In his article “Beyond Blame: Choosing a Mediator,” Stephen B. Goldberg advised business negotiators involved in a dispute to seek out an interests-based mediator—one who focuses not on positions or fault, but on the underlying needs and priorities driving each side.
His case study offers a powerful example of how mediation and dispute resolution can succeed long before formal external negotiations begin.
Goldberg’s most important work took place internally.
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Download this FREE special report, Mediation Secrets for Better Business Negotiations: Top Techniques from Mediation Training Experts to discover mediation techniques for selecting the right mediator, understand the mediation process and learn how to engage the mediator to ensure a good outcome from the Program on Negotiation at Harvard Law School.
Preparing for Negotiation: Identifying Core Interests
Before any external bargaining occurred, Goldberg met separately with each team member and key personnel in their respective departments.
His goal was simple but essential:
Identify the interests underlying each department’s stated position—and determine which interests truly mattered.
In negotiation terms, he was separating:
- Core interests
- Secondary interests
- Tradable preferences
For example, Goldberg learned that certain aspects of the company’s proposed technology were less important to engineers than others. Those less critical features could potentially be dropped—so long as the most valued elements were preserved.
Similar conversations in other departments revealed additional “minor” interests that could be traded off to protect more crucial ones.
This early internal mediation clarified where flexibility existed.
And flexibility is the foundation of integrative negotiation.
Shuttle Diplomacy in Action
Once Goldberg understood each department’s priorities, he began using shuttle diplomacy—meeting privately with each group to test potential tradeoffs.
Instead of convening everyone immediately in a joint session, he:
- Proposed possible exchanges.
- Tested reactions privately.
- Refined packages based on feedback.
- Gradually built momentum toward consensus.
Only after mapping viable tradeoffs did he assemble the full team to determine whether they could agree on an overall corporate negotiation position.
Because Goldberg had carefully analyzed core interests and possible concessions, he was able to propose a package that protected what mattered most to each department.
Reaching agreement was not difficult.
Aligning with Organizational Interests
Next, the company’s operations vice president evaluated whether the proposed position fully reflected broader corporate interests.
His revisions required another round of mediated internal negotiations.
The process ultimately produced a unified corporate position—one acceptable to all internal stakeholders—before external negotiations began.
The lesson is clear:
Internal alignment is often the hidden key to external negotiation success.
For more background on Goldberg’s mediation techniques in a telecommunications case involving radio spectrum negotiations, see Negotiating with a Mediator’s Assistance: A Case Study.
What Is Shuttle Diplomacy in Mediation?
Shuttle diplomacy is a mediation technique in which the mediator meets separately (in caucus) with each disputing party rather than bringing them together in joint session.
The mediator moves back and forth—“shuttling”—between parties to:
- Share proposals
- Clarify misunderstandings
- Test tradeoffs
- Reduce emotional escalation
- Explore confidential interests
It is widely used in business disputes, labor conflicts, commercial mediation, and high-stakes diplomatic negotiations.
The Debate Over Caucusing in Mediation
Despite its prevalence, shuttle diplomacy remains controversial.
Critics argue that:
- Private caucuses give mediators too much influence.
- Parties may become overly dependent on the mediator.
- Joint sessions promote transparency and mutual understanding.
However, in the July 2011 issue of Negotiation Journal, mediator David Hoffman defended caucusing in his article “Mediation and the Art of Shuttle Diplomacy.”
Hoffman argued that caucusing provides mediators with an indispensable tool for managing mediation’s most difficult dilemmas.
In many highly contentious disputes:
- Parties may refuse to speak openly in front of each other.
- Emotions may derail productive conversation.
- Face-saving concerns may block compromise.
In such situations, private sessions may be the only viable path forward.
Shuttle diplomacy, when used thoughtfully, can protect confidentiality, preserve dignity, and reduce defensiveness.
When Is Shuttle Diplomacy Most Effective?
Shuttle diplomacy tends to work particularly well when:
- Trust between parties is low
- Emotions are running high
- Power imbalances exist
- Parties need privacy to explore concessions
- Internal stakeholders must align before external talks
However, overuse can reduce transparency and slow relationship-building.
Skilled mediators calibrate carefully—moving between joint sessions and caucuses as the situation demands.
Key Lessons for Business Negotiators
Goldberg’s approach offers several enduring insights:
- Focus on Interests, Not Positions
Understanding what truly matters creates room for creative tradeoffs.
- Conduct Internal Negotiation First
A fragmented organization negotiates poorly. Alignment strengthens leverage.
- Use Shuttle Diplomacy Strategically
Private conversations can surface flexibility that would never emerge publicly.
- Protect Core Interests, Trade the Rest
Not all demands are equally important.
- Mediation Is Process Design
Effective mediators structure communication in ways that make agreement possible.
Shuttle diplomacy is not a magic solution. But when used with discipline and neutrality, it can transform seemingly entrenched disputes into structured problem-solving conversations.
How do you approach dispute resolution in your organization? Could more structured mediation—or better internal alignment—improve your negotiation outcomes?
Claim your FREE copy: Mediation Secrets for Better Business Negotiations
Download this FREE special report, Mediation Secrets for Better Business Negotiations: Top Techniques from Mediation Training Experts to discover mediation techniques for selecting the right mediator, understand the mediation process and learn how to engage the mediator to ensure a good outcome from the Program on Negotiation at Harvard Law School.
I really liked what you said about how shuttle diplomacy is the practice of meeting separately with each disputant. My coworker is having a big issue with another and I’m hoping they can resolve it without anyone having too hard of a time. Thank you for the information about how mediation could help the mediator understand the interests and positions of each person involved before joint sessions. http://www.krstevens.com/ip-itc-337-mediation.html
Third party negotiation is very common. Actually in my experience, in any dispute local or international, third party who actually makes more sense.