Peace is good for business. That is generally true because when people feel safe, they will be more willing to make financial investments. It’s also true because a battle, especially those within a business, costs a lot of money and causes a lot of distraction.
If your company ends up in a financial dispute, your costs will go up, and your position as the CEO might come under fire. However, you can take steps to diffuse disputes early and preserve expenses.
Include dispute resolution language into contracts
When you craft contracts with vendors, you should include mechanisms for resolving conflicts. This could be an arbitration clause or a mediation. Clear, thorough dispute resolution matters can keep issues from going to court and save you time and significant public difficulties.
Clearly communicate with vendors, customers and employees
Communication is a source of conflict. Most people can think of an argument they’ve dealt with where both sides were, fundamentally, in total agreement. Lack of clarity and bruised egos lead to more litigation than most would care to admit. You should take every available step to ensure your communication works on multiple styles of communicator.
Understand when to compromise
How much is being “right” worth to you? You might be factually, economically and logically correct in an argument, but if the stakes are extremely high, it might be worth it to compromise. Only you can know if being right is worth the cost.
Sometimes conflict is necessary
At the same time, you will also be the only one to know when you must keep fighting for your point. When that happens, when you’ve exhausted every conflict resolution option, you’ll have a stronger case ready when it goes to court.