A business partnership can be a wonderful way to pool resources, energy and talents to create a better company, but what happens if you fall out or disagree over something fundamental in your business?
Conflicts between partners is one of the most common problems in partnership businesses. Disputing partners can quickly derail progress on business goals when an agreement can’t be reached. Let’s look at six ways you can work to solve business partner disputes to get things back on track.
What is Dispute Resolution?
Anything that assists in the process of resolving a disagreement can be called dispute resolution. In formal terms, though, dispute resolution consists of mediation, arbitration and litigation, but, if possible, try to resolve issues informally first. Here are some options to try even before you embark on a formal dispute resolution process.
Communication and Negotiation Strategies For Solving Disputes Without Third Party Help
1. Commit to open communication
When disputes arise, there may be a tendency for you or your partner to stop communicating openly and honestly. Disputes can give rise to trust issues between you which stifles clear and concise communication that is needed to resolve the issues. Using active listening techniques and avoiding confrontational language will foster more open communication and help you to get to the bottom of the disagreement in a calm, non-combative manner.
2. Negotiation
It is possible for you to negotiate between yourselves without the help of a mediator to reach a mutually acceptable agreement. However, both parties need to be disciplined in listening to each other and be open to exploring a range of solutions.
3. Collaborative problem-solving
Collaborative problem-solving means both of you actively identify the underlying issues and explore possible solutions. If you or your partner is not active in the process, then it is much less likely to result in a successful outcome. Brainstorming solutions is an example of collaborative problem-solving.
4. Seek external guidance
Sometimes, disputes may reach an impasse due to heightened emotions or differing opinions. This is when it makes sense to seek guidance from external professionals such as business coaches or mentors who can offer an unbiased perspective and suggest strategies to bring you closer in your thinking. The Australian Small Business Advisory Services Program (ASBAS) is a great resource that provides business owners with low-cost advice and workshops.
Alternative Dispute Resolution (ADR) Methods
If you have exhausted all possibilities of resolving your dispute without bringing in a dispute resolution third party, then you have a couple of options before you make the decision to go to court. Using an independent third party who is impartial and unbiased may be your only hope of solving the issue and salvaging the relationship.
1. Mediation
Mediation is an alternative dispute resolution process that uses a neutral third party, known as a mediator, to help settle the disagreement. A trained mediator acts as a neutral facilitator, guiding the discussion and encouraging constructive dialogue. The mediator does not impose decisions but helps identify common interests and explore various options. The Mediation Institute offers a searchable directory of accredited mediators across the country.
There are some significant benefits of mediation over going to court including:
- Time-efficient
- Less expensive
- More likely to preserve the business relationship, to name just three.
For more detailed information about mediation, read my blog: ‘No Need to Go Straight to Lawyers: How Mediation Can Solve Commercial Disputes’.
Many disputes can be resolved by mutual agreement under the skilled facilitation of a trained mediator, so it’s worth exploring this option if you are feeling stuck with a dispute and can’t move forward.
2. Arbitration
Arbitration is a more formalised process than mediation. During arbitration, both parties present their side of the dispute, and a neutral third party makes a binding decision. Unlike mediation, where the parties themselves decide how to resolve the dispute, arbitration is decided by the independent party based on the evidence presented to them. Arbitration can be a good way to resolve difficult long-standing disputes in a faster, more cost-effective way than litigation.
The Australian Centre for International Commercial Arbitration (ACICA) provides a wealth of information and resources on commercial arbitration procedures and guidelines.
3. Conflict Management
Conflict Management employs a coaching methodology to address conflicts.
It shares similarities with other forms of coaching as it involves a one-to-one process, with a single client and a CM-1 facilitator.
Conflict Coaching specifically focuses on conflict situations. However, it differs from other coaching methods in several ways. Unlike other coaching approaches that may require multiple sessions, Conflict Management typically requires only one session. T
The CM-1 Facilitator is not only a coach but also a mediator, equipped with training and experience in conflict resolution. The process of Conflict Management is more fluid and flexible compared to structured coaching processes like life coaching or results coaching.
The client takes the lead in selecting the agenda, and the facilitator uses mediation and coaching skills to guide the client through a structured process of deconstructing the conflict and shifting their focus.
The agenda of Conflict Management includes various topics relevant to the participants, ranging from determining the suitability of mediation to developing strategies for working with the other person involved in the conflict. By engaging in this type of coaching, individuals become better prepared for mediation and increase their chances of successful conflict resolution.
Resolve Your Partner Disputes Quickly and Amicably
Alternative dispute resolution is a cheaper and more time-efficient way to settle disputes between business partners. You can keep the process confidential and your relationship amicable. If you are finding it hard to work through your disagreements yourself, the next stop is mediation. Contact me to chat about how mediation can help in your current business dispute. Ring 0448 000 010 or message me on LinkedIn.
