It is no secret that virtually all organizations encounter some level of internal power struggle among the executives for power and influence. In most cases, such struggle is most obvious in budgeting issues as well as distribution of resources. Though one may argue that such internal competition may aid better performance of the participant, the real influence and impact of such internal competition may be felt by frontline employees as well as third party vendors.

Essentially there is no valid argument to limit healthy and measured internal competition; however, the impact of negative competition may influence the frontline workers negatively by forcing them to consciously or unconsciously take sides or even worse by aiding to fuel negative competition. Similarly, the third party vendors may find themselves in the middle of divisional or departmental competition which may either force them take sides or cancel their contract and involvement to preserve their own reputation.

In this particular entry we will discuss the evaluation of key personnel. Clearly, the impact on human capital will raise the question as how to regulate such internal conflicts. The most obvious step is the evaluation of talent and competency.  Though traditionally, executive team members enjoy a uniform attendance in all vital meetings, it may not be a good idea to have them attend all meetings. The most obvious terminology would be information isolation or otherwise known as compartmentalization of information. It is important to point out that this concept should by no means confuse or cause difficulties in sharing of information with all stakeholders.

Compartmentalization in this particular context should be viewed as sharing information with those that need the particular set of data and information to make a solid business judgment. For instance, having the company mid management attend shareholder meetings or having an accountant join a meeting on strategic long term planning, would be a great mistake. Granted that feedback from every part of the organization can help in improvements, it is important to differentiate between getting feedbacks and having random mid managers attending strategic meetings.

Certainly, there are exceptions that verify the rule. There are also certainly instances that require having the greatest possible internal feedback. However, in terms of not taking a road which would alienate extremely valuable human capital, it is increasingly important to keep non qualified and less relevant management personnel out of such strategic meetings.
In the coming days and weeks we will discuss strategic methodology to determine how to devise standard operating procedures that would assist in eliminating guess work in minimizing internal and external threats because of managerial infighting.

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