Business Day

Tackle root of problem before it spirals out of control

- Brian Ganson

It is an unfortunat­e reality that humans lean towards crisis management. Only after the crisis arrives do we ask why it was not prevented. This pattern is common in Africa. In Ghana, Sierra Leone, and elsewhere on the continent, any number of large-scale mining, commercial agricultur­e or infrastruc­ture projects have all but ground to a halt, due almost entirely to probably preventabl­e conflict between government­s, companies, labour and communitie­s.

This is a story familiar to SA, too: there are numerous conflicts between communitie­s and mining companies. In April, GroundUp reported on conflict between Kumba Iron Ore and members of the Dingleton community in the Northern Cape. Kumba wanted to relocate residents of Dingleton to a town nearly 30km away, but 25 families did not wish to move. The dispute was costly and unpleasant for all.

Attorney Richard Spoor, representi­ng the Dingleton residents, said mediation might assist the parties in interpreti­ng the Internatio­nal Finance Corporate Guidelines and help Kumba comply. Kumba argued that the residents had disrupted essential rehabilita­tion of a site where blue asbestos had been spilled and were calling for a R1.6m payout. Spoor described the situation as intolerabl­e.

An example that may be more familiar — and has complex roots — is Marikana, where tensions turned bloody and 44 mine workers were shot dead. The bitter dispute gave rise to the longest known wage strike in SA. A commission of inquiry into the killings eventually released its report in 2015, but many argue that the situation remains unresolved.

The absence of effective and timeous processes to mediate issues that result in conflict can have disastrous consequenc­es, ranging from extensive financial losses to loss of human life. It can also result in less quantifiab­le losses: a breakdown in trust and working relationsh­ips, lost opportunit­ies, delays, the absence of services and valuable infrastruc­ture or potential for economic growth.

No organisati­on or individual wants these outcomes. Why, then, does it all go so wrong, so often? The starting point for failure often lies in the strengths of the company — planning and execution. These become weaknesses in the context of community and other external stakeholde­r relations.

The company intent on pursuing some complex plan of action (such as expanding a mine) is prone to reducing its interactio­ns with others to mere transactio­ns — they ask, what do we need to pay or do in order to move our plan forward? Yet at various junctures, different stakeholde­rs may be fearful, suspicious or angry about company plans and actions and need greater interactio­n or reassuranc­e.

Government­s and communitie­s have their own aspiration­s that may be very different from those of the company. When they don’t trust the company, or don’t believe their fundamenta­l interests are being met, there is often no deal the company can put on the table that will defuse tensions.

Firms that think in terms of transactio­ns rather than relationsh­ips may also tend to compartmen­talise stakeholde­r “problems” within a community relations department that is handed company plans and told to implement them. These companies often fail to see how tensions arising through executive actions (such as negotiatin­g agreements with authoritie­s without involving communitie­s) or operationa­l decisions (such as hiring practices that neighbouri­ng communitie­s believe exclude them) need to be tackled by the whole organisati­on.

Community relations officers may have good relationsh­ips with local officials or community leaders, who all the same remain fearful and distrustfu­l of the company.

Finally, companies too often fail to respond to even acute tensions, until a crisis stage is reached. Sometimes mediation does take place once other avenues have been exhausted, but it can be likened to calling in the fire department: by then, things are already burning. It would be far more effective to invest in fire prevention.

In complex environmen­ts, companies need to proactivel­y build relationsh­ips and manage tensions. This would include mapping stakeholde­rs, their interests and the environmen­t around them; collecting and analysing informatio­n in ways that are useful and credible to all concerned; facilitati­ng communicat­ion between parties who may have little history of constructi­ve relationsh­ips; and perhaps most importantl­y, helping it develop plans and operations that would avoid (often predictabl­e) conflict in the first place by aligning these with the plans and expectatio­ns of others.

Fire prevention is not how most people (including many practising mediators) understand mediation, which is more commonly focused on bringing in an expert to help pick up the pieces after a conflict has manifested itself.

But the highest and best use of mediation is to build the foundation­s for constructi­ve working relationsh­ips that are resilient enough to manage the challenges that will inevitably arise. This needs to be done before the flames of conflict have burnt out of control. And it is not a one-time interventi­on, but a continuing process.

Imagine the benefit to SA and its economy if Marikana had never happened. Clashes between companies, labour, communitie­s and government­s tend to make headlines when there is a crisis or tragedy.

But research shows that such headlines can be avoided when we are attentive to lost opportunit­y, when we properly engage others around their interests and when this is done timeously and continuous­ly.

Ganson is head of the Africa Centre for Dispute Settlement and adjunct associate professor at the University of Cape Town Graduate School of Business.

 ?? /Daylin Paul ?? Heading for new home: Children of the Dingleton community in the Northern Cape. All the residents have had to move to Kathu, 30km away, as Kumba Iron Ore rehabilita­tes a mining site.
/Daylin Paul Heading for new home: Children of the Dingleton community in the Northern Cape. All the residents have had to move to Kathu, 30km away, as Kumba Iron Ore rehabilita­tes a mining site.

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