In recent mediations, I have had some unexpected success with a tool I don’t often reach for: the mediator’s bid. On a handful of occasions, making a bid has shifted the dynamic and paved the way for settlement.
That experience has got me thinking about the utility of bids - when they can be used effectively, and whether they risk being contrary to the spirit of mediation itself.
We are all taught that mediation is designed as a voluntary process, with decisions made by the parties. It is their conflict, their resolution, and their choice. That being the case, a mediator stepping in with a settlement number or bid runs the risk of falling foul of this core philosophy.
And yet, in practice, bids can and do sometimes work. Two reasons stand out:
1. Saving Face – A mediator’s bid provides a way for both parties to shift position without losing dignity. The “blame” for movement rests with the mediator, not the individual.
2. The Authority Principle – Robert Cialdini, in his classic work Influence, describes the human tendency to defer to authority figures. As a neutral, objective outsider (a senior lawyer new to the dispute), a mediator’s view or proposal can (and does) carry weight.
Of course, the authority principle has its dark side. The famous Milgram experiments of the 1960s showed how easily people obeyed authority - even to the point of delivering (what they believed were) harmful electric shocks to others. That is a sobering reminder that authority as a principle can be potentially dangerous, if unchecked, leaving Abraham Lincoln to muse that
Nearly all men can stand adversity, but if you want to test a man’s character, give him power”.
So where does this leave me?
Well, for me, the mediator’s bid is never a default setting. It is a tool of last resort; one I approach cautiously and deliberately. But in the context of the right type of case (and personal injury litigation comes to mind) - where settlement often boils down to a number, it can sometimes be the circuit-breaker that allows parties to save face, and achieve a resolution.
Perhaps not entirely consistent with the purest form of mediation - it can work because, in the right case, it is entirely consistent with human nature.
What’s your view on the utility of the mediator’s bid?
I regularly share short insights on mediation, negotiation and all things leadership. From how to optimise success in negotiations, to the skillset required to sustain high team performance and promote resilience. I share these video reflections, drawing from my experience both as a former leader in professional services and now as a mediator and leadership coach.
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Damien was engaged as an Executive Coach in our business to navigate a half-decade of poor habits, realign our leadership team and position us for a strategic exit.Facilitating an executive workshop was instrumental in resolving internal conflicts and realigning us to a collective focus on future opportunities.
I have especially appreciated your logical and calm approach to problem solving, and I have valued your methodical and composed demeanour in tackling complex issues. You have not only equipped me with effective strategies but also instilled a sense of confidence and clarity in my own decision making processes.
