Dig in Your Heels or Throw in the Towel: Effective Approaches to Conflict Resolution

 

By Barbara F. Dunn, Esq.

When it comes to dispute resolution, are you a "heel digger" or a "towel thrower"? Do you fight to the bitter end and have the lawyers ready to file a lawsuit or do you give in and settle quickly? Thankfully in the meetings industry, disputes arise less frequently than one might expect and when they do, most will likely be resolved without the assistance of litigation or other dispute resolution procedures. So how do you know which disputes can be resolved quickly and which might require use of your "legal eagles" to get the job done? And what causes conflicts in the first place?

These and many more questions were posed to a panel of association and meeting industry leaders at Meet NY 2010 on March 10, 2010. I was delighted to have served as moderator of the panel comprised of Andrew Darmorhaj (American Pet Products Association), Vita Feuererstein (IEEE), Larry Luteran (Hilton Hotels), and Neil Mullanaphy (Hawaii Convention Center).

On the topic of what causes conflict, the panel agreed that money was the cause of most conflicts. Whether you are facing monetary liability for attrition fees for an upcoming meeting or trying to get money back from a vendor who did not provide the contracted services, money complicates the discussion and can make it more difficult to resolve the conflict quickly and informally.

Another cause of conflict was failing to communicate with the other party - either verbally or in writing. "Bad news", such as the group not being able to fulfill its room block commitment for an upcoming meeting, should be shared with the other party as soon as possible. Early communication allows the parties to work together on "damage control" measures rather than scrambling to "clean up" an ugly surprise. The panel also discussed the need to make sure contracts are very clear on all areas of potential liability, such as attrition and cancellation, and that all parties working on the meeting understand the terms of the contract as well.

And in the meetings industry, conflicts are not just limited to hotel contracts. Trade show organizers should work to avoid or manage conflicts such as those with vendors which do not perform the contracted services, with exhibitors which do not follow trade show policies, and with convention center facilities. The panel members agreed that putting good documents in place at the start - such as an exhibitor agreement, convention center license agreement and vendor agreement - is the best way to avoid conflicts. If a conflict occurs nevertheless, hopefully the business representatives are able to resolve it without engaging their attorneys. And if money is at issue, it's important to remember that it's easier to argue about money when your organization is holding it rather than the other organization.

Another topic discussed by the panel was working with the right people to resolve the conflict. Often with hotels, a particular hotel will be managed by one company but owned by another. In that case, a global sales office for the chain which manages the hotel may not have legal authority to resolve a conflict but may have much "business clout" to do so. Similarly, convention and visitors bureaus may not have legal authority over their member hotels, but they are definitely influential in assisting with conflict resolution.

The panel also noted that when working to resolve conflicts, a "no" answer to a suggested resolution is not the best answer as it forecloses the possibility of a compromise. Instead, giving a "no" answer with an alternative is the best way to send the message that a compromise is still possible. For example, if the hotel has inadvertently double-booked the ballroom to your group and to another group for the same day and time, the group might request that the hotel move the other group instead of its group. Rather than saying "no" to this request, the hotel might state "No, we are unable to do that but we can offer you another ballroom." By stating its response in the "no, but…" manner instead of an outright "no" allows the parties to keep working word a resolution of that conflict.

One of the more difficult questions the panel addressed is when to get the lawyers involved in resolving the conflict. Ideally, the lawyers will be kept "behind the scenes" as long as possible so that the business contacts could use their best efforts to resolve the conflict while at the same time preserve their relationship. But if the other party is not responsive to communications or continues to give a "no" alone answer, the panelists agreed the lawyers should become directly involved. When working with your lawyer, it is important to understand their proposed strategy to resolving the dispute and the corresponding cost.

 


In summary, here are some best practices suggested by the panel when it comes to conflict resolution:

Communicate your needs right from the beginning including any "deal breakers"

Ensure your contracts reflect your prior verbal and written agreements

When a conflict arises, communicate your concerns quickly and with people who exercise authority within their organization

Share "bad news" or problems right away; the longer it's hidden, the worse it will be

Work with the business contacts and all external forces such as global sales offices and convention and visitors bureaus to resolve the conflict

Work toward solutions rather than simply saying "no"

If there's no communication or efforts toward resolution, involve the lawyers

By following these best practices when it comes to conflict resolution, hopefully your organization will not have to make the difficult "throw in the towel" or "dig in your heels" decision.


 

Barbara Dunn is an attorney and partner with Howe & Hutton, Ltd, a law firm which specializes in the representation of not for profit corporations as well as organizations in the meetings, travel and hospitality industry. She can be contacted at bfd@howehutton.com.

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