Conflict Management and Cross-Cultural Awareness
Ann L. MacNaughton, David A. Victor, 2000. "Conflict Management and Cross-Cultural Awareness", International Oil and Gas Ventures: A Business Perspective, George E. Kronman, Don B. Felio, Thomas E. O’Connor, Mindy S. Kronman
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This chapter describes two important models for developing and improving your ability, and your team’s ability, to manage conflict and disputes for net value added results.
International business brings together people from different cultures with sharply differing values, experiences, and expectations. Such rich diversity offers remarkable opportunities to create new value. It also offers fertile ground for misunderstandings, ruptured relationships, and failed ventures. Managed well, conflict can power great change, innovation, and productivity. Unman-aged or managed poorly, it can harden into disputes that consume massive quantities of time and money, destroy valuable relationships, and sabotage important projects.
The two models described in this chapter are the LESCANT model and the CPQ model. The LESCANT model focuses on individual behavior. It provides a framework for anticipating and understanding cultural differences before encountering them. Its culture-general analytic framework can be applied to help individuals acquire and share cross-cultural insight and understanding. The CPQ model focuses on the behavior of systems that avoid and create (in some proportion) net new value and net costs over a given period of time. It applies systems thinking to develop strategies for improving a system’s “conflict productivity quotient,” the ratio of A to B where A is net new value created and B is the amount of net costs created in same time period.
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A “one-stop” business view on how to succeed in international exploration and production. Success in the international upstream arena requires more than the technical ability to find oil and gas. Relationships with governments and people, mutually beneficial contracts, workable strategies, and implementation plans are necessary to build strong, mutually beneficial, and profitable ventures. Key components that drive exploration and production in the global environment are examined. Specific topics include negotiating for success, contracts, the role of technology in international strategies, cross-cultural relationships, alliances, and international upstream financing. Authors from around the world, representing industry, governments, national oil companies, consultants, and academia, contributed their perspectives. Views are provided from both sides of the negotiating table, the corporate boardroom, the resident manager, the explorationist, the businessman, and the theoretician. Geoscientists, engineers, and negotiators, who are, or would like to be, involved in the global energy business will find this collection an important reference.