Looking back over meditations from this past year, I realize that listening was the deciding factor in escalation of conflicts.  Or should I really say not listening.  Describing listening and how it might apply to business situations really encompasses a variety of things.

Let’s first take an overview of contract disputes seen in mediation.  The underlying problem across the board begins with parties understanding of the contact.  So often, one party will take a couple of the highlights of the contract or agreement, most often something about costs, assure the other party they will be able to meet their needs and the other party signs.  With few exceptions, disputes arise out of unmet expectations, regardless of what the contract/agreement says.

Signing a contract does not mean the other party can and will not dispute, sue or refuse to pay.  One example is a mediation held this year that became very contentious over a contact for leasing a business space.  The person contracted to negotiate the lease followed a process that was well established by their company and had the expectation it would take some time to complete.  The business owner’s expectation, based on his understanding was the negotiator had a relationship with the building complex and negotiations would be held quickly.  Had the person contracted to negotiate listened, he would have heard the expectation to complete the process quickly and had the business owner asked better questions, it could have alerted him to the possibility of a lengthy process.

Nothing adds fuel to the fire more than unreturned phone calls. Understand that frequent calls are also a message.  Fear, uncertainty, lack of confidence are some of the emotions felt by customers and not listening or ignoring them just makes it worse.

Taking the extra time at the beginning of a contract negotiation or sale to outline what will happen and the timeframes can put you in a position to avoid conflict down the line.  You may be an expert and know what it takes to complete your process successfully but when you assume your customer knows…well, we all know what that can mean.

Recently I’ve seen a number of mediation situations where contract issues are in dispute as a result of unfulfilled expectations by a customer.  In each of these cases an employee of the company met with their prospective customer and discussed the customer needs and the benefits of the using their company or purchasing their product.  The prospective customers felt, based on those conversations, that they were prepared to do business and signed a contract.

Time passes and the customer now feels the original agreement has not been fulfilled and refuses to pay or demands a refund.  You may have the most iron clad contract money can buy but regardless of the outcome, you as the business owner are now involved in a contract dispute that can become time consuming, create bad will in the community and include the financial cost of defending your company and your employee.

As a business owner, your employees are the voice of you and your business so making sure they are properly trained in the contract process can save time and money later.  Sales goals, thinking they know what the customer needs, cultural and language differences and communication barriers can create incorrect assumptions.

Contracts are a valuable asset to your business, be sure the communication between the customer and your employees are clear.

Mediation makes sense when you want to end a problem but not a relationship. It is a cost effective, confidential and proven method to work through business conflicts.  For information contact Joanna Wares, Las Vegas Mediation at 702.527.4392, Joanna.wares@gmail.com  http://lasvegasmediation.org/. Sign up for an email subscription on our website to receive articles on how to prevent conflict resolution in your business.

Disputes about money are one of the major issues we see in mediation. When a business is running well and the economy is good the topic rarely comes up, but when business slows and money is tight the focus seems to settle on that issue.

Communication on expectations is crucial in maintaining a good relationship when discussing financial issues. Have you ever had a friend or family member borrow money?  Did you hear “Don’t worry; I’ll pay you back as soon as I can.” Or, “You know I’m good for it.” When your expectation of repayment doesn’t meet the other person’s, it can become a very uncomfortable situation and not unlike what can happen in your business.

Financial disagreements include services that are key to your business.  When a vendor provides substandard service, doesn’t deliver on time, provides poor customer service to your client it impacts your bottom line. All of these are important issues in running a business and being specific on your expectations is the key.

Not having an agreement or contract signed is one of the most prevalent problems in business disputes. If a dispute arises and the agreement or contract has never been signed it puts the business owner in a terrible position.  I can’t tell you how many times in mediation the lack of a signed contract has created a huge issue. Your perception of a conversation is one thing you can’t prove.  Having a signed agreement protects not only your but the other party as well.

It can be very uncomfortable when dealing with a new customer or a valued client or a great vendor to say “I need to do that in writing”. It can make it sound like you don’t trust them. Ways to avoid those difficulty situations might be:

• Send a confirmation e-mail “Just to confirm our conversation your delivery will be delayed and will be delivered no later than …, please confirm that this is what we discussed.”  If that is not what the other party understood they can let you know.
• You may want to say to the other party, “I want to be sure that there are no misunderstandings because I value you and our relationship so I have a contract/agreement for your signature.
• Set your relationship on a firm path by in the beginning by signing an agreement outlining how you will handle certain issues. Written agreement in advance protects both parties.
• Agree disputes will be handled through mediation.

An ambiguous statement can be easily misunderstood by both parties so be specific and clarify who, what, when, where and how.   Resolving a financial dispute that leads to litigation is costly so avoid disputes before they happen.

Mediation makes sense when you want to end a problem but not a relationship. It is a cost effective, confidential and proven method to work through business conflicts.  For information contact Joanna Wares, Las Vegas Mediation at 702.527.4392, Joanna.wares@gmail.com  http://lasvegasmediation.org/. Sign up for an email subscription on our website to receive articles on how to prevent conflict resolution in your business.

Filed under: Alternative Dispute Resolution, Business, Debt, Las Vegas, Mediation, NV, Partnerships Tagged: Business, Conflict resolution, Controversy, Dispute resolution, Joanna Wares, Las Vegas mediation, Mediation ]]> http://lasvegasmediation.org/2012/10/15/avoid-business-disputes-about-money/feed/ 0 36.080111 -115.297605 36.080111 -115.297605 jwares money http://lasvegasmediation.org/2012/09/11/mediation-a-solution-for-small-business/ http://lasvegasmediation.org/2012/09/11/mediation-a-solution-for-small-business/#comments Tue, 11 Sep 2012 21:05:37 +0000 Joanna Wares http://lasvegasmediation.org/?p=279 ]]>

A small business is a relationship business.  Relationships with suppliers, customers, business partners and employees can thrive when the business is working well but when relationships don’t work, the business will suffer.

Business partners may start with great ideas but limited planning and few ground rules. Sooner or later, they may discover the hard way that what’s left unsaid or unplanned often leads to unmet expectations, anger and frustration. Productive communication is one of the most challenging components for any organization. Each person may think they are communicating clearly or that the other party should “know” they are keeping up with their part of the agreement or “know” what needs to be done.  In reality, this lack of communication can become an opportunity for contention and misunderstanding.

Partners can disagree over countless things, including conflicting work ethics and financial goals, roles in the business and leadership styles. Before you start the business:

• Set up written ground rules
• Communicate regularly
• Include a provision for mediation when conflicts or impasse occurs
• You many want a neutral third party mediator help in setting up your ground rules.  Communication can be difficult especially when a sensitive issue needs to be discussed

When a business is family owned the potential for problems can increase.  Issues may roll over to spouses, parents and children.  When you want to have an ongoing relationship, mediation can help in the resolution process.

Business succession is another potential area of frustration when clearly agreed on succession plans are not in place and have not been communicated to everyone.

Employees can cause disruption in the workplace, personality conflicts are very common and communication styles can create issues.  A mediator can work with the employees to develop solutions.

Misunderstandings, miscommunication and unrealized expectations between suppliers or customers can result in financial devastation.

When you feel your business is suffering because of communication issues, take the time to revisit or revise your expectations. Speak openly and honestly with each other and don’t let your dream struggle and die for lack of straightforward conversation.

Sometimes it is difficult of even impossible for people to talk to each other, so working with a neutral third party can be the answer. A mediator helps diffuse difficult conversations, and using a formal process helps the participants move forward toward a solution.

Mediation makes sense when you want to end a problem but not a relationship. It is a cost effective, confidential and proven method to work through small business conflicts.

For information contact Joanna Wares, Las Vegas Mediation at 702.527.4392, Joanna.wares@gmail.com  http://lasvegasmediation.org/. Sign up for an email subscription on our website to receive articles on how to prevent conflict resolution in your business.

How many time have you witnessed a business implode simply because of disagreement between the partners?

Las Vegas is booming with smart, innovative and creative individuals who are coming together with fabulous ideas for a new business, yet neglecting the basics in their plan for success. Partners or business owners collide when written objectives are not established or not regularly visited.

Productive communication is one of the most challenging components for any organization. Each person may think they are communicating clearly or that the other party should “know” they are keeping up with their part of the agreement. This can quickly become a lack of communication and an opportunity for contention and misunderstanding.

When you feel your business is suffering because of communication issues, take the time to revisit or revise your expectations. Speak openly and honestly with each other and don’t let your dream struggle and die for lack of straightforward conversation.

Sometimes it is difficult of even impossible for people to talk to each other, so working with a neutral third party can be the answer. A mediator helps diffuse difficult conversations, and using a formal process helps the participants move forward toward a solution.

Mediation makes sense when you want to end a problem but not a relationship. It is a cost effective, confidential and proven method of un-complicating difficult conversation.

If they do come to a solution, the mediator can help them write up an agreement that can most often be upheld by the courts. Amazingly the success rate in reaching an agreement is over 75%. Mediation can be for any type of conflict from business to personal and can cover almost any situation. Many people want to call an attorney when a problem comes up but mediation is much more cost effective.

Some of the issues that can be mediated are:

• Business                                                                                                                 
• Credit agreements
• Real estate
• Money/debt
• Partnerships
• Insurance
• Home owner/ HOA
• Workplace

Mediation makes sense even when the legal system cannot provide the remedy you want:

• You want to end a problem, not a relationship
• Your dispute is private and you want to keep it that way
• You want to minimize costs
• You want to settle your dispute promptly
• You are having difficulty initiating negotiations, or lack of negotiation skills

Contact us at Las Vegas Mediation.   joanna@lasvegasmediation.org 

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When debts seem to become overwhelming many people and business flounder to find solutions. The most common ways to solve debt issues are bankruptcy, legal methods or collection agencies. What most people fail to explore is using mediation as a way to find mutually beneficial and mutually agreed upon ways to solve debt issues.

What does mediation do to help debit issues? It is amazing to learn that failure to pay is often related to reasons that can be overcome and that other options exist that can provide a way for both parties to work out a solution. For borrowers, the barriers can be very emotional, the process of facing debt is humbling and can be humiliating. The borrower may have many reasons for not paying, they may think the work or product delivered was not as agreed, they had poor customer service, they could have financial problems that don’t allow an immediate or full payment or there may be health issues. Most often, sending more collection threats only increases the barriers to a solution. Most people want to keep their promises and pay what they rightfully owe. And, it is always in everyone’s best interest to try to find a way to work things out.

Nevada as well as the rest of the country can benefit by finding ways to communicate in a positive way. I am confident that things our economy will improve, it just makes sense for everyone to explore options that allow both parties to win.

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Our emotions can sometimes compromise our ability to get what we really want from the other person or party.  We KNOW we are in the right and everyone will believe us when they hear what happened!   But sad to say that doesn’t always happen.  Our understanding of a broken or unfulfilled contract may not be the same as what the contract language actually says, a verbal agreement may have different understanding by the two parties, failure to repay a debt may be due to many reasons.  Oh, and by the way, when you are involved in a court case it can become public record.

Mediation is simply negotiations, which are an attempt to keep a matter out of court. The entire process from start to finish is confidential. Mediation is governed by a mediator, who is present as a neutral third party. You have a chance to say what happened and what you think is a fair way to settle the issue and negotiate in good faith.  The outcome, if an agreement is reached, is decided by you and the other party.  Can you include your attorney, sure you can.  Is the process less expensive, in most cases, yes.  How often is there an agreement, statistically over 85% of the time.

So, can’t we just talk?