Departure of Polynovo CEO underscores importance of dealing with conflict – especially in the C-suite
The CEO of a major medical technology company has stepped down from his position with immediate effect following reports of discontent within the board and management.
It’s a reminder for HR leaders about the importance of appropriate workforce interactions, according to Professor of Strategy and International Business at Monash University, Pitosh Heyden.
“Culture is lived throughout the organisation, but it’s set at the top. The tone for how we interact with each other, what’s appropriate – it’s a trickle-down effect.”
“Conflict in and of itself is not a bad thing. In fact, we need some degree of friction and conflict to come with new ideas, to look at different perspectives and to innovate. It has to be handled in the right way,” he added.
Polynovo’s Chief Executive Officer, Swami Raote, stepped away from his position earlier this month after filing allegations of bullying against chairman David Williams, as reported in The Australian.
“These higher-ups may be seen as directors, superstars, even celebrities – but they’re all human. They’re subjected to the same emotions that you and I feel in our day-to-day, but the only difference is the stakes are higher.
“You and I might get into a scuffle and just forget about it. These C-Suite executives can’t do that – the implications are much more severe,” Heyden told HRD.
The decision follows a disagreement between the board and Raote following the conclusion of their confidential discussions, said a company statement.
“After careful consideration, the board has come to the conclusion that a change in PNV's Chief Executive Officer is in the best interests of PNV at this time and that new leadership is required to continue the company’s growth.”
The move saw the company’s share price drop 8%. Polynovo thanked Raote for his service to the company over the past three years.
HR leaders have a huge part to play in how conflict is negotiated across the company, according to Heyden, and the key is communication.
“Managing expectations is very important and getting up proactively on that. Ultimately, situations like this bring about the opportunity to prevent future instances. If there are rumblings at the top, one thing that tends to give a lot of assurance the workforce is that there is some form of continuity plan in place,” Heyden noted.
“That's a clear lineage that... if something happens to the CEO, workers know who the successor is. We know who will be in charge.”
Heyden added that this should be done before conflict and discontent occurs, in order to be proactive instead of reactive.
Harassment complaints against executives should be dealt with the same way they would be for anyone else in the business, an employment lawyer previously told HRD.
Gossip is a common part of office culture and one way that information – both fact and fiction – can spread throughout an organisation.
It is important, therefore, to deal with rumblings of discontent and misinformation quickly and efficiently. Negative gossip presents itself in many ways. Often, it’s so underhanded that it’s near impossible to detect - however, the repercussion can easily be seen in a morale and productivity nosedive.
“The best way to dish out bad news is quick and clearly. Rip the Band Aid off,” Heyden said.
“I think that people can forget that, generally, you’re dealing with adults – your workforce is probably more resilient and adaptable than they’re given credit for.”
People don’t mind change as long as they know the full extent of it, he said.
“By keeping communication clear, you’re giving people assurance. A business is a collective entity, and I think people often forget that. Some things, yes, don’t need to be shared with everyone – but unity means strength overall.”
