Guides

The art of negotiation in crisis situations

By Anna Kowal, Consultant·February 5, 2025·5 min read

Conflict on the board does not choose the moment. When money and ambitions are at stake, professional mediation becomes a tool for protecting company assets.

Why emotions paralyze business decisions

In my 7 years of practice at Diplomat Consulting Solutions, I have seen over 47 situations where a dispute between partners blocked payments to employees for 2 weeks. Often the problem starts with a minor disagreement regarding investment strategy, which after 3 months turns into a total lack of trust. We build the company's operational peace, but this requires both parties to acknowledge that conflict is a cost that can be eliminated.

Understanding that every hour of dispute costs the company real funds helps push personal grievances aside. We analyze facts and numbers, which are the only objective side of the dispute. When partners see how quickly financial liquidity melts away due to stagnation in decisions, they are more willing to return to the negotiating table.

Why emotions paralyze business decisions

Preparing the ground for mediation

Before we proceed to the talks, each party must prepare a set of data. At Diplomat Consulting Solutions, we ask for financial documents from the last 12 months, so that we can operate on hard numbers, not on assumptions. We know how to talk in stalemate situations, provided that the parties have a complete set of information about the company's condition.

This is a stage where it often turns out that 40% of problems result from unclear competencies inside the board. We mediate in defining these boundaries anew. Our work is discretion and fact-based analysis, which allows lowering the temperature of the dispute by about 23% even before the first joint meeting at the office on 1 Maja Street.

Conflict is a cost that can be eliminated through cool analysis of facts.

Techniques for extinguishing board conflicts

An effective method is to separate the person from the problem. At Diplomat Consulting Solutions, we apply the 'zero-sentiment' rule in operational matters. If the board cannot make a decision on purchasing a new production line due to differences in opinion, we simulate the costs of omission for each variant. This allows for rationally assessing losses.

During mediation sessions, which we usually close in 3 to 5 meetings, we implement a communication protocol. Every communication must be verified for its impact on the company's operational goals. This allows avoiding a return to square one at every next difference of opinion.

When is it worth engaging an external entity

Your own team is often too emotionally involved to see the solution. If you feel that you have been stuck in a deadlock for over 30 days, it is a sign that a fresh look from the outside is needed. Our company does not take sides; our goal is the survival of the business, not determining a winner in an internal power struggle.

Remember that the price of external mediation is a fraction of the value of potential losses resulting from company paralysis. I encourage you to contact us so that we can assess together if it is possible to work out a compromise in your case within the next 14 working days.