Three Tips For Managing Boardroom Conflict

Disagreements are a normal part of business life. In fact, often it is the differences of opinion that can result in everyone looking at a particular matter from a new perspective. If disputes are not resolved swiftly and in a non-confrontational manner, resentment can build, damaging the organisation’s morale and leading to emotion overriding reason when it comes to making crucial decisions.

Below are three tips for dealing with boardroom conflict effectively.

 

A few badly chosen words can lead to weeks or even months of discontent. Using phrases such as “I don’t care what you think”, “I’m right”, and the dreaded “with all due respect” is a guaranteed way to ‘lose friends and infuriate people’. They may seem trite but simple inter-personal skills such as using the ‘feedback sandwich’ (placing negative comments in between two positive statements) and listening to others is crucial to keeping everyone’s emotions in check. Also, remember that emails and WhatsApp messages can be easily misconstrued. If you must put a particular point in writing, make a quick phone call or visit the recipient(s) in order to clarify the tone of your message.

 

People do business with those they like and trust. Therefore, to minimise the risk of boardroom conflict, have the Board come together in a social setting regularly. 

 

Incorporate a disputes resolution policy in the company’s Articles of Association and the Board’s Charter. It is also best practice to have a written Code of Conduct setting out the standards of professionalism expected when making decisions and how board members are expected to behave towards each other. Before they join the Board, have new members sign the Code of Conduct so you can be confident they know what is expected of them.

 

Conflict is a normal, healthy part of the decision-making process between board members. What matters is how disagreements are managed and that everyone involved feels listened to and that their views are considered and respected.

 

At LawBite, our lawyers can provide excellent legal advice on different corporate matters as well as for dispute resolution. If you have any legal issues you would like to discuss with a lawyer, you can book a free 15-minute consultation through LawBite's platform.