My friend called me on a Saturday to ask for advice. She was at the gym and the person sitting next to her felt she was too close and threw a weight at her. He had threatened her in the past. She had decided to go to the police after talking to the gym with no results except for, ‘You need to work this out amongst yourself.’ Wrong answer.

She had a bruise, a minor injury and although there was a video recording, the police did not want to get involved.

My thought went to how poorly the gym handled the situation. It did rise to negligence- the gym owes a duty to its members to provide a safe work out environment, and that duty was breached. However, the gym was as, Jessica Nagle of Nagle Law called it, ‘ethically challenged.’

Conflict is a growth industry. Because of that business need to have systems in place on how to deal conflict whether that is among employees, vendors or customers.

My suggestion is to have a written policy about how you will deal with conflict. Amongst employees, for example, this may be an anonymous hotline to report issues or for customers there may be a formal complaint process.

These small ideas would create an ethical business and also one less likely to have negligence claims.

I enjoy being a mediator. Mediation is when a third party neutral helps the disputing parties by facilitating their dispute. It is the last opportunity the parties will have to be a party in the decision making process, because if mediation fails then there will be litigation or arbitration. This means a judge, jury or arbitrator will be making the decision.

Being a mediator allows me to be a guide and organizer to attempt to bring a resolution to the disagreement. What I believe is the most important though is that mediation allows people to make agreement that are legal, but that a court could never create.

For example, partners want to split the business, but it is not a simple 50/50 division. There were debts neither party wanted, client agreements for future events and the name of business. With mediation each issue could be dealt with, rather than a costly trial which leaves most people feeling the results were unsatisfactory, let alone the antagonistic behavior.

If you have a small claims court action in Massachusetts, and most other states, then expect that you will be mediating that dispute first. If you entering a contractual agreement with another party consider a dispute resolution clause with mediation as a choice before court proceedings.

A snowstorm is a good reason to stay in and I can always find something to do.  This time though I caught back to back episodes of the Property Brothers.  If you have not seen this show on HGTV then you are missing out on Jonathan and Drew, twins that help find and remodel homes (in Canada).  In each episode there is doubt by the buyers that the house can be remodeled to the way they want it—they cannot see what Jonathan sees.

It is the same with mediation.  Unless you have been involved in a mediation, then it is difficult to understand and see what is going on.  Most people are familiar with courtroom dramas and judges making a decision.  Most cases settle using mediation or negotiation where you are part of the decision, have more of a say and can usually keep the business relationship intact.

For the new year why not try a new perspective?  Think about using mediation for your disputes or before entering a contract negotiate and get negotiation coaching from True North Business Consulting.  I understand that you know your business, but I frequently see that people do not know the legalities of their business. Take the time to take a new look and avoid problems later. I also offer a UDEMY class for those who want more information on alternative dispute resolution, which is the opposite of litigation.

It was time for an update at True North Business Consulting.  We are still providing contract review and creation, mediation services and educational seminars on business topics.  Is it time for you to look at the legal side of your business?

A Perfect Example:

Partners in a business recently came to me.  They have been in business for 10 years and are in debt.  They do not know if they should continue.  They had created an S-Corporation, which means they created a separate legal entity with the Commonwealth of Massachusetts.  They did this to protect their personal assets.  However, they never created a partnership agreement, which would give them guidance on what to if they decided to split up. A contract of this kind should have been the first step.  Instead they are confused and do not know what to do.

Clients Are Impacted:

Whether the business continues with one person, the partners or is dissolved, there is going to be an impact with their clients.  They had not changed their client contract since they started their business.  There was some updating needed but their main issue was they cannot assign the contract to another business who may buy them.  This means that they have to honor each of the contracts, even though they may sell the business!

Mediation Can Help Them:

Are they heading for court? No.  They want a quick resolution, and most civil cases can take up to two years to get to litigation.  This is after a large investment of money, which neither can afford.  They also may not be happy with a judge or jury’s decision. Mediation provides an alternative where they can come up with their own solution, and still remain good friends.

When was the last time you updated your contracts? Are you involved in a dispute and it is heading to court?  True North Business Consulting can help you.

Need a place to start, then start with our free videos at:  You Tube Channel  or browse through this  blog  for helpful hints.

Welcome to TrueNorth Business Consulting’s presentation of a Business Makeover. Each month will feature an idea that can help your business. True North focuses on helping businesses, especially health and wellness practitioners, maintain and grow their business using the areas of business law, marketing, insurance and project management.

Mediation is a form of alternative dispute resolution (ADR) where a third party neutral, or mediator, facilitates so the parties can come to a mutually beneficial resolution. Mediation is not binding, but a contract or an agreement can be the end result, which is legally binding.

One reason small businesses fail is because they cannot afford litigation, fear losing the business relationship with the contracting business, or misunderstanding of contract terms. The small business owners are experts in their own profession, but lack resources in conflict management. In normal business circumstances, conflict arises, and usually there is litigation. Mediation is less expensive and can preserve the business relationship.

Most businesses are not familiar with mediation or mediators. To be a mediator the neutral must complete a course, which is usually a 30 plus hour class. Mediators have all different backgrounds- law, psychology or industry experience. In choosing a mediator you want to be aware of their background so that you can have confidence in their ability. Family disputes would be better with a mediator with a psychology background, while business disputes may need a lawyer mediator.

However, the mediator does not make the decision for the parties—that is up to those involved. The idea is that when that happens, the parties will stick to the decision. In order for there to be mediation, a clause should be added to a contract which states the parties will use mediation along with naming a local mediation service or mediator. TrueNorth Business Consulting provides business mediation in Massachusetts.

The importance of good conflict resolution skills along with access and recognition of mediation services is critical. Many fiscal opportunities are lost, resulting in impacts to the community at large. Businesses strengthen a community with jobs and contributions when they are successful, businesses closure brings with it an increase crime rate and population decrease. Therefore for conflict resolution you should look into mediation first.