Diplomacy involves building relationships and conducting negotiations through tact and mutual respect. Key skills for diplomats include analysis, awareness, communication, leadership, collaboration, composure, management, innovation, and advocacy. Diplomatic leadership is important for coping with challenges of globalization by enabling collaboration across cultures and building trust. Benefits include enhancing reputation, strengthening relationships, improving performance, and fostering cooperation. Being diplomatic requires setting a good example, choosing words wisely, recognizing body language, and avoiding emotional reactions.