rather than focusing solely on money, for instance, he or she will help the parties creatively think of new ways to meet everyone's interests. Once this process has started, the mediator may help the parties to combine, modify, or develop their ideas further, bringing them ever-closer to agreement. Typically, this creates longer-lasting and more satisfying agreements.

HELPING THE PARTIES EVALUATE THOSE PROPOSALS: Usually, the facilitative-broad mediator will ask a lot of questions to help the parties sift through proposals. He or she might ask about how the offer can satisfy important interests, the consequences of non-agreement, and what the parties will do tomorrow under different circumstances. Unlike other mediation styles, the FB mediator will not 'push' the parties towards any sort of agreement. In fact, he or she will not push for agreement at all. The parties are the experts in their case, and agreement (or not) is completely up to them. The participants in the mediation retain ultimate control of their conflict's resolution.

WRAP-UP

The facilitative-broad style focuses on party empowerment, goal-setting, and decision making. The mediator, while leading the session, leaves the participants in control of their dispute; he or she works to get them communicating more effectively so they can work out an agreement for themselves. The mediator also opens the door for party transformation, both within their dispute and in broader contexts.

In next week's edition of Mediation Monday, I'll start to break down the advantages and disadvantages of these different approaches. Thanks!

-Brandon

**I'd like to thank Leonard Riskin for his excellent work on these frameworks - they provide a fantastic foundation for understanding!

THE BUSINESS PLAN GAME (Part II - Thinking for Success)

2008-07-05T16:30:00.000-04:00

Today's Focus: THE BUSINESS PLAN GAME (Part II - Thinking for Success)

Last week, we outlined some of the major benefits that a well-organized business plan can give you. Now, let's cover how to mentally prepare yourself for putting the plan together... it can be a lot of work!

SURPRISES

NOT THE WAY YOU THINK: The surprises in your business plan should come from your excellent business model, the new way of thinking you bring to the table, or the revolutionary product you're about to debut. Not the structure. Your plan should be comprehensive, with the information grouped logically (and in a relatively standard format) so the reader can quickly find what they're looking for.

WHAT TO PUT TOGETHER: Usually, business plans have 10-13 sections, not including introductory materials. Here's one way to organize it: 1. Cover page. 2. Statement of Purpose and Summary. 3. General Description of the Business. 4. Market Analysis. 5. Market Strategy. 6. Design and Development Plans. 7. Operations Plan. 8. Management Structure. 9. Timetables and Schedules. 10. Financial Data 11. Supporting Information. Don't worry, we'll go into all of these in more detail.

MAKING IT AMAZING

INTENSITY: Putting together an excellent business plan takes work. You shouldn't expect to whip through it in a weekend. After all, there are tons of benefits - but collecting all of the information takes some elbow grease. You'll need to do some pretty intense research, along with some critical thinking about the ins and outs of your business. This is where a lot of people lose steam - push through it, and I guarantee it'll be worth it!

WHAT TO THINK ABOUT: Specifically, do a lot of thinking about what your business truly needs for success, and your overall goals. That sounds simple, but really isn't when you start digging. You'll need to know how much financing you need, and when you need it. For operations, consider distribution, R & D, manufacturing, engineering, etcetera. For marketing, know your sales force, promotions, advertising, all of the venues you can explore, branding, and more. Ask who, what, where, when, why, and how much.

RESEARCH FIRST: It's pretty helpful if you do all (or at least most) of your research before sitting down and writing your plan. This might cause you to shift your business focus a bit - that's perfectly okay. It's better to find out now than 2 years down the road that you should have taken a different path.

SOURCES OF INFO: Some resources are easy to find, and packed with information. Trade journals, for instance, will often have entire sections or columns devoted towards the new business owner, and can really help steer you clear of some common industry pitfalls. If you need a place to start, look up the 'Encyclopedia of Associations.' It'll probably be in a library near you.

TOUGHER SOURCES: If you want the real dirt, talk to people in your industry that are doing what you are. This can be tougher. Don't go for direct competitors, as they're unlikely to be candid with you about business tips. Search in other geographical regions, or find other companies that are quite similar, but not in direct competition with you. It'll probably take a few phone calls to track down some great info, but it's worth it - nothing teaches you quite like experience. Use what they've learned!

CALM AND FOCUS: Give yourself time and space (both physical and mental) to put your plan together. You need to be able to think creatively, and take a hard look at parts of your business you might not have considered yet.

WRAP-UP

Thinking about your plan in the right way before tackling it is a great way to set yourself up for success. Knowing where to look for info and giving yourself the time and space to put it together well are just as important.

In next week's edition of Small Business Saturday, I'll dig into the nuts and bolts of structuring your plan, and break down the sections I listed above in greater detail. Thanks!

-Brandon

**I'd like to thank Arnold S. Goldstein, PhD, for his insight on this topic. For more great advice, check out his book, Starting on a Shoestring.

NEGOTIATION POWER IMBALANCES (Part III - Developing Your BATNA)

2008-07-03T15:58:00.000-04:00

Today's Focus: NEGOTIATION POWER IMBALANCES (Part III - Developing Your BATNA)

By this point, hopefully I've properly shown you why having a BATNA before walking into a negotiation is one of the smartest techniques you can use. It's really the source of your strength in a negotiation, so never underestimate it. Now, let's check out the specifics - how do you develop your other alternatives?

A METHOD, NOT CHANCE

PROCESS-ORIENTED: Most of the time, your best alternative to a negotiated agreement isn't going to fall into your lap. Instead, you have to work to develop them, and develop them well before walking into the negotiation. Trust me, whatever time you put into it will pay off five-fold.

THE STEPS: First, you should create a list of actions you might take if no agreement is reached. Second, you can take some of your better options and improve them, and figure out ways to convert these ideas into practical alternatives. Third, you should select (tentatively) the one that seems best. The process itself is pretty simple, actually. Thinking through them thoroughly is more challenging. Let's look at each part in a little more detail.

MORE DETAILED STEPS

INVENTION: In the invention/creation phase, be as open-minded as you can at the beginning. If you need some more tips, go back and check out the 'idea generation' section we covered a few weeks back. Remember, you have more options than are immediately apparent. If you're in a job offer negotiation, for instance, you might look at another company, check out other cities, look into starting your own business, consider a parallel field, etcetera. Let your mind go wild here.

DEVELOPMENT: Now, take the ideas that seem to be the most promising. Develop them further, and make them even more attractive. Now most importantly, turn them into practical alternatives. For instance, if you decide that starting your own business is a very promising alternative, sit down and start working through the logistics of setting it up. Think timeframes, locations, money, etcetera. Or, if you think a job in North Carolina might be your best alternative, try to line up a job offer there. Make sure your alternatives are concrete - otherwise you'll run into the 'happy grouping' problem we described last week.

SELECTION: After developing a few of your most promising alternatives, select the one that seems to be the best for you. Often, you'll run into a tie, where 2 or 3 options seem equally good. If that's the case, my advice is to go with your gut. A lot of times, different options may seem logically equal, but you just get a better feeling about one - trust that instinct. In my experience, it usually pays off.

NOW WHAT?

JUDGE EVERYTHING: Now is the time for serious judgment and reflection. Take every offer presented to you at the table, and judge it against your newly-formed BATNA. The better it is, the more ability you have to improve the terms of any negotiated agreement. You will also have more confidence walking into the room, because you'll know what to do in case things take a turn for the worse.

BREAKING OFF: Another huge advantage of developing an excellent BATNA is your increased ability to break off negotiations if the options on the table aren't superior to your alternative. If you know your next step, walking out of the room isn't scary anymore (and you'll actually be doing yourself a favor). The more willing you are to walk out of a negotiation, the more firmly you can present your interests to the other side. You can stick to your guns on the issues of fairness and objective standards, and stop even the most powerful adversary from walking all over you.

A NOTE: This doesn't mean, by the way, that you should use 'the walkout' as a common bargaining move. It tends to escalate tension, reduce creativity, and dig people in to their positions. Instead, I am arguing that it is extremely useful to know when a better option is readily available. Don't succumb to the pressure of a negotiation when you're being set up to take a bad deal. Be strong!

WRAP-UP

The steps to developing a great BATNA are rather simple... it's taking the time to thoroughly work through their alternatives that trips most people up. Put yourself in the top few percentiles of negotiators by walking in with a great BATNA in hand - you'll feel the difference right away, and walk out with a better deal.

In next week's edition of Better Bartering Thursday, we'll fine-tune this lesson by adding a few nuances: if and when to reveal your BATNA, and how to take the other side's alternatives into account. Thanks!

-Brandon

**I would like to thank Roger Fisher and William Ury for their great advice on this issue. I highly recommend their book, Getting to Yes, for more fantastic tips.

STYLISH MEDIATORS (Part V - The Evaluative-Broad Method)

2008-07-01T11:24:00.000-04:00

**I sincerely apologize for the lateness of this post - Blogger was having some major issues yesterday, and I couldn't get the page up for the life of me. Sorry!

Today's Focus: STYLISH MEDIATORS (Part V - The Evaluative-Broad Method)

So far, we've covered the Evaluative-Narrow and Facilitative-Narrow styles... now let's move on to the Evaluative-Broad method. Mediators employing this style might cover a ton of issues, even including many narrow, distributive ones. On top of that, they might only be evaluative on some of the issues, and thoroughly facilitative on others. Remember, this is all part of a larger spectrum - variety is expected! Let's get going.

THE BASICS

NUMBER ONE STRATEGY: The Evaluative-Broad (EB) mediator will typically do his or her best to understand the circumstances and underlying interests of the participants (as well as other important groups), and then direct the parties to an outcome that responds to these interests. So in essence, they look at all of the factors that go into a dispute, and then formulate a judgment. Once this is done , they then encourage the parties to accept one proposal or another. How do they do this?

GATHERING INFO: First, the mediator will try and figure out which facts are relevant to the case. To do so, he or she might dig into relevant documents, and allow the parties to argue their own opinions. Next, the mediator would probably dig deeper, and try to uncover important facts not covered in the paperwork. This might entail including lots of direct and indirect questions about underlying interests, and plenty of time spent in private meetings.

MEDIATOR EDUCATION: EB mediators look to put proposed agreements together themselves. Because of this, they will typically focus on their own education rather than that of the parties. Instead of having the parties talk through the situation and explain it to each other, the mediator will usually control or restrict direct communication between them. If you find yourself in this sort of mediation, expect to spend more time in caucus than in joint sessions.

THE NEXT STEPS

PREDICTIONS: Based on the information the EB mediator gathers, he or she will then typically predict how failure to settle will affect key interests. In other words, rather than narrowly predict how a court would hand down a decision, as an Evaluative-Narrow mediator might, the Evaluative-Broad mediator will focus much more heavily on the overall affect not settling will have on the participants. An EB mediator might also try to convince the parties that his or her opinions are correct by showing some objective data or explaining their reasoning in full detail.

DEVELOPING BROAD PROPOSALS: The EB mediator aims to craft a settlement that satisfies as many of the parties' interests as possible. This includes narrow concerns, like monetary divisions, as well as broader (interest-based) needs.

ENCOURAGING PARTIES TO ACCEPT THEIR PROPOSAL: Similarly to the EN style, the EB mediator would then present his or her proposal with varying degrees of force. He or she might suggest it as one option, or tell the parties that it is a 'good deal' for everyone. In more extreme cases, the mediator might apply serious pressure to each of the parties, by threatening to use their clout or attempting to scare them into settlement. If there is another proposal on the table the mediator likes, he or she might advance that option with similar means.

WRAP-UP

The Evaluative-Broad style is quite interesting... it accepts a large spectrum of issues as important to conflict resolution, while asserting that the mediator should be the one to craft the agreement. While this style is more rare as a primary orientation, you might very well see it throughout the course of your mediation.

In next week's edition of Mediation Monday, I'll move on to our fourth and final quadrant - the Facilitative-Broad style. Thanks!

-Brandon

**I would like to thank Leonard Riskin for his contributions to this article, as well as for his work in putting together these useful frameworks!

THE BUSINESS PLAN GAME (Part I - What's the Point?)

2008-06-28T15:20:00.000-04:00

Today's Focus: THE BUSINESS PLAN GAME (Part I - What's the Point?)

I've gotten a lot of requests for a section on business plans - well, ask and you shall receive. Before we get into the nuts and bolts of how to put a successful plan together, let's cover why every business owner should put a great plan together. After all, it takes a good amount of time and effort - why would it be worth the energy?

STRENGTH THROUGH ORGANIZATION

HONE YOUR STRENGTHS: Small business owners are usually dreamers, and they're usually very smart people. They've got great ideas, or a fantastic way to put something old together in a new way. Unfortunately, too many of these wonderful, smart, talented people plan their ventures quite poorly. They proceed forward, without much of a solid plan on how to progress - it's a recipe for mediocrity.

ORGANIZATIONAL BOOSTS: If you organize your thoughts, and sit down to logically and concretely put them on paper, you'll be surprised by the results. It forces you to take an objective, realistic, and detached perspective towards your business - and provides a great reference point later on. Simply organizing your thoughts and perspectives takes a massive amount of stress off of your mind - which is always fantastic!

FINANCIAL TOOLS: Your business plan is a great way to help you manage your success as you go forward - you can know when you're straying from the right path, and hopefully how to correct your course. It's also an absolute necessity if you're looking for funding - it's a cornerstone of any loan or investment proposal. By creating a great document that really conveys who you are and where you're going as a business, you can get others excited about your ideas as well.

ACID TESTS: The business plan is a great way to enumerate your venture's strengths and weaknesses. By looking at your business in an objective and realistic way, you'll probably come across advantages and offerings that can give you a competitive edge. In addition, you can better pinpoint your needs and weaknesses, which better allows you to confront them.

WHAT YOU CAN DO: There are quite a few things that business plans can help you articulate and acquire. First, it can help you clarify the objectives of your business, both economic and otherwise. It can help you lay down great strategies to meet those goals, and figure out what problems you're going to have to tackle. It can also help you organize by clarifying individual responsibilities and activities, which helps eliminate costly inefficiencies. And of course, it helps get you the funds you need to start or grow your business.

WORK THERAPY

PSYCHOLOGICAL BONUSES: First, like I said earlier, organizing your thoughts takes a good deal of pressure off of your mind - the advantages of this are amazing - you feel better, worry less, and attack problems with more clarity. On top of that, you have a ton of information readily available that you don't have to keep in your head. This helps you to be more confident, which shows when you're presenting your plans to others. If you can talk risks and rewards clearly and objectively with the pocketbook people, your odds of getting funds go way up.

TWO-WAY DEMANDS: Another great advantage: your business plan helps you clarify the demands you have on your business, and what it's going to demand of you in the future. Knowing that ahead of time will help you steel yourself for what's to come, and help you know how to push, pull, and tweak your business so it can better get you what you want.

WRAP-UP

A well-done business plan can help you clarify your ideas about how to operate your business, act as a benchmark for how you're doing over time, and help get you the funding you need. Take the time to put together an excellent one - it will pay huge dividends in the long run.

In next week's edition of Small Business Saturday, I'll start to go into how you can structure your plan. After all, the first step towards success is to figure out a skeletal framework for your future masterpiece. Thanks!

-Brandon

**I'd like to thank Arnold S. Goldstein, PhD, for his contributions to this article. For more great advice, check out his book, Starting on a Shoestring.

NEGOTIATION POWER IMBALANCES (Part II - Insecurity, Strength, and Optimization)

2008-06-26T13:35:00.000-04:00

Today's Focus: NEGOTIATION POWER IMBALANCES (Part II - Insecurity, Strength, and Optimization)

Last week, we started by talking about the advantages of using a BATNA (Best Alternative to a Negotiated Agreement) instead of a bottom line. Now, let's dig into a couple more important points about the strength of your alternatives (and how you can utilize them).

INSECURITY AND BARRIERS

AN UNKNOWN BATNA?: If you don't have a very specific understanding of your BATNA, you're working in the dark. And I mean specific. It's not enough to say 'well, if this doesn't work, we can go to court/look at other houses/move back East/etcetera." For one, you might overestimate your alternative options. You might think the unspecific 'other choices' will be better. Prepare yourself fully, and then you'll actually know if you're staring down a good deal or not.

HAPPY GROUPING: One really common mistake is to lump your 'other options' together (which makes the whole set of them seem pretty fantastic). For instance, if you're negotiating over a house price, you might think "well, if we don't get the price we want, we can always move to Oakland, or get a little condo in Florida, or take a few months and travel, or rent an apartment in a good area and write that book, etcetera. When you think of the 'other options' in this way, they start to look much better. The problem, of course, is that you're only one person and can only choose one of your other options at one time. If one of those options is truly better, that's great, but outline each of them fully so you can be sure.

THE OTHER SIDE OF THE COIN: Alternatively, without a well-set BATNA, there's a huge risk that you'll give in to mediocre deals too quickly. In this situation, you might be overly negative about your alternatives - the psychological pressure to be liked by the other person at the table only adds to this impulse. Too many people walk in to a negotiation, thinking 'well, let's see what happens in here. I'll figure out what to do next if this doesn't work out.' That might work for many things in life, but not for negotiations. Remember, agreement should be based on the attractiveness of the negotiated offer in comparison to your best alternative. It's really that simple.

THE INVISIBLE BARRIER: It's a great idea to think of a protective 'red flag' offer ahead of time. Essentially, imagine a far-from-fantastic deal in your head that's better than your BATNA. If there's an offer on the table that seems worse than your 'red flag' offer, then step back and think about it. This might mean reconvening on another day, or having your negotiation agent talk to you before proceeding. In addition to giving you time to think in a heated negotiation, it also sets up a 'buffer zone' between the last offer and your BATNA. Basically, it works as one more layer of negotiation protection.

PROTECTION VERSUS OPTIMIZATION

THE BEST OF BOTH: Until now, we've pretty much covered how a BATNA protects you in a negotiation. However, it's an equally valuable tool in maximizing your assets to get a great deal.

BATNA = POWER: In reality, the relative strength of each side doesn't come from money, power, connections, or anything else like that. It comes from the attractiveness of your alternatives to agreement. This is actually quite encouraging, when you think about it. You've probably seen this in your own life, or in the lives of others. Consider walking into a job interview with no other offers in hand versus having four other lucrative options. That is power in a negotiation.

DON'T GIVE AWAY THE FARM: Remember, you're bringing value to the table. Whatever the situation, if you offered nothing at all, the other side wouldn't waste their time talking to you. Maximize your strength by fully understanding your situation.

WRAP-UP

Your BATNA is really a huge source of strength in a negotiation. The better your alternatives, the better your position. Just because someone's richer, stronger, more powerful, etcetera doesn't mean you can't get the edge in your negotiations.

In next week's edition of Better Bartering Thursday, I'll go into the real nuts and bolts of how to formulate your alternatives and organize them in your mind. Thanks!

-Brandon

**I'd like to thank Roger Fisher and William Ury for their contributions here. For more fantastic tips, check out their book, Getting to Yes.

STYLISH MEDIATORS (Part IV - The Facilitative-Narrow Style)

2008-06-23T14:44:00.000-04:00

Today's Focus: STYLISH MEDIATORS (Part IV - The Facilitative-Narrow Style)

Last week, we gave a brief overview of the facilitative-evaluative spectrum, and dove in by explaining the first of our four quadrants (Evaluative-Narrow) in some detail. Let's keep digging by moving on to the next style - Facilitative-Narrow.

SIMILARITIES AND DIFFERENCES

ISSUES: Similarly to the Evaluative-Narrow (EN) mediator style, the Facilitative-Narrow (FN) mediation works to teach the parties about the strengths and weaknesses of their cases, as well as a likely outcome if it fails to settle. They tend to focus on the issues which would be brought up in court, and don't go too far into relational, personal, or community-based concerns. In the more extreme cases, they might not talk about anything but money.

STYLE: However, the FN mediator is quite different in his or her approach to these issues. Rather than using their own assessments, proposals, or predictions, these mediators believe that the parties themselves can craft the best and most lasting agreements. With this in mind, they will not apply pressure - which makes sense, considering the power to settle rests with the parties and they don't bring their own opinions to the table. For this kind of mediator, heavy intake documentation is less important, and it's more crucial that the parties understand their cases.

METHODS

QUESTIONING: The FN mediator has many tools in their box. One of these might be to ask a lot of questions to the parties. They might inquire about the participants' understanding of their legal position, and what the road ahead might look like if they don't settle. Along these same lines, the parties and mediator would talk about the costs of non-agreement, from court fees to the amount of time spent to the inconvenience of litigation. Because of the sensitive nature of these issues, the mediator would likely hold these talks in private meetings.

IDEA GENERATION AND EXCHANGE: The mediator might also help the parties craft their proposals. The focus would obviously be pretty narrow in this style, and settlement offers would center (almost) fully on money. When it came time to exchange proposals, the mediator might present them personally in private meetings, or ask the parties to deliver them in a joint session. It would largely depend on the situation. In each case, the mediator would probably ask the parties to explain the reasoning behind their offers, to help the other side better understand where they were coming from. When each side knows why an offer is being proposed, they're more likely to accept it - understanding accelerates agreement in most cases.

OFFER EVALUATION: Again in private meetings, the mediator might help the parties consider and evaluate any offers that have been proposed. The process would again involve a lot of questions, and the mediator might help the parties compare the offer to the consequences of non-agreement. In this stage, counter-offers might fly back and forth, and the mediator could help the parties sort them out.

EDUCATION, TRANSFORMATION, EMPOWERMENT: To some degree, this style of mediation can help transform the parties. Because the parties develop their own proposals, they can gain a better understanding of their own case (and the other side's). On top of that, they can be empowered by crafting their own agreements (and thereby taking control of their lives). Participants might develop some empathy with the other side's situation, and start to view the other side as partners rather than enemies. However, because the focus stays narrow, the possibilities are somewhat hampered. When the mediation encompasses broader issues, these kinds of developments become more likely.

WRAP-UP

As we move through this section, remember that these are generalizations. It's rare that you'll find a mediator with only one style or skill set in their toolbox - most will move between them based on the situation. Many will have a preference or 'default' approach to their cases, and that will help shape the direction of your mediation.

In next week's edition of Mediation Monday, we'll move on to the interesting and more rare 'Evaluative-Broad' style. Thanks!

-Brandon

**I'd like to thank Leonard Riskin for his teachings in this area... and his work in helping to develop these frameworks.

VENTURE LAND (Part V - Take-Aways and Final Points)

2008-06-21T15:02:00.000-04:00

Today's Focus: VENTURE LAND (Part V - Take-Aways and Final Points)

We've been focusing on venture capitalist cash for over a month now, and I know that that's a ton of information to digest. So, for this last section, I thought I'd bring together some key points, with a few original ones to keep in mind.

WHAT TO REMEMBER

COMPETITIVE: Remember, venture capital cash is extremely competitive. Tons of new businesses get formed every year, and you're all competing for a pretty limited pool of funds. Yes, they've got a lot of money to give, but they have a lot of great options to choose from. It'll help if you're very realistic about your chances, and then take all the steps you can to maximize your chances.

SEXY PRODUCTS: If you're considering VC funding, remember the lessons we talked about earlier - they tend to like very sexy products with huge growth potential in the relatively short term. A lot of selections come from the high-tech, health, and similar fields with huge markets not bound by geography. If you've got a product or service everyone's going to want and pay for, your chances go way up.

CHOOSE CAREFULLY: Cast a wide net in your initial search for your VC... leave no stone unturned. But be careful about which you end up approaching. Try to find investors that are interested in your field or product generally, or find the best person within a VC fund to contact. Remember, there are specialists within most funds!

GUT FEELINGS: There's a rumor that VCs often go on hunches... while that may contribute in some part to their decision, you need to have your stuff together. Detailed financial reports, projections, accurate market research, and much more are needed. Most VC investors are pretty smart people, who didn't get rich by making rash decisions. Make their choice easier by putting the whole package together.

EXIT STRATEGIES: Have a good idea of what you want before you approach the VCs. This might seem obvious, but a lot of people really don't. Know what you want, and know what they want. Also, be very clear in your proposal how they could back out of the agreement if things go badly. The more secure they feel, the more likely they are to back your proposal.

AGENTS: Agents can be your best friend, or a huge detriment. Don't rule them out, but don't jump to use their services either. Be extremely choosy if you decide to go this route: my advice is to find others they've worked with and get their honest opinion on the agent. The more input you can get, the better.

VULTURES: Review your deal very carefully. Does it seem like your investor could wind up taking control of your company under relatively likely scenarios? If so, you might be dealing with someone who wouldn't be broken-hearted if you lost control of your business. Make sure the deal you're getting is one you want to stick with - and one that won't pull your dreams out from under you. A great way to deal with this is to not ask for more money than you need, and have a few different (and knowledgeable) people review the terms before you sign them. Be careful!

SBICs: Don't forget about SBICs. They're very accessible, relatively flexible, and might just be the piece you need (especially if you're not in the 'I need millions and millions' crew). Take a close look in your searches.

WRAP-UP

Venture capitalists can be a phenomenal source of funding, especially if you've got huge potential and need a lot of cash. If you're careful, thorough, and a bit bold, you can get just what you need to get your business going.

In next week's edition of Small Business Saturday, I'll move on to a new topic. I've had a lot of requests to dig deeper into business plans... ask and you shall receive. We'll start digging in, and getting to the bottom of what makes a great plan. Thanks!

-Brandon

**I'd like to thank Arnold S. Goldstein, PhD, for his contributions to this article. For further reading, I recommend his great book, Starting on a Shoestring.

NEGOTIATION POWER IMBALANCES (Part I - BATNA Time)

2008-06-19T13:48:00.000-04:00

Today's Focus: NEGOTIATION POWER IMBALANCES (Part I - BATNA Time)

Now that we've got some basic strategies down, let's move towards slightly more complicated topics. For instance, what do you do when the other side is more powerful? This could mean that they're your boss, they've got more money, they're better connected, they have a larger staff, etcetera. Whatever the case, it helps to know what to do when there's a significant power imbalance.

SELF-DEFENSE

PRESSURE, REVISITED: One of the important things you want to avoid is giving in to a deal you should reject. This is always important, but especially when the other side has some sort of strength advantage. Often, they will recognize that you have invested a lot of yourself in agreement. One major danger is that you'll be too accommodating, and give in too easily. The other side might put forth an offer that's great for them, and then say something like 'We've been here a long time. Let's just agree, and get moving." In the pressure cooker, this appeals to your psychological need to reduce mental anxiety, but can leave you with a bad deal in hand.

A 'BOTTOM LINE?': One method some negotiators use to protect themselves is the 'bottom line.' On one hand, having a predetermined limit as to how much you will pay or accept can help you resist the pressures of the moment, and help you prevent giving in to a really bad deal. If everyone's clear on what 'the line' is before sitting down at the table, you reduce the risk of letting your figures slip or that a group will break apart.

ON THE OTHER HAND: Having a 'Bottom Line' comes at a high cost. First, it limits your ability to adapt according to the circumstances of the negotiation. Because a bottom line is predetermined and unalterable (by definition), you close yourself off to many possibilities.

IMAGINATION: Bottom lines also inhibit creativity. The psychological 'money point' sticks in your head, and reduces the urge to craft creative settlements that leave everyone better off. Because of this, discussions start leaning towards positional bargaining. And remember, just about every negotiation has multiple variables. By playing with monetary amounts, both sides can often get a much more satisfying deal.

THE HIGHLOW GAME: There's a good chance that the bottom line you carry to the table will be too high. Because of that, you might refuse a good deal. On the other hand, you might set the bottom line too low - often, the figure you come up with is just an arbitrary number. And that's a bad way to settle an important deal.

SO, WHAT NOW?

BATNA TIME: How can you resist really bad deals, but also prevent yourself from rejecting good ones? The BATNA - your Best Alternative To a Negotiated Agreement. This is the standard you should pit against any other proposed agreement. After all, the purpose of a negotiation is to create a deal better than you could get without negotiating - otherwise, why waste the time? So, think to yourself: what are those results? What are your alternatives?

ADVANTAGES: You're not counting on some arbitrary figure to bail you out of a pressure-packed situation, you can be flexible in your exploration of solutions, and you won't give in to bad deals. Instead of cutting out a deal that doesn't meet your predetermined bottom line, you can compare the new offer to your BATNA and see if it satisfies you more fully.

WRAP-UP

When the other side's more powerful, protecting yourself against bad deals becomes very important. However, cutting yourself off from possibly great deals can be equally painful in the long run. The key is to develop a great BATNA.

In next week's edition of Better Bartering Thursday, we'll take the next step by starting to talk about developing your BATNA - and how to best prepare yourself. Thanks!

-Brandon

**I'd like to thank Roger Fisher and William Ury for their contributions to this article. I highly recommend their book, Getting to Yes, for more great advice.

Stylish Mediators (Part III - The Facilitative-Evaluative Spectrum)

2008-06-16T14:57:00.000-04:00

Today's Focus: STYLISH MEDIATORS (Part III - The Facilitative-Evaluative Spectrum)

Last week, we broke down the Broad-Narrow spectrum as it applies to mediations - in other words, what issues the mediation tackles. Now, let's deal with an equally important issue - how different mediators deal with those issues.

QUICK OVERVIEWS

EVALUATIVE: Evaluative mediation, if you remember back a couple of weeks, is a style in which mediators assume the parties want and need some guidance in determining the grounds for their agreement. This might be based on industry standards, the law, etcetera, and the participants assume the mediator is qualified to give guidance based on their experience, objectivity, training, and expertise.

FACILITATIVE: A mediator with a more facilitative style assumes that the parties are the experts in their dispute. The participants understand the conflict better than anyone else, are intelligent, and are able to work with others towards a satisfactory agreement. Because of this, the parties can create better solutions than any a mediator, judge, or jury could hand down. The facilitative mediator tries his or her best to clarify, enhance, and 'facilitate' talks between the parties so they can better figure out what to do.

DETAILED QUADRANTS

BREAKING DOWN THE FOUR SIDES: Now that we've got a decent idea of the basics, lets combine them. This way, we can cultivate a deeper understanding of the styles and continuums involved. Let's start with the Evaluative-Narrow Quadrant.

STRATEGIES: One of the major strategies of the Evaluative-Narrow (EN) style is to help the parties understand the merits and drawbacks of their case, as well as a likely outcome of litigation/arbitration. Before the session starts, the mediator will study a good deal of relevant documentation, and come to some of their own conclusions about the case. At the beginning of the mediation, the mediator will likely have each of the parties present (and sometimes argue) their cases in a joint meeting. After that, a lot of time .

GETTING INFO AND USING SKILLS: There are a variety of techniques an EN mediator might use. The first, as I mentioned briefly, might be assessing the strengths and weaknesses of each case. Calling on the information they've gathered from their documentation and from the parties, they might point out how the other side could challenge the case, or which of their arguments is most promising. The mediator would then explain his or her opinion, describing how their expertise, knowledge, etcetera led them to that result. In addition, he or she might predict how a judge, jury, arbiter, etcetera might rule on a case. They might focus on issues of law or fact, and explain the likely outcome of a trial and appeal. They might also cover the costs of such processes.

PROPOSALS: Moving further along the evaluative spectrum, a mediator might propose a position-based compromise. He or she might very gently and hardly noticeably direct the parties towards a possible agreement point, without suggesting an opinion on what is appropriate. Alternatively, they might ask one side what they think about a particular number. Going further, the mediator might suggest what the case will likely 'should' settle for. To the extreme, they might say 'I think X is a good offer.' Each step further directs the participants towards a certain result.

PUSHING/URGING: In the most evaluative case, the mediator might push or urge the parties to settle or accept a certain proposal/range. He or she might tell one side that they 'should' settle because 'it's a good deal,' 'it's fair,' etcetera. The mediator might use their figurative clout or muscle to threaten the parties into agreement, or try to vigorously push the parties to settle. Notice, they don't do this with ill will. It's just a style choice... albeit not one that I choose to employ.

WRAP-UP

The facilitative-evaluative spectrum adds new layers of complexity and possibility to mediations. The level of guidance and 'push' applied by the mediator can vary considerably by the case, and can really affect the settlement in the end. Knowing which style your mediator uses (before getting to the table) can really help you prepare for what's coming.

In next week's edition of Mediation Monday, I'll continue detailing the different parts of our mediation quadrant by talking about the Facilitative-Narrow (FN) mediation style. Thanks!

-Brandon

**I would like to thank Leonard Riskin for his contributions to this article... He has provided a wonderful framework to work from and expand upon!

VENTURE LAND (Part IV - What You Need)

2008-06-14T10:44:00.000-04:00

Today's Focus: VENTURE LAND (Part IV - What You Need)

Most entrepreneurs are action-oriented people. If they weren't, they probably wouldn't have taken the leap into a new business venture - it's scary ground. When it comes to VC firms, great planning is a must from the start - so let's start at the ground floor.

BUSINESS PLAN

WHY MAKE ONE: First, you're not likely go get anywhere with venture capitalists if you don't have a great business plan. So no matter how busy you are, how difficult it is, or how little you want to put it together, spend good time creating a plan. It's more than worth it.

WHAT IT DOES: Business plans do three distinct and important things. First, they help you work out your won ideas about how you should run your business. It gives your many thoughts clarity, and helps point them in a singular direction. For people that have to wear a lot of hats, this is really important. Secondly, they serve as guides to let you know how you're doing - retrospectively, you can examine your progress and see your success over time. Third, they help you raise cash.

I REPEAT: Don't come to a venture capitalist without a well-done business plan. They probably won't even hear you out without one, and might not even consider a second meeting. After all, it's a lot of money you're asking for. You might even need professionals to help you out - these are the big leagues.

STRUCTURE AND SUBSTANCE

VC SPECIFICS: This isn't a segment on business plans, and we'll cover them more thoroughly in another section. Think of your plan as both a well-thought out projection and a sales tool. It has to be business-like, but optimistic; accurate but exciting. Take a hard look at the risks, but don't focus on them for too long.

INTEREST LEVEL: When you make your presentation to the VC of your choice, make it imaginative. Not Broadway show imaginative, but interesting. The investors are people too, and they're looking for a new company they can get excited about. Also, make sure you're very clear. If you're foggy on some details, it might seem like you're hiding something.

PRAGMATISM: The people you approach will likely be very sensible business people, who have seen many proposals come through their door. Add focus to what your business can do for them, and articulate it clearly. It is more effective than filling their time with jazzy language and flowery prose.

SPELL-CHECK: First, triple and quadruple check your own document. Then have someone else read it. Then another person. Consider hiring a freelance editor or proofreader if you need it. Typos and grammatical mistakes, unfortunately, really hurt your proposal. If you're a technical genius or a marketing whiz but not a language pro, find someone who is.

FORM: There's no need to reinvent the wheel: the investors will probably be looking for the standard business plan form. Be creative within those confines, but if you try to piece together a new and interesting structure, they might get confused. And confusing the people with the purse strings can be bad news.

BREVITY AND THOROUGHNESS: Write a plan that covers the important facts, and covers them clearly. Don't skim over key details, and spend some time with the benefits of your proposal. However, only write something that's long enough to get your message across effectively. They're busy people too, and they'll probably appreciate your brevity.

ALWAYS, ALWAYS: Focus on your investor's needs. The whole game here is to convince someone with funds that your business will work to his or her advantage. In order to get that money, they need to be supremely confident that you've got a good shot at helping them reach their investment goals.

WRAP-UP

As you can probably tell, drafting a good plan is all about successfully riding lines: between excitement and pragmatism, thoroughness and brevity, etcetera. Obviously, it's also hugely important to put together excellent, well-edited data and projections for them to piece through. Overall, never forget who you're marketing to, and what they're looking for - you'll be much better off.

In next week's edition of Small Business Saturday, I'll wrap up the Venture Land section by putting down a few more key points to remember when dealing with VC money, and a few really useful things to take away from this whole section. Thanks!

-Brandon

**I'd like to thank Arnold S. Goldstein, PhD, for his wonderful contributions to this article. For more great tips, check out his book, Starting on a Shoestring.

USING OBJECTIVITY FOR ALL IT'S WORTH (Part V - Pressure and No-Plays)

2008-06-12T14:26:00.000-04:00

Today's Focus: USING OBJECTIVITY FOR ALL IT'S WORTH (Part V - Pressure and No-Plays)

After last week's post, I got several messages asking for more detail on 'whether or not' sticking to objective criteria really works. So before we wrap up that section, let's hit a couple more points there.

EFFECTIVENESS

REASONABLENESS: Last week, I mentioned that legitimacy is a powerful ally in your corner. First, if you're holding fast to objective criteria, it gives you added confidence and strength in your negotiations. After all, you've got something independent and concrete backing you up, not just bare will. Also, you have the advantage of backing a position that is easier to defend (both in the negotiation and to your constituents later on).

PROCESS: By sticking to your guns on objectivity, you can usually turn the discussions from a positional battle to a joint search for independent criteria. Here's another advantage for you over the positional bargainer: by insisting to only negotiate based on merits, you start to set the rules of the game. After all, the only way for them to advance their substantive interests is to now engage you on objective grounds.

SUBSTANCE: A couple of messages focused on the 'weaker' party, and how objectivity can help them out. It actually can do wonders, and help even more timid people get the substantive goals they want. Essentially, you can fall back on rock-solid principles, which won't let you give in to pressure. No matter how badly they try to beat you up, only give in to reason, not pressure.

BUT...

UNREASONABLENESS: You may come across someone that absolutely refuses to budge from their position, and refuses to give you an objective or persuasive reason for doing so. When this is the case, you have a choice, take it or leave it. Before you come to this decision, look very closely to see if there is some standard you have overlooked which would make their position fair. If it exists, and you want to make a deal on that basis rather than walking out with no agreement, then do it. If such a standard exists, you don't have the problems that go along with giving in to an arbitrary demand.

NOTHING: If there is no reasonable basis for their demand, compare what you think you could gain from accepting an unjustified demand versus your best alternative to an agreement. Remember, now that you're a principled negotiator, reputation and respect as a bargainer come into play as well. If you refuse to accept a deal based on anything but reason, it benefits your reputation as a principled negotiator, whereas giving in might harm it. This is not to say you should never accept such a deal, just consider all of the costs and benefits before moving froward.

SHIFTING AND CHANGING: Altering the discussion can be effective. If you can effectively shift discussions from 'what one side can do to another' (or a sheer battle of wills) to 'how this should be decided,' you're likely to get a much fairer agreement. It doesn't guarantee success, or prevent nasty arguments from breaking out. But it gives you a strategy you can throw your muscle into without all the negatives of positional bargaining styles.

WRAP-UP

Vigorously sticking to objective criteria can really give you an edge against an initially unreasonable positional negotiator. If they truly refuse to advance a reasonable and objective standard to back up their point, you must make a decision to take it or leave it. In that case, carefully weigh the costs and benefits of accepting or walking away - there's a lot to consider.

In next week's edition of Better Bartering Thursday, I'll start talking about what to do if the other side is really more powerful than you are - and how to still stay strong. Thanks!

-Brandon

**I'd like to thank Roger Fisher and William Ury for their wonderful input into this article, and highly recommend their book, Getting to Yes, for more great advice.

STYLISH MEDIATORS (Part II - The Broad/Narrow Spectrum)

2008-06-09T12:35:00.000-04:00

Today's Focus: STYLISH MEDIATORS (Part II - The Broad/Narrow Spectrum)

Last week, we laid down the basics for the four part quadrant - which, if you remember, does a pretty good job of describing different mediation styles. We had a brief introduction to the Broad/Narrow spectrum, but let's get into some more detail so you know what you'll be dealing with.

FOUR LAYERS TO CONSIDER

WHAT?: First, lets review what this spectrum entails. When I talk about the Broad/Narrow spectrum, I'm talking about defining the problems the mediators will look to discuss in the sessions (you could call it 'problem definition' if you're looking for a sound bite version). Essentially, each mediator has goals, assumptions, and focuses within their style, and this will help break that down a bit more accurately.

LITIGATION FOCUS: This is the first 'layer,' or the Narrow end of the spectrum. In this construction, the goal is to get a settlement that looks very similar to one produced by likely alternative processes. The advantage here is that you save time and money over the alternative process (often trial). The focus of discussions is usually 'the likely outcome of litigation,' and so typically focus on the strengths and weaknesses of each side's case. Other things commonly discussed would be 'how a judge/jury would decide it,' or how they would likely apply relevant laws.

BUSINESS FOCUS: This is the second 'layer,' one step up from the litigation focus. It gets a little bit murkier here, as any number of issues can be discussed that wouldn't be part of a court settlement. Rather than debating 'what a court would do,' more issues get brought in - for instance, how to satisfy business interests. Two disputants might argue the fairness of a contract, or the quality of service under that same agreement.

MUTUAL INTERESTS: In this layer, one of the big advantages is that you can help maintain a good working relationship with the other side. This is really helpful if both parties are mutually dependent. To this goal, other issues might fall into this layer. Fundamental goals, like staying in business, making profits, maintaining a good reputation, etc. might come up, and both sides might think of some really creative ways to help each other improve. In this way, disagreements can become a blessing in disguise - they might start discussions that end very profitably.

RELATIONSHIP FOCUS: This is the third 'layer,' and could also be called personal, relational, or professional. Rather than sticking to business needs, it takes discussions one step further by focusing on more personal interests and concerns. Perhaps someone felt a huge loss of self-esteem, or is angry at the other side for some reason. This isn't just touchy-feely stuff either - these emotions are often the biggest barrier to overcome in crafting an agreement. If you don't deal with individual emotions, you are often completely unable to get a settlement. In this way, dealing with the personal and relational issues can pave the way towards more concrete success in the narrower economic sense.

ADDED JUSTIFICATIONS: Many mediators believe this style has other advantages. Even if an economic/business solution is not reached, there can be other advantages. It can help the parties learn, change, and grow, in addition to empowering them to solve their own disputes and teaching them how to do so. It can help parties repair their relationships, recognize their mutual dependence, release their hatred, understand themselves better, or improve themselves in any number of ways.

COMMUNITY FOCUS: This is the fourth 'layer,' closest to the 'Broad' end of the spectrum. These types of mediations consider an even larger set of interests. For example, they might focus on the interests of the greater community, or some other party that's not a part of the immediate conflict. Perhaps its other companies that might be affected by a contract, the environment, or children in a particular subdivision.

MOVING ALONG THE SPECTRUM: Mediations that use broader problem definitions often include resolution of the narrower economic issues... and as the issues under discussion are broadened, the distributive issue can become less important. If the parties discover ways to help each other improve, the conflict can shift from being 'a problem to be eliminated' to an opportunity for mutual growth and gain.

WRAP-UP

The issues discussed in a mediation can vary widely - from purely economic issues to the broader interests of the community. Many mediators move along the spectrum according to the specifics of the case, and adjust the discussions according to what will be helpful to the parties.

In next week's edition of Mediation Monday, we'll talk about the other axis of our mediator quadrant - the Facilitative/Evaluative spectrum. Thanks!

-Brandon