Formalize Escalation Procedures to Improve Decision-Making
Conflict is inevitable. A systematic approach to escalation helps organizations manage disagreements efficiently and make better decisions.
Michael Austin/thesipot.com
When colleagues are in conflict, they often seek support for their points of view from sympathetic leaders and managers rather than trying to work out the issue collaboratively. That can result in higher-ups endorsing a poor decision because they have insufficient information, as well as diminished trust and damaged relationships between those involved. Six guidelines around escalating conflicts offer a systematic approach that encourages people to start by working toward a resolution together.
The CEO of a fast-growing pharmaceutical startup recently forwarded us an email exchange he had had with his chief financial and chief commercial officers. It seems that the CCO had surprised both the CEO and CFO by proposing to spend more than $450,000 to retain an outside agency.
The CFO immediately fired off a private email to the CEO: “We are in total lockdown mode while we raise Series C funds. We just got a $75 million bridge loan. Why isn’t she coming to me? I should be included in these decisions.” The CEO responded, “I assume if a member of the executive leadership team brings me a proposal, they’ve talked it through with their colleagues.” The CFO replied, “Well, she didn’t!”
Considering this exchange, we told the CEO, “It seems that members of your team immediately jump to escalating issues to you versus trying to resolve those issues themselves.” We added that it would have been better if they had first tried to talk to each other and sort out the issue. If they still had a difference of opinion, they should have documented why they disagreed and how they had tried to resolve it. Then, and only then, should they have gone to the CEO to discuss it — together.
Disagreements and conflict over issues as varied as strategic direction, investments, and daily priorities pervade every organization. In our eight years gathering data on organizational effectiveness from 1,400 executives representing 500 companies worldwide, 84% reported regularly dealing with counterparts they considered “unreasonable.” Such conflict occurs between peers, across different functions and business units, and among executive team leaders and board members. Conflict is sometimes overt and often covert. Conflicts are sometimes resolved constructively, but, more often, conflict compromises execution and damages relationships. Managing conflict so that it does not interfere with operations or damage working relationships is essential to organizational effectiveness.
Clearly defined escalation procedures ensure that disagreements are addressed at the right level and resolved collaboratively and efficiently. This is not a trivial challenge; people encounter multiple points of tension when deciding whether to escalate. (See “Where Tensions Arise in Escalating Issues to Leaders.”) Unfortunately, relatively few organizations have defined and implemented an effective way to ensure that conflicts are efficiently and effectively resolved at the right level of management.
