Peace and harmony are overrated. Though conflict-free teamwork is often held up as the be-all and end-all of organizational life, it actually can be the worst thing to ever happen to a company. Look at Lehman Brothers. When Dick Fuld took over, he transformed a notoriously contentious workplace into one of Wall Street's most harmonious firms. But his efforts backfired - directors and managers became too agreeable, afraid to rock the boat by pointing out that the firm was heading into a crisis. Research shows that the single greatest predictor of poor company performance is complacency, which is why every organization needs a healthy dose of dissent. Not all kinds of conflict are productive, of course - companies need to find the right balance of alignment and competition and make sure that people's energies are pointed in a positive direction. In this article, two seasoned business advisers lay down ground rules for the right kinds of fights. First, the stakes must be worthwhile: The issue should involve a noble purpose or create noticeable - preferably game-changing - value. Next, good fights focus on the future; they're never about placing blame for the past. And it's critical for leaders to keep fights sportsmanlike, allow informal give-and-take in the trenches, and help soften the blow for the losing parties.
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