Recent research - Organising HR for partnering success -–from the CIPD indicates that ‘the number of strategic partnerships (including joint ventures, outsourcing, strategic alliances, and public-private sector commissioning models) is increasing, yet the failure rate of these arrangements is between 60% and 70%1. Unsuccessful partnerships waste time and damage relationships, and ultimately therefore do not serve customers.’
Dr. Jill Miller, CIPD research adviser and co-author of the research, said: "In partnering arrangements, HR finds itself not only responsible for the design and delivery of the people agenda in their own organisation, but also across the partnering network.’
"Managers' roles also become more intricate in partnering arrangements, often managing teams which include those who report directly to them as well as people employed by a partner organisation.’
Professor Paul Sparrow, the Director of the Centre for Performance-led HR and Professor of International Human Resource Management at Lancaster University Management School, acknowledges the risks of strategic partnership and emphasises the need for effective conflict resolution:
"The risks can be planned for much better - we have to think about the best ways to ensure co-ordination, communication, control, and capability across all the partners - and that means dealing with conflict and cultural problems."
We recommend that HR takes the lead in this vital role designing and implementing a conflict resolution strategy across all the partnership. Conflict in strategic partnerships is normal as complexity, diversity and cultural differences can put pressure on working relationships, communication and ultimately performance.
PRL’s ABC model of workplace conflict resolution (Designing Resolution Architecture and putting in place Resolution Building Blocks to encourage a conflict Resolution Climate) helps HR think and act in a structured way about conflict across strategic partnerships. Here are some steps to consider:
1) Think about the types of conversation and working relationships you need across the partnership and design in Resolution Architecture (policies, guidance and strategies emphasizing commitment to early, effective, efficient conflict resolution):
2) Vision and consolidate common ground and build commitment to collaborative, creative, constructive conflict resolution across diverse organizations and stakeholders
3) Consider what Resolution Building Blocks are already in place across the partnership (conflict resolution trained managers; mediation capacity; access to independent conflict facilitators / coaches; an effective and efficient approach for the investigation and adjudication of formal grievances). Identify gaps, pooling opportunities, increase resolution capacity, introduce resolution efficiency measures and audit and reduce the cost of conflict.
4) Aim to reduce risk and maximise the benefits of diversity by moving away from reactive or avoidance-based approaches to conflict across strategic partnerships. Build and maintain commitment to developing a conflict Resolution Climate which has a number of benefits to strategic partnerships:
·
Appropriately managed conflict
produces win/win solutions, builds confidence and trust and enables issues to
be raised and solved
·
Time is saved through early effective
resolution and people can get back to work rather than being distracted /
stressed by conflict
·
Understanding across cultural
differences is encouraged and will strengthen working relationships
·
Fewer strategic partnerships will
fail as an effective conflict resolution strategy will contribute assist
significantly to the management of people risk.
John Crawley
