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Butting heads
The old adage “agree to disagree” has been tossed around often enough during heated discussions. But if the dispute arises from your customers, contracts, employees or debtors, you need to move quickly to resolve it or face far-reaching consequences on your business.
In some cases, it may be impossible to avoid complications. However, there are some fundamental steps that a business owner should take to minimise the impact of a dispute.
Meet the problem head on
Many disputes can be resolved quickly and without issue by a rapid and personal response.
- Contact the other people involved and listen to the issues.
- Do not argue details; simply document the issues as dispassionately as you can.
- Assure them that the issue is being taken seriously.
- Ask to meet face-to-face to help resolve the problem.
Collect the facts as soon as possible
There are always two sides to a story, and you must ensure that you know the facts from your business’ point of view.
- Review the details of the dispute with your team.
- Document alternative versions, focusing on the facts from your business’ point of view.
- Create a timeline of dates, times and people, and cross check these against the facts that are in contention.
Prepare to meet
After you have established the facts of the dispute, you need to prepare to meet face-to-face. This can be confronting, but is also the most direct way to achieve a resolution quickly.
- Collate your evidence: All your notes and information need to be organised in a way that is easy to access. Make sure you have readily accessible copies of any terms and conditions, contracts, warranties and so on.
- Review and organise your data: Read through your information several times. Look for gaps, and clarify issues with the people involved. Make sure you feel comfortable with the information that you have on hand.
Focus on resolving issues
When you meet to discuss the problem, you must be prepared to negotiate.
- If you are in the wrong: If you have made a mistake or found your business to be in the wrong, admit this—make reparations and seek to move on as quickly as possible.
- If you are in the right: Every minute that a dispute continues costs you money and takes your focus away from your business. Negotiate to resolve the issue as quickly and cheaply as you can. (Trevor Young has some great tips on crisis management that apply in this situation.)
Stick to the facts
Disputes can become very emotional very quickly. Continuously refer to your notes and the timeline that you have established, and identify the gaps in your own facts as well as the other side’s.
Be aware that two sets of facts can co-exist. Be calm in all your discussions, and be respectful to all involved.
Move quickly when opportunity presents itself
To resolve a dispute you need to identify an acceptable outcome for your business. Consider:
- The minimum remedy that would be acceptable from your perspective—including an apology (personal or public), alteration of process, compensation, replacement or repair.
- What is important to the other party. Ask them to describe the outcome they are seeking.
When a compromise is offered, quickly weigh up the pros and cons and accept, renegotiate or refuse it. Remember that protracted disputes can severely impact your business, and most people are also keen to resolve disputes quickly. Find a way to get back to what you do best—focusing on your business.