3 strategies startup founders can use to resolve disputes


Klarna, the $7 billion buy-now-pay-later startup with celebrity investors like Snoop Doggrecently experienced a rare public dispute who would serve on the board.

While the complexities at Klarna remain unique to that company, the case highlights that building a startup isn't always smooth sailing. Conflicts can be built from within – and Harvard Business School professor Noam Wasserman says so 65% of high-potential startups fail due to the conflict between the co-founders.

Fortunately, experts have strategies startup founders can use to approach conflict constructively.

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Use appropriate language

or Tuesday's report from the Harvard Business Review highlighted a strategy leaders can use to avoid miscommunication in times of conflict and stress: emotionally correct messages before sending them.

For example, a message that reads, “Let's talk,” in a Slack message can set the stage for approaching a more confrontational discussion. A better message could have been, “Great job with the pitch deck, let's talk about how to perfect the product-market fit slide.”

Being aware of your audience, your delivery, and how the message might be received will help head off conflict before it starts.

Agree to disagree: Create a founder's agreement

“If everyone agrees all the time, that means everyone thinks alike,” Lauren Cohen, a professor of finance and business management at Harvard Business School. said Harvard Business Review. “Successful organizations commit to disagree.”

Creating one founder's agreement, a legal document that defines the business relationship between the co-founders, will include the rights, responsibilities and obligations of each founder. This can be a supporting document for handling conflict if disputes get out of hand.

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Use data and the market to make decisions

When two executives are in conflict over something like a product development decision, they can turn to user response and other data points to take a more objective approach to the problem.

Mike Freitta, a startup founder coach who spoke with Harvard Business Review, urged the founders to take a look technology adoption curvea model that shows how different groups of consumers react to innovative products and technologies and require feedback to make decisions.

“There are so many decisions that go sideways because the founders have given up on the user-centric mindset,” Freitta told the media.



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