Business Partnership Advisor
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Chris Reich, Business Mediator

Ultimatums Kill the Chance of Reaching Agreement Between Partners

Chris, my business partner just told me that if he doesn’t get a higher salary than me, he is going to demand a buyout and start a competing business. Can you help us work this out?

Ultimatums Suck

Whenever a partner makes an ultimatum when I’m working to bring people together, the damage is almost always irreparable. Issuing an ultimatum is a disrespect to me as a mediator and the other partner or partners involved. Line-in-the-sand demands take away any room for negotiation. Worse, ultimatums are very damaging in mediation because they signal that further discussion is a waste of time. Ultimatums suck the life out of whatever positive is left in the relationship. Generally, once an ultimatum is put on the table, talks collapse.

Most of the Time, The Damage is Permanent

A demand, rather than an open-ended point of discussion, says your partner, “it’s my way or else. Your feelings, concerns, and opinion doesn’t matter. I am more important than you.” Once out, it’s pretty hard to get the damage under control.

It’s not enough to temper the ultimatum. That only adds further insult. It’s like saying, “okay, I’ll grant a minor concession, but I still want my way.” Can you see how nasty it is to issue an ultimatum to your business partner? It’s never, ever an okay thing to do.

I have worked with partnerships with pretty serious problems and made great progress only to have an ultimatum put things back to square one. Frankly, I have a very hard time recommending someone stay in a partnership with someone who thinks it’s acceptable to demand their way—or else! If the level of respect has fallen that low, it’s probably best to move on from that partner.

If people are serious about working things out, all ultimatums must be dropped with NO conditions attached.

When people make ultimatums, they hurt negotiations

“If people are serious about working things out, all ultimatums must be dropped with NO conditions attached.” —Chris Reich, Business Partnership Mediator

Can The Partnership Be Salvaged?

Whether the partnership can be saved is up to the partners, but after an ultimatum the trust needs to be restored. Frankly, if the trust breaks down, the partners may be better off dissolving the partnership. I cannot recommend keeping a partnership together if one of the partners has a history of dominating the partnership.

A healthy partnership is never under the dominance of one of the partners.

Closing Thoughts

If you’re in a partnership with someone who has put an ultimatum on the table, consider whether the demand is valid or if it is part of an on-going pattern. I have seen reasonable ultimatums. What constitutes a reasonable demand? I consider whether the demand benefits the business or the partner making the demand.

If a partner demands that employees take customer service seriously or they will be fired, that benefits the business despite being a poor way of handling the problem. A demand by a partner that the business hires a friend or relative is self-dealing and wholly inappropriate. I worked with troubled partnership where one partner insisted on his spouse being retained as the bookkeeper. It’s never a good idea for one of the partners wives keeping the books. That eventually becomes a source of friction.

Finally, if a demand is withdrawn without conditions, perhaps accompanied with an apology, the partnership might be salvageable.

Before you make an ultimatum, consider how much is being put at risk.

Chris Reich, Business Partnership Mediation

 

 

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“Before you make an ultimatum, consider how much is being put at risk.”

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THe time it takes to mediate an agreement between business partners is not up to the mediator.

How Long Does Business Mediation Take?

The amount of time needed to work out an agreement is in the hands of the disputing partners. We could talk a few minutes about options and reach agreement. But that never happens.

We need to deal with the partner we have, not the imaginary one we wish we had.

The Partner You Have or the Partner You Wish You Had

We often form partnerships because of the way the relationship works. One person wants to be in charge and the other is fine with that. Then something comes up and the expectations cause tension. We have to deal with the partner we have, not the one we wish we had.

Part 2 of Things You Need to Know About Partnership Buyouts

Things to Know About Partnership Buyouts— Part 2

Here are more things you need to know if you are opening buyout talks with your business partner.

There Are Many Things Not Well Understood about Partnership Buyouts

Things to Know About Partnership Buyouts— Part 1

Buyouts between partners are usually mired in things that people think are legal entitlements. Let’s look at the most common misconceptions around buyouts.

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Ultimatums Kill the Chance of Reaching Agreement Between Partners
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Ultimatums Kill the Chance of Reaching Agreement Between Partners
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Whenever a partner makes an ultimatum when I’m working to bring people together, the damage is almost always irreparable. Issuing an ultimatum is a disrespect to me as a mediator and the other partner or partners involved. Line-in-the-sand demands take away any room for negotiation.
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