Randall Goldman on the Importance of Diplomacy in Business

Business diplomacy is a crucial concept for New Orleans firms to master. Companies must cultivate solid relationships with other firms in their field as well as with government agencies. Without business diplomacy, firms can find themselves isolated and with damaged reputations. Success requires a certain level of aggressiveness, but diplomacy is crucial to maintaining a solid position in the business world.

Business diplomacy can benefit firms of every size and in every field. Randall Goldman, a business adviser and an expert in the field of hospitality, shares the ways in which New Orleans businesses can build stronger relationships with one another and with governmental and non-governmental agencies.

Fundamentals

The fundamental concept of business diplomacy lies in increasing goodwill between businesses and agencies. Every firm can benefit from business diplomacy, whether large or small. The core of diplomacy lies in handling difficult situations with a careful touch. It also involves preventing difficulties by behaving transparently and without malice.

Being diplomatic can smooth the way for any business, helping them overcome difficulties and enhance their standing in the community. When a business is respectful and willing to work with others toward a common goal, they can foster their own success.

While some people may take a cynical view of diplomacy, it is a hugely important skill for business leaders to master. Cynical business owners may believe that diplomacy means covering up negative actions with many outward gestures of goodwill, but it goes beyond superficial gestures.

Examples

For a neighborhood business in New Orleans, it’s necessary to have good relationships with other businesses nearby, including competitors. For example, a small restaurant needs to have deep roots in the community. Relationships with schools, law enforcement agencies, and local chambers of commerce are great ways to build goodwill.

A restaurant could offer fundraising nights for the benefit of local organizations like sports teams or scout troops. By donating food to local law enforcement agencies in times of need, a company can build its reputation as a caring part of the community. Volunteering to host events for a local chamber of commerce gives the business community a positive way to interact with your restaurant.

Businesses must also be careful to maintain their standing in the community as a whole. In a tourist-dominated economy like New Orleans, this is especially important. Businesses need to focus on keeping the regulars happy while attracting customers from out of town. Alienating the local community with rowdy tourist customers is a recipe for trouble. By ensuring that the restaurant takes good care of its regulars, any problems with out-of-town customers may be lessened. A discount card is a great way to build local loyalty.

Political Lobbying

Business diplomacy also covers political lobbying. When a company wants to influence political and social affairs, business diplomacy becomes necessary. For example, a local shop may want to increase the number of street parking places in front of its storefront. This involves a good relationship with the city and an ability to negotiate for services.

A representative for the business must be ready to approach the city carefully and avoid acting entitled. They need to present their wishes to the city in a way that emphasizes the benefit for both the city and the business. Best practices for this situation include showing the city that increased on-street parking will benefit not only their individual business but also the entire community.

City leaders can see through blatant self-promotion and are less likely to help businesses who approach them in an arrogant fashion. “Greasing the wheel” of diplomacy can help a great deal. A company must also be ready to do good in return for the favor of making the change to parking regulations.

Diplomacy Works for Everyone

With strong business diplomacy skills, each New Orleans business can increase its success and build a future for itself. Focusing on the interactions between businesses, agencies, and the local community can help build an establishment’s reputation. Randall Goldman recommends that New Orleans businesses of all sizes look into the ways they can enhance their success through diplomacy.