{"id":185777,"date":"2024-01-17T05:09:32","date_gmt":"2024-01-17T05:09:32","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=185777"},"modified":"2026-04-09T00:50:21","modified_gmt":"2026-04-08T23:50:21","slug":"manage-conflict","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/manage-conflict\/","title":{"rendered":"How to Manage Conflict Within a Small Business\u00a0"},"content":{"rendered":"\n<p>Business conflict is inevitable, but how you manage it determines whether it disrupts or strengthens your operations. Clear communication, defined roles and early action can prevent disputes from escalating and protect both relationships and productivity. This article will explain how you can manage conflict within your small business and best practices for conflict prevention.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Small Business Conflict<\/h2>\n\n\n\n<p>In the business context, conflicts are often inevitable. They can arise from simple differences in goals, opinions, personalities and understandings. However, it is crucial to remember that conflicts are manageable.&nbsp;<\/p>\n\n\n\n<p>Take a <a href=\"https:\/\/legalvision.co.uk\/business-structures\/marketing-agency\/\">small marketing agency<\/a>, for example. The project manager insists on a collaborative approach to a new campaign, but the creative director thinks that creative control should sit solely with the agency\u2019s design team. The root cause of this conflict is a lack of clearly defined roles and responsibilities. There is too much ambiguity regarding who holds the decision-making power for the campaign. This disagreement can cause decreased productivity, increased tension and frustration. To resolve the dispute, the agency\u2019s owner called for a team meeting to redefine the roles and responsibilities of the decision-making process for client campaigns, establishing a clear protocol to prevent similar conflicts in future.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Small Business Conflict Management<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. Identify the Cause<\/h3>\n\n\n\n<p>The first step is to take time to understand the conflict and identify its root cause. Identifying the cause is essential for effective resolution. Gather information and actively listen. Meet with the conflicting parties separately to understand their perspectives.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>You might then arrange a meeting with the parties, encouraging them to work towards a mutually beneficial solution. \u200b\u200bRemember that resolving conflicts requires clear, respectful and open communication.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">2. Seek Professional Advice<\/h3>\n\n\n\n<p>You may need to seek professional legal advice, especially if you exhaust your internal conflict resolution options when attempting to manage a particular conflict. An experienced lawyer can:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>help you navigate the conflict resolution landscape;<\/li>\n\n\n\n<li>advise you on your next steps; and&nbsp;<\/li>\n\n\n\n<li>protect your business interests.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3. Alternative Dispute Resolution<\/h3>\n\n\n\n<p>An unresolved dispute can grow out of control, and you may need to bring in external assistance. <a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/alternative-dispute-resolution-in-england-wales\/\">Alternative dispute resolution (ADR)<\/a> is an alternative to legal action, as resolving a dispute in court can prove very costly. ADR provides several methods to resolve a dispute without pursuing litigation. A solicitor can also guide you through this process.&nbsp;<\/p>\n\n\n\n<p>The following table outlines some key ADR methods.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Method&nbsp;<\/strong><\/td><td><strong>Explanation&nbsp;<\/strong><\/td><\/tr><tr><td>Negotiation&nbsp;<\/td><td>Parties work together to come to an agreement, taking turns to express their viewpoints.&nbsp;<\/td><\/tr><tr><td><a href=\"https:\/\/legalvision.co.uk\/employment\/employment-issues-mediation\/\">Mediation<\/a><\/td><td>An independent mediator works with the parties, helping them to reach agreement.&nbsp;&nbsp;<\/td><\/tr><tr><td>Arbitration&nbsp;<\/td><td>The parties appoint an independent third party. The third-party considers the dispute and generates an agreement on their behalf.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/05\/19023421\/performance-improvement-plan-marketo.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Performance Improvement Plan Template<\/div>\n            <div class=\"body-text\">\n                <p>If your employee is not performing at the expected level, you may need to implement a performance improvement plan (PIP) to get them back on track. 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Take a Proactive Approach<\/h3>\n\n\n\n<p>Pay attention to the type of conflict that arises within your business, however small. You can decrease the chance of similar disputes arising by fixing the root causes of frequent conflict. It is also important that small business owners foster a culture of teamwork, respect and understanding. Your company culture can impact how frequently disputes arise.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Draft Clear Contracts&nbsp;<\/h3>\n\n\n\n<p>You should share clear contracts with your employees, suppliers and clients. Common causes of conflict within any business are employee grievances and mismanaged expectations with suppliers and clients. An experienced lawyer can draft these for you, protecting your business\u2019s interests.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Have a Conflict Resolution Plan&nbsp;<\/h3>\n\n\n\n<p>It is best practice to have a <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/dispute-resolution-clause-business\/\">dispute resolution plan<\/a> in place. Create a framework that you can follow if conflict arises. Your plan should include the steps you will take to navigate disputes.&nbsp;<\/p>\n\n\n\n<p>You may set the first stage as a peaceful, constructive conversation. If the conflict continues, you can follow the plan to the next stages. The next stage might involve another conversation but with a neutral moderator, such as a management staff member with no involvement in the conflict.&nbsp;<\/p>\n\n\n\n<p>You can also set out the conflict resolution steps within your employment contracts. This way, employees can look back on them and clearly understand the protocol they can follow. Providing them with this knowledge can prevent further unnecessary frustrations should a complaint arise.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p dir=\"auto\"><strong>Key Statistics<\/strong><\/p>\n<ol dir=\"auto\">\n<li><strong>\u00a328.5 billion<\/strong>: The annual cost of workplace conflict to Great Britain\u2019s economy.<\/li>\n<li><strong>25%<\/strong>: Of UK employees, around 8 million people, experienced workplace conflict in the past year.<\/li>\n<li><strong>92%<\/strong>: Settlement rate for commercial mediations, demonstrating effective dispute resolution.<\/li>\n<\/ol>\n<p dir=\"auto\"><strong>Sources<\/strong><\/p>\n<ol dir=\"auto\">\n<li><a href=\"https:\/\/assets.publishing.service.gov.uk\/media\/687807c60263c35f52e4dcc7\/acas_annual_report_2024_to_2025_accessible.pdf\">ACAS Annual Report 2024\u20132025<\/a><\/li>\n<li><a href=\"https:\/\/www.cipd.org\/en\/knowledge\/reports\/goodwork\/\">CIPD Good Work Index 2024<\/a><\/li>\n<li><a href=\"https:\/\/learn.cedr.com\/hubfs\/CEDR\/Mediation%20Audit\/Tenth-CEDR-Mediation-Audit-2023.pdf\">CEDR Tenth Mediation Audit 2023<\/a><\/li>\n<\/ol>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Conflict can significantly impact small businesses, especially if it escalates. However, there are steps small business owners can take to manage conflict. These include the following:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>identifying the cause of the conflict;&nbsp;<\/li>\n\n\n\n<li>seeking professional legal advice; and<\/li>\n\n\n\n<li>using alternative dispute resolution.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>You can also take steps to mitigate the risk of conflict arising. These include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>taking a proactive approach and taking action when the same issue occurs more than once;&nbsp;<\/li>\n\n\n\n<li>sharing clear employment contracts with employees, suppliers and clients; and<\/li>\n\n\n\n<li>having a conflict resolution framework.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you need legal assistance to resolve conflict within your small business, our experienced <a href=\"https:\/\/legalvision.co.uk\/disputes-lawyers-lp\/\">disputes lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions <\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1749622928020\"><strong class=\"schema-faq-question\">How can I prevent conflicts?<\/strong> <p class=\"schema-faq-answer\">Establish clear roles, responsibilities, and communication channels. Regular team meetings and feedback sessions help address issues before they escalate. <\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1749622974529\"><strong class=\"schema-faq-question\">When should I seek legal advice for a business dispute?<\/strong> <p class=\"schema-faq-answer\">If internal resolution methods, like open communication or mediation, fail to resolve the issue, it\u2019s wise to consult a legal professional for guidance and potential legal remedies.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1775691168821\"><strong class=\"schema-faq-question\">How can you prevent business conflicts?<\/strong> <p class=\"schema-faq-answer\">Set clear roles, maintain open communication, and use well-drafted contracts to reduce misunderstandings and manage expectations.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1775691179820\"><strong class=\"schema-faq-question\">When should you escalate a conflict?<\/strong> <p class=\"schema-faq-answer\">Escalate when internal discussions fail, using mediation or legal advice to resolve the issue and protect your business interests.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/185777\" \/>            <input value=\"https:\/\/legalvision.co.uk\/disputes-litigation\/manage-conflict\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How to Manage Conflict Within a Small Business\u00a0\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Business conflict is inevitable, but how you manage it determines whether it disrupts or strengthens your operations. Clear communication, defined roles and early action can prevent disputes from escalating and protect both relationships and productivity. This article will explain how you can manage conflict within your small business and best practices for conflict prevention. Small<a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/manage-conflict\/\">Continue reading <span class=\"sr-only\">&#8220;How to Manage Conflict Within a Small Business\u00a0&#8220;<\/span><\/a><\/p>\n","protected":false},"author":13435,"featured_media":183583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"174578,4256,178160,175446,177873,175852","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[26],"tags":[20,23,393,419,1624],"class_list":["post-185777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-disputes-litigation","tag-small-business","tag-mediation","tag-negotiation","tag-employment-issues","tag-dispute-resolution-process"],"acf":[],"yoast_head":"<!-- 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She is currently studying for a PhD in international law and has specific expertise in international law, migration and climate change. She holds a first-class LLB and LLM degrees. In addition to studying for her third Law degree, Jessica teaches Law on the LLB Law modules at the university where she is studying for her PhD. She is also a Director of a charity which supports asylum seekers and refugees. Qualifications: PhD, Law (Underway), Edge Hill University, Masters of Laws - LLM, International Human Rights Law, University of Liverpool, Bachelor of Laws - LLB, Edge Hill University.","sameAs":["https:\/\/www.linkedin.com\/in\/jessica-d-16931492\/"],"url":"https:\/\/legalvision.co.uk\/author\/jessicadrew\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/disputes-litigation\/manage-conflict\/#faq-question-1749622928020","name":"How can I prevent conflicts?","acceptedAnswer":{"@type":"Answer","text":"Establish clear roles, responsibilities, and communication channels. Regular team meetings and feedback sessions help address issues before they escalate. 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