Getting on Better with Business Partners - Relationships and Conflict

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Dealing with Conflict with Co-Directors and Partners in a Small Business Environment

How many times have you heard "never get into partnership, you'll regret it", probably several, maybe even a couple of "I told you so" comments too. This lens aims to provide some practical advice on conflict management between business partners or owners and I hope may help you to get on better in the business relationship.

I have run businesses on my own and with others - the benefits of working with others are huge. Partnerships and sharing ownership with co-workers can be a first step to growth and can bring huge diversity of skills and approaches - but you know this - my article here is about how to deal with the conflict, fights, disagreements, mayhem, and evil thoughts that naturally result from time to time.

I am not writing a 'self-help' manual, except perhaps as some sort of personal therapy, rather a collection of ideas.

As always, I would love contributions and ideas from others.

Roles and Responsibilities

Defining who does what and why ...

By fencing off responsibilities and knowing when you are crossing into your partners' territory, you make life easier. This extends not just between partners but to the whole company - a clearly defines set of roles and responsibilities will ease communication throughout the business.

In small business, very often the directors or partners have very mixed roles; we make tea, sell and buy, we are the secretary, the boss, the marketer. This works (and has to) when there is one owner.

It breaks down when there are two or more. In my business, we defined our roles quite late in our partnership, several year after natural roles had already developed but it really helped and reduced conflict.

Here's what we did:

  • Write down what we see as our own roles

  • Write down what we see as our co-directors' roles

  • Agree final roles and responsibilities and write these down for review


  • Recognising that what I think my business partner is doing may be different to what he thinks he is doing, helps us get on.

    Being self-aware

    Think Larry David meets Basil Fawlty (but younger and better looking)

    OK, so this means recognising strengths too, but knowing what aggravates others and letting them know you know, really helps. It gets rid of the voice inside them crying out to call you pedantic, dogmatic or late. I am not saying you should fix this stuff - you can if you really want to, but that's not what this article is about, and sometimes I quite enjoy being cantankerous.

    I can't emphasise enough how liberating it is when you say "I know I'm being ..." - you remove the stress caused by your business partner wanting to tell you himself, but wanting to avoid causing insult. It allows you to discuss the real issue at hand.

    Non-exec Director / Other Adviser

    A voice of balance and reason

    Bring another person into the mix who the current group will have respect for. Make their role consultative and meet regularly, monthly is fine. As well as the traditional roles of a non-exec, an experienced person who is not involved on a day-to-day basis in the nitty gritty, can provide clarity and also help partners to argue their point with logic rather than emotion.

    I am a big fan of (good) meetings - if meetings are run well, arguments can sometimes be saved for this more controlled and mediated environment.

    Just knowing you have a time and place (and host) for the heated discussion can help.

    You may also want to agree that each director or partner can use the adviser independently to vent - moaning to others can be good.

    Humour

    Lighten the mood at times of real conflict. Ok, sometimes this has backfired on me and colleagues have mistaken this for avoidance of an issue, but sometimes breaking the downward spiral of aggravation can be achieved this way.

    End the day, or a crappy email with a link to The Onion.

    Extreme abuse may help (and amuse) - I was annoyed at the third email riddled with typos sent by a co-director - rather than a rant he got "About &"$£(*" time you read what you write, you type like *r*p you &"$£(*" sausage for fingers &"$£ !" I rarely swear but this got attention, amused, and got stuff done without too much real offence. (Compare the response if I had said plainly that he needed to take more care with communications - it would have sounded preachy and self-righteous).

    He now does the same with me and will berate me with foul screams when I labour a point - he doesn't mean the abuse, but it makes me think if I am going on and on.

    Pick Your Battles

    Fight the important issues: in discussions only raise the key issue, not everything that happens to be on your mind. This helps in turning a disagreement from a fight or battle into a constructive issues based discussion.

    Finally - take time out away from the office, a lunch, dinner or drink in a social environment builds stronger bonds.

    Tell me what you think ...

    Comments, confessions, ideas

    • proposalaccept May 2, 2010 @ 7:15 am | delete
      While making a project Successful may be not a very much uncomplicated job. Project Manager have to learn about taking care of a project sooner than going Genuine deal. This one is a nice lens about project management.
      Why I will not thank you?.
    • aj2008 Sep 3, 2009 @ 5:39 am | delete
      As someone who has taught business planning, this all makes such good sense.
    • danmitch Apr 6, 2009 @ 6:59 am | delete
      Thank you all for your comments - really appreciate your input!

      Leo9: You may even given me an idea for another lens, I hope things work out well!
      sulynsi: Kind words, sole props can work well, I was on my own for quite a few years - a good parnership is even better though !!!
      Amitabh1702: Thanks for running a great group

      Best - Daniel
    • Amitabh1702 Apr 6, 2009 @ 6:12 am | delete
      Thanks for joining my group Business Management
      I should have responded long ago, but I was not entirely happy with the layout of the group. I have now changed the layout so that all lensmasters get visibility. Have a look and let me know if you approve.
      By the way, 5*'s for this lens. It is that good.
    • Leo9 Mar 1, 2009 @ 9:34 pm | delete
      Hi Dan,

      Fabulous. I've been a sole proprietor and in my current business, I have a business partner. We've already had quite a few ups and downs but it seems to be sorting itself out - but it occurs to me, you that someone with your knowledge could add a little about what to do when you realise you've picked the wrong business partner!
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    danmitch

    I am 37 years old and married with two boys, I live just outside St Albans, in the UK.

    I am a director of Lifeline IT, we provide network and infrastructure...
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