Michael helps facilitate conflict resolution between Angela and Oscar over Angela's poster. Oscar vehemently dislikes the poster while Angela wants to put it up in her workspace to look at. Michael wants them both to compromise and gives creative ways to do so.
Robin Williams is explaining the concept of the word, "conflict," to the two headed monster. This is a new concept to them, so he breaks it down into simpler terms. Robin and the monster begin to argue and realize that they are in the middle of a conflict.
Tom favors one of the paintings over all others, but the other members of the team don't agree. Leslie solves the problem by creating a compromise: Tom will cut out his favorite shapes and put them on a collaborative that includes all of the art options.
In this scene, Elmo meets his friend, who has has milk while Elmo has cookies. Elmo would like some milk to enjoy with his cookies, and Elmo's friend would like some cookies to enjoy with her milk. To solve this conflict they both decide to share their cookies and milk together.