As we emerge from the COVID-19 crisis and things begin to open back up again, there are sure to be permanent changes to the way we do business. For example, handshakes may no longer be customary, at least for a while anyway. A lot more employees will work from home regularly or exclusively if the business model permits it, and for organizations that must maintain on-site locations, health and safety protocols and workplace cleanliness will be top priorities.
Given the emerging long-term nature of the COVID-19 pandemic, a large percentage of businesses may require an entirely new or modified business model – one that effectively adapts to the changes and makes the best use of their current existing resources: people, technology, and capital.
Here are some ways that an organization’s resources might need to be redeployed in order to adapt to the changes brought about by the coronavirus outbreak:
- People: As we touched on earlier, many organizations will need to rethink the way employees are utilized. A growing number of them will work from home, and because there may be a limited number that work on location, cross-training and multitasking will become all the more important. Another area where things are sure to change is with business meetings. Organizations will hold more meetings virtually as they have been doing during the pandemic, and business travel will most likely be diminished as a result.
- Technology: The best organizational strategies will utilize technology in a way that augments an employee’s job rather than replaces them. Telecommuting and virtual conferences on platforms like Zoom will become the norm, and some businesses will need to use technology to shift over to online sales, online payments for take-out/delivery options, virtual consultations, and other ways they can interact with customers/clients in a socially distanced way.
- Capital: Organizations that have already built a strong technology infrastructure will be ahead of the game, while others will need to deploy capital to get caught up in this area. More resources will also need to be directed toward areas like commercial cleaning, workplace safety, compliance, and minimizing liability exposure.
COVID-19 has hit some industries much harder than others, and these industries will need to implement bolder changes to adapt to a post-coronavirus world. For example, travel and tourism has been decimated by the pandemic, with airports and hotels resembling ghost towns.
To bring people back, airlines, hotels, resorts, and others in the travel and accommodation industry will have to implement numerous protocols to comply with new requirements and show the public that it is safe to use them. Bars, restaurants, and entertainment venues in particular will need to thread the needle between maintaining social distancing and continuing to provide an outstanding customer experience.
Using Mediation to Modify Policies and Procedures and Resolve Disputes
Solving the dilemmas presented by doing business post-COVID-19 will not be an easy task for most organizations. We are in uncharted waters, and there is a lot of uncertainty ahead. There are also sure to be disputes along the way among stakeholders about which direction to go and how best to deploy their resources.
One of the best ways to resolve these issues is through mediation. Mediation has been used very effectively for many years to set up operating agreements, deal with conflicts between partners, employees, or both, and to revise business plans and operating agreements when it makes sense to do so.
Mediation sessions are facilitated by a professional mediator from outside the organization who has no vested interest in the outcome of the proceeding. By receiving an outside perspective, stakeholders often have access to solutions that they may not have been aware of and/or may not have considered because they are too close to the situation.
Now more than ever, businesses that are adjusting their models for COVID-19 need to look for creative solutions that help minimize risk, solve ongoing disputes, and give the organization the flexibility it needs to adapt during this time. Mediation can help accomplish all of these and more, making it one of the best investments an organization can make to help them successfully adapt to a post-pandemic world.
AMS is Here for You
As we all look to adjust to the changes that have been caused by COVID-19, AMS is open and ready to serve your needs. We offer virtual mediation sessions that can be conducted from anywhere you have a telephone or high-speed internet connection, and we have extended our hours during this time to help accommodate schedule disruptions brought about by the coronavirus.
We offer free initial consultations, and we are here for you whenever you are ready to get started. Message us online or contact us by phone to schedule your free consultation.
The coronavirus pandemic has killed tens of thousands of Americans and disrupted every area of our society. In the business community, disruption is the “new normal”, and it is likely to be this way for quite some time.
Nonessential businesses have been forced to temporarily close until we get through the worst of this crisis, and some of those that remain open have seen a spike in business if they sell essential supplies or provide essential services. Whatever industry you are in, there is no business that has not been impacted in some way by COVID-19.
One of numerous things we have realized (or had to pay more attention to) is just how interconnected our economy is. There is a massive supply chain with stakeholders at each link all relying on each other to maintain their viability. And when one part of the supply chain is disrupted, everyone else in the chain is affected.
Take, for example, the restaurant business. When a restaurant that had every expectation of being open and fully operational for the foreseeable future is forced to close, they suddenly have to cancel orders from food suppliers, who in turn have to cancel orders from farmers or wherever they are sourcing their food from. The same holds true for drinks, which often come from vendors who refill their soda machines.
A closed restaurant will also have to furlough their staff, putting countless employees out of work. They may also have a cooler full of food that will either spoil or they will have to give away unless they are able to quickly adapt their model to provide takeout and delivery service.
These financial challenges will make it difficult to pay rent or mortgage payments if they own the building, as well as utilities and other monthly obligations. Consequently, those who count on receiving those payments will take a financial hit. Unfortunately, business interruption insurance policies did not account for a public health emergency like COVID-19, so most business owners are finding out that their insurer is not going to cover them for this pandemic.
How to Resolve COVID-19-Related Business Disputes
Massive disruptions to the normal flow of business have created unprecedented challenges for owners and managers to deal with. In many cases, it is simply impossible to meet contractual obligations from agreements that were signed long before anyone ever imagined that this type of crisis would arise. This has resulted in numerous contract disputes among parties who regularly do business together.
For those involved in a business dispute, legal action is one possible option. But is this really a good way to handle issues that were created by COVID-19? Sure, you might have an ironclad contract and solid legal standing to compel the other party to pay, but is it really a good idea to bring them to court?
Even if the court rules in your favor and you win a monetary judgment for breach of contract, for example, it may not be too easy to collect what you are owed under these circumstances. A business that is closed or operating at a fraction of full capacity is not likely to have ample financial resources on hand to satisfy a legal judgment.
In addition to financial considerations, you need to also take into account the business relationship you have with the other party. If you have a long-standing relationship with someone and they have always fulfilled their contractual obligations in the past, it would most likely be much better for everyone if you try to work with them during this difficult time. And this is where business mediation can be very helpful.
Whether it is a contractual dispute, a dispute over insurance coverage, a dispute over a canceled or rescheduled project, complications from a supply chain disruption, or any other business relationship challenge, mediation can provide a format to resolve the dispute amicably.
With the guidance of a neutral, third-party mediator, mediation participants meet to discuss the issues at hand and work together to come up with a peaceable and practical resolution. The process is entirely voluntary, and no agreement can be valid unless all parties sign onto it. When the process is successful and a resolution is agreed to, participants are able to avoid costly and protracted litigation while preserving important business relationships that will be vital for their success long after the COVID-19 crisis is behind us.
AMS is Here When you Need Us
If you are involved in any type of business dispute arising from the coronavirus pandemic, AMS is here to help. Our business mediator Carmela DeNicola has extensive experience working with organizations of all types and sizes, and she has an in-depth understanding of how businesses operate, the challenges they face, and the best ways to resolve conflicts that may arise. AMS has also provided virtual mediation through teleconferencing and videoconferencing for many years now, and we offer remote sessions and extended hours to help accommodate schedule disruptions that have been caused by COVID-19.
Contact us by phone or email for your free consultation to discuss your needs. We look forward to serving you!
Being in business with family members involves some unique dynamics that are not present with other types of business arrangements. Sometimes, issues that are totally unrelated to the business can become disruptive, such as personal/relational conflicts, and some of these may go back several years or even decades.
During the COVID-19 crisis, many family members have been cooped up together for an extended period of time, causing many disputes that may have been simmering underneath the surface to boil over. And in some cases, the family business has also had to close temporarily, adding more stress to the situation.
Family business disputes that are triggered by issues that blow up during the heat of the moment can cause long-term damage, possibly even leading to the closure of the business. And oftentimes, it is difficult for family members who are so close to the situation to resolve these matters among themselves. Unfortunately, the emotions and stress created by the unprecedented times we are living in could cause the owners of a family business to call it quits, even though they might still have a viable business that could continue on and be passed down to future generations.
How Mediation Can Help Family-Owned Businesses that are Facing Difficult Times
Whether it is a conflict between owners that poses an existential threat to the family business or difficulty figuring out how to navigate the uncharted waters ahead as we look forward to the end of the coronavirus pandemic, owners can benefit greatly by bringing in an outside perspective.
A mediator, for example, can help resolve disputes between owners, and they can also help with issues the business may have with outside parties; such as suppliers, vendors, lessors, or other associates for which they may need to renegotiate their existing agreements. Mediators can also help create a more formal operating agreement for the business, one which many family businesses have realized that they need since COVID-19 started.
Here are some of the advantages that mediation offers for family businesses with issues that need to be resolved:
- Affordability: Mediation is cost-effective not only as an alternative to bringing a dispute to court, but also as a preventative measure to keep major disputes from arising in the first place. In most cases, business owners can settle important issues in just a few sessions or less, saving them untold amounts of time and money.
- Direct Participant Involvement: The mediation process is entirely voluntary, and no agreement can be valid unless all participants agree. Although the mediator facilitates the sessions, the participants are the ones that ultimately decide how the issues are resolved. This allows participants to take more ownership of whatever is agreed upon, making them more likely to adhere to it.
- Confidentiality: Mediation sessions are private and confidential, and everything that is discussed stays between the participants and the mediator. This allows participants to speak more freely without any concern that what is said will become part of a public record.
- Flexible Scheduling: With mediation, you do not have to worry about any court schedule, which is of particular concern lately with the courts being closed for all but emergency proceedings. Sessions can be conducted even while the COVID-19 restrictions are still in place, and they can be scheduled at whatever time is most convenient for participants.
- Contactless Remote Sessions: Mediation can be conducted while adhering to social distancing guidelines. As long as you have a telephone or internet connection, business owners can participate in virtual mediation sessions from any physical location.
At AMS, we hope that family businesses will consider mediation as an option to resolve disputes and other issues, whether you use us or someone else. However, one major benefit you will receive with us is our first-hand experience working with businesses of all types and sizes.
Our business mediator Carmela DeNicola has worked in corporate America for several decades, and she also has many years of experience operating her own small business. She helped many businesses get back on their feet following the Great Recession of 2008, and she knows what it takes to recover from a crisis like the one many family businesses are currently facing.
As our country struggles to work its way through the coronavirus pandemic, we have made it easier than ever for clients to access our services. We have provided virtual mediation via teleconferencing or videoconferencing for several years now, and we are currently offering extended hours to help accommodate schedule changes that have occurred because of COVID-19. Our initial consultations are free, and we available whenever you are ready to get started.
Contact us by phone or email for your free consultation. We look forward to serving you!
The coronavirus pandemic is causing perhaps the largest disruption to the business community in our history. Millions have contracted the virus worldwide, and there have been more than 100,000 tragic deaths so far. This has prompted an unprecedented global response, with most countries issuing “stay-at-home” orders and temporarily closing non-essential businesses.
As we go through the COVID-19 crisis, millions of businesses are facing an uncertain future. The first question on everyone’s mind is, “when do we reopen again?” But even after we reopen, it is difficult to predict how consumers will react. Will there be a pent-up desire to return to life as normal? If so, this could translate into overflowing crowds at restaurants, bars, movie theaters, sporting events, and other gathering places that have been shut down for a while.
Perhaps a more likely scenario, however, is that people will be much more cautious to go back into settings with large groups of people. They will only want to do so once they know the risk of contracting the virus is extremely low, and that there is a treatment that has proven to be effective if they do unfortunately catch it. So, what does all this mean for business partnerships?
Business Restructuring in a COVID-19 World
As businesses navigate the choppy and uncertain waters ahead, a lot of critical decisions will need to be made, many of which could determine whether or not they survive. A lot of partners are likely to have strong disagreements about which way to go as they try to get their business back on its feet. Some of the areas in which they may not see eye to eye include:
When/How Much to Reopen
The way this situation is going, it seems increasingly unlikely that the federal government is going to issue one big “all clear”, and the whole country will reopen at once. More likely, certain types of businesses will reopen first in parts of the country were another outbreak is unlikely. But even after the government approves a business to reopen, they still need to ensure that they are in a position to do so safely. And this means having various protocols in place to protect everyone. This is definitely an area where partners need to be on the same page.
While a business is shut down or has reduced services, they have probably had to lay off their employees for a while. And once everything reopens, decisions will need to be made regarding how much of the staff to rehire and when to bring them back on board. There is an incentive in the form of a forgivable SBA loan to rehire employees and keep them on the payroll, but in some cases, this might not be enough to bring back everyone, especially if the business is unable to get back to the same level of sales/profitability that they had prior to the shutdown.
Allocation of Resources
Most businesses are not equipped to close down for an extended period of time and have ample resources when they reopen. They have bills that need to be paid, and in many cases, they may have to take out loans over and above what is offered through the SBA in order to stay afloat. In preparation for reopening, there could be a very spirited discussion about how to allocate the limited resources they have available.
Should they spend more on marketing? And if so, what type of marketing would be most effective to get customers/clients to return? They may also have to spend some money on modifications to their location in order to ensure that everyone continues to follow social distancing guidelines (assuming they might still be in place for a while). And what about cost reduction measures that could be implemented to save precious resources? These and similar issues must be resolved as partners prepare to get back up and running.
The Benefits of Business Partnership Mediation during Times of Crisis
As we work toward the (hopefully soon) end of the COVID-19 pandemic, business partners need an effective and constructive way to work out the inevitable disagreements and disputes that will arise as they map out an uncertain future. And sometimes, getting to this place on their own can seem like an impossible task. During times like these, it makes sense to consider business partnership mediation.
Mediation is an alternative form of dispute resolution that is facilitated by a neutral, third-party professional who has no vested interest in the outcome and is able to bring a fresh perspective to the situation. The mediator facilitates the session and guides the discussion, but the partners are ultimately in control of the outcome. In other words, no resolution can be implemented unless all participants agree.
One of the major benefits of business partnership mediation is the opportunity to work with a professional who has helped others who have been in your shoes to resolve similar conflicts. We are all going through the same thing right now, and it is very helpful to receive professional guidance from someone with business experience who knows how others have been able to successfully handle a crisis situation.
AMS is Here to Help
We at AMS want you to know that we are here for you, and we are ready to help with any business disputes or family conflicts that need to be resolved. Our business partnership mediator has decades of experience working with organizations of all types and sizes, and our service is available for your business during this difficult time.
Like everyone else, we are working remotely these days as we follow all of the social distancing guidelines, but we have been doing virtual mediation for many years already, and we are well equipped to continue providing the exceptional service our clients have come to expect. Our consultations are free, and we offer extended hours and customized appointments to accommodate your schedule. Feel free to contact us anytime to get started.
Partners who go into business together often come from different backgrounds, and they may have strengths in different disciplines. For example, one owner may have a technology background, and they are tech savvy and highly focused on using technological solutions in the business.
The other owner might have a sales background, so for this person, technology is “nice”, but it is not the “end all be all”. Their view is that bringing in new customers and clients through the door is what pays the bills, so this should be where the company directs its primary efforts.
These differing backgrounds and viewpoints can become a major source of contention when running a business. If things are going well and profits are at or above targeted levels, there may not be much conflict around these differences; each partner focuses on their area of expertise, and their complementary skillsets make the business thrive (or so they think).
The disputes usually arise when things are not going so well. During the startup phase, you might be mentally prepared for some lean months, but what if your business has been established for a couple of years, then it suddenly falls on tough times? Sales are down, and difficult decisions need to be made.
How do you get your business back on track? In this scenario, the partner with the technology background might naturally suggest some technological upgrades that will help make things run more smoothly and cost-efficiently. The other partner might take issue with this, however. While saving a few dollars might be helpful in the short term, their view might be that the limited funds available would be put to much better use by hiring some experienced sales reps.
Other disputes may center on fairness and each partner carrying their fair share of the workload. This is a common scenario when there is a significant difference in the ages of the owners. At some point, one of the partners might want to scale back on the time they are spending in the business, while the other one is not ready to do that yet. In such cases, there may be disagreements about how to restructure responsibilities when one partner wants to step back, and how much of the profits each partner should receive going forward.
Why it Makes Sense to Mediate Business Partnership Disputes
When there are conflicts between partners like the ones listed above, the legal system does not provide much opportunity for an amicable resolution. Courts have very little flexibility, and the remedies available after a costly court battle are generally limited to things like the dissolution of the entity, the forced sale of assets, and damage awards. Very seldom does anyone really “win” during these types of proceedings, and going this route is definitely not helpful in preserving the relationship between the partners, relationships that may be important both professionally and personally.
Business partnership mediation uses a different approach. Mediation is a voluntary process in which the partners agree to meet with a neutral, third-party mediator to discuss the issues and guide the conversation toward a win-win resolution. With mediation, there is an inherent understanding that there is no “one-size-fits-all” solution for a business dispute, and that there are unique dynamics at play within each individual partnership.
Mediation seeks to “meet people where they are” and find common ground on which to build on. Both partners want the business to be successful, they just have different ideas about how to get there. Both want an arrangement that is “fair”, they just have different viewpoints about what fairness means within the context of their partnership. This is where an outside mediator can be very helpful.
Someone from the outside can bring a whole new perspective to the conversation. They have no vested interest in the outcome, and they are removed from the day-to-day discussion, interactions, and frustrations within the business. This gives them the ability to offer new ideas that the partners may not have even considered, ideas that could be workable and that both partners might find acceptable.
It is also very helpful to work with a mediator who has plenty of business experience of their own. A mediator with extensive experience not only with mediation, but also with running their own business and/or working with other corporations will be familiar with most of the common scenarios that trigger disputes, and they will know what resolutions have worked well for others who have gone through what the partners are going through.
A business partnership dispute does not have to mean the end of the business. Through mediation, partners can gain a better understanding of where the other is coming from, and they can work cooperatively toward the common goal of building a more prosperous business.