The pressure is significant for any founding team, meaning conflict is likely to arise, and even promoted. Nevertheless, the fabric of company culture relies on genuine reactions and interactions rather than the principles displayed on the wall. If team members observe co-founders or the leadership getting heated and engaging in counterproductive disputes, it fails to foster a respectful, growth-oriented environment. 

Fortunately, this dynamic can be mended, and the effort can be made to effectively manage conflict in a constructive manner. Ian Schmidt serves as a strategic advisor at Trimergence, a consultancy that assists leaders in enhancing their effectiveness from the inside. During a recent episode of Build Mode, Schmidt explored how founders and teams should refresh their personal operating systems.

“Companies encompass a human operating system that requires an upgrade process over time, similar to the product itself and your go-to-market approach,” Schmidt remarked. “Thus, we collaborate with leaders and teams to outline their operating system, their thought processes, how they confront conflict, and how they make decisions, providing them with what we refer to as a noise-reduction algorithm.”

In application, this implies that founders can develop frameworks for addressing conflict and transformation when the team is as small as two or three individuals, and if executed properly, it can grow alongside the organization. 

Schmidt proposed a framework that any founder, leader, or team member can put into practice when conflicts occur:

Pause and conduct an “internal 360” on the recent events

When a conflict has not resolved positively, it’s essential to evaluate the conversation and acknowledge your involvement. Perhaps you reacted impulsively, heightened the conflict, or created an uncomfortable moment for the team. Avoid rushing to find a solution; take a moment for self-reflection, articulate what transpired, and consider how it might have affected others. 

Relate this incident to a recurring pattern

Conflicts that escalate are rarely isolated incidents. Take the necessary time to identify patterns within this behavior. “How does this connect to something I’m aware of about myself? Oh, my partner mentions this frequently, or I’ve observed this growing up, or I’ve received similar feedback in the past. Thus, you have both the situation and the ongoing pattern,” explained Schmidt.

Reach out to those affected

Once you’ve contemplated the situation, approach your team members for any necessary interpersonal reconciliations. In this dialogue, it is beneficial to express your perception of what occurred and how it may have affected them, explicitly acknowledge your role in it, and inquire about their feelings regarding the outcome. Be receptive to their experiences and feedback, allowing that dialogue to guide a recalibration.

Such openness and accountability will foster greater trust within the team and facilitate more constructive conflict resolutions in the future. 

Listen to the full episode of Build Mode for additional practical guidance on building your team.

Apply to Startup Battlefield: We seek early-stage companies that have a minimum viable product. So nominate a founder (or yourself). Be sure to mention that you learned about Startup Battlefield through the Build Mode podcast. Apply here.

TechCrunch Disrupt 2026: We will return for TechCrunch Disrupt on October 13 to 15 in San Francisco, where the Startup Battlefield 200 will take the spotlight. If you want to cheer them on or simply connect with thousands of founders, VCs, and tech enthusiasts, be sure to get your tickets.

Use code buildmode15 to receive a 15% discount on any ticket type.

Isabelle Johannessen is our host. Build Mode is produced and edited by Maggie Nye. Audience Development is led by Morgan Little. Special thanks to the Foundry and Cheddar video teams.