Mediation Tasks At The Mediation Session Each Student Will B

Mediation Tasks At The Mediation Session Each Student Will Be Alloca

Mediation Tasks At the mediation session, each student will be allocated a task as either 1) Representative from WeRunIt; 2) Representative from Condy Software; or 3) The Mediator. As part of this group of three, they will be given two hours to try and resolve the IT outsourcing dispute. Marks will be allocated for understanding and following the negotiation process which was discussed in lectures. Students will need to write up a 500-word individual report which should be submitted electronically by Friday Week 12.

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Introduction

The process of mediation is an essential conflict resolution technique, especially within business negotiations where multiple stakeholders aim to reach mutually beneficial agreements. This paper reflects on a simulated mediation session involving WeRunIt and Condy Software over an IT outsourcing dispute, emphasizing the negotiation process, pivotal moments, challenges faced, and the final resolution. The analysis underscores the importance of applying negotiation principles such as preparation, active listening, creative problem-solving, and establishing trust to achieve successful outcomes.

Background of the Mediation Dispute

WeRunIt, a company specializing in organizing sporting events, sought to outsource their IT services to reduce costs and improve efficiency. They envisaged a comprehensive contract with Condy Software, which involved website development, online participant registration, database management, financial support, and ongoing maintenance. The financial expenditure of WeRunIt on internal IT staff was approximately $600,000 annually, and the outsourcing initiative aimed to cut costs while maintaining service quality. Conversely, Condy Software aimed to secure a lucrative contract and ensure the scope and delivery aligned with their capabilities.

The negotiation began with each party presenting their perspectives. WeRunIt emphasized the need for reliable, cost-effective IT solutions that could support their growth, whereas Condy Software highlighted their technical expertise and proposed terms involving project scope, costs, and timelines. The mediator's role was to facilitate open communication, manage conflicts, and guide both parties toward an agreement.

Highlights of the Mediation Process

Throughout the negotiation, several key principles were evident. First, preparation was crucial, with each side bringing detailed proposals and understanding the other's constraints. Active listening helped uncover underlying interests—WeRunIt wanted a dependable system without escalating costs, while Condy Software aimed for a profitable engagement with assured payment schedules.

The mediator fostered an environment of trust, encouraging candid exchanges and addressing misconceptions. Caucusing enabled private discussions, allowing parties to express reservations away from public scrutiny. This technique proved effective in breaking down emotional barriers and discovering shared objectives.

Another highlight was the creative problem-solving approach, where both sides considered phased implementation and flexible cancellation terms, addressing concerns about project risks and financial commitments. The parties also discussed training arrangements, deadlines, and support services, demonstrating adaptability and mutual respect.

Lowlights and Challenges

Despite progress, challenges emerged around specific terms such as cancellation fees, training schedules, and hardware responsibilities. Condy Software initially demanded a higher cancellation fee (20%) for all three years of the contract, which the WeRunIt representatives found excessive. Negotiations entailed revisiting and adjusting these figures, eventually settling on 15% for the first year and 10% thereafter. Such disagreements underscored the importance of flexibility and good-faith bargaining.

Logistical issues included coordinating staff training during working hours, which could impact business operations. The parties agreed on a divided training schedule, illustrating compromise. The discussion about hardware breakage responsibilities further highlighted the need to clearly delineate obligations to prevent future disputes.

Outcome and Resolution

The final agreement stipulated a total contract value of $500,000 over three years. Deliverables included a website for event promotion and results publication, online participant entry and payment, database management, and support services. Implementation was scheduled to commence on 10/06/2018, with a 20-day setup period, including staff training and hardware support. Payment terms involved an initial 10% payment upon signing, followed by annual installments, with late payment penalties.

The parties also agreed on cancellation fees—15% for the first year and 10% afterward—and a two-month prior notice for termination. This contractual arrangement reflected a balanced compromise, addressing both operational needs and financial risks.

Reflections on Negotiation Principles

The mediation process adhered to core negotiation principles. Preparation was evident in the detailed proposals and understanding of each other's interests. Active listening facilitated empathy, enabling the recognition of mutual goals. The mediator's neutral stance and caucusing aided in overcoming deadlocks and fostering trust. Flexibility was demonstrated through adjustments in cancellation charges and training schedules, illustrating the importance of adaptability.

Nevertheless, some low points were observed, such as initial disagreements on cancellation fees, underscoring the need for thorough initial analysis and clear communication. Effective negotiation also required managing emotional tensions, which the mediator achieved through controlled facilitation and promoting a problem-solving mindset.

Conclusion

The mediation successfully resulted in a comprehensive IT outsourcing agreement, balancing cost, scope, and risk considerations. The process exemplified essential negotiation tactics, including preparation, active listening, creative solutions, and trust-building. This case study underscores the significance of disciplined negotiation principles in reaching sustainable business agreements and highlights the mediator's role in guiding parties to mutually acceptable outcomes.

References

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