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Go to MTI home Prevention and Early Resolution of Workplace Conflict
“Unmanaged conflict is the largest reducible cost in organizations today,
and the least recognized.“
— Dan Dana (quoted 1988, 2009)

Established in 1985, MTI is the foremost provider of training, certification,
and consulting in workplace conflict management and mediation.
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The Dana Measure of Financial Cost of Organizational Conflict
A tool for demonstrating the bottom-line impact of HRD and OD interventions

See this and other on-line instruments in the
Conflict Management Toolbox

Example:   Health Care

The following analysis was generously provided by a nurse in New England who must remain anonymous in order to preserve the anonymity of the parties involved. The conflict occurred between a doctor and two nurses in a patient care facility.

FACTOR/DESCRIPTION loss loss units Stella loss loss units Bertha loss loss units Doc
                   
Salary     $22,000.00     $33,500     $100,000
Salary + benefits     $33,000.00     $50,250     $150,000
Workweek hours     37.5     28.0     37.5
Length of unresolved conflict     52.0     12.0     52.0
                   
                   
1) Wasted time/energy 3.0 hrs/wk $609.23 5.0 hrs/wk $2,070.74 2 hrs/wk $1,846.15
total $ wasted time     $4,526.13            
2) Reduced Decision Quality     $1,500.00            
3) Loss of Skilled Employees 4.0 empl $42,000.00            
employee #1 salary $22,000 dec. factor 1.0   $33,000      
employee #2 salary $20,000 dec. factor 0.3   $9,000      
employee #3 salary $20,000 dec. factor 1.0          
employee #4 salary $20,000 dec. factor 0.3          
4) Restructuring 2.0 empl $1,858.33            
employee #1 salary $33,750              
employee #2 salary $22,000              
5) Sabotage/Theft/Damage                  
6) Lowered Job Motivation     $2,938            
employee #1 salary $33,500 prod loss(wks) 8.0 %decl 40%      
employee #2 salary $22,000 prod loss(wks) 52.0 %decl 20%      
employee #3 salary $20,000 prod loss(wks) 1.0 %decl 20%      
employee #4 salary $20,000 prod loss(wks) 20.0 %decl 20%      
7) Lost Work Time     $9,300.00            
employee #1 salary $37,500 $3,750.00            
employee #2 salary $22,000 $2,200.00            
employee #3 salary $33,500 $3,350.00            
8) Health Costs     $293.85            
                   
                   
TOTAL COST OF CONFLICT     $60,916.77            
                   

Thanks to Catherine Herrick, Business Direction, LLC, P.O. Box 1016, South Windsor, CT 06074 for her assistance in developing this research.