The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Sunday, February 2, 1997              TAG: 9701310026
SECTION: COMMENTARY              PAGE: J4   EDITION: FINAL 
TYPE: Opinion 
SOURCE: By STEPHEN R. OTTERSTEN 
                                            LENGTH:   78 lines

ANOTHER VIEW: CONFLICT SLOWS ECONOMIC GROWTH

As a new resident in the Hampton Roads area and an attorney-mediator at the Center for Dispute Resolution in Norfolk, I have been struck by the low level of collaboration among the Hampton Roads communities, the most notable example being the Lake Gaston debacle.

Recent articles and letters in The Virginian-Pilot and elsewhere have commented on the problem. In one recent article, J. Daniel Ballard did an excellent job in outlining what lies ahead for this area unless the elected and business leaders find a way to recognize their common interests and act accordingly. His prediction of the continued stagnation and eventual decline of our region's economy is rational and well-grounded in local history and current trends. I concur with his points and add the following:

Having spent most of my professional life within corporations in human resources and legal functions, I have participated in acquisitions, divestitures and site-selection teams that brought 1,000-plus employee operations, including divisional headquarters, to locations which had far less to offer than Hampton Roads. While many factors go into the site-selection process, one factor that can absolutely kill interest is the animosity among local communities that could impact negatively on the success of business.

Business leaders are collaborative; they are used to working with each other. They collaborate on new-product development, vendor networks and joint ventures and recognize that the resources of individuals and organizations can be multiplied when used in conjunction with others. Nothing turns off a senior manager more than the prospect of investing in a contentious environment. They know that dispute and conflict will occur in the normal course of doing business, but they also know that a culture of dissension will create more problems and prevent their resolution. When faced with on-going contentiousness exemplified by a ``Lake Gaston,'' they will take their business elsewhere. The risk is too high here. Until this is changed, we will see the backroom operation that Ballard and others referred to. Characterized by low-skill, low-paying jobs, a backroom operation is a fungible item. Few senior managers or technical people have to be relocated or recruited to begin the operation or end it. They are relatively easy to establish and easier to close.

A corporate or division headquarters is another thing altogether. The movement of a headquarters involved significant planning and commitment of capital and human resources, including senior professional and technical employees. If the senior management of a prospect company feels that the local leadership doesn't have ``their act together,'' they will not make the commitment required for such a move. While they will accept the risks inherent in their market - they don't need the risks presented by an unpredictable local political environment.

On the issue of regionalism, I'd like to point to places where I have lived and worked. When I lived in ``Boston,'' I really lived in Wellesley and worked in Watertown. When I lived in ```Chicago,'' I really lived in Cary and worked in Mount Prospect. When I worked in the New York metro area, I really lived and worked in northern New Jersey. Whether someone works in Raleigh, Durham or Winston-Salem, they all work in the Research Triangle. These areas all have the normal disputes that occur between municipalities, but they recognize that the success and progress achieved by each positively influences the other. A healthy Cambridge needs a healthy Boston. Raleigh's success positively impacts Winston-Salem. They are not playing a zero-sum game and recognize that their common interests far outweigh their differences.

Hampton Roads has much of what is necessary for positive economic growth. We have a good climate, a great port, cultural activities, history, recreation, colleges, universities and technically trained people being discharged daily from the military. We have an effective judiciary, excellent law firms and a comprehensive medical community.

There are highly professional economic-development people at Forward Hampton Roads and the municipal economic-development offices. Considering the contentious environment, they are doing a fine job. They need, however, the active and effective support of local governments willing to work together. This won't happen unless the people making the decisions recognize that the success of each depends on the success of all. We are a region whether we like it or not. The only question is whether we will be a successful region - whether we'll be a Research Triangle or a Bosnia. MEMO: Steve Ottersten is an attorney and a mediator with the Center for

Dispute Resolution in Norfolk.


by CNB