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Why Conflict Could be Good for Your Company

In last month’s Harvard Business Review article “How to Pick a Good Fight”, the authors offer some interesting ideas about how to motivate people to be as successful as possible. The answer they propose may surprise you – they encourage picking good fights. They surmise that “complacency is the single greatest predictor of poor company performance” and while we may strive for serenity and calm in our lives, we all know that those who succeed at the highest levels in business lie awake at night and come to work in the morning refusing to settle for the status quo.

 

February 2010 Feature

How To Pick A Good Fight (from the Harvard Business Review)
Strong leaders create the kind of conflict that can spark creativity and innovation. Go to article »

The authors of the article maintain some of the world’s most successful companies have cultures that encourage debate, discussion and, yes, even arguments. For instance, Goldman Sachs has a strong culture of teamwork with an equally strong environment of internal competition. Conversely, when Lehman Brothers changed their culture in the 1990s from extremely contentious to a culture of harmony, many observers thought it might be just that culture of agreeability that allowed them to contently and loyally ignore crisis signals and ultimately to implode.

As you will see from the enclosed article, the key to picking good fights is to encourage critical thinking and discussion that leads to the best outcome for the company in a fair and open way. By doing this you can find the “energy sweet spot” where people are in a perfect state of tension - motivated to work hard but calm enough to work really well. So what’s your tolerance for a ‘good fight’?

Over the last twelve months almost every client with whom we have worked has undergone tremendous change; downsizing, modifying, re-tooling to accommodate a new ‘normal’ in their business. In each instance the goal is to not just survive but to be successful in the years to come. However, with all the economic uncertainty it can be easy to pull back and not want to ‘rock the boat’ either personally or as a company. Especially when you consider that executives are losing their jobs at a record rate – no one wants to give the organization an excuse to be ‘the next one’. However, we believe that the organizations that are still willing to challenge their people and themselves to simply not accept the ‘status quo’ will be the companies that are going to thrive in 2010 and beyond. We hope this article stirs some discussion in your company in the way you lead your teams, and the level of ‘push’ you allow to be tolerated within your organizations.

David M. Sobocinski
Managing Partner
dave.sobocinski@carterbaldwin.com

How To Pick A Good Fight

Reprinted with permission by the Harvard Business Review

By Saj-Nicole A. Joni; Damon Beyer: Harvard Business Review

Peace and harmony are overrated. Though conflict-free teamwork is often held up as the be-all and end-all of organizational life, it actually can be the worst thing to ever happen to a company. Look at Lehman Brothers. When Dick Fuld took over, he transformed a notoriously contentious workplace into one of Wall Street's most harmonious firms. But his efforts backfired - directors and managers became too agreeable, afraid to rock the boat by pointing out that the firm was heading into a crisis. Research shows that the single greatest predictor of poor company performance is complacency, which is why every organization needs a healthy dose of dissent. Not all kinds of conflict are productive, of course - companies need to find the right balance of alignment and competition and make sure that people's energies are pointed in a positive direction. In this article, two seasoned business advisers lay down ground rules for the right kinds of fights. First, the stakes must be worthwhile: The issue should involve a noble purpose or create noticeable - preferably game-changing - value. Next, good fights focus on the future; they're never about placing blame for the past. And it's critical for leaders to keep fights sportsmanlike, allow informal give-and-take in the trenches, and help soften the blow for the losing parties.

Read Full Article »

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