CPA Practice Advisor

SEP 2014

Today's Technology for Tomorrow's Firm.

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34 September 2014 • www.CPAPracticeAdvisor.com BRIDGING THE GAP By Jim Boomer, CPA.CITP, CGMA, MBA How to Turn Confict into a Strategic Asset Yes, but more ofen than not, the quality of decisions made by a team of people with diverse backgrounds a nd perspect ives is much h igher. A nd diverse teams naturally lead to conf lict. However, conf lict is not n e c e s s a r i l y a b a d t h i n g . W h e n managed properly it can actually be harnessed as a strategic asset. Types of Confict Tere are two types of confict that typically arise in a team seting. • Task confict – Tis type of confict is beneficial to decision-making and involves disagreement about the content of decisions. It is rooted in diferences in viewpoints, ideas and/ or opinions about things like how we interpret facts, complete a project or deploy resources. • Relationship confict – At the other end of the spectrum is confict that deters progress. Relationship confict is emotional in nature and focuses on interpersonal incompatibility. It typi - cally results in tension, annoyance and animosity among team members. Diferences in personal tastes, politics, values and personality are examples. T he most ef fect ive tea ms, a nd ultimately, the most efective deci- sions promote task confict and work to difuse relationship confict. Common Pitfalls Con f l ic t ma nagement is not t he same as confict avoidance. W hen we avoid confict altogether, we miss out on valuable information, experi- ence and perspectives that improve the decision-mak ing process. For example, a team might go with the frst suggestion made just to avoid a confrontation. However, the sugges- t ion may have been made si mply because it had the least chance of resistance. Tis results in a decision that no one on the team really supports. In this case, a litle confict – or at least d i s c u s s i o n – w o u l d h a v e b e e n healthy and led to a beter decision. Tere are a number of decision- making processes that stife healthy conf lict or defer it in favor of the easier path. Here are some of the more common examples: • Majority Rules – team members who sense they are in the minority will avoid ofering a dissenting opinion to avoid feeling like an outsider or impediment to making a decision. • Defer to Tose "In Charge" – exces- sive deference to status characteristics such as seniority or the person with the loudest opinion does not lead to the best decisions. Tere is a wealth of knowledge at all levels of the frm. Take advantage of it. • Atacking dissenters – dissension creates a lag to decision-making and is ofen frowned upon by the team. Similar to "majority rules," atacking those who dissent limits the number of diverse viewpoints ofered during the decision-making process. Encourage Task Confict How c a n a tea m encou rage t a sk confict and avoid escalating rela- tionship confict? Some strategies include: • Utilize task forces and commitees comprised of members with diverse backgrounds and experiences. Tis will encourage difering opinions and perspectives as well as beter decisions and outcomes for your frm. • Avoid starting a meeting with a vote. You met for a reason. Discuss and debate the issues to explore all avail- able information and attempt to resolve diferences of opinion. • Do not compromise to avoid the conflict. Recognize the value of debate, because it helps ever yone explore more issues and, ultimately, make a beter decision. Compromise is ofen necessary to move forward but it shouldn't be used until the discussion takes place. • Solicit minority opinion. Make sure that people aren't keeping quiet simply to avoid the uncomfortable feeling of being in the minority. Some of the most valuable information will come from those who don't agree with the majority. • Focus on the behavior or issue and NOT the individual. Tis is the most important – and most difcult – part of conflict management. W hen a debate becomes personal, the natural tendency is to become defensive. When people get defensive, a healthy conflict will quickly turn into an argument. Reaping the Benefts Confict is a natural part of working as a team. Too ofen, we avoid it in order to rem a i n i n ou r c om for t z ones . However, w hen ma naged properly, confict can be extremely benefcial to decision-making. Te frst step to efective confict man- agement is to understa nd how to spot di ferent t y pes of con f ict by listening carefully to team members a nd e n s u r i n g t h at you he a r t he messages t hey a re at tempt i ng to convey. N e x t , a p p l y g e n e r a l r u l e s t o manage both task and relationship c on f l ic t . It i s a l so i mpor t a nt to develop a process that w ill be fol- lowed when con f l ict a r ises. T h is creates consistenc y and increases team members' comfort and conf- dence when dea l i ng w it h a tense situation. Ultimately, the ability to manage confict can turn what you thought was a liability into one of your frm's greatest assets. Jim Boomer is a shareholder and the CIO for Boomer Consulting , Inc. He is the director of the Boomer Technology Circles™ and an expert on managing technology within an accounting frm. He also serves as a strategic planning and technology consultant and frm adviser in the areas of performance and risk management. In addition, Jim is leading a new program, Te Producer Circle, in collaboration with CPA2BIZ and the AICPA. jim.boomer@cpapracticeadvisor.com C onfict. Whether it is related t o d e c i s i o n s a b o u t f i r m management, technology or personnel, most of us try to avoid it like the plague. Afer all, wouldn't life be easier if we could just make decisions in a vacuum and not worry about what others think?

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