Diplomacy in Business
Recently, I had an interesting conversation about diplomacy and its value in business. Ever since, I have been contemplating the concept of diplomacy and how it is often relegated to the shadows of the business world.
Where is the war?
I believe there are several factors that contribute to the confusion surrounding exactly what diplomacy skills contribute to business. Most notably, diplomacy is often disregarded through its association with government politics, or diluted and re-framed within many other business concepts including, power and influence, office politics, negotiation, relationship management, and human resources. It’s my belief that diplomacy is not a standalone skill but rather an attuned awareness, combined with related skills, necessary to tactfully approach highly sensitive and challenging situations while fostering good relations.
“A diplomat is a man who always remembers a woman’s birthday but never remembers her age.” – Robert Frost
One misstep is enough
Robert Frost applied diplomacy at home to foresee risks had he failed to recognize his relationship’s sensitivities and misspoken. In business, rather than leading to the wrath of a scorned wife, deteriorated relations can lead to other equally terrifying and costly outcomes. Many industries operate in a heavily regulated environment, or with constant public scrutiny, where changes to current regulations could have dramatic effects on profitability. For example, the oil & gas industry is typically subject to provincial royalty programs that direct a portion of corporate earnings into government coffers. A diplomatic mindset can assist in navigating sensitive relationships, especially during times of heightened scrutiny.
“Wise men speak because they have something to say; Fools because they have to say something.” Plato
Do you see what I see?
Another high value application of one’s business diplomacy skills is in proactively identifying and pursuing opportunities for mutual benefit. There is a great example of this within Canada’s telecommunication industry that is far from mainstream knowledge – as most high profile diplomacy usually is. In the early 1990’s, TELUS Communications and Bell Canada required hefty infrastructure investments to expand their wireless networks nationwide and remain competitive. Where most would take this competition at face value, someone involved recognized the opportunity for diplomacy rather than to willingly participate in a technological arms race. The two companies entered into a Tower Sharing Agreement that had TELUS construct a wireless network in western Canada, while Bell did the same in eastern Canada. Does this sound familiar; “I changed my cell carrier from Bell to TELUS (or vice-versa) because the network is terrible”? Unknowingly they are actually using the same network, while TELUS and Bell reap the benefits of shared infrastructure expenses.
“Diplomacy, n. is the art of letting somebody else have your way” – David Frost
Icebergs and Diamond Mines
There are many applications of diplomacy in business, and those with an attuned sense of awareness bring valuable skills and insights that can make the difference in recognizing risks and opportunities in today’s complex business environment.
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