Developing cooperation while dealing with internal competition

When I was the GVP of Risk at Safeway we performed an analysis of our corporate culture to design a safety program that would have the opportunity to maximize the success of our goal of reducing claims frequency. The two essential traits of our corporate culture were: 

1. What my boss found interesting I found fascinating 

2. The company was driven by competition (comparing and competing divisions, districts, stores and even departments) 

One of my favorite examples of this process was the proud flower dept manager in a store in Anchorage, Alaska, who told me that her department had the best flower sales for Valentine’s Day that year. For the prior three years, she had come in second to a store in North Hollywood, CA. Two months later I happened to be visiting the North Hollywood store and was informed by the flower dept manager that she had lost to the store in Anchorage because her store had been closed for a remodel in February. The key was that each knew who was first and second and both wanted to be the best. I never told the manager in Anchorage why she won that year. 

Few consciously think about attempting to balance internal competition among employees for job opportunities with the organization’s external competition in the market. I have seen competition become destructive when an employee attacks or detracts from another employee in an effort to succeed. Sometimes this approach brings down the whole organization. One example of this was when a division in California attempted to deny a higher percentage of indemnity claims than the division in Arizona. They were unreasonably denying claims when the laws rules and regulations in California did not support that activity. It ultimately cost them millions of dollars and their reputation at the Appeals Board. 

Creating competition but balancing it with the goals of the organization is a delicate and essential task of good management. Here are steps that management can take to maximize productivity and minimize internal conflict in such a scenario: 

• Transparent Communication: Foster open and transparent communication about the organization’s goals, strategies, and the importance of both internal and external competition. Ensure that employees understand how their contributions align with the company’s overall success. 
• Clear Performance Metrics: Establish clear and objective performance metrics for evaluating employees. These metrics should be tied to both individual and team goals, emphasizing collaboration and shared success. 
• Fair Evaluation Processes: Implement a fair and unbiased performance evaluation process. Ensure that promotions and job opportunities are based on merit and aligned with the organization’s needs rather than favoritism or personal biases. 
• Professional Development: Invest in employees’ professional development and provide opportunities for skill enhancement. When employees see that the organization is committed to helping them grow, it can reduce internal competition as they focus on self-improvement. 
• Team Building: Encourage team-building activities and create a supportive work environment. Emphasize the importance of working together as a team to achieve common goals, which can reduce internal conflicts and foster collaboration. 
• Conflict Resolution: Have a robust conflict resolution mechanism in place. When internal conflicts arise, address them promptly and fairly to prevent them from escalating and affecting productivity. 
• Mentorship and Coaching: Provide mentorship and coaching programs to help employees navigate their career paths within the organization. Senior employees can offer guidance to junior ones, reducing the perception of intense competition. 
• Recognition and Rewards: Recognize and reward both individual and team achievements. Acknowledging contributions and success can motivate employees and reduce negative competition. Every reward can have unintended consequences. Be aware of potential problems resulting from standardized rewards. 
• Flexible Job Roles: Offer flexible job roles and career paths within the organization. This allows employees to explore different roles and find the ones that best suit their skills and interests, reducing the pressure of competing for specific positions. 
• Feedback Loop: Establish a feedback loop where employees can provide input and suggestions for improving the workplace environment and processes. When employees feel heard and valued, it can reduce internal tensions. 
• Diversity and Inclusion: Promote diversity and inclusion within the organization. A diverse workforce can bring different perspectives and reduce competition which is based on homogeneity. 
• Long-Term Focus: Encourage a long-term perspective on career growth and organizational success. Help employees understand that patience and sustained effort often lead to more significant achievements over time. 
• Leadership Role Modeling: Leadership should set an example by demonstrating collaboration, fairness, and professionalism. Employees often follow the behavior modeled by their leaders. When senior management is engaged in safety programs the entire company usually marches in lock step in the same safe direction. 

Successful professional sports teams have the same challenges. An analysis of their culture shows us that they follow the above list of actions to overcome the internal competition to compete in their sport. 

By taking these steps, management can create a workplace culture that balances healthy internal competition with collaboration, leading to increased productivity and reduced internal conflicts. It’s crucial to emphasize that competition should be viewed as a means of personal growth and organizational improvement rather than a source of unnecessary stress or rivalry.