Money Dispute: How to Overcome Impasse

Money Dispute: How to Overcome Impasse

Money Dispute: How to Overcome Impasse

The main reason of failure in the negotiations is inability to overcome an impasse. For example, your company has not been paid, and the other negotiation party insists on unreasonable demands. The failed negotiations most often lead to an escalation of the conflict, which in practice is expressed in defensive or attacking strategy.

What is the result?

   1.   If you are a creditor, you will ask a lawyer to prepare a claim, and eventually, to file a lawsuit.

   2.   If you are a debtor and consider the claims unreasonable, you will file a counterclaim

         to challenge the contract, or think over an alternative to transfer business to another company.

At the same time, the parties try to avoid further communication, and business relations practically interrupt. Litigation in most cases takes a long time, and money being claimed may significantly devalue during this time. In addition, in the business field, conflicts are always connected with losses of reputation, relationships, and contacts, the restoration of which takes important resources - money and time.

We propose to consider several techniques that are used in mediation to overcome deadlocks and focus on cooperation.

Investigate facts and structure conflict

This means that in the negotiation process you are focused on studying the circumstances that led to the conflict, the consequences for each of the parties, and also examine what is important for you and the other party. By sharing information, you get the opportunity to see the problem holistically, while clarifying the consequences and interests creates space for future decisions. So you start to see what exactly is beyond the contradicting positions.

Explore alternatives

To determine and manage the motivation in negotiations, it is important to be able to model circumstances that may occur in the future. This helps to answer essential questions: what consequences my company and I will face, if the dispute is not resolved; are there ways to resolve it, other than negotiations; how attractive are these ways for me and my company? The alternatives of the other party need to be analyzed in a similar way. Working with alternatives is useful, both before the start of negotiations and in their course. Thus, the parties remain involved in the negotiation process or elaborate other more advantageous options.

Mediator, being an expert in communications and dispute resolution, helps the parties to expand their vision of the situation and find beneficial solutions.

DecisionLab Mediation Agency - we will help you find a solution to the conflict.