Beyond the Surface: Addressing cross-functional leadership conflicts through strategic organizational design

Cross-functional conflict within leadership teams is a common occurrence. Founders frequently invest significant effort in addressing conflicts among functional heads.

Although these conflicts may appear to stem from conflicting functional interests, they often result from clashes between diverse personalities, status-related issues, time constraints in relation to the speed of work, and overwhelming workload, and fragile egos.

The solution doesn't always lie in implementing a leadership intervention program and expecting leaders to undergo a transformation or achieve harmonious coexistence post-program. Instead, a more effective approach is to assess organizational design as a strategic tool for problem-solving.?

Take a moment to assess whether your organizational design is grappling with the following challenges that contribute to cross-functional leadership conflicts:

1. Functional Silos: Are functions unintentionally set up to adopt adversarial stances, fostering a blame game? Is their success more closely tied to functional achievements than the overall success of the company? A mindset of functional leadership, rather than prioritizing company leadership, and the presence of misaligned incentives could be significant contributors. The emphasis should be put on the company first and be a company builder.?
2. Value Generation and Credibility: Is there a lack of value generation and credibility within certain functions? This may arise from factors such as underestimating or overestimating company, product, or business expertise, and the stress between first principles problem-solving and proven methods. This conflict often leads to differing perspectives, slowing down execution and eroding trust, especially between longstanding and newly hired leaders.
3. Expectation-Setting Challenges: Are there perceived expectations and a lack of ongoing expectation-setting, along with ineffective communication channels? Fast-paced changes within the company can result in communication breakdowns, adversely affecting collaboration and understanding among team members.
4. Leadership Talent Immobility: Does a reluctance to make changes at senior levels hinder leadership talent mobility? Often, founders resort to external hires to solve business problems. The hesitation to make leadership role changes contributes to a sense of stagnation and insecurity among existing leaders.?
5. Geographic Influence: Is the location of leadership contributing to challenges? While location is a factor, it should not be a determining one. Geographical differences can influence perspectives, but with awareness and effort, this obstacle can be easily overcome.

Steering leadership teams is inherently complex, even in smooth times. In the case of cross-functional rivalry, these challenges can exacerbate, resulting in ineffective leadership and compromised outcomes. Engaging in group and individual mentoring for the leadership team encourages unity and cultivates a collective focus on putting the company first.?

Go beyond the surface and use the strategic organization design tool to solve conflict clashes.