Business diplomacy management: A core competency for global companies

Global companies can improve their effectiveness by setting up at business diplomacy management function and by developing and utilizing competent bus iness diplomacy managers. Global companies must succeed in the business the y are in and art the same time show competence in managing multiple stakeho lders at home and abroad. While if is of key importance to have the right p roducts and services at the right price and time, global companies might no t be able to deal successfully with obstacles outside their direct sphere o f control. Recent examples are the destruction of production equipment-such as the sabotage of Shell Oil's pipelines in Eastern Nigeria by dispossesse d and oppressed minority tribes, or the persistence of nontarriff trade bar riers in Japan's telecom industry-such as Cable and Wireless's difficulties in acquiring International Digital Communications against strong oppositio n by Japan's NTT Company. Facing such challenges, global companies require business competencies in w hich most managers have no background or training The competencies needed t o deal with foreign country interests, multiple domestic and foreign pressu re groups, or international conflict demand that global companies acquire o rganizational competency in business diplomacy management. This competency would build bridges between core businesses and the complex political envir onments within which global firms conduct business. In fact, many of the at tributes of or business diplomacy manager are comparable to those of a poli tical diplomat.