1. Concept and Brief Description
Alternative Dispute Resolution (ADR) is methods of solving a problem by bringing in an impartial third party that is not the court. ADR has four steps that it goes through they are:
a. Open-door policy
b. Peer review
A problem will proceed through each of the step until a resolution can be reached. Huston-based Kellogg, Brown and Root used ADR for four years and saw a 90% drop in legal fees. Of 2000 disputes only 30 reached the stage of binding arbitration.
2. Emotional Hook (provocative question/claim/real-life problem)
• How might the four steps of ADR help reach a resolution quicker and more cost effective than by using the courts?
• Have you ever had to use a company’s open-door policy before?
o How did it help you?
3. Key Points to Elicit in Discussion
a. Open-door policy- this is a policy that makes managers available to hear employee issues and complaints.
b. Peer review- In this the dispute is taken before a panel of representatives from the organization that are at the same levels as those in the dispute.
c. Mediation- This is a non-binding process where a neutral party from outside the company hears the case and attempts to help the people resolve their conflict and arrive at settlement.
d. Arbitration- This is a binding process where a professional arbitrator from outside the company hears the case and then resolves it by making a decision. This person is usually a judge or a lawyer.
4. Facilitative Questions
• If you were a company owner how might you use the ADR steps to help your company grow?
• Does this seem like a better way of dealing with issues?
o How is it better?