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OPPORTUNITY COSTS

Conflict Management Strategies eNewsletter Vol III, Issue 4, August, 2006

Does Conflict Really = Opportunity?
If every conflict really was an opportunity, shouldn’t we react with excitement and enthusiasm? We don’t because the “costs” associated with the “opportunity” are generally pretty high. At least, we perceive the costs to be high. Because…
The conflict takes me away from what I want to spend my time and resources on.
When faced with a conflict, we intuitively calculate the cost of engaging and decide that the initial investment is too high: emotional tension, derailment from other work, and unforseen investment of time.

The Cost of “Opportunity” Yes, effectively addressing conflict can provide great opportunities to leverage all the brainpower in the room. Yes, it can also create a more cohesive working group. However, to state that “Conflict = Opportunity” fails to address that for every opportunity there exists an “Opportunity Cost.”
What is an “Opportunity Cost” Anyway? Economists would tell us that an ‘opportunity cost’ is “ the cost of something in terms of an opportunity forgone …and the benefits that could be received from that opportunity...”
Why Should You Care? Think back to the last time that a “conflict”, “problem”, “tension” or whichever euphemism you prefer to use occurred. (It might have been this morning). How did the news hit you?
I bet that your internal dialogue was something like this. “Good Grief!” “Now what?” “Oh *#!#**!” “Again?” (Well, maybe it is just me)
You were calculating your Opportunity Cost!
Did you think about the “other guy”? How if he doesn’t feel “heard” what sort of opportunity costs that might mean for the organization? More disruption, disunity, tension, or gripping? A missed opportunity to reach resolution can cost the organization in morale and loss of productivity.
What To Do. Take 60 seconds to discover the “other guy’s” opportunity costs. See how the situation impacts the other person, not just your lost opportunity. Evaluate the results. You may be pleasantly surprised.

Action Tools to Asses your “Opportunity Costs.”

Wikipedia tells us that “[a]ssessing opportunity costs is fundamental to assessing the true cost of any course of action.” So here are some action tools to help you out.
- Get Out of your own frame of reference. Try and see why the issue from the other guy’s point of view. Why is it important to him or her? He/She is not just an inconvience to you.
- Determine if you are reacting to the actual situation or responding based on old wounds or pre-conceived ideas.
- Evaluate the Long Term Benefit. If you take the time and energy now, will it help You get what you want in the long term? Some results that are worth the effort are: Better working relationships, increased respect, and a good reputation in the workplace.
- Calculate the Cost of Not Acting. If you do not do something what will happen to you? The group? The other guy?
Use these tools to improve your capabilities and improve working relationships. Try it and let me know how it goes!
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