Discord Investments didn’t expect so much conflict when the regional brokerage firm brought in a global information technology (IT) consulting firm to implement a new client/server network. Discord had no plans to outsource its information systems activities, yet the investment firm’s own IT employees were worried that they would be replaced or transferred to the consulting firm after the hardware installation was completed. This risk made them somewhat reluctant to provide details about Discord’s operations that the consultants needed to do their jobs effectively.

“Why should we tell them what we know and end up losing our jobs or, at best, getting outsourced to some unknown outfit,” Discord’s IT employees privately warned each other. The consultants sensed this reluctance, but the Discord employees kept their concerns to themselves.

Scheduling was another source of disagreement between Discord’s IT staff and the external consultants. Each week, the consultants flew in from other cities to Discord’s offices, typically working 12-hour days, Monday through Thursday, then flew back to their home cities on Friday.

Discord’s employees lived close to the company’s offices and worked Monday to Friday with regular hours, usually 9 to 5 with one or two hours of flexibility around those times.

The consultants raised concerns that the project would be delayed by Discord’s IT staff if they did not adjust to the consultants’ schedule during the two or three months that the consultants were on-site. The employees complained because the consultants’ schedule would mean significant disruption to their usual nonwork life, such as attending evening school events, spending time with family, or participating in sports and other social activities during the week.

Finally, the most serious disagreement broke out regarding who should lead the project—the Discord IT managers or the external consultants? Discord’s top executives tried to quell the dispute by giving the leadership role to the consultants, but this decision simply added to the tension.

The problem was that Discord’s IT people would be responsible for the system long after the external consultants were gone, so they felt somewhat trapped by the consultants’ power.

Discussion Questions 1 Identify and explain the main source(s) of conflict in this case.

2 What actions should the organization take immediately and for future consulting interventions to manage the conflict more effectively?