Conflict is a natural part of any workplace. Yet many of us still associate it with dysfunction, confrontation, or failure.
The term itself often brings to mind tension and breakdown; something to manage quietly, quickly, and with minimal disruption. Conflict is often associated with warring; with a reactionary focus. Brush it under the carpet, let's not let it get any bigger. Let's ignore it altogether. Alarm bells should be ringing for leaders by that point. Why? Because conflict when not transformed; brews, festers and undermines the workplace.
But conflict doesn’t always mean something is broken. Sometimes it reveals that people care, that values are clashing, or that something important isn’t being acknowledged. When handled well, it can lead to insight, connection and meaningful change.
Conflict is nuanced. When we understand it; conflict no longer becomes the beast stalking the room, or the termites in the walls. It becomes an opportunity for building trust, alignment and better yet; GROWTH!
Understanding the Impact of Workplace Conflict
Workplace negative conflict is widespread and costly. A 2025 report by Gitnux found that 85% of employees experience some form of conflict at work each year, and 76% of HR professionals cite miscommunication as the most common cause.
Beyond the interpersonal friction, the cost to the business is significant. Conflict is estimated to cost U.S. companies over 359 billion per year in lost productivity. More tellingly, 54% of employees have left a job because of unresolved conflict.
But the real impact often goes unnoticed. Unspoken tension undermines trust. Innovation stalls. Teams stop being honest with one another, and the emotional undercurrent begins to shape the culture. This strongly highlights the misconceptions around it, and then the big question; how do we get it to work for us rather than against us?
The Leadership Gap in Conflict Resolution
Despite the scale of the problem, many leaders feel unprepared to deal with conflict. A global study by DDI found that nearly half of all managers fail to demonstrate effective conflict resolution skills, and only 12% are considered highly proficient in this area.
Often, the barrier isn’t a lack of knowledge. It’s the fear of being seen as too harsh, too direct, or simply not liked. That fear leads to avoidance. But avoiding conflict doesn’t prevent harm. It allows resentment, confusion and misalignment to grow unchecked.
It’s uncomfortable to lean into tension. Leaders worry about saying the wrong thing or disrupting the team dynamic. But avoiding discomfort comes at a cost. Silence creates uncertainty. Unresolved issues quietly erode the sense of safety and cohesion that teams need to thrive.
Leaders who navigate conflict with emotional maturity build cultures that are far more resilient and connected.
The Obeya Model
At the heart of conflict is often tension and unmet needs. When an organisation can not only anticipate that tension but create structures that absorb and transform it, it is alchemy. When it can shift misalignment into movement, magic happens. One of the clearest examples of this in action is the Obeya model.
Popularised by Toyota during the development of the Prius, Obeya, meaning “big room” in Japanese, was introduced to solve a very real problem: complexity.
Takeshi Uchiyamada, the chief engineer on the project, recognised that the scale and pace of innovation needed couldn’t be led from the top down or delegated across silos. No single person had all the answers.
What was required was a new kind of operating space, one where visibility, shared accountability, and rapid learning could happen simultaneously.
Obeya was that space. It brought cross-functional teams together in a single physical or virtual room, where engineering, marketing, operations, and design could align around goals, timelines, and emerging risks.
Everything is made visible: decisions, data, ownership, tension. Unlike traditional project meetings, which often mask disagreement in formality, Obeya is designed to surface it early. That is the point.
The model works because it treats tension as useful information. Instead of allowing conflict to harden behind closed doors, it brings it to the table where misalignment can be addressed in real time, not weeks later via email escalation.
In this environment, friction doesn’t signal breakdown. It signals that something important is trying to come through.
How Obeya Supports Healthy Conflict
Obeya creates the conditions for teams to see, name, and work with conflict constructively. It doesn’t sidestep disagreement or dilute tension. Instead, it builds a shared space where challenges and competing priorities are visible, expected, and addressed collectively. In doing so, it transforms friction into movement and clarity.
It makes tension visible.
In many organisations, conflict simmers through avoidance, passive resistance, or indecision. Obeya brings everything into plain view. Teams display goals, risks, responsibilities, and blockers in a shared space. When misalignment emerges, people address it immediately and directly.
This clarity removes ambiguity.
Teams treat tension as part of the workflow, not a problem that festers in the background.
It brings different perspectives into one shared rhythm.
Obeya brings together people who usually work in isolation. Product, operations, marketing, and finance align around the same information. These teams meet in regular rhythm, guided by visible priorities and shared outcomes.
This approach reduces fragmentation. Teams make decisions and adjustments in context, not in isolation.
It grounds disagreement in shared information.
Disagreement in Obeya starts with the work, not personalities. Teams challenge plans, timelines, and trade-offs using shared data and visual cues. The focus stays on what’s visible and actionable.
This structure lowers defensiveness and supports thoughtful challenge. People question decisions without undermining relationships. The system holds the tension so individuals don’t have to carry it alone.
It accelerates course correction.
Obeya keeps teams close to what’s happening in real time. When something slips—a deadline, a dependency, a risk—the impact is immediately clear. Teams respond before the issue derails progress.
This feedback loop strengthens agility. Tension becomes a catalyst for improvement, not a trigger for delay.
It creates space for complexity and dialogue.
Obeya invites teams to work with complexity rather than simplify around it. It creates an environment where tension signals important insight, not disruption. People with different roles and priorities bring their perspectives into a structure designed to absorb and respond.
This makes room for conflict to do its real work: sharpening clarity, building trust, and driving better decisions.
More Strategies for Embracing Conflict Resolution
Foster Open Communication
Encourage a culture where disagreement is not a threat but a signal. Create space for people to speak honestly, especially when views differ. Tension is much easier to work with when it's acknowledged early and respectfully. This is reinforced with positive communication techniques.
Invest in Training
Equip leaders and teams with practical skills for navigating difficult conversations. According to Gitnux, organisations that invest in conflict resolution training report a 30% drop in employee grievances and 25% higher satisfaction scores. There are some amazing coaches out there! See the bottom of this article for our recommendations.
Conflict isn’t something to fear or suppress. With the right scaffolding, organisations can respond to it with clarity, skill, and respect. Structures like Employee Assistance Programs (EAPs), leadership coaching, and psychosocial safety initiatives not only help when things go wrong but also enable teams to build capability before tensions escalate.
Through workshops, in-house staff training, and confidential counselling, these supports create safer, more responsive workplaces.
If you're looking for a trusted partner in this space, we personally recommend Louise Lugsdin and her team at The Team Approach. Their work is grounded, relational, and deeply effective, supporting leaders and teams to navigate conflict with confidence and care.
Implement Clear Structures
A strong culture is supported by structure. Make sure there are simple, well-understood pathways for raising and resolving conflict when needed. Clear processes reduce the emotional load and make the work of resolution feel safer and more predictable.
When leaders approach conflict as a tool for alignment rather than something to suppress, it creates real opportunities for growth.
Conflict handled with care leads to innovation. Diverse perspectives challenge assumptions and make space for better solutions.
It strengthens relationships.
Teams grow closer when they move through hard conversations without losing respect for each other.
The most effective teams are not the ones without tension. They are the ones who know how to utilise it to grow together.
Sources
Gitnux. (2025). Workplace Conflict Statistics. Retrieved from https://gitnux.org/workplace-conflict-statistics
DDI World. (2024). Managing Conflict: Global Leadership Forecast. Retrieved from https://www.ddiworld.com/about/media/managing-conflict-research-2024
https://www.lean.org/lexicon-terms/obeya/
Every workplace experiences conflict.
Our exclusive course, Bring on the Conflict is designed to create real-world impact. Through engaging content, including video lessons, audio guidance, downloadable tools, and interactive activities; your people will gain practical strategies they can apply immediately.
Inside the course:
This course is only available to our organisational partners, and has already helped teams across Australia reduce stress, strengthen collaboration, and turn conflict into a force for growth.
- A clear, accessible introduction to Emotional Intelligence
- How to identify the different types of conflict
- Understand your own conflict style, and others’
- Tools for navigating different work styles and personalities
- Step-by-step guidance for managing tough conversations
- Proven methods to resolve disputes calmly and constructively
- Includes a Certificate of Completion for every employee.