Internal conflict within an organisation can be a ticking time bomb. The quiet tension, the unspoken resentment, and the occasional heated debate are all red flags that many leaders ignore, hoping they’ll resolve themselves over time. But more often than not, these issues don’t just disappear; they fester, multiply, and explode when least expected. And once conflict spills beyond your office doors, it can become a full-scale PR disaster that threatens your team’s dynamic and your organization’s very reputation.

As organizations embrace the benefits of expansion and growth, they must also be prepared for turbulence. The solution lies in fostering a culture of preparedness and establishing robust leadership that can weather any storm. Let’s dive into how businesses can manage internal conflict, encourage adaptability, and maintain a resilient culture in times of crisis.

Interpersonal Relationships: The Heart of Effective Decision-Making

In any organization, interpersonal relationships are the foundation for building trust and credibility. Effective communication and the ability to relate to others directly impact decision-making and organizational dynamics. When these relationships break down, the results can be detrimental. 

I recall a situation in which an employee was deliberately trying to curry favour with the Chair of the Board, spreading misinformation that undermined the leadership team and damaged internal trust. As the Senior Risk Manager, I knew this would result in disaster if left unchecked. Despite the employee’s likability, I brought the issue to the attention of the President and CEO. Unfortunately, the President, who was new to the company, chose not to address the behaviour, resulting in further internal conflict. Ultimately, this lack of action contributed to the President’s termination.

This experience reinforced to me the importance of addressing issues around internal dynamics early on. Leaders must create a culture of open communication where employees feel heard and valued. This ensures that when crises arise, whether internal or external, employees become advocates for the organization, even helping to contain or resolve reputational damage.

The Cost of Unresolved Conflict

Conflict is inevitable in any workplace, but how it’s handled makes all the difference. When conflict goes unresolved, it can create an environment of disengagement, where communication falters, and shared objectives take a backseat. As the organization loses its cohesion, external actors or competitors can seize the opportunity to exploit internal weaknesses. The corporate world thrives on marginal advantages, especially in cutthroat industries like Formula One racing. Similarly, internal conflict if left unchecked creates an opening for outsiders to capitalize on organizational instability.

Leaders must address internal tensions quickly. Conflict resolution should be a priority and not something avoided out of fear of confrontation. In my experience, organizations that handle conflict swiftly and directly have a better chance of keeping internal issues from becoming public crises. At Committed2Change Consulting (C2C), we advise clients to adopt a mantra of “Own It, Share It, Repair It” when conflict arises. By acknowledging the issue (Own It), seeking outside perspectives (Share It), and collaboratively working toward a resolution (Repair It), organizations can prevent issues from escalating and protect their reputation in the process.

Managing Change and Adapting to Uncertainty

Adaptability is crucial in today’s business environment, where constant change is the only certainty. Employees often seek stability, but businesses must remain agile in the face of fluctuating market conditions, technological advances, or shifts in consumer behaviour. This clash between a desire for stability and the need for adaptability can create friction within teams. Leaders must bridge this gap by preparing employees for uncertainty.

Leaders need to communicate openly with their teams about upcoming changes, ensuring they feel confident in their ability to navigate the challenges ahead. Leaders should also demonstrate trust in their employees to handle new tasks and adapt to evolving circumstances. By doing so, they transform their teams into resilient, adaptable units capable of weathering crises with confidence.

The Role of Leadership in Crisis Management

In times of crisis, leadership is the stabilizing force that can make or break an organization. Strong leaders recognize that their role isn’t just to command and control but to model the behaviours they expect from their teams. Authentic leadership; humble, transparent, and focused on the organization’s long-term well-being is essential in maintaining trust and morale during turbulent times.

At C2C, we encourage leaders to lead humbly, acknowledging their limitations and seeking input from others. This approach builds trust and invites collaboration, creating an environment where employees feel valued and empowered to contribute to solutions. In crisis management, leaders must be the first to communicate, seek resolution, and admit when they don’t have all the answers. This fosters a culture of transparency and accountability, where all organization members can work together to overcome challenges.

Preparing for the Unexpected: A Proactive Approach

Businesses must adopt a proactive approach to crisis management to truly thrive in the face of adversity. This approach involves planning for the worst while continuing to drive forward. As Carter suggests, the real issue is not whether a crisis is unexpected but whether adequate preparation has been made. Moderation should include establishing clear policies and expectations for employee conduct, implementing a flexible crisis response plan that can address various scenarios, and investing in realistic training that empowers employees to respond effectively.

By embracing these strategies, organizations can create an all-hazards approach to crisis management, one that not only anticipates potential issues but also enables the company to respond with agility and confidence. Leadership must model this behaviour, demonstrating that no matter what happens, the organization will weather the storm together.

Surviving the Crisis Together

The reality of today’s business environment is that crises are inevitable. However, with the right preparation, a focus on communication, and strong leadership, organizations can turn potential disasters into opportunities for growth and innovation. Leaders who foster a culture of trust, collaboration, and adaptability will create teams that not only survive crises but come out stronger on the other side. By addressing conflict early, communicating openly, and preparing for the unexpected, businesses can build a resilient foundation that will support them through any challenge.