Business & Strategy
Section 1
Core Idea
ADR (mediation, arbitration, negotiation) resolves conflict outside courts. The idea: faster, cheaper, and often better outcomes than litigation by focusing on interests and options rather than positions and verdicts. In business, ADR shows up in partnership disputes, employment issues, and contract friction.
Free playbook
Get The Business Model Playbook
58 business models, one visual page each: how the money flows, the metrics that matter, and who runs it. Free when you join the Faster Than Normal email.
Free. No spam. Unsubscribe anytime.
Section 2
How to See It
Contracts & Deals
You're seeing Alternative Dispute Resolution when a contract specifies mediation or arbitration before litigation, or when parties choose a neutral facilitator instead of lawyers and courts.
Leadership
You're seeing Alternative Dispute Resolution when a leader brings in a third party to reframe a conflict (interests, not positions) or uses a structured process (e.g. caucus, joint session) instead of escalating to HR or legal.
Section 3
How to Use It
Default to ADR when relationships matter, speed matters, or you want a tailored outcome. Use mediation when you want to preserve the relationship; use arbitration when you want a binding result without a public trial.
Decision filter
"Can we get to a better outcome with mediation or arbitration than with litigation? If the relationship or speed or privacy matters, ADR first."
As a founder
Build ADR into key contracts (co-founder, key partners, investors) so disputes have a path before "sue or surrender." Train the team on interest-based negotiation so internal conflicts don't default to escalation.
Section 5
Founders & Leaders
Herb CohenNegotiator; author, You Can Negotiate Anything
Cohen popularised negotiation as a skill for everyone, not just lawyers. His emphasis on preparation, BATNA, and "it's all negotiable" aligns with ADR: resolve by design (process, interests, options) rather than by default (threats, courts). Founders can apply the same mindset to disputes before they become legal.
Section 7
Connected Models
Reinforces
BATNA
BATNA (best alternative to a negotiated agreement) is the benchmark for any negotiation or ADR. Knowing your BATNA tells you when to settle and when to walk; ADR is the process, BATNA is the leverage and exit criteria.
Tension
Win-Win
Win-win aims for mutual gain; ADR can end in compromise or one-sided arbitration. The tension: prefer win-win outcomes inside ADR processes, but design for the case where the other party won't cooperate — hence arbitration and clear rules.
Leads-to
The Third Story
The Third Story is the neutral narrative that reframes a conflict so both sides can engage. Mediators use it in ADR to move parties from positions to interests and options — the story comes first, then the deal.
Section 8
One Key Quote
— Roger Fisher & William Ury, Getting to Yes (1981)"The best way to get what you want is to help the other side get what they want — if you understand their interests."
Section 11
Summary & Further Reading
ADR (mediation, arbitration, negotiation) resolves disputes outside court. Use it when relationship, speed, or privacy matters; pair it with BATNA and interest-based negotiation.
01
Book
Classic on interest-based negotiation and process; foundation for effective ADR and deal-making.
02
Book
Practical negotiation mindset and tactics applicable to business and ADR contexts.
03
Book
How to structure hard talks and move from positions to learning and options; supports mediation-style thinking.