NZ Business + Management

ARE YOU ON A COLLISION COURSE WITH A WORKPLACE RIVAL?

Data from Formula One crashes helps explain how high-stakes collisions with workplace rivals happen. By Henning Piezunka, Wonjae Lee, Richard Haynes and Matthew S. Bothner.

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Data from Formula One crashes helps explain how high-stakes collisions with workplace rivals happen.

An undeniable part of Formula One’s appeal is the hair-raising speed of the sport. The margin of victory is often measured in millisecon­ds – and mistakes just as fleeting can trigger spectacula­r collisions that end races, even lives. But don’t let the breathless pace distract you: Our research shows that to understand the origins of F1 crashes, you have to look beyond the race itself and consider where the embroiled drivers stand in the league’s pecking order.

Our recent paper in PNAS, Escalation of competitio­n into conflict in competitiv­e networks of Formula One drivers investigat­es the factors that escalate competitio­n into dangerous conflict. By examining F1 Championsh­ip crashes from 1970 to 2014, we find that collisions are usually not random. They tend to occur between status-equivalent drivers.

We looked at 193,395 driver pairings over 44 years, 506 of which ended in a collision that eliminated at least one driver from competitio­n. Pairs of drivers who crashed tended to have overlappin­g patterns of wins and losses over the season. By dint of these similariti­es in their performanc­e record, they would have held roughly the same status in the racing league at the time of the collision.

BUSINESS PARALLELS

What does this have to do with business? We argue that the toxic competitiv­e dynamic behind these crashes can also be found in many environmen­ts, including companies.

In the corporate environmen­t, analogous collisions occur when competitio­n between two executives of comparable rank spins out of control, flaring into open conflict. These battles do damage in at least two ways: They harm the careers of the combatants by exposing lapses in profession­alism, while also siphoning valuable time and attention away from organisati­onal goals.

DESTRUCTIV­E WORKPLACE DYNAMICS

It’s easy to find clashes between rivals in the business world. But how do they happen? There are a few factors: Uncertaint­y around status when there is a lack of hierarchy can lead to unhealthy conflicts, driving rivals to establish superiorit­y over those with similar stature.

Social dynamics can fuel the fire too. Colleagues might draw similariti­es between two rivals in playful comments that make both feel too close for comfort in terms of status.

This can lead to one or both rivals feeling pressure to adopt provocativ­e behaviour toward their “twin”. One step too far can be all it takes to trigger an all-out war.

Companies can try to prevent this by taking steps to lessen hierarchy, e.g. abolishing job titles or embracing flat management structures such as “holacracy”. However, our Formula One results suggest that these measures may backfire, since status ambiguity – which flourishes under conditions of reduced formal hierarchy – engenders conflict.

The same can be said for strategic change initiative­s that wipe out the establishe­d order among employees,

e.g. mergers and restructur­ing. Like when previously separated groups of prisoners are shifted to the same cell block, you expect to see brawling, as the prisoners try to define their standing in the newly constitute­d group.

These dynamics bear watching over a significan­t period of time. In Formula One, we saw that the link between statussimi­larity and collision was discernibl­e only in the later part of the racing season. The tensions that fuel crashes appear to be cumulative. As the hierarchy gradually comes into focus, status-peers can’t ignore each other and the destructiv­e interplay sets in.

Surprising­ly, we also found that the link between status-similarity and collision was weaker in dangerous race-day weather conditions. Our explanatio­n is that drivers’ status anxieties were not strong enough to completely overshadow personal safety concerns. It was in the absence of inclement weather that we observed drivers bringing those anxieties to the fore.

HOW TO AVOID A CRASH

Managers aiming to prevent their employees from colliding, then, should instill caution of the kind drivers would feel while racing in a rainstorm. Pointing to serious external threats, such as potentiall­y disruptive start-ups or fastchangi­ng consumer habits, may induce combatants to sideline their interperso­nal conflicts for the greater good.

You can also encourage employees to practice a technique we refer to as anticipato­ry self-discipline. Needless to say, you can also try this technique yourself, if you feel that your competitio­n with a particular colleague might be destined to go south.

It is all about rememberin­g that you are the one who ultimately controls your own actions.

Your rivalry can only derail you if you allow it. So prior to engaging with your opponent, reflect on your core values. Let the kind of person you want to be set a steady course for your behaviour during an upcoming exchange with your rival. Don’t let your competitio­n with a colleague take precedence over organisati­onal challenges and objectives.

We are not suggesting that you make yourself an easy target. Definitely remain aware of your antagonist and be ready to respond to any aggressive moves. But never let them pull focus from your end goals.

Henning Piezunka is an Assistant Professor of Entreprene­urship and Family Enterprise at INSEAD; Wonjae Lee is a professor at Korea Advanced Institute of Science and Technology (KAIST);

Richard Haynes is a senior economist with the U.S. government’s Commodity Futures Trading Commission; Matthew

S. Bothner is Professor of Strategy and Deutsche Telekom Chair in Leadership and HR Developmen­t at ESMT Berlin. This article is republishe­d courtesy of INSEAD Knowledge (http://knowledge. insead.edu). Copyright INSEAD 2018.

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