This paper examines the organizational conflict that arose at Educational Pension Investments (EPI) following the hiring of aggressive investment broker Mike Roth. The conflict pitted Roth's risk-taking, return-focused approach against the conservative, stability-oriented philosophy of the firm's senior executives. The paper analyzes the CEO's initial conflict management response — largely passive and conducted through separate discussions — and evaluates its effectiveness. It then recommends a collaborative conflict management approach, arguing that direct facilitated dialogue between the opposing parties, brokered by the CEO, would have produced a more constructive and lasting resolution.
The conflict at Educational Pension Investments (EPI) commenced with the hiring of a new staff member — investment broker Mike Roth. The CEO felt strongly about Roth's capabilities and insisted on adding him to the team, despite the objections of senior executives. Mike's reputation as a maverick and his aggressive approach to business created intense turmoil within the organization. Younger employees and newer clients favored his style, which embraced risk and generated higher profits. Older clients and senior staff, however, prioritized the stability and safety of investments over their rate of return.
These opposing views on how to properly run the investment fund divided the organization into two camps: one supporting a rapid change of direction, and the other insisting on maintaining the traditional approach. In essence, the source of this conflict is the historic tension between old and new, between modern and traditional, between conservative and progressive organizational philosophy. Mike Roth represented the modern, aggressive approach, while the senior executives represented the traditional one. As the CEO acknowledged, redirecting the organization toward a more return-focused strategy was possible — but such a transition required significant time and patience, qualities Mike Roth was unwilling to demonstrate.
With the first signs of emerging conflict, the CEO of Educational Pension Investments did not take an official stand. He remained on the sidelines and hoped the matter would resolve itself. This approach proved ineffective, as the problem did not self-correct. Before long, senior executives came forward to directly complain about the turmoil the new investment broker was causing.
The CEO demonstrated strong people skills by listening to both sides of the story and objectively assessing the arguments presented. He recognized the importance of safe investments as a core priority of the thirty-year-old organization — a principle agreed upon by all executives and founders at the firm's inception. At the same time, he acknowledged that Roth had built a loyal customer base and a loyal staff who would likely leave EPI along with him. The CEO also recognized that Roth had generated genuine financial progress for the firm.
Despite these insights, he remained uncertain about how to proceed. Most of his conflict management consisted of separate discussions with each party. While this approach was positive in that it gave all parties a fair opportunity to state their viewpoints, it was ultimately inefficient because it did not lead to a resolution of the underlying conflict.
"Recommending facilitated dialogue and collaborative resolution strategy"
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