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How Mcdiation Works 33 Stage 7: Defining Issues and Setting an Agenda • Identifying broad topic azeas of concern to the parties • Obtaining agreement on the issues to be discussed • Determining the sequence for handling the issues Stage 8: Uncovering Hidden Interests of the Disputing Parties • Identifying the substantive, procedural, and psychological interests of the parties • Educating the parties about each others interests Stage 9: Generating Options for Settlement • Developing an awazeness among the parties of the need for options • Lowering commitment to positions or sole alternatives • Generating options using either positional or iaterest-based bargaining Stage 10: Assessing Options for Settlement • Reviewing the interests of the parties • Assessing how interests can be met by available options • Assessing the costs and benefits of selecting options Stage 11: Final Bargaining • Reaching agreement through either incremental convergence of positions, final leaps to package settlements, development of a consensual formula, or establishment of a procedural means to reach a substantive agreement Stage 12: Achieving Formal Settlement • Identifying procedural steps to operationalize the agreement • Establishing an evaluation and monitoring procedure • Formalizing the settlement and creating an enforcement and commitment mechanism