Ownership: Family business
Industry Sector: Real Estate Services
Co-founder interpersonal relationship problems have built an atmosphere of hostility, no trust and a lack of decision-making capacity. Business at risk of failing.
Dollar Impact Summary
- Benefit to Cost Ratio: (14:1)
- Estimated Cost of Conflict up to Entry Point: $138,870
- Estimated ongoing conflict costs per month pre-engagement: $14,100
- Total Cost of Resologics Services: $9,500 total
- More impact info: see below
- Open dialogue between the founders so critical business decisions can be made efficiently
- Make a decision about continuing to work together as co-owners
- Set in place a long-term arrangement around finances
- Bolster outside of company critical relationships in order to create buy-in to any decisions made
- Long-term reconciliation of issues and relationships
- Reduce legal costs associated with conflict
- Conflict Coaching with founders and other team members
- Recommendations for additional external services
Here's What Happened:
- Mediation and coaching uncovered core issues, put in place short-term decision-making rules, and put to rest many interpersonal issues. These meetings also set in motion long-term reconciliation between the parties.
- Mediation and coaching led to one founder selling the business to the other.
- Mediation led to a full long-term agreement on how all aspects of the business sale would take place.
- Outside recommended services led to a contract signing and the acquisition.
Primary Conflict System at Play:
Equity split decisions made at the outset of the business led to challenging decision making issues throughout the life of the company.
- The organization is now thriving
- Decision making capacity has been enhanced
- Revenue and profits are at an all time high
- Management has in place documented methods for continued improvement
- The family relationships are healing and normalizing
Expected Long-term Impact:
- Higher performing team
- Expansion of the business.
- Continuing gains in revenue and profitability
- Organizational readiness to be acquired for maximum price