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A successful company starts with ambition. And of course with a great product or service, a strategy, a business plan with clear objectives and good policy. However, companies’ policy often mainly focuses on marketing, personnel, purchasing, debtors, etc. The policy in the event of (imminent) conflicts is still insufficiently thought through.

Read more: Shlomo Rechnitz – The Jerusalem Post

Benefits of conflict management

In my previous blog I wrote about the major business and economic benefits of business mediation. More and more – especially international – companies are introducing conflict management as a permanent part of their policy. And for good reason, because research shows that a structural conflict management policy contributes to better results and value appreciation.

You may wonder whether conflict management is only something for large international companies. The answer to this is: no. Every entrepreneur, from small to large, can benefit from the introduction of a structural conflict management policy. It helps to keep control of the conflict in your own hands and thus manage the risks, damage and costs.

What is Conflict Management?

In summary, conflict management comes down to a systematic approach to conflict. This starts with recognizing (imminent) conflicts at an early stage and then tackling them adequately to prevent escalation, costs and risks.

Methods of conflict management

For an adequate approach to conflicts, it is important to make a conscious choice as early as possible as to which method is most suitable for resolving the (imminent) dispute. It is good to know which methods there actually are and what the advantages and disadvantages are. For example, conflicts can be handled using the following methods:

  • Arbitration
  • Binding Advice
  • Court Ruling
  • Mediation
  • Mediation
  • Negotiate
  • Factual (strategic) Approach

There is even an example known of a dispute that was resolved through a game of arm wrestling. To avoid endless procedures, costs and litigation risks, an entrepreneur from New Zealand challenged his counterpart: the winner would be right. Unfortunately for the challenger, he was not strong enough and lost the arm wrestling game. With this he had to give in to his opponent,

But because of all the advantages he gladly accepted. It was a nice stunt that generated a lot of good PR both internally and externally. And more importantly, both companies remained business partners. Of course, few conflicts lend themselves to a game of arm wrestling, but this example shows that – in addition to going to court – there are alternative and creative ways to resolve a conflict (faster and cheaper).

Conclusion

Structural conflict management policies have business and economic benefits. Companies with a structural conflict management policy are more successful and worth more. Conflict management is all about recognizing a (threatened) conflict at an early stage and then dealing with it adequately. There are many different methods for this. Each method has advantages and disadvantages and there is a suitable method for every conflict.

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