What a CEO needs to know about government relations

With a General Election due to take place in the UK sometime this year and a likely change of Government, many companies are reviewing their Government Relations strategy.

Some – mostly larger – companies are always active on this front, with a dedicated team and a constantly evolving programme of events and carefully honed messages to ensure regular contact with Government Ministers, MPs and other elected representatives with policy influence.

Other businesses may not see active engagement as a priority, particularly in tough economic times, or perhaps they have grown so used to one Party in power after 14 years that they only occasionally go through the motions.

Government – or Public – Relations is a long game.? It is about building and managing reputation and relationships for the long-term, and positive results can be difficult to achieve.? So why bother?

Governments of all stripes tell us they want to create the right environment for business to grow, but changes of policy can have the opposite effect, creating uncertainty, adding unexpected costs and making investment unattractive.? Only a small percentage of elected officials come from a business background, and the electoral cycle is far shorter than the corporate one.? So it is imperative that businesspeople make their case to inform policy and decision-making.

How you tackle public relations will depend on the strength of your opinions (do you care one way or the other about what happens?), the level of your resources (people and finance), and whether you think your company has something specific or unique to offer.? Many CEOs are content to work through their Trade Associations to register their views, but if you want greater input you will need a dedicated in-house team or a specialist Public Relations firm to work with.

Whichever route you take there are some common threads to pursue.

1. Get a good understanding of the direction of policy travel in areas important to you.? What are the red lines for you and for the politicians?
2. Who are the key players developing the policy?? (Shadow) Ministers, advisers, other businesses/groups, your local MP/candidate.? How do you get heard by them?
3. What can you contribute to the political approach, either to make a good idea more workable or – if it is a policy you disagree with – to mitigate any negative impact?
4. Make your message short and clear, and offer a win: win.

Above all remember you will not win every battle.? Others with opposing views may have a better strategy or clearer, more acceptable message.? But there will be future opportunities to shape and influence when you may be more successful – particularly if you have demonstrated your value as a critical friend.? So keep on top of developments and keep up your contacts with key players.

Dr Elizabeth Haywood

Associate Director, Cogitamus and former Director, CBI Wales