Business mediation

Conflicts arise in an organization. It is inevitable. But they are also useful and necessary. Key is to make/keep them constructive. Conflicts can come from different interests, communication styles, personal preferences or other challenges that arise during collaborations.

It is important to deal with business conflicts effectively: they can cause a lot of tension and stress in an organization, and this often extends beyond just the people directly involved. Ultimately, conflicts that are not managed properly will lead to a decrease in productivity, poor working atmosphere, dissatisfaction among employees and it can lead to employees leaving the company. The financial consequences are enormous.

Resolving business conflicts effectively and sustainably is crucial. One of the ways this can happen is through mediation. Mediation is a process in which a neutral third party, the mediator, is brought in to help resolve a business conflict. The mediator supports the parties in discussing their positions and interests and helps them find a joint solution that is acceptable to all involved. The mediator is not involved in the conflict itself.

With mediation conflicts get resolved faster and cheaper than, for example, through legal procedures. Also, since parties development and ‘own’ the solution themselves, it leads to better outcomes. It can help to improve the relationship between the parties and prevent future conflicts.

In general, there are 3 different types of conflicts in organizations:

1. Task conflicts: Task conflicts often concern concrete issues related to the content of employees’ work. They may include disputes over the distribution of resources, disagreements over procedures and policies, managing expectations at work, judgments or interpretation of facts. With the right intervention from a manager, colleague or mediator, these conflicts can often be resolved quickly and efficiently.
2. Relationship conflicts: Relationship conflicts arise from differences in personality, style, a difference in taste or even a difference in conflict style. These conflicts generally require more effort than task conflicts and good guidance is important.
3. Value conflicts arise from fundamental differences in personal values and beliefs. Like different beliefs and opinions in politics, religion, ethics, norms and other deeply held beliefs. Disputes over values can arise in the context of work decisions or at the strategic level. These conflicts are the most difficult to resolve. Often you cannot resolve the conflict completely, but with mutual respect and acceptance you can design ways to avoid future conflicts.

Process of conflict resolution in business conflicts.

The first and very important step in dealing with business conflicts is to recognize the problem and discuss the issue. Conflicts are often ignored or avoided, but this can worsen the situation and lead to more tensions and discontent. By making the conflict a subject for discussion and being open about the different perspectives and interests, a solution can be found that is acceptable to all parties.

The second step is to look for common ground and find a common goal. This involves looking at the interests of both parties and how these can be combined or balanced out to reach a solution. In focusing on what both parties want to achieve and what connects them lies the solution.

The third step is to brainstorm for possible solutions in an open creative way. Find the optimal solution that is acceptable to both parties. For example, start looking for creative solutions that meet the different interests or divide responsibilities and tasks between the parties.

The fourth and final step is to make agreements and tell goodbye to the conflict in a good way. This phase is about restoring the relationship, making a new start, discussing what will/will not be communicated to the rest of the team or the organization. Here we also look at what can be learned from this conflict and how conflicts like these can be prevented in the future.

Conflicts can arise at all levels within an organization:

1. Conflicts between employees: These conflicts often arise from communication problems, competition or ideological differences between employees. This can lead to tensions in the workplace, reduced productivity and dissatisfaction among employees.
2. Conflicts between departments: This can be caused, for example, by lack of communication, difference in priorities or unclear responsibilities. This can lead to problems in project management, delays and reduced productivity.
3. Conflicts between managers and employees: These are conflicts that arise, for example, due to differences in vision, personality or expectations. This can lead to demotivation, conflict and reduced employee involvement.
4. Conflicts with customers or suppliers: These are conflicts that arise between the organization and customers or suppliers. This could, for example, concern incorrect invoicing, quality problems or delivery delays. Failure to resolve these conflicts can lead to loss of customers, reputational damage and financial consequences.
5. Conflicts between partners: These are conflicts that arise between partners in a partnership, for example between two companies that work together on a project. Or between partners who jointly run a (young) company. This may, for example, concern ambiguities in responsibilities, differences in vision, commitment or financial issues.