Highly dysfunctional organisations are those in which conflict simmers below the surface but is not openly discussed. More than open conflict, fear of conflict breeds corporate failures. Bad ideas become new products or processes because employees and managers were afraid to ask difficult questions or offer alternative perspectives. Innovation is stymied, employee turnover or disengagement is high, and morale and mission achievement are low. At its worst, corporations with cultures of conflict avoidance become ethical pariahs. This seems counterintuitive, yet examples abound: Boeing sold a flawed plane; VW cheated environmental regulations; Wells Fargo cheated customers; and Uber ignored hundreds (if not thousands) of complaints of sexual harassment and suffered long-term brand damage. Conflict can be constructive or destructive. Effective leaders harness the power of positive change inherent in constructive conflict in order to solve problems, think creatively, fully engage employees, and out-compete rivals.
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