Business Conflicts
It’s the conflicts which business might face which could be a struggle or severe show stoppers, by its effect on long and short terms, so it's hard to be detected, especially for behavioral and personal conflict, however business analysts should detect most of those conflicts, and its root causes to start review it and set enhancement plan towards resolution and also track its implementation to avoid its prior existence.
Business conflicts are more dependable on (core of business, exposure, customer's loyalty, brand, Identity, presence, insufficient management behavior, personal behaviors (copping between functions and its subordinates), extenuating circumstances, and government regulations.
Behavioral conflicts:
there are some common majors for which business could face Like;(Unlopped functions and Processes, poor planning and backups, Delays, misuse of business tools, dealing with unreliable parties (partners, suppliers, affiliates, etc..), mismatching while targeting and prospecting, wrong decision making, extenuating circumstances, low demands and purchasing power, inappropriate distribution for equity, budgeting, productivity errors (struggles to proceed forward), unbeneficial conditioning, wrong utilization to business moderators, invalid analysis, reporting, tracking, improper implementation, inconsistent performance, unrecognized employees, historical and current business reputation, Work place environment, and unscheduled business reviews.
Also missed guidelines, protocols, templates aligned to many minors and scenarios going forward back and forth).
Unlopped functions and processes:
Most of the functions are so attached to its aim; processing of indicators and their own wrapping up, without being aligned or prepared to the big picture of the other supplemental processes for other functions, and what should start and what should go down for a period.
Because sometimes only one function could be conjunct with many problems, which will stop the work flow or affect others, and the only reason that they didn't provide the sufficient feedbacks to other parties.
Solution:
Company should set a plan regardless priority and business plan, which is the timeline plan with a map to every single process to be reviewed by all heads to avoid any lack towards entity's milestones in good harmony of cooperation.
Poor planning, backups and saves:
Sometimes business is releasing many plans to execute without checking on all scenarios which could be faced, saves which should be called on time, and with no backup or alternate plan if they didn't achieve the targeted good well or aims.
Solution:
First of all, your dreams, ideas, capabilities, and plans are all connected together, so please understand your capabilities, and limits first, then initiate plan with many brainstorming, then set up more than one plan with its saves that could fulfill most of your predicted gaps.
No worries taking some time to plan rational and wise by considering all indicators internally and externally.
Delay:
Delay is one of the most awful problems which should be managed and tracked for all functions and for the whole corporate as well.
It could ruin reputation, lose credibility on coping, which will lead to operational loss, and many root causes to other problems along the way.
Solution:
Words and actions should be assigned and acknowledged by the heads to their subordinates about time manners, the way to meet expected deadlines, and the effect on missing those due dates, and offer them open door policy if they faced any lack to seize problems before tending to severe bottlenecks.
Misusage of business tools:
Business could be affected from that problem and it could have a resolution after being detected on short run, otherwise it could have long term effect for a period of time.
The things that could be affected with no solutions is productivity and loss in terms of money, as it will act as a payout on business.
Solution:
Set protocols and guidelines for using any tool, share advices and experience as well, then people won't blame you if they got all keys around.
Dealing with unreliable parties:
Selecting and evaluating entity's network, coworkers, affiliates and partners are part of the company identity and presence, because any lack of selecting will matter company identity, and exposure as well.
Solution:
Avoid making harried decisions by selecting coped parties without checking on their; trustworthiness, and risk on cooping.
And if they worth that trust, offer them all terms in return, and also build a good rapport with them, and seek their help on your events and exhibitions because they are a part of your identity.
Mismatching while targeting and prospecting:
That could be a problem which took place on the initial planning, which tends to big loss, because if business failed to apply the appropriate activities when company setup their marketing and sales initial plan expectations, they could face a harsh reach, and demand on its delivered solution or products.
Business will be close; to a friend of mine that do his food franchise for sushi with high prices on low cost of living area, which tends to quick failure.
Solution:
Once detected; minimizing loss will be the only call, either by giving it a trial by initiating new plan by selecting your potential targeted audience, and targeted geographic area, or stop business and sell your assets to avoid higher risk going further.
Wrong decision making:
That could happen when making decisions actioned by wrong authority without communicating to other parties or the authorized party.
Example;
simply if all functions did their part quite well as far as work flow, then they made a purchase decision within the targeted budget, then the one who made that decision was the financial manager without getting back to the plant or purchasing manager, and he selected wrong choice, because his perspective built on cost reduction, regardless the specs needed, so production quality was messy, which led to low quality products that driven company's return and reputation down.
Solution:
Before making any decision, please check with the action owners, followers, and the executers, as they are the authorized party after your decisions, always get the sight of the biggest picture, and don't rely on predictions or focusing on one indicator and neglecting other indicators.
Extenuating circumstances:
I mean here the popups that could be faced while going forward, like utility services problems, high attrition rate, fires, logistics barriers, legal issues, raw data shortage, etc...
All that kind of problems and more could be faced without entity's consent or interference.
Solution:
Owners should analyze those kinds of problems to survive, and the only resolution will be either by using their unleashed saves, and the temporary resolutions.
Like; enriching entity with more equity, or change the methods which they are using for logistics, execute new hiring plan from its waiting list, enrich the company with utility backups and saves, and refine the infrastructure with tools and precautions based on safety standards globally.
Those kinds of problems are very severe, but their resolution will add value to company assets, and mitigate risk on its activities for the coming term and on the long run as well.
Low demands and purchasing power:
Both problems are very hard to know its root causes, as it's reflection of the end user's buying behavior, which dependable on many indicators and details.
It might take place because of; high prices of essential goods, challenges on consumers’ standard of living and their pays, another competitive product with same quality and lower price, change in customer's preferences, Low quality, and lack of giveaways, offers and promotions, etc...
Solution:
Owners shouldn't rely on the assigned plan for sales and marketing, they should also check on customer research outputs, and also assign to them new questioners to check on all of the above.
To be able to find out their areas of improvement, set their action plans, and follow up on its execution and response throughout the way.
Inappropriate distribution for equity and budgeting:
Owners and their business development support team may face many problems while distributing equity and budgets on the entity's projects and solutions.
And it is hard to be predicted with full accuracy, because markets and demand have peaks and troughs, which only recognized after tracking records and return, and the evaluation of the results in regards to LOB phases, and business assessment.
The problem could have a quick and efficient resolution if actioned once it exists, but if neglected without tracking or planning it could affect profitability and budgeting of other solution.
Solution:
Boards and the authorized functions should work back to back to track their achievements, and compare it with the initial plan expectations, and the current status.
To be able to enhance process and find a resolution, or to minimize its Budget, or release and drop off the project.
Productivity errors:
In any core of business there are rules, policies and procedures which all employees should stick on it, those policies either related to the process or the entity's value.
Both will be with different resolution when faced, however some productive errors are repetitive once occurred those are one of the conflicts as all parties are denying their responsibility on it, and at the end it's related to a process or tool which they are using day to day operations.
Sometimes it more close to the tools or the usage, which will need an update, replace, or guidance.
Solution:
Quality team should initiate their checks and tracking to find out the root cause and the type of problem, then they should cope with the operation team to locate the error, and find a resolution to avoid or minimize its occurrences.
If they found a problem regarding a business tool they also should report back to boards to initiate their analysis, evaluate alternatives for resolution, and make decision with the one who is running the financial decision.
The whole process should be done as soon as it popup, and all parties should follow on the errors rectification and check on its rate on production volume, and also the repetitive rate as well.
Unbeneficial conditioning:
That is one of the biggest conflicts that business could face, as all parties might commit blindly, as they insists on some steps to go consecutively without looking to the whole picture and checking on fulfillment of the other indicators.
Like: logistics problems that tends to higher cost and more time.
Example: company is insisting to initiate their logistic plan to its products with the needed fleet per order to separate locations (unbeneficial conditioning), regardless a plan to hit geographic areas that they reach one time without many back and forth, by adding all orders and send it in one go to the targeted location, however they are sticking to their initial plan which tends to more time, and cost along the way.
Solution:
All functions should cope all together to find the optimal solution for their current status, regardless their initial plan, and implement it and check on their SWOT analysis, saves and return after enhancing their process.
Those problems could be benefits if they think outside the box and avoid unbeneficial conditions.
Wrong utilization to business moderators:
That might be a big problem with the planning and business development team when they didn't set the right plan, and expectations as far as capacity, or business tools usage.
which tends to massive problems to meet end-users’ expectations, needs and preferences, and create inefficient costs as well.
Example: Company has two processes ongoing, and one of them is locating over staff with no room for expansion, or increase in return, however the other process has lack of experience, staff, and tools.
And the process is promising to get high return than the current return, and the company is still operating with the same way, so they lost the potential exposure of the second process and limit itself with the first process.
So they lost a project return streaming by time and limit itself with inefficient process.
Solution:
Brainstorming meetings are very important especially in the pilot phase of any projects, to find the best outcome of SWOT analysis for (wins, saves, rational expectations, short and long run sight for milestones, and requirements.
That will help any business to find the most effective and efficient utilization plan required for every current or knocked door phase.
Inaccurate analyzing, reporting and tracking:
Most of the new entries, small, and midsize corporates might face that kind of conflict, especially if they have many indicators they should track, and enhance throughout the way.
If heads analyzed problems with inaccurate and inappropriate calculations, that would reflect negatively on their plans, reports, and trackers, and they would have many internal problems with their subordinates, and board of directors as they didn't monitor the activities wisely, or provide the accurate reporting which will led to operational loss that could be the viruses which spread with high attrition rate, low integrity, consistency, and low profitability.
Solution:
The only blame will be counted on the heads or the supervision, as they are the planners.
Please all heads all over the world no worries if you got confused about any trackers or reports, don’t be arrogant to ask for support by other contributors to fulfill your know-hows, before triggering the whistle of implementation.
Improper implementation:
Is one of the common conflicts which some of businesses could face, because inputs don't have guidance or process map to follow, so they might miss up some mandatories, which act after a while as operational loss also.
Solution:
Please heads after planning and purchasing, please initiate process map with steps to go and authority required as well, to be as reference to any one will go through any process back and forth, to avoid wrong implementation and execution which led to errors and delays.
Inconsistent performance:
That conflict for sure faced most of the businesses while reaching its maturity phases (growth, and Welfare), which means that it could occur because of subordinates’ productivity and wrapping up of work flow tends to be up and down, with no reason except manpower.
Solution:
Heads of functions should initiate their own audit by assigning trackers and report for employees to check on their key performance indicators, volumes, quality of wrapping up, time manners.
And if they have areas of improvement, they should assign coaching and action plan, then monitor back, to reach consistency of performance for all the employees for the coming term.
Unrecognized and unmotivated employees:
In every entity there are many employees feeling down because of lack of recognition and motivation, which might be a bottle neck and showstopper for them to continue working with high spirit and well without being confused.
Just imagine yourself doing the same job for two consecutive years on a raw with the same targeted efficiency; however you didn't receive any recognition method (word of mouse, motivation, giveaways, honor, incentives, delegations, and promotions), that will be awful feeling and you could make up your mind either to look forward for any other opportunities or doing the work but with no creativity, and efficiency, that could happen because you reach equivalency on results of the good and bad performance.
Solution:
All heads should courage for open door policy for all employees to come and provide their feedback for the thing which they love, hate, and need to change as well.
Once you assign motivation budget, please ensure to implement it with good manners, and wisely, with no space for classifications, always meet with your subordinates either individually or in a group and check on their required feedbacks.
Please always remember that your performance is their performance, as they are the executers of your plans.
Historical and current business reputation:
That part is categorized as a conflict and severe problem which business might struggle with.
Bad reputation once recognized, it would be hard to change it without loss and sacrifice.
Example:
I was working on Telecommunication Company operating in United States, which released and sanctioned because of a feedback of only one customer which spread over social media, and customer release the company ops went down, and sued for 300,000 US dollars, and also the company shouldn’t operate with the same name back again, and won't serve worldwide as well.
Bad reputation root causes are (bad customer's experience, lack of commitment or trustworthiness, employee's attrition, low quality, low company profile and identity, legal issues, fraud, improper segmentation, misleading, and fake promise and promotions, etc.)
Solution:
Owners should check on all internal and external indicators to moderate business properly, and the most important indicators on their business assessment should be end users and employees as much as return.
Please provide approvals for courtesy saves and coupons to reembrace customers whenever they face any bad experience or hard time, always conduct the after sales activities like (customers surveys, customer care checks)
Please when you receive any resignation from your team, please try to dig deeper for the root cause, offer retention, and efficient exit interviews, don't let your modulator down.
Work place environment:
Is one of the conflicts which manpower could face on day to day operations, which affected by many things; (calibers quality, colleagues coping and behaviors, infrastructure, management interactions, fairness, business rank, employees career path, employees’ rights and benefits, etc..)
Solution:
Managers should set rules and policies which clarify the above, and its deviations and exceptions.
Avoid neglecting; to apply rules and restrictions on any incident, classification, over promises, bad managerial skills, and infrastructure and identity enhancements.
Unscheduled business reviews:
One of the bad habits, and conflicts which management shouldn't commit, simply it pops up when all functions execute their ownerships without providing feedback to each other upon (challenges, outcomes, showstoppers, priority, stream lines, future plans, performance reviews, and milestones, etc.)
If you didn't catch up on weekly or monthly basis with all heads, you might face sophisticated problems which would be hard to resolve or backed up after long time of occurrence.
Solution:
If things are good quite well for a period of time, or there is no space to conduct that kind of meeting, please schedule time for it, as it should be done to reach the short term milestones, closed loop of all functions, consistency, integrity, and all successful corporate values throughout the way.
Missed guidelines and protocols:
If business is operating with no protocols or guidelines, so any incident would be ordinary action from any employees as they didn't have any guidelines or protocol statement to refer back to it when needed.
Solution:
Managers should train and inform their employees with guidelines and protocols to avoid productivity errors, and operation mistakes.
Always update those templates, and cascade information to management to update their subordinates as well.
Personal conflicts:
Also there are many common majors for personal conflicts which go all around on every entity but on different scales and effect like (parties' confrontations and delegations, sensitivity, and overlapped activities between functions, improper control habits)
Mainly that part will review the problems of coping between all parties and how the personality plays a big role, which has indirect influence on the workflow, performance, decisions, esprit and wrap up.
Parties' confrontations and delegations:
One of the hardest scenarios which manpower could face, especially when it comes to upper management debates or blames on taking wrong decision, or improper implementation for plans, which could tend to defects and operational loss, which could encounter to valid cost on the entity.
This kind of confrontation isn't fair and very embracing especially if authorized person become an action owner for something out of his scope, like delegating financial task to Marketing manager, both won't have the same mindset or perspective while executing.
Most of the boards or the senior level managers won't settle or seize the problem without confrontation to the authorized person; however, they should coop together towards a quick resolution for the issue occurred, and schedule that confrontation negotiation later on.
Confrontation could be valid, if the authorized person is the only one, who is responsible for specific task execution since long time ago, then the manager or one of his subordinates did mistake, and the authorized person didn't go for any of his mandatory monitoring, checks, and mentoring.
If the same scenario came across, the manager should be coached and has action plan to follow, and if repeated it should affect his performance review and appraisal.
Solution:
Decision maker should distribute the tasks for the authorized employees, and if he should delegate some task to another person because of high workflow, he should provide the needed support, and the efficient handover to avoid inappropriate outputs or delay.
Decision maker should meet with all authorized parties not only for business reviews, but also to cascade information and process mapping for every function and its processes, and the efficient and effective implementation.
To be able to support each other on critical situations easily and with big scope.
Sensitivity:
One of the continuous conflicts that business parties could face and it pop up when employees are dealing with each other especially with senior level management.
Sensitivity has many calls and types which took place between sender and receiver within the workflow and environment, and it is dependable on their responses, mindsets and history of cooping between parties.
Sensitivity is triggered when employees deal with each other especially when new joiner is showing good performance and quality, than a pioneer, which tends to jealousy and shame because he won't be on the same area of focus or being delegated on the same scale like before.
Also employees might feel sensitive when manager assign orders instead of providing clarification for the requirements or being arrogant to go through debates or negotiations back and forth.
Managers also could face this kind of struggle while dealing with each other or during business performance reviews, because of unnecessary and inappropriate responses and sarcasm which could come across.
Some employees could be very sensitive after making wrong decisions, and become aggressive while going through debates or coaching meetings.
Solution:
Remember it isn't what you are saying, it is how and when to say it.
People would like to hear from people that they like.
Being friendly could be the only quick resolution for any problem.
Planning team should assign budget for gathering, outings, and other activities to break the ice between employees and made them feel home with their family, which would have a big influence on workflow and environment.
While coaching someone don't go for blaming instead of working on his areas of improvement, and state his areas of strength first, give employees space to speak even if you aren't convinced, and see how the conversation goes.
Finally you will find the best result along their way, being friendly is the only quick resolution for any problem.
Overlapped activities between functions:
The occurrence of that conflict is very rare, and it could be encountered before maturity level of business and expansion, or sort of assessment to subordinates to check on their core skills, and qualifications to fulfill new designation.
Sometimes overlapping took place because the senior management weren't organized, or don't have space for distribution upon scopes, which tends to waste of time and confusions to executers to know the most efficient alternative which they will proceed.
Solution:
Before assigning task to anyone ensure to provide the reason beyond, and also to which extent you need him to fulfill the noted gap, and when to seek your assistance further on.
No worries to hire a workforce analyst to assign tasks structure, ownerships, time frames.
If you need to conduct your assessments please keep it low, confidential, and avoid mixing with the workflow priorities, in a very twisted way you will never know how your subordinates could feel, which will affect their workflow indirectly.
Improper control habits:
Control is one of the most irritated habits which any senior manager could commit either directly or indirectly with his colleagues or subordinates, employees are always seeking support instead of orders, they would like to feel that their uppers are their backbone instead being the control freaks, and setting orders without clarifications, in addition to improper way of delivering, excuse my language but I have faced part of it more than once.
Some manager would rather to go for wrong implementation or execution instead of adhering to his subordinated feedback, which could be the right one as they are hired and working on the same issues long time ago back and forth.
Improper Control could be between manager to other manager especially when the senior level manager delegates another manager on a process, which is a core process for another one, and they should assist each other to reach the targeted aim, however many delays and confusions might take place, and the root cause beyond would be low self-steam, respect and arrogance to cope or educate within one party or both.
which will reveal that the delegate is not qualified further on that authority.
Solution:
Chief operation officers should check on their employees from the entry level to the executive level, and should offer open door policy to any employee if he is facing struggles or attitudes, and once chief got incident he should go deeper for investigations and add value by action plans or penalties for crossing entity's code of conduct.
Training manager, quality manager, Chief operation and financial officers should plan for manpower development; by cascading, and educating their roles and saves to avoid loop issues and unorganized environment, and also to acknowledge the best treatment ethics to deal with any employee within the entity, they should also initiate agreement plans between all functions to avoid any of the above.
Extenuating circumstances, and government regulations:
Extenuating circumstances:
Not only the surrounding environment like; acts of good (volcanoes, floods, earth quakes, etc...), but also political (wars, revolutions, corruption, even rumors, etc...), and economical reasons should be counted like; (money value, inflation, imperfect competition, unstable Demands, changes on pricing index of similar commodities and other commodities)
Nature's Acts of God:
That could be a serious problem than being a conflict, which might let all business activities and durability of its products down, simply if any country faced a hurricane like sandy it's going to be a mess, as most of the inventories and warehouses of the hardware and devices were totally demolished and can’t repaired even, same goes for volcanoes, floods, etc.
Solution:
When global act of God took place; start by stopping any transactions and specially for importing of any raw materials, try as much as you can to save the rest of the assets, if you are trading on stock or Forex market, try to sell all your ownership to get some liquidity to draw back your debts and massive costs.
Safety of your staff always come first try to find them and the rest of assets a shelter and to reembrace them as much as you can with their medical and social insurance plans, which they enrolled with, look forward for executing the agreed contingency plan if the loss can be managed at a part.
Political conflicts:
Wars, revolutions, corruption, and rumors could be an unleashed and undetermined business conflicts with up to sky expectations to end up with specific period of time, and it could spread domestically to reach regionally as well.
As the revolutions which started with Syria till it reaches to Egypt then turkey at the end, all of those countries have been affected negatively which lead to enormous loss to all domestic and global sellers for any products, and some countries are being added to the sanction zone of trading and traveling like Libya, and Syria, not also losing money and economic freedom but also instability of the leaders, governors.
And the whole thing for production, GDP, GNP, faced the lowest trough of its history; some of those countries handled the situation after many failures and the other part are still struggling with some ads on like civil wars, and brotherhoods.
Solution:
Once any investor or domestic seller, felt unsafe, he should stop operations and avoid being hassled by deals which couldn't go back and forth or find its demand as well, and try to sell his current storage of products even with noticed loss to avoid fires, shoplifting, and many scenarios could come across.
If you are part of the essential market don't go for variety of products as you used to, pick the easiest product to market and sell with the traditional way and with easy methods to reach customers.
Please find a way to cope with government to operate under their name or coping with them because they are the only control at that time sometimes.
If wind went high don't fight for your presence and accept your potential and worthy absence even for a while.
Economical conflicts:
That conflict take place because of many indicators and parties' interactions as well, which entities could face if they didn't recognize the market, competitive products bros and cons, end-users buying behaviors, wrong business planning, or improper market interferences.
Solution:
Economical conflict can be handled easily, if the entities planners and executers work back to back to follow the customers' preferences and stick to market rules which they set to avoid being trapped for imperfect completion, monopoly, Prices fluctuations, or inflation.
Business owners should be aware of market and competitors flow as much as their potential saves, areas of strength, and achieved milestones, and always remember that there is a sacrifice and aliases for every business phase which should be planned and managed.
Governmental regulations:
Government somehow could ruin or stop business to strive by standing to many regulation, and restrictions that was agreed before with some new terms like (increase on trading quotes and tariffs, change on tax index, restrictions on importing or exporting of some goods, banning industries, etc...)
Solution:
Before business went to many transactions back and forth, it should dedicate big portion of the risk which business could face while operating, like government restrictions and limitations as shown above.
Some of those conflicts could the bottom line for business to continue, and could minimize its profit and existence as well.
Some of those conflicts will affect all market parties like banning industries, or imposing new trading tariffs and quotes, which will either affect or enrich all domestic sellers upon their market, transactions, and exposures.
Example: most of companies here in Egypt are changing their trading industry or core of business, and business name after 6-8 years to minimize the effects of some conflicts that could be faced.
Owners should always set higher risk percentage on their operations and trade than the planned one, to be able to finance their activities with stability when any change or restrictions came across.
And also they should be aligned to domestic and global business news, and governmental plans.
Owners also should plan for their transaction's volumes and count to be gradually, to avoid high costs on operations or any showstoppers along the way.
Owners shouldn't invest all their equity on one product or industry to avoid big losses, variety on transactions would be the optimal solution.
For me the relation between government and marketplace parties is like; forex industry you could invest the whole equity on the potential currency, it might led to either high profit or massive loss, that's why owners should use their logic somehow regardless their analysis or plans.
From my point of view any institution should follow some steps to mitigate those conflicts and its effect as listed below.
Steps to mitigate business conflicts:
Analyze: your problems, current situation, attributes, indicators, outcomes
Plan: wisely for every single process and activity on the long, and short run in return to big and small scales, and initiate a contingency plan and SWOT analysis as well for everything.
Detect: your areas of improvement in details, with the aligned behaviors and authorization along the way.
Confront: your problems to the auctioned parties, and get their feedback and resolution opinions.
Enhance: based on the tools which you have, and avoid losing interest on simple details.
Protect: yourself with rules, regulations, and procedures to avoid repeated occurrences.
Implement: the targeted plan with organization by; detailed analysis, and numerous checks for any popups.