CATEGORIZING COMPANIES IN GOVERNMENT RELATIONS

There are five groups of companies that can be distinguished in the field of government relations.

1. Opportunists: They believe policy and regulation generate new business opportunities avoiders,
2. Partners: They see specific opportunities along with broader business benefits from transparency and involvement in shaping policy.
3. Reluctant Engagers: They see some benefits from engaging government but they also think government is unfair.
4. Avoiders:
5. Adversaries:

Key Success Factors

• Using strategic planning process to align the government relations agenda with the company’s overall strategy
• Making trade-offs across external issues to achieve the best outcome for the company overall
• Coordinating government relations activities among functions, business units and geographies
• Having a coordinated response to major external affairs crises
• Identifying issues related to reputation, government or regulatory action or relationships with stakeholders.

The practices at which the biggest majorities of companies excel include aligning the government relations with overall company strategy, making trade-offs across external issues, and coordinating government affairs activities across the company.

Tactics where successful companies outperform others include dedicating sufficient talent and resources to government relations activities and quantifying and measuring the financial impact of those activities.