Conflicts cost companies dearly
The costs of commercial disputes are often much higher than companies realise. Danish companies spend an average of 8.2 percent of their after-tax profits on disputes, and in the construction industry the figure is as high as 14.1 * percent.* procent.
An independent review of the company's pending disputes – combined with a clear conflict strategy – can save time, money and internal resources, allowing employees to focus on creating value.
Well-developed conflict strategies ensure that disputes and conflicts are handled proactively and in a commercially sound manner
At the same time, legal fees are only part of the bill. About half of the total costs are internal resources – time spent by management and employees dealing with the conflict. In practice, this means that the company's real conflict costs are often around double the legal fees.
A clear conflict strategy makes a difference
Few Scandinavian companies have a formal strategy for handling disputes and conflicts. Such a strategy establishes the company's core values in relation to conflicts and describes the processes to be followed when disagreements arise and cannot be resolved through ordinary dialogue.
Maintains control
Many companies today outsource dispute resolution to external lawyers. This often leads to lengthy and costly litigation or arbitration. However, many commercial disputes can instead be resolved through negotiation or mediation, where the parties retain control of the process and often find faster and more value-adding solutions.
A well-thought-out strategy for conflict prevention and resolution makes it possible to handle conflicts proactively and in a commercially responsible manner– rather than reacting based on habits and traditions.
Our approach
At CPH Mediation & Negotiation, we are mediators and lawyers specializing in mediation, negotiation and conflict management. We know that conflicts are a natural part of commercial collaboration. They often arise not only from legal issues, but also from misunderstandings, poor communication or mistrust. This is precisely why it can be difficult for the parties themselves to maintain focus on the best commercial solution. Therefore, it is crucial to have a clear strategy when collaborations develop differently than expected.
We advise companies and organsations on how they can:
- Optimise the handling of their pending disputes
- develop and implement conflict resolution strategies
- Prevent conflicts and resolve them as early as possible
- Handle disputes effectively, constructively and commercially soundly
*see the White Paper Mediation i et samfundsmæssigt perspektiv” (2016) published by the Mediation Institute.