According to the “Instituts der deutschen Wirtschaft” the economic damage caused by conflicts in Germany amounts to 50 billion euros annually. Driven by increasing digitalisation and distribution of work, constructive conflict management is becoming more and more important. Through a structured and facilitated process in dealing with conflicts, and a conscious way of setting up discussions, you can promote innovation and increase effectiveness and efficiency. Eliminate losses due to friction in your company through effective conflict management and prevention!
According to a study by Anne Alfasser, leaders spend about 40 % of their working time managing conflicts and their consequences. A company loses about 15 % of working time every day due to disputes, anger and misunderstandings.
In every organization there is high potential for conflict: people with different goals, values, interests, expectations and cultural imprints that come together to work. Conflicts can never be completely prevented; that would even be a hindrance.
A corporate culture that is geared towards harmony fuels conflicts even subliminally; those conflicts are not addressed openly, because where everything apparently is great, there is no need to argue. In order to be able to move forward or improve something, you need a healthy way of dealing with conflicts.
The question is not how to avoid conflict, but how to deal with it!
Increasingly more people are working remotely.. Remote and home-based work has been highly accelerated by the Corona pandemic.
In most companies, digital transformation in work processes was boosted, and according to a study by the Fraunhofer IAO and DGFP, the ›New Normal‹ will be characterized to a significantly greater extent by the coexistence of virtual and office-based forms of work and collaboration And therefore the full potential of these new work modalities should be leveraged. The basis for this is a culture of trust. It is important to rethink working methods, without forgetting employees’ mindset and willingness. Leaders should learn to lead differently, and employees to interact with each other differently.
Virtual work also impacts communication - not only how, but also what is communicated is changing.
Vision und Purpose
According to the study “Purpose. The Great Unknown ’’ by Kienbaum and Human Unlimited, 93 percent of the employees and managers surveyed stated that employee satisfaction increased significantly after the introduction of a purpose in their company. There was a positive change in employee retention and employer attractiveness. In addition, a clearly formulated purpose goes hand in hand with increased corporate performance, customer orientation and innovation. The study “Corporate Culture and Performance” by Professors John P. Kotter and James L. Heskett found that companies with a clear corporate vision experienced 4 times faster sales growth, 8 times faster job growth and 12 times faster growing share prices. According to a Harvard Business School study, purpose-driven companies’ profit is clearly ahead of companies without a defined purpose. However, only 39 percent of the companies have a defined purpose.
Purpose-driven companies are more successful than other companies. The purpose is the company’s reason to exist.
Talents are increasingly selecting companies based on their purpose and how meaningful their work is. The salary is still important, but no longer so decisive in their choice for or against an employer.
We are experiencing a time of enormous disruption in technology, business models, and values. That is why organizations that think hierarchically are reaching their limits.
Companies need the ability to continuously adapt and develop in order to survive in the market. Adaptability, meaning the capability of learning new ways of thinking and adopting new mindsets, is the most important organizational skill.
It is important for companies to become self-learning organizations and be able to adapt to the changes coming even faster. Agile methods and approaches help!