Master conflict resolution to transform workplace challenges into opportunities for growth.
Conflict Happens
Dealing with it wisely can make or break your business
By Samuel Greengard
Over the years, Roy Anise has witnessed his fair share of workplace conflicts—individuals who attempt to undermine colleagues, people who yell and pound their fists, and those who forge underhanded alliances. While he knows it’s impossible to see eye-to-eye on every issue, the Senior Vice President of Planning and Information at Philip Morris USA understands that some ground rules are in order."How an organization handles conflict is a powerful indicator of how successful it will be," he says.
Conflict as a Spark for Growth
“It’s no secret that when humans interact, conflict often follows. And, in today’s high-stakes business environment, where there’s enormous pressure to perform well and million-dollar deals hinge on quick decisions, there’s abundant room for mistakes, misinterpretations, and misunderstandings,” says Howard M. Guttman, author of When Goliaths Clash (Amacom, 2003) and principal at Guttman Development Strategies, Inc., a Ledgewood, N.J., consulting firm.
“Disagreement and conflict aren’t in themselves a bad thing. They can serve as a creative spark and, ultimately, the foundation for great ideas. It’s how an organization handles and channels the conflict that’s important.”
One glance at the business news reflects how common it is for companies to struggle with the issue. Too often, boards of directors wind up squabbling, senior executives verbally harangue one another, and workers at all levels of the enterprise turn to hardball tactics to get their way.
The goal, Guttman says, is to manage conflict effectively and preserve relationships within the organization.
Anger Management
In the heat of battle, social etiquette often goes by the wayside. Blow-ups typically occur for one of three reasons, notes Scott Cohen, national practice leader for talent management at consulting firm Watson Wyatt Worldwide: individuals mistrust others they work with; competing goals exist (along with the mentality that in order for one person to win, another has to lose); and success often breeds arrogance. He says, “It’s the proverbial ‘My way or the highway. I’ve been very successful before, and I am not open to other ways of doing things.’”
The resulting conflict usually plays out in one of four ways, Guttman says:
Those who aren’t satisfied with the status quo might try to renegotiate or change things.
A second possibility is for individuals to shift their perception and adapt to the environment.
Others, who cannot cope with a situation, flee to another employer.
The last group goes underground. “They pretend that everything is OK, but it eats away at them, and eventually, they feel like a victim,” Guttman says.
The latter approach can prove particularly damaging because those “infected” with anger and resentment often band together with other disgruntled workers, and the ensuing contempt and disdain begin to topple productivity, profits, and the moral base of the organization. What’s more, those who see themselves as “prisoners” in the organization often antagonize colleagues and customers—sometimes unwittingly.
As the mindset spreads, enthusiastic new hires might immediately question their decision to join the company. “Essentially, you wind up paying people to sabotage your organization,” Guttman says.
Any of the first three actions are acceptable, according to Guttman. “The only approach that an organization cannot tolerate is workers going underground and becoming a cancer.” But changing the dynamics of a group or an entire company is often easier said than done. It’s necessary to analyze and understand the problem, change established habits and personality traits, and establish new rules for engagement.
A Case Study in Change
A few years ago, when Anise discovered a talented leadership team at Philip Morris that wasn’t functioning up to standards, he recognized that the inability to address important issues was at the heart of the problem. “The group avoided conflict because it viewed it as a negative experience,” Anise explains.
Anise recognized that he had to teach staff members how to become more assertive. “The goal wasn’t to change their basic personality, which was a huge concern upfront; it was to [teach them] to communicate and cope with problems, frustrations, and disagreements.” After a series of workshops, held over a nine-month span, employees began to change their communication patterns. “We began having a more authentic dialogue,” Anise says. The firm also added communication and conflict-management skills to its employee evaluations.
Resolution Rules
Philip Morris isn’t the only enterprise to benefit from a focused conflict-management strategy. At CIT Group Inc., a $5.2 billion commercial finance company based in Livingston, N.J., the potential for conflict is substantial. Salespeople are eager to chalk up loans while credit professionals are intent on closing only solid deals. The two roles, by definition, result in a fair amount of head-butting, says Jack Lerner, Senior VP of Organizational Development and Learning.
Among the challenges: highly competitive staff members with a strong desire to win, and individuals who sometimes act impulsively or lack awareness about the type of negative behavior they are displaying. After several workshops focusing on how to refrain from reacting impulsively, how to better understand others, and how to avoid jumping to conclusions (“If someone doesn’t return your phone call, it doesn’t necessarily mean they are mad at you”), CIT began to see positive results.
According to Guttman, effective conflict resolution requires a three-pronged strategy:
Ground Rules: Organizations must establish clear guidelines for how employees behave. For example, outlaw triangulation, where one person goes behind another’s back without first attempting to resolve the problem directly.
Skill Development: Workers need training through workshops and classes to learn effective conflict resolution techniques.
Goals and Incentives: Companies must create the right incentives for the desired behavior and measure success through performance evaluations.
“It’s wise to create an environment that fosters collaboration rather than competition,” Cohen notes.
Although many individuals are receptive to learning new techniques and strategies for dealing with problems, it can take time to put learning into practice. Employees who reject the process or cannot grasp conflict-management techniques may ultimately need to seek employment elsewhere.
Essential Rules for Resolving Conflict
Philip Morris isn’t alone in benefiting from a focused approach to managing conflict. At CIT Group, a $5.2 billion commercial finance firm, workshops on impulse control, understanding others, and avoiding snap judgments yielded positive results. Jack Lerner, Senior VP of Organizational Development, highlights the importance of addressing behaviors that can lead to conflict.
Howard Guttman’s 10 Rules for Effective Conflict Management:
Face issues head-on. Avoiding conflict only allows resentment to fester.
Create a safe space for disagreement. Ensure participants feel their opinions are respected.
Depersonalize problems. Focus on the business issue, not the individuals involved.
Hold leaders accountable. Managers should model and enforce conflict-resolution strategies.
Set clear rules. Clear protocols help prevent misunderstandings.
Don’t criticize behind someone’s back. Always discuss issues with the person involved.
Avoid involving third parties unnecessarily. Encourage direct communication between those in conflict.
Ask reflective questions. Turn statements into questions and listen carefully to the answers.
End second-guessing. Once a decision is made, discourage continued complaints.
Celebrate resolution. Reward successful conflict management and use feedback to improve practices.
A Culture of Accountability
Redken, a New York City-based haircare and cosmetics firm, has developed a culture where conflict resolution is part of its DNA. Among the firm’s rules:
Employees must address conflicts within 24 hours or drop the issue.
A silence rule equates to tacit endorsement of decisions—those who don’t speak up during discussions are assumed to agree.
Since adopting its conflict-resolution program in 1996, Redken has posted double-digit sales and profit growth, far exceeding the 2 percent average industry growth rate.
Patrick Parenty, Senior Vice President and General Manager of Redken, believes there is a direct correlation: “We make decisions quicker and better. We do not miss opportunities due to inaction or warring factions.”
The Final Word
In the end, it’s all about creating honest, open debate and defining clear roles and accountabilities. “When conflict is de-personalized and treated as a business issue, it is possible to boost performance and create a workforce that is strategically aligned,” Guttman concludes. “Although conflict is inevitable, smart organizations channel it into positive energy.”