Problem
Case Study: Even Experienced Executives Avoid Conflict Ron Ashkenas
Few managers will admit to actively avoiding difficult conversations with colleagues. However confidently managers may speak about the importance of candor for getting things done, they often sidestep or steer clear of emotionally charged situations by pretending they don't exist, delaying the day of reckoning, or bringing in sympathetic third parties.
In this case study, the board of a small apparel manufacturing industry startup hired a new CEO to accelerate the commercialization of its technology. His first six months were successful: He raised a new round of funding, streamlined the manufacturing process, and focused the company on a few critical goals, particularly a key safety approval from federal regulators. He also recruited several senior managers with years of experience in the apparel industry and strong relationships with the regulatory authorities.
One of them, however, became unsatisfied with their second-fiddle position and secretly went to the board chair, demanding to be put in charge of the company and threatening to leave (and take another senior manager with them) if the board refused. Although the chair was pleased with what the CEO had accomplished, he felt that losing these executives would significantly undermine and delay the approvals needed for full product launch. It was too big of a risk. So in consultation with the rest of the board (but without talking to the CEO), he acquiesced to his/her demands and asked the CEO to step down.
Task
I. What are some of the ethical concerns identified in this scenario? Provide specific examples with supporting information.
II. What are the key areas, or points of conflict illustrated in the case study?
III. Why was avoidance used as the conflict management style of choice by the board?
IV. How could you use your leadership style to manage this conflict into a more productive win/win outcome? Specifically focus on the issue of avoidance and constructing a more acceptable solution for the parties involved.