Managing Conflict on Teams

Why Team Conflict Happens

Team conflicts can arise from many sources. Lack of clear direction, competing priorities, the nature and pace of change, cultural differences, hierarchical corporate cultures, differing personality traits, lack of interpersonal communication skills and generational differences can all lead to conflict in the workplace. 

Here are some real-world examples:

1. Conflicting goals:

A classic case is the divide between sales and production/operations. Sales promises features, pricing, or timelines that aren’t feasible; operations pushes back based on cost or quality constraints. The result: conflict, declining performance, and reduced trust.

2. Organizational change & unclear responsibilities:

When a major division of a global investment bank reorganized into a matrix structure (10,000+ employees affected), ambiguity between vertical and horizontal reporting lines created significant confusion. Productivity, morale, and retention suffered due to conflict at the “intersection points” of the new structure.

3. Communication culture differences:

During a bank merger, IT teams struggled with trust and growing frustration. The culprit? Different interpretations of the “cc” email feature. One bank used cc as an FYI; the other saw it as escalation. This misalignment triggered conflict for nearly a year before it was uncovered.

4. Generational expectations:

Gen Z and Millennials prefer frequent, informal feedback with a balance of positive and constructive input. Boomers and Gen X tend to give formal, corrective-focused feedback. The mismatch can lead to lower morale and unnecessary conflict.

Understanding these root causes is essential to effective team conflict resolution and improving team dynamics long-term.

The Costs of Poorly Managed Team Conflict

Poorly managed team conflict affects far more than interpersonal relationships. As shown in the examples above, it can lead to:

• Reduced productivity and efficiency
• Lower morale and engagement
• Damaged team cohesion and trust
• Increased internal competition instead of external focus
• Higher turnover and disengagement
• Slowed business execution

With strong workplace conflict management skills, leaders can transform these outcomes into positive experiences that strengthen the team.

Signs of Conflict on Teams

Some signs of conflict are obvious; others are subtle but equally harmful. Common indicators include:

• Open disagreements or heated discussions
• Passive-aggressive behavior or withdrawal
• Decreased collaboration or communication
• Missed deadlines or project delays
• Frequent misunderstandings

For example, in a financial institution known for its collaborative culture, overemphasis on collaboration eventually turned into a tactic to avoid accountability. This “collaboration overload” led to passive-aggressive behavior and slow decision-making.

If two people on the same job agree all the time, then one is useless. If they disagree all the time, both are useless

– John C. Maxwell

The downside of too much collaboration is that it can lead to passive-aggressive behaviors that prove to be unhealthy, even dysfunctional, in the long-run.

1. Encourage Open Communication

Leaders must create safe spaces for honest dialogue. When team members feel heard, they’re more willing to surface issues early.

2. Practice Active Listening & Empathy

These emotional-intelligence skills help leaders understand multiple perspectives and reduce defensiveness.

3. Clarify Roles, Expectations & Objectives

Ambiguity fuels conflict. Clear responsibilities, measurable goals, and aligned priorities reduce confusion and misinterpretation.

4. Promote Collaborative Problem-Solving

Encourage solutions that benefit both sides. Rewarding win-win outcomes builds trust and strengthens team dynamics.

5. Address Conflicts Early

The longer conflict sits, the harder it becomes to manage. Early intervention prevents small disagreements from becoming entrenched disputes.

6. Use Neutral Facilitation When Needed

Mediation by a trained facilitator or coach can help resolve complex conflicts and restore objectivity. External resources can help by providing a truly independent (fair) perspective.

7. Foster a Positive Team Culture

A culture grounded in respect, transparency, and psychological safety supports healthy conflict, better communication, and improved performance.

Together, these conflict management strategies set the stage for long-term success and healthier team dynamics.

Tools & Techniques for Team Conflict Resolution

Training and development programs are a good start if done well; these might include conflict resolution models like the Thomas-Kilmann model, which includes a useful self-assessment instrument. Team discussions of conflict and other team behaviors are good practices, often leading to the development of team behavioral guidelines, or charters, to guide behavior.

 Depending on the severity of the situation, third party executive coaching or team performance expertise may be necessary to jumpstart the process. Lynn Reed Associates has provided this support hundreds of times in major financial and other institutions around the world over the years with excellent results. We may utilize a variety of models and techniques along the way (i.e., emotional intelligence, personality type indicators, SLII, change style indicators or the Six Thinking Hats).

Tips for Leaders to Sustain a Healthy Team Environment

Quick, actionable tips for leaders:

• Promote continuous feedback and regular check-ins
• Recognize and reward collaboration
• Provide training in conflict management skills
• Encourage transparency and accountability
• Lead by example in managing disagreements
• Make it safe for team members to surface conflict
• Measure progress and reinforce positive behaviors

What gets measured, gets done…what gets paid for, gets done even better” 

– Tom Peters

How Lynn Reed Associates Can Help

Our executive coaching and team performance practices represent nearly half of our global work—and our expertise is unmatched. We start with a thorough assessment of the situation, including qualitative interviews and quantitative surveys, to diagnose root causes and design a tailored strategy.

Once senior leadership has committed to addressing the challenges, we facilitate customized team development processes that encourage open communication, surface conflict safely, and establish new behavioral expectations. Depending on the team’s needs, we may incorporate tools such as EQ-i 2.0, MBTI, SLII, CSI, or Six Thinking Hats. These techniques are explored in further depth in a separate blog, “Conflict Resolution for Managers and Supervisors”. 

Conduct regular team check-ins and accountability to support the desired behaviors. Ask team members to start by stating “1 plus and 1 minus” in terms of the team’s effectiveness. Listen for common themes. Be patient – behavior change takes time. Give it time to work. 

Contact us to learn more. You will not be disappointed.