How to Handle Conflict in the Boardroom?
Kylie Hammond LLMEntGov
Chairman & CEO of Tiger Boards | Finding the Next Generation of Board Directors | Board Search Specialist | Governance & Talent Management Expert | Angel Investor | Coach & Advisor | Help Enterprises Find Board Talent
It is not surprising that most boardrooms encounter disagreements once in a while – especially when the board consists of independent and strong-willed directors that want to get a point across. This is not necessarily a negative.
According to a survey conducted by Centre for Effective Dispute Resolution (CEDR) in October-November 2013, out of 191 board members from global organisations, it was found that the most common topics of conflict included financial and structural processes of the organisation, directors’ attitudes and behaviours; and new developments regarding strategy such as mergers or acquisitions.
While debates should be part and parcel of the boardroom, concrete decisions should arise from such a process where all sides are considered carefully. Argument and conflict implies that board members are invested in the goals of the organisation, instead of passive onlookers.
Encouraging Role Evaluations Regularly
Having a process of job performance feedback can strengthen working relationships among members of the board and the executive director. Based on pre-determined categories, all board members should carry out self-assessments and provide comments for fellow staff. Constructive role evaluation processes can promote dialogue and lead to a greater understanding of the motivations and interests of the board.
Creating a Code of Conduct
One way to tackle conflicts in boardrooms is to establish some strict rules and standards that define the relationships Chairpersons must maintain with one another as well as with the Executive Directors. This code of conduct should typically be introduced during the orientation period. Having a written document that categorizes certain behaviours as conflict-oriented or disrespectful towards others can give a sense of direction and clarity to board members. This document can have helpful summaries on matters like conflict of interest, specific interactions with organisational matters and privacy.
Holding Each Board Member Accountable
While creating a code of conduct is easy enough, following it is another matter. It should be the duty of board leadership and fellow members to make certain that every individual is behaving in ways that are civil – both in and out of the boardroom. It is vital that board members understand their main role, i.e. being independent and objective.
Open Discussions Regarding Internal Communication
While boards are more occupied with the bigger picture, it would be helpful to make time and reach a consensus regarding internal communication best practices. Specific behaviours can be addressed in these conversations like being mindful of one’s own assumptions and disassociating intent from actual impact. Respecting different points of view, limiting the use of emails for informational use and allowing everyone to get a say before taking a final call, can also be discussed.
Framing a Grievance Procedure
As conflicts are likely to happen at some point, it is practical to plan ahead and establish a clear procedure for filing a written grievance with others on the board or just the executive director. Specific individuals should be assigned on rotation as decision makers in the dispute resolution process. The board must ideally have both informal and formal steps and timelines to efficiently solve any complaint or grievance that might arise.
Seeking an External Party for Conflict Resolution
While internal resolution of conflict among board members is usually the preferred mode, sometimes it is useful to get an objective view from an external party or an outside consultant. Having a skilled and motivated third party mediator can speed up the process of negotiating a resolution that satisfies all involved. It is good to note that resolutions can be mediated via a facilitator, as a negotiated resolution; or, another party can listen to both sides and make the ultimate decision – an arbitrated settlement.
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CEO | Auslaser Business Solutions | Consular Official for Republic of Poland, Victoria | Entrepreneur | Board Adviser | Executive Coach
7 年thank you Kylie, great article
Owner - Behaviourist I Extended DISC Master Trainer I Sales, Leadership, Communication Consultant at BizBriefcase - DISC Master Trainer and Business Coach
7 年I like this advice. We could all learn from these tips Kylie. Thanks
Business Growth Specialist | Business Community Leader| Business Connector
7 年Great article. Found this really useful, thanks for sharing!
Director ? Board Advisor ? Advisory Board Certified Chair ? Interim CEO / GM ? Growth & Change Management ? FAICD FGIA FABC FIML
7 年This is sound advice Kylie Hammond. The ability to manage through conflict relies on the maturity of each of the board members and an effective Chairperson to ensure a transparent and open dialogue to resolve through the options outlined. Another aspect is the “silent conflict” when long serving conservative members are more concerned about preserving relationships and avoid discussing critical issues which is sometimes framed as “group defensive behaviour”. The option you have outlined “Seeking an External Party for Conflict Resolution” would address this, but requires someone within the Board to take the initiative.