3 PerspectivesJune 6, 2010

Risk Based Analysis: How Do You Make Your Next Move?

It’s  no secret I have been on a bit of a Decision Tree kick lately — I just spent two days in one of Marc Victor’s (fantastic) training sessions, and Settlement Perspectives’ series on this important topic continues to grow.  Today we’ll explore how one experienced mediator uses a similar approach to prepare mediator’s proposals, and how you can use the same process as you make your next settlement offer.

What Are the Chances Your Offer Will Be Accepted?

As I wrote my recent post on decision trees in mediation, accomplished mediator Jan Frankel Schau added her perspective on how she settles important cases on a related LinkedIn Commercial and Industry Arbitration and Mediation Group discussion.  Jan, who publishes Schau’s Mediation Insights, told us she frequently uses decision trees, but adds that a similar tool can be used to help parties determine the likelihood a counteroffer will be accepted:

I draw a distinction between a Decision Tree — which I use routinely to highlight the expenses and risks of litigation, from a Risk Based Analysis — which I use more sparingly in coaching parties about making a More…

Categories: Mediation,Negotiation,Settlement

6 PerspectivesApril 28, 2010

Avoiding the Limitations of Decision Trees: A Few Tips from Mediators Who Use Them

No tool is perfect, and decision trees are no exception.  A few of the comments on prior posts in this series have explored some of the problems mediators and advocates have with decision trees and what we can do about them.  Today we’ll explore both the problems some mediators see in decision tree analysis and how those mediators make the tool more effective for parties and their counsel.

Garbage In, Garbage Out

Garbage in, garbage out is a problem in all forms of data analysis.  In decision tree analysis every input — from numerical values to probabilities to the construct of the diagram itself — affects the output, or the expected monetary value of your case.  Los Angeles mediator Joseph C. Markowitz summed it up nicely in Quantifying Uncertainty:

One [kind of uncertainty that decision trees can never resolve] is the More…

Categories: Decision Trees,Mediation,Negotiation,Settlement,Tactics

4 PerspectivesApril 22, 2010

Decision Trees in Mediation: A Few Examples

It’s no secret that I believe decision trees can make a difference as you try to settle your next lawsuit, and my series on decision trees will tell you why.  But I’m not the only one.  Your comments to my prior posts, our follow-on discussions since then, and a little research confirm that a confident minority of mediators and litigators use them, too.  This post is the first of three over the next few weeks that will give you real-life examples of how decision trees are used to settle disputes.

How do mediators and advocates use decision trees in mediation? A month or two ago we had a great discussion among the Commercial and Industry Arbitration and Mediation Group on LinkedIn styled “Do You Use Decision Trees in Your Mediation Practice?” More than a few mediators and negotiators spoke up, with each providing insight into how decision trees can help get your case settled.  I’ll highlight some of those tips, and a few more from other sources, in this and subsequent posts over the next two weeks.

A Better Way to See the Dispute

Portland area mediator Debra Healy summarized the thoughts of many when she said that mediators can use decision trees as More…

Categories: Decision Trees,Mediation,Negotiation,Settlement,Tactics

Add Your PerspectiveMarch 19, 2010

Multi-Step Dispute Resolution Clauses: 7 Reasons They Work

As we have discussed before, the best way to spend less on litigation is to have less litigation. Yes, sometimes it is better to litigate, and yes, settlement talks are hollow if you can’t walk away from the negotiation table, but most clients prefer to avoid litigation when they can. So how do you accomplish that? The multi-step dispute resolution clause is a good start.

Back in my days as outside counsel I handled a major dispute for a Fortune 500 IT services firm involving one of its larger clients, and I got plenty of time to think about how, and why, tiered dispute resolution clauses work. As soon as I moved in-house, I added these clauses to KPMG Consulting’s standard contracts, and the results were outstanding — we litigated with our clients less and got back to business sooner. This post will give you a few reasons why you might want to include a multi-step dispute resolution clause in your next major contract.

A Definition for the Multi-Step Dispute Resolution Clause

The multi-step dispute resolution clause, sometimes referred to as an “executive escalation clause,” an “escalating levels of management clause,” or a “tiered dispute resolution clause,” is often discussed but not often defined. I define it More…

Categories: ADR,Arbitration,Mediation,Negotiation,Settlement