The fact is that Co-Founder conflict is so common that its responsible for 65% of startup failures, according to research studies done by Havard Business School. The reasons for their fallout are deep rooted differences in vision, personality, and expectations.

However, this does not always have to be the case.

I was brought in to mediate between two co-founders of a mid-sized company who were in deep conflict with each other. Though they had started with a common vision for the organization, their differences about control, equity and process over time led to misunderstandings which escalated to outbursts publicly. Then they stopped talking to each other.

This brewing friction impacted the morale and motivation of the team and soon this news reached their board and some of their investors. They were worried about the potential disruption and reputation to the organization.

I was introduced to the two founders by their trusted adviser and board member. I met them in an empathetic and compassionate manner and gained their trust. They took their senior leaders into confidence about the process to showcase their seriousness to address the issue.

Our first session was about setting the ground rules on how they would change their equation at work. They would be respectful to each other especially when they met their one-down managers. Their teams could see an immediate impact of the intervention and it shut down all murmurings and gossip.

Small wins are important milestones to showcase progress to others during a mediation.

I helped them to understand the root of their conflict when they would get triggered and would lash out at each other. These emotions were directives towards what mattered to them. Once they were able to label their emotions, they identified the areas of disagreements.

During the Mediation, I created a safe space for each one so that they felt heard and could vent their feelings. Once they felt that they had spent their negativity, the cloud of emotion gave way to clarity of thought and the way forward.

We went back to the time when they had started their venture. They slowly started looking at the human side of each other, where each understood and respected the complementary skills that they brought to their roles.

They set up check ins and addressed their issues and clarified the misunderstandings in detail. They decided to make significant changes to their roles and work styles. They were able to amicably settle their differences and find a creative solution to their disagreements.

Mediation can feel almost magical when relationships are repaired and then transformed. I was so delighted that this Mediation helped protect the reputation, the business and its valuation with the investors.

Hope you enjoyed this Mediation Success story. It was truly fulfilling and purposeful.