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The Hidden Cost of Ignoring Conflict Intelligence

Written by Susanne Schuler | 06/03/25

Year-on-Year Prevention is Invisible - But If You Get Rid Of It...

We all know that crisis prevention is critical - whether it's fire safety, disaster preparedness, or health and wellness. But here’s the problem: when prevention works, nobody notices. If nothing goes wrong, it’s easy to assume there was never a real risk to begin with.

This is why organisations hesitate to invest in conflict intelligence.

They’re happy to spend their cash on grievance panels, investigations, or legal fees after things go wrong—but when it comes to training leaders and teams in facilitating healthy, pressure release, and conflict resolution skills upfront, that budget somehow disappears.

Why Do We Wait for a Crisis?

Consider fire prevention. We’re well aware of the costs when wildfires rage through California or floods devastate Valencia. The damage is measured in billions, insurance claims roll in, and governments scramble for solutions.

But when fire prevention measures work—when fires don’t happen—no one celebrates the policies and training that stopped them.

This same logic applies to conflict in organisations.

We have precise data on the costs of workplace disputes, customer complaints, and litigation. But what about the conflicts that never escalated because a manager knew how to handle a tough conversation early on?

Where’s the budget measure for the averted loss when this was prevented?

The Psychology Behind Ignoring Prevention

Two major cognitive biases explain why we resist investing in conflict intelligence:

  1. The Prevention Paradox

When preventive measures are successful, people underestimate the need for them. Since a crisis is avoided, they assume it was never that big a threat.

Example: If fire prevention measures work well, people may think fires were never a real risk, leading to reduced investment in prevention.

  1. Outcome Bias

People judge decisions based on results rather than the process. If a crisis doesn’t happen, they assume the preventive actions weren’t necessary, rather than recognising that those actions caused a good outcome.

Example: A company avoids costly lawsuits due to strong conflict resolution training. Instead of crediting the training, leaders may assume that legal issues were never a real risk.

Both biases lead to underinvestment in prevention, because success makes prevention seem invisible.

What's The Cost of Not Investing in Conflict Intelligence?

At CEDR, we handle over 20,000 disputes per year - ranging from minor consumers complaints to major corporate conflicts. Mediation and adjudication often lead to positive outcomes, but what if these disputes had been prevented altogether?

Imagine, for example:

  • A well-trained customer service team defuses 100 complaints before they have a chance to escalate.
  • A manager gives constructive feedback, preventing resentment from building up and exploding, leading to a grievance.
  • A leadership team creates a culture of open dialogue, reducing the risk of costly disputes.

If organisations invested in conflict prevention, they wouldn’t just save on legal fees—they’d build healthier, more engaged workplaces.

Studies suggest that workplace conflict costs billions in lost productivity, absenteeism, and turnover.[1] Addressing conflict early could prevent these losses while improving employee well-being and business performance.

Turning Crisis Management into Conflict Intelligence

Prevention isn’t just a nice idea - it’s a strategic investment. Organisations have risk registers for financial, operational, and health and safety risks.

Why not have one for conflict risk?

At CEDR, we help organisations:

  • Implement conflict risk registers to identify and manage potential disputes.
  • Train leaders and managers in conflict resolution skills.
  • Conduct conflict health checks to assess workplace culture and resilience.

We apply the same logic as fire prevention or healthcare - a small investment now can prevent a crisis later.

A Smarter Approach - Investing In The Future 

Take one real-life example:
A workplace conflict escalated to a formal discrimination grievance. The company initially planned to pay off and remove the employee. Instead, they brought us in to mediate. After the mediation, through structured conversations and coaching, the team rebuilt trust. The employee stayed, the team dynamic improved, and the company invested in conflict resolution training to prevent similar issues from occurring in the future.

We don’t just believe in these skills - we actively teach them to the next generation.

The financial and emotional cost of conflict is high - but the cost of not addressing it is even higher.

So, here’s the real questions:

What’s your investment plan for conflict intelligence?

Are you still waiting for a crisis to happen?

Are you building critical resilience now to have it ready when needed?

 

[1] https://www.acas.org.uk/research-and-commentary/estimating-the-costs-of-workplace-conflict/report