The Art of Boardroom (Dis)harmony

In this month’s The INside Leadership View I’m exploring the prickly subject of disharmony in boardroom.  This topic featured in both our InX Leadership Summit, which took place last week with keynote speaker Rupal Patel, and also in the results of our recently published boardroom survey.  The report revealed misaligned views when board members consider their priorities, achievements, and problem areas and Rupal provided insights on how to tackle disharmony and also how it can have unexpected benefits. 

Here we’ll uncover why disharmony may occur, how leaders can take positive action, and how it can be utilised to achieve positive outcomes, like growth and innovation.

The routes of conflict clashes

It’s broadly agreed that different perspectives and experiences are hugely beneficial for boards.  A broader customer base and untapped talent are more likely to be understood and reached, and varied perspectives also help the avoidance of blind spots.  However, there are times when strong differences of opinion, and internal politics, can cause friction.

1)        Power battles.  Conflict can arise when peers push for influence and control, particularly where areas of responsibility overlap.  This may occur, for example, when companies undergo significant growth, and new executives join who perceive they have higher levels of knowledge and experience than existing execs and quickly push to build credibility. Personal ambition, egos and sheer stubbornness can all play a role in creating disharmony as people vie to claim, or hold on to, areas of responsibility.

2)       Weak communication.  Ineffective communication can be a huge contributor to disharmony.  Misunderstandings can arise when the full picture isn’t presented, and there’s poor information flow to people who feel they should be included in decision-making.  When people feely feel excluded, it can lead to mistrust and tension, along with covert conversations and finger pointing. Reputational damage and disengagement will follow.

3)       Role ambiguity.  As companies change, whether this is due to growth and maturity, increasing complexity, or restructuring, for example, roles and remits can significantly shift. Without regularly re-clarifying roles and ensuring the right leaders are in the right place and working towards an aligned vision and strategy, power struggles are likely.

4)       Culture clash.  You might cringe at the words ‘workplace culture’, but companies do have their own personalities.  Whether fast and chaotic, cautious and risk adverse, progressive and entrepreneurial, traditional and structured, execs need to learn how to operate and thrive in their environments.  Sometimes, particularly when companies merge and form new entities, these contrasting modes of operandi can cause friction and frustration as board colleagues navigate their new landscape.

Responding to board conflict

The aim is to resolve conflict early, before it escalates, and there’s plenty of advice to tap into on the subject.  As most of us want to continuously grow (see point 2 below) I’ve gathered some here.

1)       Remit clarity.  Forbes contributor Kjartan Rist argues that there’s an increased chance of conflict when companies are operating in a challenging market in an article entitled Boardroom Conflict Happens: How Should Founders Handle It? 

“From concerns about growth to disagreements about costs and hiring, or misalignment about future strategy, a range of issues can come to a head when growth hits the buffers.”   

Clear communication regarding strategic goals is, of course, crucial.  Founders or CEOs should also “Consider the skills and recent experience you need at the top table, based on your objectives, and have open conversations to reduce the involvement of those who don’t fit the bill.”

2)       Promote an ‘all growing’ culture.  At our recent InX summit, former CIA advisor and author Rupal Patel claim titles don’t have the weight that they used to have.

“It’s not enough to be ‘the boss’ you have to understand others, what they care about, the information they need, and what it will take to move forwards.” 

She also encourages leaders to admit when they don’t know something.  Good leaders have progressed from ‘all knowing’ to ‘all growing’, she suggests.

3)       Focus on core values alignment.  In the Institute of Directors article ‘Boardroom Dynamics – Managing divergent views and averting a divided board’ Kahumbya Bashige admits it’s inevitable that there will be disagreements among board members, particularly if they are bringing diverse perspectives, but this at least indicates active engagement rather than passivity.  To avoid conflict board members should have personal values that are aligned to the organisation’s values and a ‘first among equals’ approach should be encouraged to stimulate discussions and debate.

4)       Constantly communicate.  There were several areas in our Technology and the Boardroom Survey where views did not align around the boardroom.  Often the CEO felt more strongly about a particular subject than his/her team.  Constant communication and checking in, crucial. 

In addition, it’s important to empower leaders and allow voices to be heard equally.   Leaders have to ‘bring people with them’, and this is true particularly when others disagree with a route forwards.  People want to be heard and objections can be useful when considering a course of action, particularly if it’s a new and untested one.  However, executives must also judge when it’s time to move forwards.  It can be debilitating if every concern requires a resolution.

5)       Encourage constructive dissent.  Katie Scott, writing for Raconteur, states that constructive dissent is healthy and excessive deference is not in her article Decent dissent: how to avoid groupthink in the boardroom.  She argues that employees from all levels in a business, not just the board, should be encouraged to object to ideas or courses of action and this shouldn’t be framed as ‘conflict’.  She adds,

“Inviting constructive criticism of a proposed course of action can spark a healthy debate, which can in turn generate new and better ideas.”

6)       Embrace the change-makers.  Rupal agrees claiming disharmony can be a change-maker within organisations.  Innovation can occur when we explore ideas and challenge the ideas of others.  However, to do this, people require a safe environment where new concepts are welcomed, and people are allowed to trial ideas and are supported (rather than penalised) if initiatives fail.  Leaders must feel comfortable expressing opinions without fear of retribution. 

7)       Structured mediation.  If all else fails regulated, structured discussions should help to resolve persistent, or highly disruptive, conflict.  It may worth investing in a mediator to help find a way to peace or agree an outcome that serves all, which may involve a parting of company.

Disharmony in the boardroom (or indeed any leadership team), while often viewed negatively, can be a powerful driver of innovation and growth when managed effectively.  By encouraging open communication and active listening, clarifying roles, and embracing objections, boards can transform challenges into opportunities and become the strong, unified team required to drive a company forwards.

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