Running a business means relying on service providers – accountants, lawyers, designers, you name it. And when you work closely with someone, issues pop up. Misunderstandings happen. Feelings get hurt. But avoiding conflict completely isn’t healthy either. The key is knowing how to work through problems in a way that leaves both sides happier.

In this post, I’ll cover some common reasons conflicts happen with service providers. Then I’ll give you 12 strategies to handle these situations smoothly and preserve great working relationships. 

Why Conflicts With Service Providers Are So Common

Before we get into the solutions, understanding where things go wrong helps prevent problems down the line.

#You Expected Something Different Than They Did

A big source of arguments is each side comes in with different expectations. Say you hire a designer expecting the website done in 4 weeks. But they budgeted 6 weeks for the project. Mismatched expectations can leave both of you frustrated.

#Communication Breaks Down

Lack of communication also causes plenty of headaches. Maybe the designer doesn’t provide progress updates. Or you don’t articulate needs clearly. Poor communication means you’re often not on the same page.

#The Contract Is Vague 

When contracts lack detail about timelines, responsibilities, and other expectations, it opens the door for misunderstandings later.Ambiguity means you interpret the agreement differently.

#You Have Different Priorities

Every provider brings their own priorities to the table. For instance, the designer may value creative expression over business goals. Differing priorities can be problematic if they don’t align with yours. 

#Personality Clash

Frankly, you may just not jive with the service provider. Different work styles and clashing personalities make collaboration tough at times, even with good intentions on both sides.

Knowing the common causes of conflict makes it easier to avoid issues or address them constructively when they do pop up.

12 Tips for Resolving Issues With Service Providers

Now, let’s get into some nuts and bolts strategies for working through conflicts smoothly:

#1. Clarify What You Both Want

Talking through each of your goals is hugely helpful. Often, conflicts happen because neither side fully understands the other’s motivations and interests.

An open conversation focused on perspective-taking can reveal shared ground. Even if end goals differ, understanding the “why” behind them points to solutions satisfying everyone.

#2. Improve How You Communicate

Poor communication underlies most conflicts. When issues come up, use it as a chance to develop new communication habits. 

Schedule regular check-ins to nip problems early. Provide feedback sooner instead of letting frustrations build up. Actively listen rather than just stating your position. Constant communication aligns expectations.

#3. Update Service Agreements

Unclear contracts are asking for trouble. Review existing agreements and add details around responsibilities, timelines, approvals needed, and other pain points. 

Putting clear expectations in writing eliminates so much confusion for both sides down the road.

#4. Compromise When Possible

Service provider conflicts often involve opposing perspectives. Being stubbornly set in your position just strains the relationship. Be open to meeting halfway when reasonable.

Maybe you agree to a timeline between what each side wants. Compromise shows good faith and satisfies mutual needs.

#5. Bring In A Mediator If Needed

Emotions sometimes run too high for parties to work things out alone. An impartial mediator facilitates communication and helps you see each other’s viewpoint. 

They create a constructive environment to identify solutions and common ground. Many professional groups offer mediation for member disputes.

#6. Keep Interactions Respectful

Even in a heated conflict, make an effort to keep tone polite and aim for understanding. Avoid getting aggressive, combative or defensive. 

Keeping things professional preserves the working relationship for when you resolve the dispute. Plus, it’s just the right thing to do.

#7. Focus On Interests Over Positions

Arguments often happen because each side locks into extreme positions rather than discussing underlying interests.

Rather than stubbornly holding onto a position, talk motives and concerns. If you understand why someone wants something, creative solutions can emerge.

#8. Motivate With Incentives Over Penalties

Punishments and rigid demands add fuel to the fire. An alternative is offering incentives tied to resolving issues collaboratively. 

Maybe you provide a bonus for finishing a project by the revised timeline. Incentives encourage working together.

#9. Have Tough Talks Live

Written communication loses tone and context, which can inflame disagreements. Have sensitive chats live over phone or video when possible.

Hearing voice and seeing facial expressions conveys emotion better. It also enables smoother back-and-forth conversation to resolve conflicts in real time.

#10. Take A Break If Needed

Emotions cloud judgment. If things get heated, call a timeout to cool off and revisit the issue later with fresh perspective. 

Agree to pick back up at a specific time, rather than leaving the conflict unresolved. A short break goes a long way.

#11. Get An Outside Opinion  

Asking someone impartial for perspective can really help see solutions you’re blind to when stuck in the conflict.

While they don’t know the full context, an outsider can identify reasonable compromises, missed opportunities and new approaches. A fresh set of eyes provides clarity.

#12. Walk Away If Necessary

In some rare cases, core differences mean constantly butting heads. At some point, dissolving the relationship altogether is needed for both parties to move forward.

Make a solid effort with other resolution tactics first. But walking away is better than dragging out a dysfunctional engagement draining time and energy.

Key Takeaways

To sum up, here are some core principles for constructive conflict resolution:

– Openly discussing interests builds understanding and enables solutions.

– Compromise makes both parties happiest. Refusing to bend strains the relationship. 

– Incentivize great work rather than punishing. Carrots work better than sticks with service providers.

– Keep interactions respectful, even during conflict. It preserves the relationship.

– Mediation provides structure when disputes get complex.

– Walk away when fundamental differences make a working relationship untenable.

Investing time into resolving issues collaboratively builds trust and goodwill, even during rough patches. It leads to smoother partnerships and more satisfaction long-term.

Conflict inevitably arises occasionally when running a business. But developing strong conflict resolution skills allows you to navigate challenges while minimizing disruptions and sustaining constructive service provider relationships.