Conflict Case Study #2

Managers Who Will Not Work Together

The president of a consumer products company has two vice-presidents (VP) in charge of Marketing:  one handles domestic, the other handles international.  The International Marketing VP wants policy and procedural changes to enhance the work flow and cost containment of his division.  The U.S. Marketing VP believes these changes would cut both revenue and market share in domestic markets.  The differences have grown personal between the two with frequent disparaging remarks in public and behind the scenes gossip about the other VP.  Morale and productivity in the entire company is down.
 

Assessment of Issues:

It appears that a basic problem in this management circle is a lack of understanding of the company mission.  Is the company moving toward international markets, enhancing domestic markets through an international customer base, or trying to achieve some balance or synergy between the two.  Without understanding the company’s mission in regard to target markets and revenue growth, the V.P.’s will not be able to work together in an effective manner to achieve these goals.

As a result, one V.P. is trying to enhance international sales through changes to domestic programs.  He is naturally inclined to try new things which will bolster his sales.  The other V.P. has become incensed, whether the changes really affect his market or not, because of the intrusion. This has led to an unhealthy competitive animosity between the two V.P.’s.

The competition, animosity has led to a breakdown in communication between the two.  This is a serious, short-term problem for the president since there is a natural overlap between the two divisions.  Sales personnel thrive on motivation, energy, and a positive outlook on their markets.  The disharmony created by the V.P.’s is undoubtedly causing a diminishing sales result in both international and domestic markets.
 

Strategy for Managing Conflict:

There is a short-term and longer-term strategy that the President must address.  In the short-term, each V.P. must stop the public bickering, reestablish a healthy sales climate, and work together to achieve their respective division goals.  Second, the President must get with the V.P.’s to achieve a consensus among them on the company mission.

Relationship Strategy:

First, the president must communicate privately with each V.P. about their leadership responsibilities.  He needs to reprimand their public attacks on each other.  A vice-president is a high-profile position within a company.  Employees look to the V.P. as a role model.  If the V.P. can get away with this kind of behavior, then so can other employees.  The president needs to let each V.P. know that this behavior is unacceptable.

A second thing the president needs to emphasize privately with each V.P. is his expectation that their individual division goals are met.  Since this will require some, perhaps much, interaction with the other V.P., each V.P. must foster a positive climate for exchange.  While this may simply be a veneer in the short run, it will improve morale and enhance overall operations.

Company Mission Strategy:

The president needs to convene a planning session with the management team to clarify the company mission.  Questions to be addressed should include, “Should domestic operations support international sales?” and “Should international markets be used to augment domestic sales efforts?”  The obvious conflict between the two may actually have been created by the president.  Or it could be a genuine lack of understanding between the two V.P.’s.  In any case, a consensus needs to be developed for application of the company mission to each division.  This should provide a forum for dialogue on the merits of the International Sales V.P.’s proposal to modify domestic practices.  It will also remove any process barriers to success by providing a clear vision of the company mission.

Based on the outcome of this planning session, the president will have to assess whether the management team he has in place has the appropriate skills to handle their respective goals.  He must also assess whether each is committed to the company and division goals.  The final assessment the president must make is whether each V.P. will seek and offer forgiveness, reestablish the relationship between them, and work amicably going forward.  Probably his first step would be to leave the current V.P’s in place and monitor their interaction.  If relational problems still remain, then the only other option is probably to change personnel in one or both V.P. positions.
 

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Copyright 6/18/2001, Randy Lariscy.