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Mastering Conflict Resolution: Navigating Different Types of Conflicts in Business Transformation
Global supply chain blogs
About the Author
Vivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available www.globalscgroup.com
Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.
Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.
Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.
Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.
More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available on www.globalscgroup.com
Introduction
During a business transformation several conflicts arises from various sources. Ranging from differences in concepts, interests, perceptions, and even generations. These conflicts can take place between individuals within a company, among departments, or different organizations. Regardless of the source, conflicts can hinder progress and create tension within the workplace. One such conflict is the debate between Agile and Green methodologies is one example of a conflict of concepts, where companies struggle to prioritize adaptability and responsiveness versus environmental sustainability. Conflicts of interest can arise between departments prioritizing different goals, like customer satisfaction versus cost reduction. Conflicts of perception can occur when individuals have different perspective regarding thesituation, causing disagreements and delays. Finally, conflicts of generations can occur in supply chain management due to differences in problem-solving approaches between older and younger generations. We will learn about each type of conflicts in this blog.
Content
Conflict of concepts (Agile vs. Green)
Some people may relate to certain concepts more than others, leading them to believe that their preferred concept is the right one. This arises a conflict within an organization, and stunt progress towards achieving business goals. One example of a conflict is the debate between Agile and Green methodologies. Agile methodology emphasizes adaptability, flexibility, and responsiveness, while Green methodology prioritizes environmental sustainability. Both approaches have their merits and drawbacks, and different organizations may prioritize one over the other depending on their goals and values.
When a major change is about to unfold in an organisation, such as the implementation of a new business process or a meaningful organizational restructuring, conflicting opinions on concepts can cause tension and delays in the plan. Employees who strongly believe in one approach may resist change, and try to convince others that their approach is the better one. This can lead to a lack of consensus, and make it challenging to move forward with the change.
To avoid conflicts related to concepts in business, it is crucial for organizations to foster an environment of open communication and collaboration among its employees. This means encouraging employees to share their opinions and ideas, and being open to feedback. It also means acknowledging that different concepts may have their merits, and that there may not always be a clear right or wrong answer.
Conflict of interests (between departments, and between companies)
These types of conflicts can be particularly challenging to navigate. when dealing with major decisions need to be made that affect multiple stakeholders. One example of this is when a company is looking to improve the poor utilization rate of their manufacturing plants.
I will give you an example to help you understand, a company had multiple plants located around the world, some of the plants employing up to 3,000 people. The management needed to decide which plants to close in order to improve their overall efficiency.
This decision was met with massive conflicts of interests between different plant managers, who all believed that their factories were indispensable. These conflicts of interests can be particularly challenging to navigate because they involve competing priorities and goals. For instance, while one department may prioritize cost reduction, another may prioritize customer satisfaction. In the case of the manufacturing plant, different plant managers may have had different perspective and priorities for their respective plants, making it difficult to reach a consensus on which plant to close.
One way to manage conflicts of interests is to involve external consultants or experts who can provide objective insights and advice on different options. This can help to facilitate decision-making and bridge gaps in understanding between different stakeholders.
Conflict of perception
This type of conflict is closely related to ‘conflicts of interests’. Conflicts of perception have more to do with psychological factors and people’s judgments. Specifically, these types of conflicts arise because of blind spots in our perception. We all have biases and assumptions that shape the way we see the world, and these biases can lead to misunderstandings and disagreements.
For example, one employee may perceive a particular project as a top priority, while another may see it as a low priority. The discrepancy in perception can lead to disagreements and delays in completing the project. Similarly, two individuals may perceive the same situation in different ways, leading to disagreements about the best course of action. To navigate conflicts of perception in the business world, it is important to foster open communication and actively seek out different perspectives. This means being willing to listen to feedback from others, and being open to the idea that our own perceptions may be flawed. It also means acknowledging the potential for biases and assumptions to influence our perceptions, and actively working to challenge and question our own assumptions.
One way to manage conflicts of perception is to encourage constructive feedback and dialogue between different stakeholders. This can help to identify areas of disagreement and work towards a common understanding of the situation.
Conflict of generations (Supply Chain 1.0 vs 2.0 vs 3.0)
We are in the midst of Supply Chain 3.0, which is marked by the increasing use of artificial intelligence, machine learning, and automation. These advancements have the potential to significantly improve efficiency and reduce costs in the supply chain. These changes may not have the support of every individual in the industry.
Conflicts of Supply chain generations can arise when older generations resist the adoption of new technology, either because they are unfamiliar with it or because they are comfortable with the way things have always been done. Younger generations, on the other hand, may push for rapid change, seeing the potential for improved efficiency and cost savings. These conflicts can cause tension and slow down the adoption of new technology, potentially hindering the progress of the supply chain as a whole.
To manage conflicts of generations in the supply chain industry, it is important to foster a culture of open communication and collaboration among the employees. This means encouraging all stakeholders to voice their opinions and concerns, and actively seeking out different perspectives. It also means acknowledging the value of both old and new approaches, and working to find a balance that incorporates the best of both worlds.
Another important factor in managing conflicts of generations is education and training. By providing older generations with the knowledge and tools they need to adopt new technology, and by investing in the education and training of younger generations, organizations can help to bridge the gap between different age groups and encourage a more collaborative, forward-thinking approach to supply chain management.
Conclusion
Conflicts in business can arise from a variety of sources, including differences in concepts, interests, perceptions, and generations. These conflicts can impede progress towards achieving business goals, and can lead to tension and delays in decision-making. However, by fostering an environment of open communication and collaboration, organizations can manage conflicts and find ways to bridge gaps between different stakeholders. This means acknowledging and valuing different perspectives and opinions, and actively seeking out feedback and constructive dialogue. By doing so, organizations can navigate conflicts effectively and move towards a more productive and successful future.
Introducing.....
The global supply chain of products is an immense and complex system. It involves the movement of goods from the point of origin to the point of consumption, with intermediate steps that involve resources, materials and services to transport them. A supply chain encompasses activities such as purchasing, production, distribution and marketing in order to satisfy customer demands. Companies rely on a well-managed supply chain to meet their business goals by providing quality products and services at competitive prices.
Efficiently managing a global supply chain requires considerable effort, particularly when dealing with multiple suppliers located around the world. Complex logistics tracking systems are needed to monitor product movements from one place to another. Technologies such as artificial intelligence (AI) can help companies keep track of shipments across different locations for greater visibility into their processes.
what did Our Reader say?
GARRY BADDOCK
Chief Operating Officer Graphite Energy
I have experience with many of the well-known top-tier strategy firms but chose Global Supply Chain to support me on my supply chain projects. They always meet and exceed my expectations due to the quality of the work, the ability to work collaboratively with internal teams, and the flexibility to adjust the project approach when required.
PHILLIPPE ETTIENNE
CEO - Large Global transnational corporation From: FOREWORD - OUTSOURCING 3.0
When I engaged Vivek’s services for supply chain transformation in one of the companies I was heading, we expected the careful and methodical approach that he was famous for... I was pleased to note that the original target set for 3 years was surpassed by almost 70% in just 18 months.
TONY FEDOROWICZ
Vice-President Supply Chain Asia Pacific
I have used their services for several business transformations and workshops in many companies. Each time an outstanding workshop and project result was delivered ensuring the success of the business transformation project. Savings surpassed $25 Million per annum in one case. Very powerful ideas, were implemented very diligently.
Jean-Briac Le Dean
Co-Founder & Agen
Vivek is a very collaborative and open leader who leads teams by example. Whether internal teams, or clients teams, all are impressed by his intensity, energy level and drive to make things a little better.
Lorna Calder Johnson
Omni-Channel Product Marketing
P & L Executive
Vivek's transformation expertise is apparent from his results and dedication to operations and supply chains. His strategic expertise, knowledge and network make him a standout even among an excellent team.
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