Member focus: A resolution to solve conflict

Spats bet ween colleagues are an inevitable part of working life, whether it’s down to personality clashes, power struggles between peers, or disagreements about how a client should be managed. Resolving these kinds of conflict is a vital skill for anyone who manages people.

It’s also vital to recognise the stress and anxiety that is caused when incivility is allowed to flourish and toxic atmospheres take hold at work. Often, when conflict starts to get out of hand, people’s first response is to reach for the company’s disciplinary and grievance or bullying and harassment policy.

The problem with going down this formal route is that it plunges people into adversarial, divisive processes. Often, just sitting down and talking about the issue face to face would sort the situation out.

There are more effective, collaborative and compassionate ways to manage conflict at work:

• Encourage people to listen up. In any disagreement, there are likely to be strongly held views on both sides. Make sure everyone is listening to understand, rather than just paying lip service to the concept. 
• Move away from right and wrong. Successfully resolving a conflict means rejecting the dogma of right/ wrong, defend/attack – adopt a more empathetic approach. Why do they hold on to the views they are so strongly putting forward? What might be going on underneath the surface?
• Aim for win-win. Make establishing common ground and reaching consensus the goal. If people can fi nd areas for mutual gain, rather than striving to come out the ‘winner’, it will be much easier to move forward and restore good working relationships. 

David Liddle is CEO of conflict management consultancy The TCM Group and author of Kogan Page/CIPD book ‘Managing Conflict:  A practical guide to resolution in the workplace’ 

The wrongs – and your rights – in a business dispute

Due to stress, lost clients, pressure, long hours or personal conflicts some SME business relationships can sour over time. But where do you stand if you co-own a business and you are facing a shareholder dispute?

Although all business owners start out trusting each other and believing everyone is working towards the same objectives, over time this can change. A shareholders’ agreement, a contract between the shareholders of a company, ensures everyone knows where they stand from a legal perspective if relationships breakdown.

The purpose of the document is to protect the shareholders’ investment in the company, regulate the day-to-day running of a business, establish a fair relationship between the shareholders and agree how the business is run. Bear in mind, these terms are private between shareholders and the company, and there is no requirement to file these with Companies House. 

Unfair prejudice is the procedure by which a minority shareholder, who is the victim of ‘unfairly prejudicial’ conduct by the majority shareholder, can bring court proceedings. However, what constitutes unfair prejudice will depend on the circumstances of each case. 

If you or a business partner decide to bring a shareholder case forward, try and acknowledge what it is you want to achieve. Do you want to resolve the dispute and stay working in this company? Or do you want to take your partner to court and potentially irrevocably harm your relationship? 

Mediation is confidential and without prejudice, which means both parties are free to negotiate with the mediator to agree a joint settlement. The mediator acts as a trusted, independent person who has the ear of both parties and can encourage communication.

If negotiation is unsuccessful and a claim is brought forward, one common feature of this type of case is that the aggrieved business shareholder tends to do something drastic designed to harm a former partner. For example, setting up a competitor company, re-directing work away from the company or removing assets. This is often done as an act of retribution and usually results in a counter-claim being brought against them when pursuing their claim for unfair prejudice.

Louise Hebborn is commercial partner at Stephensons Solicitors LLP 

Put communication into practice… in your practice

Where a practice has either multiple owners, or other senior team members below a managing partner, then a clear understanding is required of what everyone’s aspirations are. 

It’s not unusual that the practice’s objectives change over time, so it’s important for all parties to come together and revisit them.  

It’s important to have transparency and openness. You don’t want your fellow owners or team members operating in silos; instead you should be sharing experiences, difficulties and ideas. Far better than issues fermenting over time and becoming a major problem later.

If differences are significant and a separation or divorce is necessary, then undertake it amicably and as mutually beneficial as possible. Dispute requiring mediation must be avoided if possible. 

Similar dealings should be made between owners and other staff . Small businesses often fail to engage staff  or empower them to think laterally. A more open environment will celebrate success, and direct itself towards the interest of the employees. Appraisals are a good form of regularly evaluating; with suitable feedback, issues will often dissipate.

If it does come to a departure, then have a post-resignation discussion on what has led to this – for good leavers you can also keep an alumni relationship, as there’s a relatively high return rate. 

Keith Underwood is managing director of practice consultancy Foulger Underwood