Question

Discord Investments didn’t expect so much conflict when the regional brokerage firm brought in a global information technology (IT) consulting firm to implement a new client/server network. Discord had no plans to outsource its information systems activities, yet the investment firm’s own IT employees were worried that they would be replaced or transferred to the consulting firm after the hardware installation was completed. This risk made them somewhat reluctant to provide details about Discord’s operations that the consultants needed to do their jobs effectively.

"Why should we tell them what we know and end up losing our jobs or, at best, getting outsourced to some unknown outfit?" Discord’s IT employees privately warned each other. The consultants sensed this reluctance, but the Discord employees kept their concerns to themselves.

Scheduling was another source of disagreement between Discord’s IT staff and the external consultants. Each week, the consultants flew in from other cities to Discord’s offices, typically working 12-hour days, Monday through Thursday, then flew back to their home cities on Friday. Discord’s employees lived close to the company’s offices and worked Monday to Friday with regular hours, usually 9 to 5 with one or two hours of flexibility around those times. The consultants raised concerns that the project would be delayed by Discord’s IT staff if they did not adjust to the consultants’ schedule during the two or three months that the consultants were on-site. The employees complained because the consultants’ schedule would mean significant disruption to their usual nonwork life, such as attending evening school events, spending time with family, or participating in sports and other social activities during the week.

Finally, the most serious disagreement broke out regarding who should lead the project— the Discord IT managers or the external consultants? Discord’s top executives tried to quell the dispute by giving the leadership role to the consultants, but this decision simply added to the tension. The problem was that Discord’s IT people would be responsible for the system long after the external consultants were gone, so they felt somewhat trapped by the consultants’ power.
A Identify and explain the main source(s) of conflict in this case.
B What actions should the organization take immediately and for future consulting interventions to manage the conflict more effectively?

Answer 1

The conflicts at Discord Investments are due to fears of outsourcing, schedule clashes, and leadership disputes. Effective conflict management should involve clear communication, schedule compromises, inclusive decision-making, and potentially an in-house dispute resolution process.

Step-by-step explanation:

Sources of Conflict

The main sources of conflict in the case of Discord Investments relate to fear of job loss due to outsourcing, scheduling disagreements, and leadership disputes. The internal IT staff fear that sharing their expertise will render them redundant, while their traditional work schedules conflict with the consultants' more intensive work pattern. The decision to place the consultants in leadership roles exacerbated concerns among employees about their long-term control over the new system.

Managing the Conflict

To manage the conflict effectively, the organization should establish clear communication channels that reassure employees about their job security. Secondly, a compromise on working schedules that accommodate both parties' commitments should be sought. For future consulting interventions, it is imperative to involve IT staff in the decision-making process and clarify roles and expectations at the outset to avoid such tension. Additionally, implementing an in-house dispute resolution process may provide a structured avenue for airing concerns and finding solutions collaboratively.