Why is it important for a company to have a government relations strategy?
When legislators are involved in cutting deals and forging compromises, the final result is often harmful to businesses. It’s important for businesses to follow what government is doing. Some compromises move so quickly that you can’t keep up with them, but most move far more deliberately and provide points for businesses to get involved.
How can a business develop its own government relations strategy?
Every business should make an assessment of its current and potential interaction with government. Before you have a government affairs strategy, you have to know what government-caused costs you have, such as taxes, regulatory roadblocks, or fees.
You have to know not only how much business you are currently doing with the federal, state and local levels of government, but also identify how much business could be done. Perhaps you have some products and services you’ve not marketed to government agencies, and perhaps there is an opportunity there. Once you have assessed that, then you put together your strategy.
Regarding costs, at the least you need to be educating public policy leaders and elected officials about your costs. They may not be aware of the ramifications of their policies on your business. You may find an opportunity to reduce your costs. What is more likely, however, is if legislators are aware of the costs you are already paying to the government, they are less likely to increase those costs.
Then you need to assess how you can sit down and have a conversation with public policy leaders. Sometimes that means your executives simply need to meet with elected officials. If there are issues that require a more prolonged interaction, then you probably need to assign government affairs responsibilities to a member of your staff.
That’s a very conservative step. Another idea is to hire someone full time to handle government relations responsibilities. An in-between alternative is to find an external professional who can advocate for you in front of public officials.
How can a business determine what type of representation is necessary?
When it comes to just updating public officials on how your company is doing and the cost government causes to your company, that can be done by executives within your company. But if you discover pending legislation that creates a significant threat or a significant opportunity for your business, then it may be wise to devote additional resources to an internal or external advocate in government.
Steve Tugend is a director and chair of the government and legislative affairs practice for Kegler, Brown, Hill & Ritter. Reach him at (614) 462-5424 or [email protected].
