Smart hiring practices can avoid the wrong kind of conflict
Though the temptation may be to avoid conflict, the truth is that conflict can actually be an important business resource when starting a small business - but only if it is the right kind of conflict.
Emerging technology news website GigaOM reported that the wrong kind of conflict - "affective conflict" caused by "brilliant jerks" - can sabotage small business growth by hurting team performance and corporate culture. Instead of focusing on intelligence when hiring employees, therefore, small business owners should focus on finding "star" employees - those that are high in emotional and social intelligence as well.
Yet entrepreneurs do not need to be afraid of cognitive conflict, which can help discover strategic possibilities and eliminate the psychological phenomenon called groupthink, when individual opinions are adapted to converge to a group consensus (one that is not necessarily the best option).
"[C]ognitive conflict is characterized by healthy debates about 'what' to do and 'why' to do it; it thus generates multiple strategic choices and allows us to weigh options. It also helps us think more clearly and broadly about our competition," said the article. "Indeed, cognitive conflict has been shown to increase firm performance and shareholder wealth."
Small business owners are urged to focus on their leadership to navigate both types of conflict - a recent McKinsey Global Survey found that leadership was ranked the most important factor in helping a company weather difficult times.
