Does managed conflict in businesses lead to business growth and how important is mediation as part of this process?

And what has Elton John got to say about it

Summary

Elton John captured it. "We didn't all agree". On YouTube there are some behind-the-scenes-footage from the recording sessions for his latest album with Brandi Carlile, in which he is shown smashing his headphones in rage. "They stood up to me and I got frustrated, but it's no good working with yes people. If you want to make a great album aged 76 or 77, you've got to be told". What lessons can I and others learn from an octogenarian (well 78 years) who has been able to re-invent himself decades after the peak of his commercial success.

Organisations constantly navigate tensions between differing perspectives, goals, and working styles. Proactive management of tensions, rather than them being ignored, allows for more open conversations with colleagues, working together productively and therefore generating better outcomes for the business. It’s quite an ask though, in most instances tensions and their impact are brushed under the carpet - in my experience anyway! And when my peers were involved, sometimes I was doing the brushing. Many of us find honest and open conversations too difficult, especially when there are emotions involved and conflict of any kind ensues. The resulting friction can stall projects, fracture teams and consume mental bandwidth. This clearly is a suboptimal solution - yet a very common situation.

So, if we acknowledge that conflict is a natural product of a good process, how can we get an optimal solution? By managing it better. Amid this challenge lies an underutilised solution: mediation. This guided approach to resolving differences offers far more than just conflict resolution - it creates pathways to stronger relationships and better business outcomes.

What is conflict and how it can transform business decisions

When we hear the word "conflict," many of us immediately picture heated arguments and people shouting at each other. This common perception leads to the belief that conflict is always a disaster that must be avoided at all costs. This isn't the case, both in terms of if it should be avoided or how it manifests itself.

Conflict encompasses a much broader spectrum of situations where interests, needs, or perspectives diverge.

In the workplace, conflict often looks like:

• Strained silence between team members who disagree

• Passive-aggressive emails or comments

• Avoidance of certain colleagues or topics

• Decisions being undermined or not fully implemented

• Departments pursuing competing priorities

• Unspoken resentments that affect collaboration

• Different interpretations of responsibilities or agreements

Most workplace conflict never escalates to shouting or visible anger. Instead, it simmers below the surface, affecting productivity, creativity and wellbeing in subtle but powerful ways. Often the conflict has come out of an attempt to do the right thing for the business, project or task by the person or team, but the outcome results in uncomfortable feelings and tensions from people with a different point of view.

Conflict triggers our instinctive fight-or-flight responses. In workplace settings, this manifests as:

• Fear of damaged professional relationships

• Concerns about career implications

• Anxiety about being judged or misunderstood

• Worry about losing control of the situation

• Stress from the emotional intensity of confrontation

  
  

The key insight that transforms how we approach workplace disagreements is this: conflict itself isn't a problem - it's a natural outcome of diverse perspectives coming together. In fact, the complete absence of conflict often signals more troubling issues:

• People don't feel safe expressing different viewpoints

• Groupthink has taken hold, limiting innovation

• Important issues are being suppressed rather than addressed

• The organisation values artificial harmony over genuine progress

So if we agree that conflict is a good thing, because sharing different points of view improves the outcomes for business and if we agree that conflict is a natural part of the process, the question arises of how best is it managed to deliver competitive advantage. Recognising conflict as a natural and potentially valuable part of organisational life, shifts our goal from eliminating it to channelling it productively. The disaster isn't conflict itself - it's conflict that spirals out of control because it lacks appropriate structures and facilitation.

This redefinition allows us to approach conflict not with fear but with curiosity and a genuine desire to harness its creative potential. It's this perspective shift that makes conflict and how its managed so powerful - not as a way to suppress disagreement, but as a method to transform it into a catalyst for organisational growth. And this is where mediation comes in.

The benefits of productive conflict

When managed effectively, conflict drives significant business benefits:

• Improved decision quality: Research published in the Harvard Business Review found that teams that engage in constructive debate make better decisions than those that prioritise harmony at all costs. The key lies in focusing conflict on ideas rather than personalities.

• Enhanced innovation: A study by the European Journal of Innovation Management found that moderate levels of cognitive conflict (disagreement about ideas) positively correlates with innovation in teams. When different perspectives clash constructively, novel solutions often emerge.

• Deeper understanding of issues: Conflict forces participants to articulate their reasoning and examine assumptions. This process reveals blind spots and leads to more thorough analysis of problems.

• Stronger commitment to decisions: When people have the opportunity to voice concerns and influence outcomes through constructive conflict, they show greater commitment to implementing the resulting decisions.

The critical distinction lies not in whether conflict exists, but in how people manage it and respond to it:

Destructive conflict:

• Attacks personalities rather than examining issues

• Frames situations as winner-takes-all competitions

• Festers unaddressed until its unavoidable or until it reaches boiling point

• Occurs where psychological safety is absent

• Erodes trust and hampers future collaboration

Constructive conflict:

• Examines ideas and approaches, not character flaws

• Maintains dignity for all involved

• Gets addressed early through thoughtful processes

• Unfolds within environments of psychological safety

• Strengthens connections through mutual problem-solving

The evidence shows that businesses don't benefit from eliminating conflict - they benefit from transforming destructive conflict into constructive conflict. This is precisely what effective mediation achieves but note it’s not the only answer! Rather than suppressing disagreements, mediation creates pathways to harness their creative potential while minimising their destructive aspects.

What is mediation?

Mediation is a structured process where a neutral third party - the mediator - facilitates communication between conflicting participants to help them have an effective conversation and reach a mutually acceptable resolution. Mediation empowers the participants to develop their own outcomes.

Effective mediation creates a safe space for honest dialogue with mediators serving as guides through difficult conversations.

There are different types of mediation and different processes are used dependent on the type, but broadly the process follows these steps:

1. Introduction: The mediator explains the process, sets ground rules, and establishes expectations.

2. Issue identification: Each participant shares their perspective on the situation, this can be in private sessions.

3. Dialogue: Through facilitated discussion, participants explore underlying interests and concerns.

4. Option generation: Participants share and even brainstorm potential solutions.

5. Agreement: When a mutually acceptable solution emerges, it's formalised in writing.

When is mediation valuable?

Mediation isn't merely a last resort for conflicts that have "gotten out of hand." This view fundamentally misunderstands both conflict and mediation's potential.

Mediation provides value across numerous scenarios:

During healthy disagreement: Even when teams are functioning well, mediation can extract maximum value from differing perspectives. A mediator might facilitate a product design discussion where engineering and marketing have different priorities---not because the situation is problematic, but because facilitation helps integrate these viewpoints into superior solutions and helps people express their views honestly and openly.

At early stages of tension: When differences first emerge, mediation helps maintain their productive nature before any negative patterns develop. This proactive approach prevents the "conflict spiral" where small disagreements grow into entrenched positions.

For future-focused planning: Mediation techniques help diverse teams align on complex decisions where numerous valid perspectives exist---even without any current conflict. The mediator's toolkit helps integrate multiple viewpoints into cohesive strategies.

For recurring tensions: Some organisational interfaces naturally generate ongoing tension (like between sales promises and delivery capabilities). Mediation creates sustainable processes for managing these inherent tensions productively.

And yes, for escalated situations: Mediation remains valuable when conflicts have become challenging---but it's one point on a spectrum of applications, not the entire purpose.

Forward-thinking organisations look for disagreement. Mediation is viewed not as a repair tool but as a core capability for leveraging diversity of thought.

These organisations:

• Use 3rd party mediators for genuine impartiality and train leaders in mediation techniques for everyday use in team discussions

• Design decision-making processes that incorporate mediation principles

• Create cultures where facilitated conversation becomes the normal way to handle differences

• Measure the innovation and quality improvements that emerge from effectively facilitated disagreements

  
  

How mediation transforms conflict

Mediation changes the experience of conflict in several fundamental ways:

Safety and structure: The mediation process creates psychological safety through clear boundaries and expectations. This structure helps contain the unpredictability that makes conflict so frightening.

Shared vulnerability: With both participants in mediation, everyone is clearly acknowledging the situation needs attention. This mutual vulnerability creates balance that reduces fear.

Focus on interests, not positions: Mediators help participants look beyond rigid positions to understand underlying interests and needs, creating space for creative solutions rather than win-lose outcomes.

Control over outcomes: Unlike other conflict resolution methods, mediation keeps decision-making power with the participants, reducing the fear of having unwanted solutions imposed.

Through these transformative elements, mediation helps convert what initially feels like a threat into an opportunity for clearer communication, stronger relationships, and organisational learning. With skilled guidance, conflict becomes not something to fear but a catalyst for positive change.

The diversity connection: different perspectives drive innovation

This understanding of conflict as potentially beneficial directly connects to the business case for diversity. Organisations invest in diversity initiatives precisely because diverse teams bring varied perspectives, experiences, and thinking styles - which inevitably create more opportunities for disagreement and conflict.

The true value of diversity isn't just in having different people present; it's in leveraging their different viewpoints to challenge assumptions and develop better solutions. Without mechanisms to productively manage the natural conflicts that arise from diverse perspectives, organisations miss the very innovation that diversity promises.

Effective mediation becomes a crucial tool for realising the full benefits of diversity policies by:

• Creating space for divergent viewpoints to be safely expressed

• Ensuring all voices - especially underrepresented ones - are heard

• Transforming the friction of different perspectives into creative energy

• Building organisational capacity to see disagreement as an asset rather than a liability

In this light, mediation isn't just about resolving individual conflicts---it's about building an organisational culture that can extract maximum value from the diverse perspectives that drive innovation and better decision-making.

Why companies should use mediation

Organisations should integrate mediation into their conflict management approach for compelling reasons:

Preserves relationships: Legal battles and formal grievance procedures often inflict lasting damage on professional connections. Mediation centers on understanding and reconciliation rather than assigning blame. This relationship preservation proves especially valuable when ongoing collaboration remains necessary.

Cost-effective: The financial implications of unresolved conflict are staggering, including legal fees, lost productivity, turnover costs, and management time diverted to handling complaints. Mediation typically costs a fraction of these expenses while yielding more sustainable outcomes.

Confidentiality: Unlike court proceedings, mediation is private and confidential. This confidentiality protects your company's reputation and allows for more open discussions about sensitive issues without fear of public exposure.

Speed and efficiency: Court cases can drag on for years. Even internal grievance procedures often take months to resolve. Mediation can often achieve resolution in a matter of days or even hours, allowing everyone to return their focus to business priorities.

Greater control over outcomes: When conflicts escalate to litigation, the decision-making power transfers to a judge or jury. Mediation keeps control in the hands of the participants, resulting in solutions that better address the specific needs and interests of all involved participants.

Higher satisfaction and compliance: Research consistently shows that mediated agreements have higher compliance rates than imposed decisions. When people participate in creating solutions, they're more likely to follow through on commitments.

What people in conflict seek from mediation

Relief and peace of mind from the negative effects of conflict and the emotional toll that affects performance, wellbeing, and relationships.

Avoiding escalation and the associated costs, publicity, and relationship damage of going to court.

Breaking through barriers when communications have broken down and progress seems impossible.

Being heard in a safe environment where they can express views while being protected from the other person.

Regaining control over the situation and clarity about their options.

Forward focus on growth and the future rather than remaining stuck in past grievances.

Reclaiming normalcy and saving time that would otherwise be consumed by the conflict.

The mediator's role: empowering participants

What makes mediation particularly effective is the unique role mediators play in the process. Skilled mediators:

Create space for expression by helping participants express what's important and ensuring others listen.

Ensure participant control by helping explore all available choices so participants can decide what's best.

Facilitate without directing by helping people have effective conversations without imposing solutions.

Balance power dynamics by ensuring all participants have an equal voice regardless of position or status.

Build conflict resolution skills that serve participants beyond the current conflict.

Reframe perspectives to transform "either/or" thinking into "both/and" possibilities, opening creative solution spaces.

Test reality by asking questions that help evaluate the practicality of potential solutions and understand consequences.

By embracing these principles, mediators create environments where genuine resolution becomes possible, even in situations that previously seemed intractable.

Implementing mediation in your organisation

Organisations can integrate mediation into their culture by:

1. Designing clear pathways for accessing mediation services when tensions arise

2. Equipping managers to recognise when disagreements would benefit from neutral facilitation

3. Cultivating relationships with skilled mediators (whether internal or external)

4. Highlighting success stories that demonstrate mediation's concrete benefits

5. Fostering an environment where differing views signal engagement rather than dysfunction

Conclusion

When collaboration drives success, thoughtful approaches to disagreement become vital organisational capabilities. Mediation stands apart from conventional problem-solving by not just resolving surface issues, but by reshaping how people understand each other's perspectives.

The most meaningful conflict resolution transforms relationships and equips people with skills for future challenges. By embracing mediation, organisations transform potential disruptions into catalysts for deeper understanding and genuine progress. Mediation therefore is a key tool in the drive for frictionless growth.

Connect with Symbioss

Thank you for reading! At Symbioss, we transform external business relationships into powerful growth drivers through commercial expertise and strategic alignment producing frictionless growth.

Ready to unlock the full potential of your business relationships?

• Complete the contact us form for a consultation to discuss your specific interests

• Email me directly at liz@symbioss.co.uk with any questions

• Connect with me on LinkedIn for regular insights on relationship-driven growth, Liz Ashton MBA CIM | LinkedIn

Remember, stronger relationships create sustainable competitive advantage. Let's build yours together and begin your frictionless growth journey.

Liz Ashton

Founder & Director, Symbioss

This blog post is for informational purposes only and does not constitute legal advice.