When conflict in the credit union workplace is a good thing: Part 1

Conflict, like death and taxes, is inevitable.  It’s a normal and natural part of any workplace, as well as our personal lives. But is it always a bad thing? According to respected leaders and researchers, the answer is no. While many of us are inclined to avoid any kind of conflict, especially in the workplace, conflict (depending on how it is managed) can have a positive effect. The key is recognizing positive versus negative conflict and managing it accordingly.  

For employees in a credit union environment, the opportunities for opposing opinions, goals, and strategies abound. This is due largely to complex hierarchical structures including front-line employees, branch management, regional management and executive management, with most of the individuals operating in different geographic branches or offices. Add to that several different lines of business operating within the same environment (deposits vs. lending, consumer vs. business, etc.), top it off with the presence of members, and you have a bubbling cauldron of conflict potential.  Proper conflict management becomes especially critical in such an environment.

In a Society for Human Resources article (HRMagazine, May 2017) Nate Regier, author of Conflict without Casualties (Berrett-Koehler, 2017) and co-founder of Next Element, a global advisory firm specializing in leadership communication, shared that,  

“Negative conflict, characterized by struggling against other people, drains energy, which is costly to companies, teams and relationships. But when approached in a positive way, conflict can spark innovation, trust and engagement.”

Some of the tactics that good conflict managers can take include:

• Recognize that conflict is not always destructive but is in fact necessary for effective problem solving;
• Create a work environment in which healthy conflict is encouraged by setting clear expectations;
• Provide employees with training in healthy conflict and problem-solving skills;
• Look for signs that a conflict about a solution or direction is getting out of hand. It’s okay to have positive conflict but not to allow negative conflict to destroy your work environment.

Conflict does not need to equate to hostility. In fact, some of the most creative ideas are born out of opposing views and differing perspectives. Conflict can create a frank and open discussion, if it’s managed in such a way to lead to constructive progress rather than destructive dissension.  The truth is that no company ever experienced rapid growth by sticking to the status quo.

An open-minded, progressive manager will harness the notions behind opposing viewpoints and use them to encourage a healthy positive discussion. It’s important that your team feels empowered to speak up without any threat to their reputation, or feelings of vulnerability.  Suppressing conflict will almost certainly squash creative momentum, employees will not feel heard or valued, and morale and enthusiasm will inevitably decrease. In even worse cases, conflict that is not properly managed can lead to performance problems, harassment and even bullying! In a credit union environment, this can be especially destructive, as the industry is continually facing greater competition, increasing needs to evolve and a continual need to improve member service. It’s critical to have an enthusiastic, empowered staff, and team members who are not afraid to be the voice of dissension when necessary!  

Here are some common examples of conflict in the credit union workplace and how they can be managed to result in a positive outcome:

Front-line employees disagreeing about work schedules, job responsibilities, and other administrative functions.

It’s common for managers to overlook many of these conflicts, shrugging them off as low-priority. While many such conflicts within your front-line may boil down to administrative in nature, much of this is easily managed through communication and simple changes. But your front line is integral to your institution because these are the individuals facing your members – your credit union’s lifeblood. So it’s essential to keep morale as high as possible at all times!

• Keep communication open and frequent: Have “town hall” type meetings, where all comments are safe, no topic is “taboo” and keep everybody up to date on any changes or developments that will impact their job. Allow your team to submit anonymous questions and do your best to answer all questions – especially the hard ones.  If you don’t have an answer, be honest and admit it.  You’ll be surprised by how much your candor will be appreciated.  
• Follow the proverbial smoke to the fire, and sincerely consider the source or context of the conflict. If your employees are perceiving a problem or an indignity, there must be a reason or explanation.  For example, one of our Velocity employees often visits different branches of our bank and credit union clients. At one credit union, tensions ran high between the front-line team due to a specific placement of the new accounts desk.  Because of its physical location, it was the most visible point in the branch, and potential members would walk straight to that particular desk upon entering the building. As a result, the representative stationed at the desk would yield a significantly higher than average rate of new account openings for the day.  In this case, since a branch remodel most likely isn’t an option, a savvy manager would rotate staff members in this highly-desired position, or even use it as a performance incentive.

Longtime employees resting on their laurels

There are many benefits to having longtime, loyal employees in your credit union – particularly when these same employees willingly embrace progress and learn to evolve with the ever-changing financial services landscape. Unfortunately, sometimes with long tenure comes complacence, resulting in a mechanized routine, feeling of being stuck in a rut, and ultimately, performance stagnation. The last thing you want to hear as a manager is the dreaded motto of the complacent: “But that’s how we’ve always done it.” Enter new, fresh employees with bright new ideas and unbounded enthusiasm, and you have conflict.  How can you harness this conflict to bring about positive results?

To be Continued in August 2017 – Look for Part 2!