“Conflict” is a word that can have varying degrees of severity, meaning, and implication for each individual or circumstance. For example, the conflict that is experienced in our current, daily lives seems insignificant in comparison to the Samurai, or those in war, who faced death on a regular basis. However, it is still important to extrapolate the significant lessons that have been derived from such severe scenarios, as these notions are still applicable in the conflict that we experience
in the workplace and life today.

Conflict is unavoidable, as each individual has unique and differing thoughts, ideas,
and opinions. Therefore, it is important to learn ways to minimize and manage this
difficulty, in order to ensure efficient and harmonious interactions. This article
provides the genesis of a personal path, introducing tools and ways to minimize and
manage conflict, while pointing to the origin of these concepts. After an overview of
these modern and ancient approaches, a discussion will follow on applying successful
tools and techniques for managing conflict. These ideas can be used to help clear the
mind for better decision-making, and consequently, ensure a personal pathway to
success.

New approaches to ancient concepts

Profound strategies and lessons to minimize and manage conflict have been around
for thousands of years in forms such as the classic Chinese texts the “Book of Change
– Tao de Ching” and the “Art of War”. Today, modern legends including Stephen
Covey (“7 Habits for Highly Effective People”) and Dale Carnegie present similar
corporate and personal tools. As many know the “7 Habits” is not a group of new
concepts, but age-old approaches to success and conflict management, represented in
a way that can be clearly applied to modern day personal and corporate development.

Discovering the origin & foundation of concepts

Although many of the true ancient concepts have been exaggerated or misused
through incorrect interpretations, they can be applied in non-extreme forms relevant to
the modern day from such arts as: Zen (which is not a religion, but a path for self
discovery and growth), the “Art of War” by Sun Tzu (the classic text on strategy
which is often regarded as the most definitive text on the topic), and the Tao de Ching
(the “book of change”). These all provide profound lessons for leadership, change,
success, peace of mind and conflict management.

A workplace example – an tense group meeting debating a topic

If one has to enter a meeting with a number of staff peers on a topic that is likely to
require an intense debate, a strategy can be put into place to help provide a successful
outcome (this should be combined with the other approaches outlined below). For
example, one can approach the members of the meeting individually prior to the
meeting to convey your preferred position. Once the meeting has started you will
hopefully already have likely confrontational people already “on-side” to achieve
your desired outcome in a non-confrontational way.

The Key to Managing Conflict: bringing it all together, and applying it today

All the above methods (old and new) are about changing core behavior and
approaches, in order to avoid conflict and simultaneously achieve personal success.

As Sun Tzu states:

“If you know yourself and know others – you will be successful.

If you know others and not yourself, you will win one and lose one.

If you do not know others and do not know yourself, you are destined for failure in
every battle.”

These are core values, and far more important than putting band-aids on problems, or
approaching things with simply a short-term change. In regard to the ancient
philosophies, they of course must be interpreted, and applied, using case studies and
real world examples in a context that matches the modern corporate world. Applied
Zen (www.AppliedZen.com) is a company that provides workshops, and
downloadable videos online, regarding these exact topics with a unique approach.
This is achieved through implementation of physical interaction drills to reinforce the
concepts covered in workshop presentations. Studies have shown that learning
conflict management based on physical as well as mental practice greatly increases
the participants’ retention, and consequently, aids in implementation (more than 2 to 3
fold improvement).

Aggressive escalation of conflict

Conflict is derived from many circumstances, but quite regularly it can be escalated
because of a person’s approach to the situation. In the Japanese language, there are
two words that help to describe this: aiki and kiai. These words are derived from the
same two characters, and are simply reversed to convey an opposite meaning. Kiai is
a form of showing intensity and channelling it towards an individual, and in the
martial arts ‘kiai’ is a very loud, expulsion of air and voice to intimidate or scare an
opponent. Aiki is the opposite of head-to-head approaches and allows one to avoid
escalating conflict (hence the martial art “Aiki-do”). Yet the approach still
incorporates assertiveness a key attribute in any successful negotiation. Consider for
a moment which concept would be most beneficial in dealing with conflict in a
meeting at work or your personal life: kiai, or aiki?

“Show softness yet engage the opponent with hardness. Show weakness yet
engage with fluid strength”

Obviously aiki is more practical, and will produce a more desired outcome. If we
listen with the intent to understand – not to respond, if we get all our thoughts together
before we confront another person, we can strategically work with someone to
maintain our own balance and not produce antagonism in the person with whom we
are dealing.

“Reaching a centered state, so I can perform at my best”

Having an open mind, and a relaxed physical and mental state will ensure I have an
approach which is non-confrontational and provide a first step to maganging or
avoiding conflict. An approach of aligning your thoughts and actions, and taking a
moment to breathe and release tension, will create a more relaxed state within
yourself as well as the person you are dealing with. This approach will enable you to
convey your points in a way that your opponent will be unable to avoid or refuse.
Settling oneself creates a calm and open mind: you are able to listen, think, and
respond (in this order), and this is positively received by others. If you are able to
settle yourself at any point (i.e. before, during, or after you feel aggression arising),
others will respond to your calm, open mind, and it will put them into the same
relaxed state. In various physical arts the importance of relaxed upper body, a low
center of gravity and appropriate breathing creates this state. Zen and other conflict
relevant arts have such Japanese terms such as “mushin”, “mizu no kokoro” and using
the “hara” (stomach area) for creating and optimal physical state for mental
performance.

Conflict within oneself – perhaps the most important conflict to understand
Lessons such as “trying to defend/attack too many areas at once leaves the troops
divided and weak” from Sun Tzu can be translated to an individual. Just as Stephen
Covey asks, “How thin can you spread yourself before you are no longer there?”.
Applying such lessons to your life today can have a profound impact on personal
conflict – don’t take on more than you can handle, or you will begin to sacrifice the
very essence of who you are. Although it is not direct conflict between two people, it
is still relevant. If you have conflict within yourself, you are destined to have conflict
with others. You will understand that conflict is not merely the apparent external
problems – it also involves each individual and his/her conflicts within.

Sharpen the sword…
This article provides and introduction to some of the methods and principles used in
Applied Zen corporate training (www.AppliedZen.com). Businesses and individuals
everywhere are using these philosophies to manage conflict more effectively and to
achieve success. Therefore, it is essential to train one’s skills & endure ongoing
development. As the ancient Samurai saying states, “Continuously sharpen the sword,
or it will go blunt!”

Definition of Conflict, Merriam/Webster Dictionary: 1: FIGHT, BATTLE, WAR, 2 a: competitive or opposing action of incompatibles: antagonistic state or action (as
of divergent ideas, interests, or persons) b: mental struggle resulting from
incompatible or opposing needs, drives, wishes, or external or internal demands
3: the opposition of persons or forces that gives rise to the dramatic action in a drama
or fiction

Copyright 2005 – Dr. Jason Armstrong and Dana Buchman

Business owners have four options to resolve disputes with partners, vendors or customers. Each option is based on different assumptions, and entails a different cost. Therefore, it pays to understand them better.

Option #1 – Direct negotiation

Direct negotiation is certainly the cheapest – but not necessarily the easiest – way to resolve a conflict. A good place to start, is to get clear about what one wants, why, and how much one cares for the future relationship with the other person. The next step, is finding out how the situation looks from the other person’s perspective. This task requires effective questioning, listening, and observing. The final negotiation step, is crafting an agreement that both parties believe to be better than all other alternatives.

To negotiate successfully one needs some planning, communication and negotiation skills. Without them, it is easy to end up with no deal, or a bad deal, or even a personal war.

Option #2 – Mediation

The goal of mediation is not to find who is right or wrong, but how the problem at hand can best be resolved. Mediation is a process in which parties who disagree meet with a neutral third-party, who facilitates their negotiations. The mediator doesn’t have any decision-making authority. The parties decide how to resolve their problem, in a way that is mutually acceptable.

Since mediation is confidential, mediation discussions and materials are not admissible in court. In a sense, when people mediate they have everything to gain and nothing to lose. If they are able to reach a mutually acceptable agreement with the mediator’s assistance, that’s great. Otherwise, they can still use the remaining two options. And in that case, whatever they have said or heard, offered or counter-offered during mediation, doesn’t matter.

Option #3 – Arbitration

The business dispute is submitted to a neutral arbitrator, who examines the evidence, listens to the parties and renders a binding decision. The conflicting parties must accept the arbitrator’s decision, no matter whether they like it or not. Arbitration is past-oriented, and requires a certain amount of fact-finding. Therefore, generally it takes more time (and money) than mediation, but less than litigation.

Option #4 – Litigation

The fourth option is to let the judge decide which party is right or wrong, based on the facts and the law. In actuality, though, the vast majority of civil cases never get that far (some statistics say up to 90%). They settle out of court. A few days – or even hours – before the trial, the two conflicting parties, assisted by their respective attorneys, prefer to negotiate their own agreement, rather than running the risk of losing in court.

For business owners – as well as for anyone else – litigation has two major drawbacks. First, it inevitably has a detrimental effect on the future relationship between the parties. Second, it can be quite expensive in terms of time, money and stress. Nonetheless, when a business dispute cannot be resolved any other way, litigation is a valid option.

Whether you are seeking capital for your company or are optimizing your business strategy, the most important element – particularly for outside investors -may be your written business plan. You can tune-up and supercharge your plan using this 19-step checklist. When your written plan firmly answers yes to each of these 19 questions, your market/product strategy is in terrific shape plus you increase the odds of attracting investment capital.

If you don’t already have a written business plan – write one! Your business plan is a blueprint for your whole company. It describes in detail your goals, the financial and technical viability of your goals, and the strategy you will use (or are using) to reach those goals. And your business plan is a working tool – it is a yardstick to measure your progress and a compass to keep you on course.

Must a business plan be written?

Yes! A plan which is not written usually has not been thought through fully. And despite what you may have read, it is doubtful that any business ever attracted capital on the back of a napkin.

Use this checklist as a way to identify where your strategy, as spelled out in your business plan, needs work. Each of the questions below highlights an area considered critical to technology investors.

1. Can the key ideas behind your product or service be stated in one or two sentences? (y/n)

2. Does your company have at least one unique and compelling competitive advantage, which cannot quickly or easily be duplicated? (y/n) Examples are a special feature, a cost advantage, a technical refinement, a new delivery system or a special supplier.

3. Is your competitive advantage proprietary? (y/n) That is, can it be copyrighted, patented, trademarked or otherwise protected? Can you keep it exclusive to you?

4. Is your industry segment growing by 25% or more? (y/n) If not, can your new product dominate its segment? If the answer is no, you probably won’t be able to generate the kind of financial returns investors look for.

5. Does your product or service create a new market? (y/n) Although generally positive, this could be a trap – in a brand new market, the potential can be slow to develop. Lotus Notes created a new category but took years to create value for investors.

6. Is your market in “early momentum” – the market growth phase where market revenues have recently taken off? (y/n) Venture investors prefer markets in this stage because the time-to-create-value is shorter and the growth potential still large.

7. Is your target market segment 1) tightly defined over a population sharing common characteristics, 2) large enough to support significant profits, 3) served by communications channels to reach that market – i.e., trade or special interest publications, response mailing lists? (y/n)

8. Is your company filling a gap in the market, or do you have a “gee-whiz” product which you think is so terrific that customers will surely want to buy it? (y/n)

9. The benefit of your product or service to users is 1) significant, 2) quantifiable and 3) cost-justified? (y/n). If you provide a benefit which is important, and you can prove it – there is a much higher probability of generating sales.

10. Is there a demonstrated market for your product? (y/n) If you have an existing product, is your customer base expanding? Investors would rather fund sales and production than product development.

11. Is there wide appeal for your product or service? (y/n) Are there enough potential customers in the target market that you can earn significant profits, for a long time? Are there follow-on products to sustain revenue and profit growth?

12. Does your company have the ability to sell your product? (y/n) Particularly in companies where the founders have technical backgrounds, a question to ask is “Who is going to sell your product or service?” What about outside distributors?

13. Is there an experienced management team? (y/n) Investors would rather fund a solid team instead of one lone genius with a great idea. The team should be highly qualified in marketing, sales, finance, and the product/service area itself. Of course, a demonstrable track record helps.

14. Can you demonstrate a likely return of 5-15 times investors’ capital, over a period ranging from three to seven years? (y/n) The actual parameters used by venture investors will vary based on which stage you are in (idea, startup, development, expansion, turnaround).

15. Is there a clear exit strategy for investors? (y/n) The most common strategies for returning investors’ capital are 1) going public; 2) acquisition of your company; 3) new investors; 4) founder’s buyback or management buyout.

16. Have other investors already put money into the company, particularly the senior management team? (y/n) This reduces the apparent risk, reduces overall exposure, and shows that management “has its money where its mouth is.”

17. Have you clearly defined a structure for the investment you seeking? (y/n) The structure should include: who is involved, how much capital is needed, what minimum investment you will accept, how much equity that will buy – and, of course, the projected return on investment.

18. Are your financial projections realistic? (y/n) Have you soundly justified your projected growth rates and other financial assumptions?

19. Have you clearly examined the risks? (y/n) Investors like to know that you have considered the risks. This is key – can you turn your risks into opportunities?

Too many no’s? Remember, each “no” opens up an area for you to strengthen your business. Even if you aren’t seeking capital, each question highlights a critical success factor – which, when mastered, will increase your profits, your performance, and your future success.
In order to help you discover hidden value and opportunities in your existing business, and to make it easier to spot potential problems while you are just starting out, I’ve created the Business Building Guide. A remarkable aid to accelerating the growth and profitability of your business, this program of insight-provoking questions and checklists enables you to rapidly diagnose, troubleshoot and optimize every part of your business, from marketing to sales, customer service to product development and finance to production.

© Paul Lemberg. All rights reserved