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That's a good question and I don't think I can give you a thought-out answer right now.
I guess I encourage both sides to present their arguments, but in the end I use my position of authority to make a verdict. And those not happy can, ahem, fork themselves!
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I think that as a leader, having the balls to make the final call is the best thing you can do
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It’s impossible to make everyone happy, yet that is like an important duty of a leader. What do you typically do when dissenting factions just can’t come to an agreement.