MEDIATION AS AN ALTERNATIVE MECHANISM FOR RESOLVING INTERNAL COMPANY DISPUTES

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MEDIATION AS AN ALTERNATIVE MECHANISM FOR
RESOLVING INTERNAL COMPANY DISPUTES
Vladyslava Kanevska, Project Manager, IFC
Ukraine Corporate Governance Mediation Pilot
project Victoria Tetyora, Communication
Consultant, IFC Ukraine Corporate Governance
Mediation Pilot project Galyna Eremenko, Head
of the Ukrainian Mediation Centre, Kyiv-Mohyla
Business School
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Agenda for today

• IFC Corporate Governance Mediation Pilot
  Project
• Who we are? What we do? What we offer?
• Mediation as an effective way of resolving
  internal company conflicts How you can benefit
  from it?
• QA Session

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IFC

• International Finance Corporation, part of the
  World Bank Group since 1956
• 181 member countries, which collectively
  determine its policies and approve investments
• Ukraine became a member in 1993, and since than
  IFC invested over 1.1 billion in 45 projects in
  Ukraine
• IFC provides investment and advisory services to
  build the private sector in developing countries
• Our vision is that people should have the
  opportunity to escape poverty and improve their
  lives

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IFC Alternative Disputes Resolution Global
Product Development

• Help establish systems for more efficient and
  less expensive dispute resolution
• Adhere to international standards in ADR delivery
• Typically help set up legal framework, train
  mediators, test new system through pilot
  projects, assist in promoting new mechanism
• Use best practices, transfer know-how
• Consolidate product methodology
• ADR activities in 10 countries so far

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IFC Southeast Europe ADR program

• Albania, Bosnia-Herzegovina, Macedonia,
  Montenegro, Serbia
• 11 mediation centres established
• Over 2000 mediations completed
• Over 70 million released
• Strong partnerships with Justice Ministries

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IFC Ukraine Corporate Governance Mediation
Pilot project

• Project goal
• Implement and test mediation in resolving
  corporate and commercial disputes
• Project objectives
• Train local mediators
• Inform the business community of a new and
  effective way of resolving disputes outside the
  court
• Stimulate businesses to use mediation
• Project Key Partner
• Ukrainian Mediation Centre under the Kyiv-Mohyla
  Business School, kmbs

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What we have achieved to date and what we are
planning to achieve
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What does conflict cost for the company?(some
ideas)

• Top management time dedicated to handling
  disputes between employees
• Non-effective performance of staff due to lack of
  cooperation
• Staff flow costs for search, induction, training
  and adaptation of new employees
• Reputation of the company, incl. as an employer
• Loss of clients, intellectual capital and
  commercial links
• Expenditure for trials and payments of an
  indemnity

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Triangle of a Conflict (Strategies for
Resolution)

• Power
• Law
  Interests

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What is Mediation?

• This is a flexible confidential process, in which
  a neutral third person assists parties through
  negotiations to reach an agreement in relation to
  dispute resolution or discrepancies while
  ensuring the parties have a full control over
  decision-making and determine terms of dispute
  resolution on their own

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Advantages of Mediation for Business Community
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When mediation is effective for a company

• Disputes between employers ad employees, trade
  unions, incl. situations related to signing
  collective agreements, and disputes between
  departments or officials
• Conflicts between owners of the business and
  management
• Commercial disputes between parties of an
  agreement
• Disputes related to consumer rights
• Client organization conflicts
• Any other interpersonal conflicts between staff
  members, co-authors, co-owners, neighbors, etc.

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Mediation benefits

• A decision in a dispute is made during
  hours/days, but not months/years
• Time savings and no worries for top management
• Work atmosphere becomes healthier and relations
  are preserved/resumed
• Cost savings on trials, standby time, search and
  training of new staff
• After an effective mediation parties are happy to
  implement an accepted win-win decision on their
  own and they do not rely on the State Execution
  Department (where relevant)

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Two Tiers of Mediation Application for
an Organization 1. Intra as part of a
conflict management mechanism Applying the
mediation competencies by managers of a company
Ombudsmen 2. Extra assistance from outside
Inviting an independent mediator
disputes between top managers, corporate
disputes, and necessity to preserve
confidentiality
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Components of the Manager Mediation Competence

• Relations management and conflict de-escalation
• Arts of raising right questions
• Early conflict identification prevention, etc.
• Coaching of subordinates with a view of
  developing their skills to independently resolve
  conflicts
• _________________________________________
• Mediation negotiations with staff members

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How to invite an Independent Mediator
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You can apply for mediation when

• Conflicts between owners of the business and
  management
• Disputes between employers ad employees, trade
  unions, incl. situations related to signing
  collective agreements, and disputes between
  departments or officials
• Commercial disputes between parties of an
  agreement
• Disputes related to consumer rights
• Any other interpersonal conflicts between staff
  members, co-authors, co-owners, neighbors, etc.

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More information
Vladyslava Kanevska, Project Manager, IFC
Ukraine Corporate Governance Mediation Pilot,
380 44 490 64 00, vkanevska_at_ifc.org
Galyna Eremenko, Head of the Ukrainian Mediation
Centre, kmbs, 38 044 490 6635,
eremenko_at_kmbs.com.ua, Web site www.ukrmediatio
n.com.ua