by Jane Beddall on June 30, 2011
As I wrote about last time, last Wednesday’s New York Times Food section included an article titled “Ex-Partners Fight to Separate the Ingredients”. In it, Glenn Collins chronicled the business divorce ending the BLT restaurant empire partnership between Jimmy Haber and Laurent Tourondel. It’s hardly news that business partnerships can be tough and that the restaurant business is nearly always tough. As I said, instead there were two aspects of this conflict that intrigued me.
The first involved the fact that the partners had “signed a standard agreement” regarding proprietary rights to cuisine that Chef Tourondel created for the restaurant.
The second is a problem common to so many conflicts, whether or not they arise from a business partnership. “Disagreements over little things began adding up to big things, including a clash of temperaments.” Very few disputes escalate immediately from nothing to major blow-ups. In this business dispute, the small conflicts became big conflicts over time.
It’s a basic truth of conflict resolution that a small conflict is easier to resolve than a big one. As tempting as it may be to ignore a small dispute, to pretend that it doesn’t matter, or to hope that it will resolve itself, starting a conflict resolution process sooner rather than later is a smart idea. Mediation, especially, can lead to a better result, more quickly, when the parties come to the table before their dispute has become deeply entrenched.
by Jane Beddall on June 28, 2011
Last Wednesday’s New York Times Food section included an article titled “Ex-Partners Fight to Separate the Ingredients”. In it, Glenn Collins chronicled the business divorce ending the BLT restaurant empire partnership between Jimmy Haber and Laurent Tourondel. It’s hardly news that business partnerships can be tough and that the restaurant business is nearly always tough. Instead, two aspects of this conflict intrigued me.
First, the article noted that the partners had “signed a standard agreement” regarding proprietary rights to cuisine that Chef Tourondel created for the restaurant. Business lawyers and consultants often tout partnership agreements that spell out the partners’ understanding at the start of the partnership as some sort of ironclad protection against expensive and damaging conflict in the future. Such an agreement is definitely a good idea, if only to force the partners to spend some time thinking through these issues.
Yet, as the article makes clear, plenty of disputes arise over the interpretation of the agreements or clauses in them. Here, one of the business conflicts is over the meaning of that the clause regarding such proprietary rights, with Chef Tourondel claiming that recipes broadly published can hardly be called trade secrets.
The former partners are now in federal court, fighting over many aspects of their former partnership, despite the initial agreement. Even with an agreement that seems to cover all the bases at the beginning, conflicts can arise. Mediation can help.
by Jane Beddall on December 30, 2010
As 2010 draws to a close, year-end reviews become popular.
- We’re all told to take a cold, hard look at where we are and where we need to go.
- Businesses are encouraged to examine where they can make marginal changes to improve their bottom line.
- Individuals are urged to pick one, small change that they can implement to reduce stress and enjoy life more.
What about the big picture: the essential things you already know you must do, but somehow don’t get done?
- You know that your family business needs to create a succession plan, but you don’t know how to start the discussion, in the family or in the business.
- You know that you need to have a conversation with your family about your estate planning priorities and decisions.
- You know that you need to talk with your elderly parents about challenging topics related to aging.
I can help you with these conversations. Ask me how. Always a complimentary, confidential, initial consultation.
by Jane Beddall on December 27, 2010
There are certain truths about conflict, conflict resolution, and mediation that we know are timeless. Yet they don’t always rise to the top of our consciousness. This month, repeatedly, I have found myself discussing the merits of business mediation with business owners who really “get it”. In particular, they are looking for a dispute resolution process that will serve their own interests in a far-reaching and essential way.
These business partners have accepted that their current business structure cannot continue. They also recognize that all those involved are going to continue working in the field that their business is in. Most important from the conflict resolution (and even conflict prevention) perspective is the focus on ending the business relationship in a way that preserves both business capital and personal capital.
These savvy businesspeople understand that talk (a/k/a gossip) about their business divorce is inevitable. So, not only do they want to handle the business assets in a way that reflects well in the bottom line. They also want to behave, corporately and personally, in a way that reflects well on them as individuals who will continue doing business in their field. That’s where mediation can help.
by Jane Beddall on March 19, 2010
My tip on how to deal with a bad, falling apart business relationship was published yesterday in the Toilet Paper Entrepreneur blog piece on “81 Strategies to Fix a Bad, Falling Apart Business Partnership.” My tip,” Talk, Talk, and Talk Some More”, is focused on communication’s role in business conflict management. This is the third time that I have submitted a tip to the TPE and the third time that one has been chosen and published. Three for three!
There are several interesting tips listed, showcasing different perspectives. Here’s mine:
When a business partnership is falling apart, you must talk, talk, and talk some more! It may be tempting to shut down communications with your partner. Don’t. Why? First, you may find that you can save the business with some effort. Second, if the partnership must end, communications about how to do it can save you time, money, and stress – and preserve business goodwill for what remains of your business or whatever venture comes next. Too difficult to talk? Get help – find a business mediator.
by Jane Beddall on November 11, 2009
Family businesses possess great strengths — and potentially devastating weaknesses. One weakness involves the challenge of planning for a day when some or all family members leave the business.
On November 1, 2009, the New York Times ran an article by Charles V. Bagli titled “Flipping a Coin, Dividing an Empire.” In it, he described the buy-out agreement of three Elghanayan brothers to divide up a $3 billion real estate empire built over four decades. Mr. Bagli captured the situation in a nutshell: “Compared with property breakups of some other New York real estate families — often long, messy affairs replete with blood feuds, lawsuits and ugly recriminations — the Elghanayan brothers’ split has been relatively swift, smooth, and secretive.”
The brothers had drawn up a detailed partnership agreement after they were forced, twenty years ago, to resort to binding arbitration (with their father serving as arbitrator) to resolve a family business conflict when a fourth brother left the family business. The process they created involved a coin toss, a reverse auction, and other details based on game theory principles.
Even that detailed process proceeded with horse-trading, some tension, and some sadness. But, by planning ahead and creating a process that they understood and freely adopted, the brothers did some valuable conflict management. They reduced the scope and severity of a potential family wealth conflict and then, when the agreement was needed, they had a far easier conflict to resolve. One that they could put to rest without destroying their wealth, their company, or their family.
by Jane Beddall on September 26, 2009
On September 24, 2009, I had the good fortune to speak to the Women in Business group of the Hamden Chamber of Commerce. We started with some general, very interactive, discussion about common causes of conflict, at home and on the job. As you might expect, kids, spouses, co-workers, and the people we need to make our business hum topped the list.
Then we moved on to some practical tips about preventing, reducing, and resolving conflicts. As I have said before, conflict is a part of life. Managing conflict so that it does minimum damage is the key.
by Jane Beddall on August 30, 2009
I was delighted to have my tip, “Women Smooth Ruffled Feathers”, chosen as one of 95 published on August 25, 2009 in the Toilet Paper Entrepreneur’s blog.
The introduction to the piece states: “The biggest change ever in entrepreneurship is occurring right now. For centuries men have lead the entrepreneurial frontier. But, for a multitude of reasons it is changing. It’s now the women’s turn to be the leaders of entrepreneurship. Here are just few (yes, just a few) reasons why.”
Visit the TPE blog and look for my idea about women entrepreneurs at #88. As you might expect, it’s an idea about being better at managing conflicts in order to better manage your business.
by Jane Beddall on August 8, 2009
On August 7, 2009, I had the pleasure of being interviewed by Barry Moltz on his weekly online radio talk show, “Business Insanity Talk Radio.” I was one of four guests discussing “The Art of the Apology.” Each guest offered a perspective on using apologies effectively in the business world. I focused on the role apologies can play in mediation and resolving conflicts and mediation.
Barry’s blog post summarizes the guests’ main points, including apology’s role in conflict resolution.
by Jane Beddall on August 5, 2009
On Friday, August 7, 2009, I am scheduled to be interviewed by Barry Moltz on his talk radio program, Business Insanity Talk Radio. He describes the show’s focus as “the craziness of small business” — what “makes it exciting, interesting, and totally unpredictable.”
The show broadcasts at 9:00 Central Time at www.blogtalkradio.com. Barry has titled the show “The Art of the Apology” and poses the question to listeners: “Do you know how or when to apologize in business so it is heartfelt and effective?”
Tune in (click in?) and listen to a lively conversation about conflict, how to resolve it, and how to apologize wisely.