Winning together: conflict resolution tactics for startup founders

As a executive coach I support startup founders, CEOs, senior executives and other tech leaders in their pursuit of entrepreneurial success in Silicon Valley.  Their leadership development goals prioritize enhancing emotional intelligence, improving interpersonal communication and honing conflict resolution skills for managerial effectiveness.  The startup life is often grueling as co-founders face high pressure, high stakes decision-making during the rapid growth of their company.  Harjeet Taggar, former Y Combinator partner, once wrote, “The relationship between co-founders is usually the single biggest risk to a startup in the earliest stages, it’s certainly the most common reason for failure we see at YC.”  According to Paul Graham, founder of Y Combinator, successful conflict management requires skillful self management, and the ability to separate self-interest from winning solutions “You have to be prepared to see the better idea when it arrives. And the hardest part of that is often discarding your old idea.”

Seasoned entrepreneurs in Silicon Valley recognize that it’s not just the idea, product or timing of a startup that sets the stage for success, but arguably the founders’ ability to work together to tackle emerging problems as a company scales.  It means working through differences aligned in partnership rather than at odds with one another.  Just like the honeymoon phase of romantic relationships, early startup success can mask a lack of effective conflict management skills between founders.  When things are going well, it’s tempting to believe that major conflicts can be avoided.  While the gambling spirit is worn like a badge of honor among successful entrepreneurs, this is one gamble they can’t afford to lose.  Without practicing conflict resolutions skills early and often, they risk losing time and resources battling each other instead of leveraging their collective strengths when they need them most.  Gary Tan, former partner at Y Combinator shared with TechCrunch “Successful co-founders actually embrace conflict, and are constantly in the process of resolving it. If you can’t argue and arrive at the best solution, you’re not doing the work to actually have a real, healthy working relationship.”

So what works?  Evidence-based strategies like those developed by psychologist John Gottman are applicable beyond marital relationships, and have been successfully utilized by other respected startup coaches in Silicon Valley.  Gottman’s research has a proven track-record for both relationship success as well as predicting relationship failure with scientifically rigorous precision.

1.  Aspire to ‘win’ as a team, not as individuals.  

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When your team is busy arguing over every minor detail your competitors are busy winning, and your company is busy failing.  

There’s a saying in Silicon Valley that it’s better to have an A team with a B idea, than a B team with an A idea. Dedicate yourself to operating as an A member of an A team.  Each member of your A team has lived their life aspiring to win on an individual level, using tactics that work best for them as individuals.  The hardest part of submitting to a team is accepting others’ differences and shortcomings gracefully, and carrying on with your best work ethic and respect for others regardless of who’s slowing company progress.  You think “I never would have made that mistake!  This problem could have been avoided if they’d listened to me.”  When oversights, insufficient planning, unclear communication, failed efforts, personal problems, and fatigue set in, they can lead to setbacks in your combined efforts to succeed as a team.  Adopt the mental framework that ‘winning’ is modeling cooperation and flexibility, ‘losing’ is fighting to get your way all the time.  Winning is practicing humility and accepting constructive feedback because it sets the best stage for improvement.  Are you using tactics to succeed as a team or are you using tactics that are better suited to individual success?  Are you willing to do whatever it takes to make progress as a team?

2.  Recognize that company success is tied to your team’s willingness to trust one another.  By working as part of a founder team, you are acknowledging you are better off working together versus alone.  If you agree to build something with someone you are agreeing to rely on them, and you must also be reliable.

Founders of a company are gambling on each other, and there is no way to gamble without trust.  Partial trust begets mistrust.

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Can you trust that your cofounder has the best interest of the company at heart? Are you both committed to making the relationship work and the company successful?  If you are not all in, you introduce risk to the foundation of your company.  Trust functions to give team members a “reliance on the character, ability, strength, or truth of someone or something.”  By agreeing to work with and rely on one another, you’ve accepted that each person adds important value, unique insights, and specialized abilities that compliment yours.  By giving this to one another you maximize the time and attention you have for your own contributions instead of using your energy to raise doubts or second guess others’ work.

 

3.  Attempting to track and keep score of who’s working harder or contributing more ‘worth’ wastes time, fosters animosity and reduces positive synergy. 

Everyone’s best effort looks different, so spending time making comparisons rarely produces progress for the relationship or the company.

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According to University of Illinois psychologist Brian Ogolsky and Texas State University’s Christine Gray, people who keep score in their relationships damage their potential for healthy relationship maintenance because the very act of counting implies a lack of trust, rigidity, and negativity.  Co-founders and team members should aim to delegate responsibilities based on ability and expertise, and if a continual imbalance in the workload emerges, plan to discuss this as a team to solve for more efficient allocation of tasks that factors in individual strengths, resources and availability.  Avoid placing blame when ever possible, and focus on actionable solutions that are tied to current circumstances.  The potential for success is maximized when everyone’s strengths are being efficiently utilized in real time.

 

4.  Create space for differences in opinion- exploring these differences will generate the most ingenuous solutions.  Aim to facilitate a wide range of possibilities, and take an objective approach to problem-solving.

Even if you don’t agree with a particular solution, it’s more effective if everyone shares their vision how this solution could result in success or failure.

This style of debate fosters constructive involvement and reduces power struggles.  If you oppose a decision, it’s not sufficient to point out a suggested plan’s low probability of success.  Research and prepare an outline of alternative action-oriented solutions to share with the team.

5.  Pay attention to people’s feelings.  Conflict will naturally give rise to emotional expression that can work in your team’s favor.  Strong emotional overtones are bound to emerge during a heated debate- take this as a sign that people care deeply about the work, about the team’s success, and that everyone at the table wants to avoid pitfalls.  Identify what people are feeling and why.  Let their answers inform how to proceed based on the expressed ideas.  If the discussion doesn’t lead to an agreed upon direction, rely on people’s primary areas of expertise as a guide for who has the most insight for the final call.  If the plan doesn’t work as out, take part in supporting a change in course quickly to minimize stalled productivity.

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6.  Ignoring reoccurring bad vibes between team members will only lead to bigger problems- resolving conflict is one problem startup founders CAN control.  The sooner you address them, the sooner you can get back to business.

Lastly, if all diplomatic efforts fail, agree to seek outside advice. I always recommend that founders and executive teams establish a range of outside resources (experienced mentors, business advisors, legal counsel) to give your team the insight it needs to resolve conflict.  Having an outsider broker your disagreement will end the gridlock- it’s like couples therapy for co-founders.  This might be what saves your startup from sinking.  Your team should agree in advance to take the advice with the goal of moving past this stage with finality.

 

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And don’t lose your sense of humor!  At fast-growing startups, the sheer magnitude of work should be complemented with some light-heartedness.  Laugh in solidarity at the crazy, silly things that you face together as a team- it will help lighten the mood.  When you look back at this time in your life, those are the things you’ll remember with a sense of gratitude and character-building strength.

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Improve your health and performance with Learned Optimism and you will win at life

What is the difference between someone who consistently performs to the best of their ability and someone whose performance is unpredictable?  What allows someone to effortlessly tap into their peak performance and reach their goals and what compromises a person’s ability to access and sustain it?  One word- outlook.  Martin Seligman‘s groundbreaking research on learned optimism reveals how being optimistic is consistently related to improved health and longevity.  A US study of nearly 100 000 students found that people who are optimistic are less likely than those who are pessimistic to die from Coronary Heart Disease (CHD) or from any other cause over an eight year period.  On the other hand, pessimism has been linked to chronic stress and poor health functioning such as high levels of inflammation, a weakened immune system, increased pain perception, and other signs of physiological and mental dysfunction.  Optimistic people appear to manage stress more efficiently than others so that their stress disappears at a faster rate than those who don’t utilize optimism in their outlook.

Seligman developed a test to help people identify their outlook style (which you can take here.)  If your base level of optimism isn’t very high, don’t panic.  In fact, it means that you are at the level where learned optimism can be the most beneficial!

Executive coaching can be an effective way to learn and adopt optimism to improve your overall functioning and sustain peak performance in all areas of your life.  I typically work with high-achieving young adults in the tech community of the Bay Area/Silicon Valley.  Working with a coach is great for healthy people who are motivated to change what isn’t working, but need some guidance on how to execute strategically and efficiently.

The following tactics outline the basic tenets of Learned Optimism.  Keep in mind that our first reaction to something will always be automatic and happen instantaneously – that’s normal and to be expected!  We can acknowledge our initial reactions to an event without this becoming our permanent outlook on the matter.  That’s where Learned Optimism comes in.  We can cultivate this skill by identifying our first reaction, clarifying how this first outlook might impact our overall ability to problem-solve and perform, and challenge ourselves to adjust our outlook in order to optimize our performance and goal achievement.  With practice, we can improve our mental toughness, which is what helps a person cope with difficult situations, persevere and succeed at a high performance level.

Our outlook is shaped by our individual explanatory style, a psychological attribute that indicates how people explain to themselves why they experienced a particular event, either positive or negative.  There are three components to this:

  1. The permanence of an event – how long someone thinks it will last
  2. The pervasiveness or scope of an event – whether the person sees the event as specific and contained, or global and all-inclusive
  3.  Personalization of an event – whether the person views the event as something that was caused entirely by oneself, others or external factors

Learned Optimism tool # 1 – Adjust TIME outlook for an event.

Find ways to view a negative event as temporary:

  • “The next fiscal quarter will be better.”
  • This is a short-term setback.”
  • I’m having an off day today.”

Find ways to view a positive event as enduring and reflective of personal ability:

  • “I’m on a roll now, because I’ve worked hard, practiced, and now have a winning strategy.”
  • I know I can handle challenging things because I’ve already overcome so much.”
  • “I’ve created opportunities for myself in the past, and am capable of creating more.”

Learned Optimism tool # 2 – Adjust SCOPE of an event.

Find ways to view a negative event as specific and contained to one situation:

  • The next event will work out better because of what I’ve learned this time around.”
  • “I won’t let this personal rejection or difficult co-worker get in my way or stop me from reaching my goal.”
  • Things at my company are rough right now, but my personal life is going well.”

Find ways to view a positive event as global:

  • “Earning this promotion has gotten me on the right path to developing as a leader in the company.”
  • “My management style is more effective since I’ve made an effort to be more approachable and generous with my time.”
  • Taking social risks has been challenging but I’ve learned that overall, people respond well to me when I reach out first.”

Learned Optimism tool # 3 – Adjust PERSONALIZATION to contain one’s responsibility, recognize which personal strengths were utilized, and which external circumstances influenced the outcome of an event.

For negative events, identify your personal accountability, then factor in others’ contributions and the role of external circumstances:

  • “I can see how I contributed to the fight my spouse and I had.  I want to clarify my expectations and work on finding some middle ground so the next time this issue comes up we can avoid a blowup.”
  • “I reacted without communicating beforehand with my team members, which led to a break down in our overall progress.  I will suggest a few temporary solutions until we can figure out a more inclusive strategy.”
  • My company is going through major layoffs, and in spite of the contributions I made that demonstrated real utility, I’ve been informed it’s time to find my next position.”

For positive events, recognize which personal strengths you utilized to bring this event to fruition:

  • “I stayed focused on my goals and was willing to work harder when other people were frustrated and fed up, which helped me move forward and achieve in spite of facing real adversity.”
  • “I’m more comfortable and experienced speaking in front of others than my co-founder, so I took on the responsibility of pitching our idea to investors and now our startup has seed funding.” 
  • “I’ve worked on building up my tolerance for discomfort in social situations, which I believe gave me the confidence to ask out someone I’ve been interested in for months.  Even if it doesn’t work out, I feel good about stepping up and taking initiative.”

Bringing it all together- learned optimism is a winning strategy to get through challenging or unfair situations by shining a spotlight onto where there is opportunity for improved coping, positive progress and effective solutions.  Our initial response to a situation may not be the most effective way to navigate it successfully.  The key to adopting an optimistic mindset is to acknowledge the inherent choice we have in our response.  Learned optimism is not an exercise in avoiding responsibility or ignoring dire circumstances either.  Adopt an outlook that encourages personal accountability, and supports your performance growth in every area of life.  From your education to your work to your health, it is your outlook that predicts your level of success above all else.

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