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Matthews Marking Products

ness problems and preserving working relationships. For a family business, protecting working relationships is not a luxury; it is a necessity.

A mediator is a neutral outsider who works with all the involved parties to craft a resolution. Unlike an arbitrator, a mediator does not mandate a settlement; rather, he or she helps the parties communicate and develop a mutually acceptable solution. Compared to other options for resolving disputes, mediation is quick, inexpensive, and private.

It is also an informal process, not limited by rules of evidence, procedure, or remedy. Because of this, mediation allows for maximum flexibility in crafting a resolution acceptable to all parties. Because of the informality and the guided, mutual communication, a mediated, as opposed to arbitrated, settlement has a better chance of soothing not just the business problem but also the troubled relationships that exacerbated it.

Mediation for family businesses is occasionally practiced by legal professionals, but more often it is performed by non-attorneys such as family business consultants who have some conflict resolution experience. The mediator's skills lie in helping parties come to the same table, communicate, and work out their own solutions in a non-adversarial environment.

"Non-adversarial" does not mean that there is an absence of conflict or that antagonisms cannot be expressed during the mediation. Instead, nonadversarial refers to the process used to air and resolve the dispute. The skilled mediator does not put constraints on the discussion, but rather helps keep the focus on the parties crafting a solution. Thus, the mediation allows discussion on the source and substance of the conflict and helps people recognize their counterproductive patterns, with the aim of being able to move past them toward a businesslike, problem-solving mode.

Long-standing resentments have a place at the table, insofar as people can come to see how those resentments are standing in the way of the ultimate task at hand. Mediation, then, cannot only result in specific terms of agreement, but can also offer an enormous advantage to a family business: the parties learn that they can communicate further and/or differently in the

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Lumberyard Robbery Foiled

Two suspects who tried to rob Parker Lumber, Port Arthur, Tx., before the business opened for the day were discovered by an employee and quickly arrested by police.

Police were called after an emolovee arrived about 6:45 a.m. peb. )O io open the store and discovered two men hiding inside.

Christopher James, 28, was charged with aggravated robbery. James Bell, 24, was charged with aggravated robbery and also had an outstanding warrant for criminal mischief. Both were held without bond. No properry was reported missing.

Using a Mediator for Family Business Disputes

( Continued from previous page ) future. Under the mediator's guidance, once they accomplish this, future productive interaction will no longer seen inconceivable.

Mediation in action

In a successful family business, a medical equipment company founded by two brothers, only one member of the second generation (the older brother's daughter) chose to enter the firm. Her brother pursued an academic career, and their cousin, the only son of the younger founding brother, went to work at a consulting firm. After several years, the daughter became c.f.o. Her father had retired (retaining his interest in the business), and she reported to her uncle, the c.e.o.

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Problems developed when the cousin was laid off by the consulting firm and wanted to join the family business-as a vice president with a seat on the management committee and compensation equal to his last salary (which would be 2OVo higher

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Pennsylvania Lumbermens Mutual Insurance Company

One Commerce Square, 2005 Market Street, Suite 1200 Philadelphia, PA 19103 thrn the clar-rghter's conrpcrtsatitttt). The claughter exprcssccl concern about his lack o1- crlteriettcc in thcir inclustry, ancl discrcct incl i gnation abOr-rt h is ctltllpcllsat iotl reLlil l'clllcllts. Worriccl aboLrt bcing nrargittalizccl if hcr trnclc ancl cottsitt wcrc both acti\c in thc contpartr'. sltc rrcttt ttl hcr lathcr lll(l It\' ctltet r'tl IItt' rl i.r'tt::itttl..

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Thc nrecliator cxphinecl that. Lrnclcr her guidancc. they would clo the difficult u ork of devising a solution. Sonretimes she had all of thcnr at the table. and sometimcs shc spoke r',ith onc or t\\'o of tl'rem privatel.v. (In situatiotrs whele suspiciorrs t'un high. ntediators u'ill oltcn Irake surc to balancc thcir sepat'ltc ttttltttlLttrierttitttts, giving cach pufty eclual incliviclLral confercIrcc tilttc.)

Shc hclpcd the partics rcco!nire ancl copc u'ith thc ll-ustrltions ancl ctnotions that lirclccl tltc conl'l ict tttttcl-t tlf which bcgln rlr.rlirtq lortg lgo liunil\ intcractions attcl ttt lircus on thc lirtLrrc ol'thc busittcss.

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HOOD F.rr 601 -21)6-1710

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ngineered Wood Products for the Heart ofAmerica

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