Monday, 16 July 2007

'Do you have a conflict management strategy? '

Conflict sadly seems to be around us most of the time in the world at large and in our day to day business.

The most successful teams and companies have spontaneous and varied outlets for new ideas, innovations and approaches, however, it is also however these creative ideas, innovations and approaches that can be the very ingredients to conflict!

Therefore it is probable that the two greatest skillsets that will directly affect the success and longevity of your business are not only strategic planning but also conflict management! Having been inadvertently on the sidelines of a major conflict between two parties at the week-end and in my work as an Executive Performance Coach – seeing the stress and behavioural barriers to success that ensue, I know this to be true.

You´ve probably heard the saying "the bone is strongest where the break heals" (that is actually medically true!), the same applies to relationships (business or otherwise!), and this may, actually, give organizations a competitive edge. Unresolved conflicts are harmful and put a business at risk. Companies are often comprised of emotional hot houses and systems that are likely to have conflicts at some point or another. Several studies on M&A deals suggest that the largest number fail because of lack of conflict regulation processes. I have observed that those who do well are those who have found ways to regulate and appreciate differences of opinion even and especially if they are potentially explosive. These companies enjoy a competitive advantage, as they are better able to work together, trust each other, and react faster to the changing economic environment. The resulting outcome also leads to better, wiser decisions.

So if you have a conflict management process, fabulous! If not a few pointers which may assist;

• Conflict is normal; differences of opinion are healthy
• Managed conflicts are beneficial
• Build self confidence in emerging leaders
• Strengthen bonds
• Create rich diversity, more options
• Must be dealt with quickly and fairly
• Process is as important as outcome
• Hard bargaining is a poor second to interest based negotiations

Best practices to prevent conflicts:

• Clear strong leadership that is meritocracy based.
• Good employment policies: compensation, employment, exit and entry, reviews.
• Formalized meetings.
• Strong, effective governance with a truly independent board.
• Formalized meetings for sharing and understanding the collective and individual beliefs and values.
• Open and direct communication.
• Dealing with issues and conflicts as they arise in a direct, timely and open-minded way.

When conflict arises;

Remember any human system is also an emotional system with a long, complicated history, working in real-time. In any emotional system that is subject to many and varied opinions and views, a fair and timely process will offer safety and predictability and more importantly a swift solution.
• Establish a fair process
• Build in safety and predictability so individuals will know what to expect
• Get buy-in from parties
• Use it!

Notes on a good, fair process;

Here are steps to follow in managing any conflict:
Ground rules
• Who are the critical decision makers?
• How will we make this decision?
• How long will we give to this?
• What are the rules of engagement?
Initial Positions
• Statement of problem
• Statement of each parties position
Interests
• What does each party really care about?
• What is their motivation?
• This answers the question ´why´?
Create solutions
• "Out of the box" thinking
• Invent options
• Brainstorm
Get objective criteria for each option
• Reality check
• What is the industry standard?
• What are the requirements for that position?
• How do we review that strategy?
Reaching an agreement
• Open discussion of the choices
• Weigh the options
• Make the decision.

My basic premise is that to counter conflict, you need a rational approach of patience & calm. You have to work out what is happening that is contributing to the problem and change it. Easier said than done, maybe! However, by getting to the root causes of the conflict, you not only relieve current conflicts but you are also more likely to prevent recurrences. For example, if you keep having conflict in your management team, it is possible that you might discover that the cause of your upset is not their behavior but your unrealistic expectations. By modifying your standards, you might find that the conflict in the team no longer bothers you or even better, those conflicts result in the more successful outcomes that you could ever have imagined. .

Until next week…

Kate Tojeiro is an Executive Performance Coach at www.the-x-fusion.co.uk

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