5 ways institutional relationships can advance your business strategy
Institutional relations contribute to the creation of business value through fostered relationships with communities, customers, and other external stakeholders.
Benefits of Institutional Relations
A solid strategy to manage institutional relationships can advance business strategy, securing a stable stream of decision-making power through information, network and influence.
· Incentives. There are many ways in which the local and federal government can provide support for organizations entering the market or undergoing investment projects. Build an institutional relations strategy in prior months to identify the key stakeholders in the administration. Develop partnership strategies that can secure grant funding, economic packages or special sectorial programs that exist.
· Clear business objectives. Even if fully-operational, many business organizations can still benefit from defining an institutional relations strategy. Validate and improve the business case through the definition of drivers, goals and scenarios. Refine your value proposition, focusing on “why your company is good for your community”. When decision-making power is waning, a redefined institutional relations strategy could expose current priorities and an action path.
· Mitigate risks. The execution of an institutional relations strategy supplies a business with insights to develop and make strategic decisions. Ensure compliance with legal and regulatory requirements, industry standards and community expectations. Fill your radar with the most relevant legislative agenda risks; map your allies as well as your detractors. Conceptualize your policy desires into an action plan, identifying barriers to tackle well in advance.
· Branding. Boost community perception and strive to be an Employer of Choice. Make impactful investments in your communities with social responsibility that resonates in the community. Develop a clear narrative, detecting your areas of influence and leveraging them. Build and maintain a strong reputation and find common ground with diverse stakeholders.
· Network. Relationships open fluid dialogue around key issues, to communicate and educate the right people that will become champion for your cause. Identify points of alignment to deepen relationships with key stakeholders across multiple sectors. Cultivate corporate and organizational relationships to manage problems and advance your agenda.
Institutional relations in Mexico
After 2018, the political landscape in Mexico changed profoundly, having impact on the ways that company interact with the current administration. Prodensa’s Institutional Relations team focuses on linking our clients’ business objectives to President AMLO’s vision and designing a value proposition that can be deployed directly and indirectly.
Some relevant considerations to navigating the current administration:
· The traditional lobbyist is seen as part of the system that has put private sector interest over the interest of Mexico.
· Day-to-day business in Mexico is conducted in Spanish. Period.
· Subtle and indirect messaging is more efficient than direct in regards to gaining interest on a particular topic.
· Companies that participate in Social Responsibility initiatives and other priorities of the government will be heard.
· Compliance has become one of the key targets for the government, thus a great tool for companies that focus on it.
Prodensa is a Mexican advisory and project management firm with 35 years of experience supporting companies in Mexico – from strategic advisory and start up support of new operations to ongoing compliance, talent development and business continuity consulting.
Our Institutional Relations team has the expertise for Mexican business operations navigating a variety of political, compliance or strategic issues in Mexico.