Conflicts at the “C” and senior executive level involve issues not typically present in disputes among lower level employees. The amounts in controversy and the potential devastating impact on the business warrant special attention. Company and individual reputations can be ravaged. Personalities can seem larger than life. And the well-being of all employees could depend on a successful outcome of the dispute.
Executive disputes require both a pragmatic and diplomatic, approach. The good news is that such conflict can be prevented and resolved, by following what I call "the D list for C-level conflict."
Exercise Decorum
When senior executives violate prohibitions against discrimination and harassment, play fast and loose with sexual banter, or act in an overly hostile manner, it is difficult for a company to assert that the offender’s behavior was not sanctioned.
Employees often refrain from voicing claims, for fear of losing their jobs. By the time complaints are formally raised, the allegations may be so significant that it is too late for the executive to salvage his or her role at the company.
No matter how informal the workplace may seem, C-level and senior executives must conduct themselves at all times with decorum. Most organizations will not tolerate executives who cannot conduct themselves with the requisite degree of professionalism and generate claims of misconduct.
Document Relationships
Senior executives are attractive targets for claims because they are in positions of power and authority. A commonly occurring situation involves romantic relationships between an executive and an employee. The end of the relationship frequently leads to a claim that the senior executive’s power was applied to unfairly entice, coerce, or punish.
Substantial sums are sometimes spent to settle those claims. Working relationships between the executive and others in the company can be irreparably damaged.
These risks can be decreased by requiring the parties to sign an acknowledgement that the relationship is consensual. Designate a third party, outside the company, to serve as the “go to” person should one party believe the relationship has ceased to be consensual, and harassment may be occurring. The third party can investigate any claim, and assist in working out a confidential resolution.
Respect Dominions
Executives are expected to respect and support each others’ dominions. Yet, clashes occur around spheres of influence, perceived lack of respect and support. Struggles for power take place, creating tension and preventing the organization from accomplishing its objectives.
When executives are jointly tasked to develop a product or market a service, the requisite attention should be paid to the role each leader will play. Responsibilities should be clearly defined, so that goals, expectations, and realistic deadlines can be set. Guidelines for behavior should be established, to ensure respectful communication during and outside of meetings.
All members of the team must feel that their contribution is valued, that they are respected, and that their peer leaders are not working to undermine their interests.
Address Divisiveness
Divisiveness erupts in the workplace for a variety of reasons. Executives bristle when another colleague infringes on the executive’s area of responsibility. Objections are raised about “micro-management”. Conflict arises from a lack of understanding or communication. Confrontation typically generates a defensive response, such as hostility or avoidance. While those reactions may be expected, they are not acceptable at a senior level. The entire organization can become dysfunctional.
Executives are frequently unaware that their method or style of communication may be offensive to others. Often it is not what we say, but how we say it, or who we say it to, which influences another’s perception and escalates conflict. Raising the level of consciousness of one’s communication style is a key tool in preventing serious discord. Address turbulence due to an executive’s style. Provide coaching for executives on both conflict management and workplace communication skills. Offer mediation as a facilitative tool to communicate concerns, explore and resolve conflict.
Hold Discussions
With today’s technology, and the widespread use of email and blackberries, it’s easy to forget the value of in-person discussions and meetings.
Satisfaction with the work environment is directly affected by communication. No matter how senior your position, the employees you supervise want to connect with you at some level. If they have no “face time” with you, they may not feel accepted, respected, or valued. They may conclude you are too “aloof” or worse – they can raise a “hostile work environment” complaint. When enough complaints about interpersonal interaction are made, the executive could be out of a job.
Remember that rapport with one’s direct reports can be essential to being a successful leader. Time spent “connecting” is for a business reason – employees who feel valued, liked and respected are less likely to bring claims, cause dissension, or leave the company.
Use Diligence
The law requires a “prompt, thorough and impartial” investigation of a harassment, discrimination or hostile work environment claim. It is critical to handle complaints against senior executives in the same manner as a claim against any other employee. Instead, companies frequently try to delay, ignore or only perform a cursory investigation of the complaint. Doing so often exposes the company to liability.
Companies should act quickly to investigate allegations of misconduct against senior executives. It is important to recognize the impact on employee morale if employees perceive that the executive is treated more favorably and is “protected” by an incomplete, biased or non-existent investigation.
An employee with a claim against a C-level executive is likely to assert that no internal investigator is truly neutral. Delegate the investigation to an outside professional. Doing so complies with your legal obligation of an impartial investigation, allows for unbiased analysis, and greatly increases the likelihood of a good outcome.
Avoid Defensiveness
Employees at all levels, including senior executives, are frequently terminated for being untruthful in an investigation, even if the underlying behavior may have warranted less severe punishment. Too often, the executive is overly defensive or even deceptive when confronted with allegations of potential misconduct. There may be substantial compensation at risk if the findings are adverse.
Accountability is key. Defensiveness or deception about events, coupled with inappropriate behavior, can cause decision-makers to believe the organization is at risk for future claims and to terminate an executive’s contract. The wise choice is to be truthful, in spite of grave concerns about the outcome.
Provide Diplomacy
When it comes to resolving claims by, against or between senior executives, it is best to use a forum which provides for diplomacy and dignity. Due to the high stakes involved, it is helpful to address executive conflict through confidential mediation, rather than in the glare of court proceedings or board meetings.
An organization has a much greater likelihood of resolving a dispute if it can be dealt with in a setting which provides dignity, allows for agreement on how to disclose the outcome, and minimizes negative impact to the executive’s and/or the company’s reputation.
A final word: mediate early, to prevent both the conflict, and the costs, from escalating out of control.
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Amy L. Lieberman is the Executive Director of Scottsdale, Arizona-based Insight Employment Mediation. She resolves executive conflict in the workplace and in litigation, for individuals and companies across the country.
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