Less than 1% of over 2500 international middle and senior managers in our benchmark group regularly refer conflict situations to others for resolution.

Escalating conflict to a higher authority for resolution is often a last resort when parties have reached deadlock.  That authority is often the next-up manager, an independent expert, a government authority or the judicial system.  Unless used tactically or as a means to avoid conflict, referral can be a sign of failure to resolve issues at the current level.

 Referring conflict for resolution can be useful when:

• You are in a deadlock and neither side can walk away

• You have reached the limit of your authority to negotiate

• You are very confident that you will win your case

• The outcome is more important than the relationship

• You can’t force the issue, but a higher authority can

• Other attempts to resolve the conflict have failed.

 Upsides of Referring:

• Requires no skill and passes responsibility for a solution to a third party

• Referral to an independent third party can reduce tension and appear fair

• Will ultimately deliver an outcome as a measure of last resort

• Can also be used tactically or as a means to avoid conflict

• The prospect of lengthy and uncertain arbitration proceedings or costly court action can sometimes galvanise the parties to come to an agreement.

 Referring conflict has a range of downsides too...

 Downsides:

• It represents a failure to resolve the conflict with potential loss of face for those involved

• Surrendering control of the process and the outcome to third parties involves risk

• Potentially costly and time-consuming

• Outcome can be uncertain and is determined by others, who may be swayed or have different or unpredictable agendas.

 Even where referral to a higher authority resolves the conflict on the surface, if one or both sides are unhappy with the outcome reached, problems in the relationship may just be postponed, rather than resolved.

The best antidote to surrendering control and having to refer conflict for resolution is to have the negotiation skills, agility and confidence to resolve deadlock situations.