Supplier vs. customer

 

Case overview

Conflict between a Hungarian sub-supplier and his German customer caused by a shipment of goods in default. The conflict had been escalating for two months, the customer cancelled his order and the parties exchanged letters via their respective counsels.

Stage of conflict escalation: 3 (after Friedrich Glasl’s stage model of conflict escalation: fait accompli as a strategy, deeds rather than words)

Solution

Mediation session

Participants: the German customer, two representatives of the Hungarian supplier, an interpreter (who was acquainted with the business circumstances) and the mediator

Characteristics

An immediately implementable plan of action in 14 points, a positive atmosphere after the session, the customer revoked the cancellation of his order

Benefits for the clients

A timely and inexpensive solution, immediate further cooperation was enabled. Mediation gave the clients a chance to resolve their conflict amicably and thus preserve a friendship which dated way back.

Supplier vs. importer

 

Case overview

Conflict between a German supply plant and a Czech importer, approximately € 70.000,- in dispute, highly escalated for about half a year (stage 5 in Friedrich Glasl’s model of conflict escalation à public and direct personal offenses – losing face)

Solution

Mediation session (co-mediation) in Czech Republic including the counsels of all parties.

Characteristics

Each of the parties was accompanied by an extra person as “witness” in the mediation session. The mediator was also supported by counsels for translation as well as for clarifying the legal rights in both countries.

Result

A bilingual agreement including a detailed plan for several stages of legal and financial settlement which both parties strictly adhere to since

Benefits for clients compared to litigation

In short: timely appointments, a consensual solution, saving energy and resources for other business projects, avoiding tremendous costs. Before mediation, both parties had already incurred legal expenses amounting to € 3.000. These costs would have skyrocketed with further meetings. International conflicts like this one, which stretch across more than one jurisdiction, include very complex legal questions and ambiguous matters. This alone would have caused any legal dispute to extend for at least several months, if not years.

Team conflict

 

Case overview

Conflicts between management and a business unit caused by a partially-rejected organizational change, the conflicts have been virulent for about two years and paralyze parts of the organization

Stage of conflict escalation: 3-4 (after Friedrich Glasl’s stage model of conflict escalation: fait accompli as a strategy, parties construe negative roles around their counterparts and antagonize them)

Solution

mediation session

Characteristics: after clearing the personal relations and reestablishing a base for constructive cooperation the parties employ elements of organizational development from time to time. The client’s financial plan did not allow more than five sessions, therefore the two topics (relationship and organizational development) were dealt with simultaneously.

Result

Self-designed rules for cooperation, basic structure for adaptation(s) of the organizational form