Everyone who ever worked in a large organization, can probably relate to at least one of the following examples of conflicts that regularly occur in organizations:

• A sales leader wants to close a deal with a low margin to meet her targets and to safeguard the relationship with the customer. The product manager does not want to sign off on the deal, because she wants to protect the margin of the product in the longer term
• A business leader wants to hire a star performer working for another company, and is prepared to pay her more than the maximum of the corporate salary band for these types of roles. The HR Business Partner tries to prevent this because he does not want to create a precedent that can create upward pressure on the salary costs of the company
• The head of a shared service department wants to hire an independent contractor for a project for USD 1.200 a day. The Purchasing department forces him to work with a consultant from a well-established firm on the preferred supplier list, for a fee rate that is 3 times as high as the one of the independent contractor

These, and other types of conflicts, seem to be an inevitable part of life in large organizations. The question is: why we have those types of conflicts, and if and how we can prevent them?

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