Conflict management with lessons from history by Mark Kozak-Holland, 18 Oct 2016, APM Thames Valley and Wessex branch

© 2016 Mark Kozak-HollandConflict Management in Projects www.lessons-from-history.com

Conflict management within Projects

October 18th, 2016Mark Kozak-Holland PhD, PMP, IPMA-D, Cert.APM

Taken from research into

organizational design and

project management

“Lessons From the Past that Assist the Projects of Today to Shape the World of Tomorrow”

http://learn.genxus.com/


© 2016 Mark Kozak-Holland

Table of contents

1. Conflict management within projects

2. Historical and contemporary project case studies

3. Effective strategies to

– reduce the destructive side and

– enhance the constructive side

4. Summary

2 Conflict Management in Projects www.lessons-from-history.com


Definitions of conflict management - (APM)

The process of identifying and

addressing differences that, if left

unresolved, could affect objectives.

2.1.2 Conflict management

– Conflict can be defined as different

objectives and attitudes between two or

more parties.

– Conflict management is the process of

identifying and addressing differences

that, if left unresolved, could affect

objectives.



Definitions of conflict

1. One party perceives that its

interests are opposed or

affected by another party

2. Perceived difference

between two parties

3. Benefit or interest cannot

be achieved simultaneously

4. Each party is unique


© 2016 Mark Kozak-Holland5 Conflict Management in Projects www.lessons-from-history.com

Turning conflict management within projects into a positive element to improve learning and effectiveness in organisations.


Root causes to conflict – it arises when

Parties involved in any argument

perceive it as a conflict.

There is interdependence between

the parties, which allows for

mutual influence over one another.

Scarcity of resources, (monetary,

human, or prestige).



What triggers conflict in a project?

Internal or external change,

cause or result of

– communication,

– emotions, values,

– organisation structure,

– workgroups diversity or

– personal experience

Factors determining conflict

complexity are:

– the source, size,

– number of individuals or

groups involved, and

– the type of conflict



Classifications for conflict within projects as: Interpersonal, Intergroup, Inter-organisational

Interpersonal

Intergroup

Inter-organisational


Business representa

tivesProject Stakeholders

Executive Sponsors

DirectorsProject ManagersManagers &

Leaders

Third parties,

ContractorProject Teams & Individuals

Members (internal & External)


Virtual projects in a changing world

Successful project

outcomes require

effective work

interactions

These facilitate the

transfer of

geographically

distributed

information and

knowledge


© 2016 Mark Kozak-Holland10 Conflict Management in Projects www.lessons-from-history.com

Virtual networkers may not be familiar with their geographically distributed co-workers

Geographical

boundary

Cultural diversity


An approach to conflict management within projects



Conflict Management strategies for resolution include mechanisms for managing conflict

Formal

– negotiation,

– arbitration, or

– mediation

Informal - behavior

or styles to deal

with conflict:

– Avoiding,

– Accommodating,

– Forcing,

– Collaborating, and

– Compromising



Table of contents



– Hoover Dam Project

– Golden Gate Bridge Project

– Florence Cathedral Duomo Project

– Transcontinental Railway Project

– Bygga Villa Project

3. Effective strategies

4. Summary



Hoover Dam world’s largest (tallest) dam seen as extremely dangerous work – difficult geologic/topographic features

One of the greatest engineering &

construction projects of 20th

Century

Project size made delivery of

project impossible for 1 company


The project team had to address

conflict between public against

private interests and state against

state benefits.


Issues from macroeconomic and companies' point of view for strategic value creation

Consortium puts big effort to win contract

– 8 firms/6 partners joint venture

– largest federal contract $165m ($2.3b today)

Economical and managerial challenges

– Profitability due to uncertainty of buyers

– Dividing water/power equally - 7 Basin states

– Assigning consulting engineers to Congress

Government relations

– Link gov’t funding private-sector expertise

– Persuade flexibility for 8 hr day to offset fines

Frank Crowe PM

– determined to bring project in, his way



Supporting construction activities in Black Canyon was a major challenge, located in a remote area

Harsh

climatic

conditions

Safety and

health issues

of workers



The project innovated both technologies and project management practices

Multiple bit jumbo drills – 32 holes

Concrete bucket overhead cable way delivery

Cable-car system – material delivery

Cooling pipes for concrete

High bid for rock excavation work

Low bid for concrete placement



The project failed in managing workers relations, providing healthcare, and an overall safety programs

Frank Crowe (a.k.a Hurry Up)

– pushed workers on output & taking

non-negotiation stance with unions,

– attempted to maximize jobsite

productivity.

A significant FAILURE of project

was safety and care of workers

– Workers became well compensated

with housing benefits,

– many workers died,

– carbon monoxide poisoning in

tunnels inadequate ventilation



The workers relations worsened as conditions deteriorated in housing and basic healthcare

Workers’ strike

(August 1931) –

– Unskilled labor paid

$4/day and minimum

wage cost was <$6/hr

– triggered by deaths of

workers’ wives &

children

– extreme heat,

sanitation in the

campsite area

Boulder City

– Housing facilities built



Project lessons - Characteristics with highest contribution to project success were related to CONFLICT MANAGEMENT

Project development activities

– Feasibility study, site selection, and

conceptual design essential for satisfying

legislative requirements

This clarified

– project mission, scope, and challenges

for all project stakeholders and

– helped overcome project issues

Close relationship between project

participants

– Bureau of Reclamation and Six

Companies at field and executive level



Project lessons - Most important characteristics that helped complete the project

Ensuring design and engineering activities

– assign design review board and implement

effective change management processes

– minimize rework and delay during construction

Establishing a clear chain of command in

owner and contractor organizations

– to adjust relationships both internally and

externally

Supporting project by

– securing adequate annual funding and

– relevant legislative and regulatory facilities



Hoover Dam completed 2 years early & under budget despite political, economical, technical, and organizational obstacles

x



Summary of conflict management in project

Negatives

– Handling of project workforce was

appalling & a significant project failure

Positives

– Handling of project stakeholders was

perceptive and worked well

• Intergroup

• Inter-organisational



Table of contents









4. Summary



Golden Gate Bridge – world’s longest bridge considered highly dangerous work (storms, currents, fault line)

Started in 1935

Much opposition


Divers were crucial to plan

Death toll expected in 100s


Joseph Strauss (PM) dealt with the most significant issue (health and safety) – 19 men joined Halfway-to-Hell Club

He invested $130,000 to improve safety

standards & equipment for his workers.

Creates conducive environment

– Hardhats mandatory & safety net



With lives saved great support for Strauss


Admired by

workforce and

conflict avoided

through

preventative

measures



Positives

– Strauss invested $100,000 to improve

equipment and safety standards for his workers

– Handling of project workforce was a significant

project success

Negatives

– None found



Table of contents









4. Summary



Florence Cathedral Duomo Project - world’s largest dome considered highly dangerous work

Brunelleschi realized he was

going to have a conflict with

stakeholders and had to

manage it

Brunelleschi dispute with

stakeholders escalated with an

assigned assistant

Brunelleschi's communication

strategy with workforce using

models closely showing and

explaining reduced conflict

Brunelleschi managed a serious

conflict with foremen



Business pressures to complete project by finishing the dome

Cathedral completed in

1367 and for 50 years it

was unfinished, no dome

Aesthetically unpleasing

Not attracting hoards of

pilgrims

Not generating revenue

Major blow to civic pride

Project had stalled

creatively

Stakeholders looking for

someone to “kick-start” &

rapidly complete project



Project Constraints – two most significant constraints were time and scope

Constructing at great heights off the

ground complicates project and

substantially increases scope

Concerted effort required to

manage scope

Whole range of issues working at

these heights,

– from safety,

– to getting the volume of material

required,

– to manoeuvring men,

– materials and equipment

– in a very confined space.


30 Meters

100 Feet

25 Meters

85 Feet

25 Meters

85 Feet


Project Constraints – a dome so high off the ground, literally suspended in mid-air

42 meter wide hole

in the chancel roof

No timber could

span the diameter

Bridge not feasible

Scaffolding from the

ground would have

been substantial,

intricate, unstable &

even collapse under

its weight


30 Meters

100 Feet

42 Meters

130 Feet

42 Meters

130 Feet

42 Meters

130 Feet

42 Meters

130 Feet


Consensus of prominent architects

Pier built in the center, with the dome

raised in shape of groined joint or vault

Wood-work (scaffolding)

Fill centre with earth mingled with coins



Brunelleschi had challenging time managing his skeptical project sponsors and stakeholders

– 7 guilds (Wool responsible),

– Wardens of Works (Supervisory Board),

– Opera (the Governing Board)

They lacked confidence that project

would be completed, even after he

presented his design



Brunelleschi was given the job on a trial basis, which did not please him

Some craftsmen & citizens complained,

that appointment was too quick

– “One man alone should not carry out the

project with an abundance of excellent

masters”

If project fails sponsors will be blamed

for giving too much control to 1 man

Brunelleschi given assistant on same

salary, Lorenzo Ghiberti, to restrain his

impulsiveness

Ghiberti’s friends called him a master

equal in stature to Brunelleschi

This infuriated Brunelleschi



Brunelleschi feigned an illness and removed himself from the project

Masons and master builders

were at standstill

Brunelleschi returned and

offered Ghiberti 1 of 2 activities

1. Chain of ties to surround and

bind together the 8 sides of

dome and clamp fabric

together

OR

2. Stable scaffolding for workers



Brunelleschi built with great ingenuity work-platforms rather than scaffoldings

Safe octagonal work-platforms

Team could adjust as dome grew

– “where the workforce stood on

them as securely as if they had

been on the ground”

A. Joists in put log holes in

masonry

B. Protective parapets ran on

inside edge

C. On outside shell ran framework.

D. Work-platforms against the

inside of the inner shell.

E. Supporting framework

underneath a work-platform



Ghiberti opted to complete the chain of ties, but failed to meet expectations

Sponsors recognized great mistake

in favoring Ghiberti

Brunelleschi made overseer & super-

intendent of entire project for life,

Voted allowance of 100 florins a year

for life

Project sponsors very protective of

their interests

Brunelleschi ran into many conflicts

Sponsors concerned about work

sequence and delivery so they could

tightly manage it and changes



The great heights required Brunelleschi to pay attention to health, safety, and protection of workforce

Any accidents negatively affected morale

As project progressed, risks increased,

so did requisite safety measures

With work platform elevation protective

parapets were added and screening

boards to block the view

Workers wore leather safety harnesses

Wine consumption was restricted when

working at these heights



Why were teams so important to the project?

Brunelleschi appointed 8 master-

builders, one for each octagon side

He organized skilled workforce of 60

men into the 8 teams

The worked in parallel at all 8 sides so

each side was built at the same pace

Curving walls meant that bedding

angle of the bricks increased from zero

to sixty degrees at the oculus

Risk - bricks too quickly laid before

mortar set would distort & topple walls


1 side

~7 men


Conflicts - industrial disputes - foremen concocted a grievance against Brunelleschi

They declared work

laborious & dangerous,

wanted greater payment,

although their pay was

higher than normal

He understood their

game, cleverly

sidestepped them by

dismissing them

He hired a workforce of

apprentices & worked

closely with them so they

quickly acquired

necessary skills



Brunelleschi taught apprentices much in one day as if they had worked there for weeks

The disgraced masons deprived of work, sent

mediators saying they would willingly return

Brunelleschi kept them for many days in

suspense & reinstated them at lower wages

In taking vengeance on Brunelleschi they

brought harm and disgrace on themselves



The height was a problem as it was greatly inconvenient for the workforce to climb up and down

They lost much time going for food &

drink and suffered the heat of the day

Brunelleschi opened canteens high

up in the dome with fully equipped

kitchens so no one had to leave work

until evening



Brunelleschi had to establish clear and open communications between him the master builders, and the workforce

The dome’s design complexities needed

clarification so he was onsite daily, sharing

models & directing the master builders

He had to be clear about how they should

fulfill the design and approach the project

A high level of trust developed




Negatives

– Brunelleschi took major risks to win the contract & took

on the project without full stakeholder support

Positives

– He constantly managed the sponsors through project’s

life cycle and overcame their concerns

– Handling of project workforce was a significant project

success

– By constantly communicating with workforce,

stakeholders & sponsors he was able to identify and

manage potential conflict

– He removed hurdles and built confidence that the

project could be completed

– He was open to and expecting conflict



Table of contents









4. Summary



Transcontinental Railway Project - world’s longest railway –The impossible project with challenges facing it

Environmental

– Inhospitable terrains

– Supply chain 29,000 km

Political

– Civil war 1861-65

Economic

– War economy - massive inflation

– Railroad industry embryonic

– Project cost $60m

Other similar projects

– Grand Trunk railway (1852) -“the

world’s worst commercial failure”



The scope was impacted by the build from the West and the required supply chain

East coast steel mills had to ship

materials

– The project had a substantial supply

chain, 18,000 mile

Workforce East and West

– East - Civil war veteran (altruistic)

– Difficult to transfer workers West



Hell on wheels – Towns sprung up as entrepreneurs rushed in to take advantage of the idle labor force

East cost workforce (ex army),

Irish and European, and Freedmen

(freed from slavery)

High death rate in these towns that

grew up on Eastern side



Very little confidence in the project as the project costs escalated out of control as the Civil War raged

Workers demanded their

pay before they even

performed the day’s

work.


Out west in towns where the project was

going to provide significant benefit, workers

still demanded pay in advance.


As the project got underway the labor shortage was desperateThe project workforce was obtained from everywhere

including some from

California which was

– thinly populated,

– had very high wages, and

– could not spare workers

due to the gold mining.

Laborers came from New

York, and the east coast



The U.S. government initiated a scheme with the Chinese government for a project workforce

10,000 workers

were procured

for the project

Incentive for

individuals

workers were

high, to travel

5000 miles.

Paid $30/month

in gold, & with

work camps

provided they

could save $20

/month, a

substantial

amount.



The Chinese workforce had less pay but the workers proved to be model workers

At its peak, the workforce --

primarily Chinese on the

Central Pacific,

Irish on the Union Pacific --

approached the size of Civil

War armies, with as many as

fifteen thousand workers on

each line.

The Chinese workers were

punctual, willing, and well-

behaved -- sometimes

referred to as "Celestials"



Quite remarkably the project was completed eight years ahead of schedule




Positives

– Handling of project workforce was a

significant project success

– Chinese workforce potential source of

conflict, not overly paid but well

supported

– Turned out to be perfect worker

– Project had high cultural diversity

Chinese workforce vs Irish/European

Negatives

– Some unethical practices by today’s

standards



Table of contents









4. Summary



Bygga Villa’s – Custom built homes Public–private partnership (PPP) in e-government in Sweden

Objective – develop an innovative

internet portal for private

construction industry so

– “clients can effectively plan, build,

and live in their house”.

The PPP had 16 organizations

from academia, government

The greatest challenge to

developing a collective

competence was due to

1. differing goals,

2. resource scarcity, and

3. interdependence of tasks



Bygga Villa’s ability to develop collective competence while the partnership overcame this challenge through

1. co-developing a clear

project charter,

2. recruiting a project

leader with strong

knowledge broker skills,

3. conducting joint

problem-solving tasks

sketching the final portal

4. ensuring understanding

of the “big picture”

through continuous open

and balanced

communication.




Positives

– Project success was due to members’ ability to embrace conflict & turn it

into creative conflict through dialogue & ensuring high level project

satisfaction by partnership’s individual members.

– What to look for in project proposals by national and EU funding agencies?



Is conflict bad? Many people and organizations view conflict as a negative, or something to be avoided

If the management of conflict is not effective, it can totally

disrupt the entire project.

BUT many people and organizations view conflict as a

negative, or something to be avoided.

Yet conflict, differences, or disagreements are a natural

result of people working together.

Also, without conflict, teams can become complacent and

not perform at optimum levels.



Table of contents






4. Summary



Conflict management vs conflict resolution



Studies show the presence of two types of conflict in any group setting and its role in decision-making



Conflict can be termed constructive or destructive (functional or dysfunctional)



Differentiating destructive from constructive conflict

Constructive conflicts exists

when…

– People change and grow personally

from the conflict

Destructive conflicts exists

when…

– No decision is reached and problem

still exists



Why is constructive conflict useful? List of constructive conflict benefits to consider:

1. Increased participation in decision making

2. Better information

3. Better choices

4. Reduces anxiety

5. Encourages collaboration

6. Increases understanding



Table of contents






4. Summary



Embracing Conflict management – going through a retrospective

Four distinct, but interrelated

phases:

1. identification

2. resolution

3. enactment

4. evaluation



Use a step-by-step process in projects

1. Set up a process where the goal for all parties is to resolve

2. Make sure all parties want to resolve it

3. All parties must accept the conflict as a mutual problem- not win/lose

4. Explore the reasons for the conflict

5. Generate solution options

6. Involved parties must agree on which solution is most appropriate

7. Implement the selected solution

8. Evaluate the success/failure of the solution

9. Celebrate or go back to #6



Effective PREVENTATIVE strategies to deal with conflict - at project start prevent or minimize it

Develop ground rules with behaviors

that project will allow or prohibit.

Develop a team agreement on how the

group will resolve conflict and

prepares the team with a process.

Develop training in conflict resolution

or communication skills for a team

(attend training as a team).

Focus on project goals as conflict

arises from goal mis-alignment.

Take precautionary steps to ensure

constructive outcomes.

Show bright side to encourage facing

& resolving conflict in a managed way.



Effective REACTIVE strategies to deal with conflict – during project

Acting - Exercising an

authoritarian approach, simply

tell the group what the

resolution will be.

Adjusting - Splitting differences,

exchanging concessions, or give

and take to reach a middle

ground.

Accommodating - Sacrificing

self concerns in yielding to

another person.

Avoiding - Withdrawing,

sidestepping or postponing the

issue.



Summary with











4. Summary


© 2016 Mark Kozak-Holland82 The Future of the Business World & PM www.lessons-from-history.com

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Sources

McQuivey, J., (2011), Innovating The Adjacent Possible,

Forrester

Cameron, B., (2016), The CIO Mandate: Engaging Customers

With Business Technology Vision: The Business

Technology Agenda Playbook, Forrester

Gazala, M,. (2015), Winning In The Age Of The Customer,

Forrester


© 2016 Mark Kozak-Holland84 Innovation in Projects www.lessons-from-history.com

Innovation in projects elearning course

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Lessons-from-History is a series of publications for today’s business world, established in 2001.

Our authors are from the business world

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This combination of business and history

provides a deeper understanding of

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85 Lessons From History Overview www.lessons-from-history.com

Mark

Kozak-

Holland

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Byrne

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Bruno

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Dobson

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HughesGlen

LeClair

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Lerner

Joe

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The series of publications (book, eBooks, DVDs) has been growing & covers a wide variety of historical case studies.

The historical case studies are

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The series is designed to inspire people

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Lessons-from-History Manifesto

A. From the past identify innovative managerial solutions and

practices still relevant today, and awaken interesting and

relevant ideas that have been forgotten or overlooked over

the years.

B. Build on the past and not ignore it, to provide a baseline

for evaluating extent of change over time, and how “novel”

current concepts really are.

C. Critically revisit the past to understand our contemporary

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