DESIGNING A GR STRATEGY

Major businesses cannot afford to be without organized and effective government relations operations. Elected officials and regulators increasingly are introducing more aggressive and more wide-ranging measures that significantly impact business interests. Government relations also can help a business advance its own interests and improve profitability. Below are basic but essential areas that a business should consider when developing a multifaceted government relations strategy

Strengthening In-House Government Relations : Corporations vary tremendously in the support they provide for government relations departments, largely depending on the nature of the industry, size of the company, public policy questions involved, and leadership’s attitude towards the political process. Major businesses generally have at least one division or office with externally oriented tasks that direct or supervise governmental lobbying, grassroots lobbying, coalition building, public relations and political activity to ensure positive relationships with state and local communities. When a business is consistently confronting complex legislative or regulatory proposals, it helps to guard against conflicts of interest if there are different outside professionals involved. The key advantage of an in-house government relations apparatus is the company’s direct capability to create and maintain its own organizational identity and visibility. This entails a responsibility to develop its own relationships with officeholders and establish an organizational presence in the parliamentary houses.

Utilizing Contract Lobbyists: Contract lobbyists generally represent multiple clients instead of a single organization. They may be sole practitioners, members of larger lobbying firms, law firm attorneys, or members of other multi-service groups. An important benefit of utilizing contract lobbyists, in conjunction with a strengthened internal government relations operation for direction and supervision, is that the business need not “start from scratch” in developing relationships with key stakeholders across many jurisdictions. A strong contract lobbyist will offer multiple services, including research, budget analysis, bill drafting, grassroots organizing, legislative and regulatory monitoring, workshops, receptions, media and newsletters, and association management. An organization’s reputation can be shaped in part by that of the lobbyist it hires. Employing a highly influential contract lobbyist can (though does not always) provide instant status, provided that contract lobbyist commits to expending on behalf of the client the time and capital needed to succeed. In other instances, a business may wish to employ lower-profile political lobbyists. Lobbyists with substantial experience in the capital city, particularly former officeholders and staff, generally have established themselves and their credentials over the course of years. Lawyer-lobbying firms typically promote the fact that they are governed by rules of professional standards on conflicts of interest and representation of client interests, which non-attorney lobbyists may not be. Whatever route the client company takes, it should obtain references and client lists and try to conduct interviews before any engagement. A deep understanding of the relevant jurisdiction’s legislative and regulatory process is essential. Contract lobbyists should have strong relationships with all poltical parties, be generally known for having clout, and be held in high repute by the jurisdiction’s stakeholders. A group practice, rather than a sole practitioner, can sometimes provide better coverage because, generally speaking, the more lobbyists, the broader their contacts with decision makers are likely to be. At the state level, a major business should employ contract lobbyists at a minimum in jurisdictions where it has a substantial physical presence or where the markets are larger.

Relying on Trade Associations: Association lobbyists - both in-house and contract - represent business, professional and trade associations and can be quite valuable to businesses. National associations typically are headquartered in the capital city , while state associations typically are headquartered in state capitals. Smart companies are not only members of trade and business associations but are actively involved in them. The policies of trade associations usually are made by boards of directors upon the advice of legislative affairs committees, so active participation in trade associations is advisable. Companies inevitably will need to act independently of their trade associations and cannot afford to rely exclusively on trade groups to represent their interests because an association may not take a position on an issue if there is a lack of consensus among its membership. At the same time, even if a company has the full capacity to lobby on an issue on its own, on some matters the business may prefer that an association take the lead on the issue, particularly if it is controversial and the company believes the issue may impact its reputation or standing.

Building Key Relationships : Organizations sometimes fail to build relationships with their elected officials until they need assistance from those officials. A corporation should act affirmatively, take advantage of its location, and embrace a role as a business ambassador to elected officials at all levels. This connection can take the form of initial outreach by the CEO or a senior official and needs to be followed up with contact by an in-house staff member who will work directly with and be responsive to the elected official and his or her staff. A company should aim to be one of the first calls that an elected official makes on an issue of importance to that company’s industry. It is much easier to approach an elected official with whom one has an existing relationship when a problem arises. Although company executives tend to connect with higher-ranking elected officials, it is also important to maintain a strong relationship with local officials where their corporations operate. Elected officials are ambitious, and failure to establish and maintain these local relationships can be a missed opportunity both in the present and the future.

Setting an Agenda: An important early exercise will be identification of the business’s interests that currently are at stake. Are there issues that should be initiated by the company? Which issues should be monitored? What relationships are needed by the company that it does not yet possess? What is the regulatory and political climate at the federal level and in key state jurisdictions? What is the budgetary climate in key jurisdictions that may impact issues? The reality is that few companies have the luxury of “playing offense” that is, being proactive with government relations . Rather, companies are generally concerned with monitoring the political environment, identifying potential threats and designing suitable defenses. Two initial questions will be, “What existing legislation or proposed regulations will hurt us?” and “How do we get into the act early enough to have an impact?” There should be collaborative discussions of these preliminary considerations that should include business leadership, in-house government relations staff, contract lobbyists and, wherever appropriate, staff of the various trade associations.

Developing “Outside” Strategies: Leaders of the company should be committed to a renewed focus on government relations , prepared to budget time for implementation of the strategy, and willing to travel to various jurisdictions, visiting with leaders in key jurisdictions and within their home communities. The company should have high visibility at annual events or conferences where a sizeable number of relevant stakeholders in that jurisdiction gather. Successful businesses are also committed to putting time and energy into coalition building and even developing relationships with nonprofits and single-issue groups whose clients normally have no commercial, material or governmental interests and instead are largely philosophical and ideological. To that end, a business with a renewed emphasis on government relations should also begin to consider developing its own grassroots organization base that would allow the corporation whenever appropriate or necessary to mobilize employees, stockholders, retirees, suppliers, vendors, customers or clients over an important government relations  cause. An effective media and press relations strategy also is always part and parcel of a strong government relations operation. Electronic, print and social media are all highly capable of driving governmental action; a press and media relations team and strategy for the company will be essential.

Ensuring Compliance with Ethics and Lobbying Laws: The rules and culture of lobbying have changed. In most jurisdictions, strict rules govern the entertaining of officeholders, travel, gifts, awards . Any expansion of government relations  should be done in conjunction with a thorough examination of the relevant ethics, conflicts of interest, and restrictions at the federal level and in key jurisdictions. The rise of “pay to play” restrictions, which generally preclude the award of government contracts to vendors that have made contributions to certain officeholders or party committees, is especially worth reviewing to protect against the disqualification of business contracts.

Conclusion

A company expanding its government relations  department is making a smart and necessary investment and must be in it for the long term. Businesses should walk before they run in the following manner:

1. build a strong internal office with talented, experienced full-time staff;
2. invest in highly reputable contract lobbyists to be their government relations ambassadors in key jurisdictions;
3. become active in federal and state trade associations;
4. develop local relationships;
5. set a priority agenda concerning federal and state issues of importance currently in the legislative and regulatory arenas;
6. develop “outside” strategies to advance that agenda;
7. ensuring full compliance with all applicable ethics and lobbying laws and regulations.

A major goal of expanding government relations  operations is that ultimately, the company will be more in control of addressing legislative and regulatory issues of importance and have more control over its own reputation among political stakeholders.

Basics of running an effective GR campaign

1.Set the table with government officials. One of the most effective things you can do in the area of government relations is meet with officials before there is a problem.  Make time to simply introduce yourself and your business to local, state, and national government officials with no “ask” on the line.  If your business is regulated make time to meet the regulators and explain your business to them and give them a point of contact in the event they ever have questions. Likewise, establish relationships with the offices of key MPs.

2. Identify your issue(s). If you have a formal government relations department, part of their job is to keep an eye out for regulatory actions, new laws, hearings, and other matters that could impact your company  If you don’t have a formal department, or just to supplement your government relations team, develop your own resources to stay on top of new issues.  Newspapers, web sites, government-related publications, blogs, newsletters, word of mouth, and trade associations can all be valuable sources of information about what’s going on in the capital city, internationally, or locally.  You should regularly and systematically sort through all of your information sources to spot issues (tax laws, trade, patent reform, export restrictions, etc.).  You’ll want to stay close to your business partners and the CEO/CFO or the General Counsel to help identify the issues worth spending time on.  You will need to prioritize issues as you probably cannot devote time and resource to every issue you spot. The department should start out each year with a list of potential government-related issues you’d like to tackle (and be prepared to change your list as circumstances warrant throughout the year).

3. Build a coalition/Go solo?  Once you have identified your issue(s), you should think about whether it makes sense to go forward alone or as part of a larger group.  For simple issues, your company might consider going forward alone.  If the issue is more complicated, or more controversial (e.g., the company does not want to be seen by itself as against or for the particular issue), you will want to build or join a coalition of similarly minded businesses/organizations. This can be as simple as working through an existing trade association your company belongs to, or as complicated as building a coalition “of the willing” from scratch.  If you go the latter route, you will start with companies that operate similar businesses as they are most likely to have the same view point on the issue (and petitioning the government is a proper way competitors can act together).  Next, think of companies outside your competitive circle that would have a similar interest in the outcome of the issue (e.g., customers, vendors, e-commerce companies generally, etc.).  Additionally, you may be able to link your coalition or trade association up with other trade associations, coalitions, or public policy organizations that support your position.  The key is to spend time thinking about who might be your allies in your campaign (and it may not always be the most obvious businesses) and build your circle outward.  The rub of being part of a coalition, however, is that it will require a good deal of compromise as you’ll need to accommodate the different needs and risk-tolerance of each coalition member.  It will not be “your way or the highway” unless you want your participation in the coalition to be short-lived.

4. What’s the end goal? Before you launch your campaign you need to get agreement from the interested parties (internal or your coalition) as to the end goal.  How do you measure success?  Is it passing a new law or seeing a proposed law fail?  Is it to get a few simple changes made to a proposed regulation or a wholesale rewrite?  Is it to see a government regulator take action in some manner or keep the regulator on the sidelines?  And no matter what your goal is, prepare yourself and your business team up front to be frustrated.  It is difficult to get government to take an action you want, be it passing a bill or writing a new regulation.  You will find things rarely happen quickly. It will be inch by inch.  It may take years to reach your goal (if ever).  So, go into this with your eyes open and your patience level set at “high” and be sure your executive team understands this point as well.

5. How much resource do you need to expend? Depending on the importance of the issue, you must determine how much money, manpower, and time you and the company are willing to spend.  It may be just a letter to your MP or it may be a sophisticated effort that includes mass and social media, economic experts, public relations teams, lawyers, lobbyists, and other professionals.  If it’s the latter, being part of a coalition can help spread the cost around while dramatically increasing the ability to bring resources to bear on your issue.  And not all contributions to a coalition are money.  Sometimes coalition members bring subject matter expertise or the willingness to draft materials or take on other tasks where the cost is manpower vs. writing a check.  Regardless, you will want to stay close to your business leaders so they understand and agree with the costs and effort involved in any particular campaign (or the value/cost/trade-offs of doing nothing).

6. Communications campaign. All government relations campaigns need some type of media or communications strategy.  It can range from an “OpEd” by your CEO in the newspaper to a professionally built website dedicated to your issue with materials written by experts, FAQs, press releases, call to action, Twitter feed, Facebook page, blogs, and other sophisticated media tools and techniques.  Keep in mind that many effective media materials can be prepared in-house. Your corporate communications or marketing departments can be very helpful here and usually welcome the chance to get involved. 

7. Key activities. In addition to a communications campaign, there are several other activities you will want to consider undertaking as part of your effort:

• There is no substitute for meeting with officials, legislators, regulators, staff members, etc. to press your point.  This will include identifying the best people to meet with and may even include meeting with people who you think might be/are opposed to your position as there is always a chance you can change their mind on the issue or keep them neutral in the process, i.e., they are not actively working against you).  You will need to determine who from your company or coalition will be present at any meetings. The importance of the issue may require your CEO to attend for example.  Who attends a meeting sends an important message to the people in government you are meeting with, so be thoughtful here.
• You will typically want materials to hand out at your meetings. There are two main types of written materials.  The first is a short “leave-behind” piece that highlights the issues and “the ask” (i.e., what you want the official to do).  We called this a “one-pager” because the ideal length is one page (or as close to that as you can get).  The second is a “position paper.”  A position paper is a lengthy and detailed discussion of the issues and “the ask.”  It will often contain detailed legal analysis or economic analysis usually prepared by an attorney or outside expert (e.g., an economist).  The length, level of detail, and content of a position paper will depend on the issue.  It will generally be costly to put together but there are times, especially when dealing with complicated regulations or regulatory action, that you will need a position paper to encourage or discourage action on the part of the government. Remember that anything you give to public officials will most likely become public or can become public.
• You may want to or be asked to draft sample legislation (i.e., the text of the law or amendment or regulation you want to see implemented or changed).
• There may be hearings held on the issue.  If so, you should consider having someone testify either in person (most effective) or by drafting testimony that will be entered into the official record.  If you have someone testify in person, ensure they are well spoken, well-versed in the issues, and are comfortable speaking and presenting in public. Having the wrong person testify can undue all of the good you may have otherwise accomplished.

8. Grass roots. Politicians and regulators listen to citizens. Voices count, and the more voices supporting your position the better. Consequently, getting citizens involved through meetings, testimony, phone calls, emails, letters, petitions, etc., can be tremendously helpful.  This is called a “grass roots” campaign. Consider asking your employees to engage and make it easy for them to (a) understand why the issue was important to the success of the company and (b) sign a petition or send an email/write their MP. Think about asking customers, vendors, others to get involved.  For example, you can put a link on your consumer facing websites with information about the issue and easy ways for people to get involved.  You can also work to create general public interest about your issue via many mechanisms, including social media like Twitter and Facebook, through short web videos, through press releases, or other media events.  Above all, keep your message simple and be sure you include a call to action so that people who want to get involved know how to make their voice heard.  

9. Use of consultants. There are times when you will need professional help with a campaign and you will need to seriously consider hiring a lobbyist with relationships and/or expertise needed for your particular issue. Lobbyists can be extremely valuable additions to your campaign and part of your planning should be dedicated to thinking about whether or not you need such help.  Lobbyists will be able to help you put together the strategy (including all of the items mentioned above), will know which officials and staff members are the most important to speak with about your issue, and can help you understand the arcane twists of the governmental process, including how legislation makes it out of committee and to a vote.  A close second is a professional public relations firm to help develop and execute your communications strategy.  Using consultants will be costly.  A coalition can help reduce these costs by sharing them across members.

10. Know the rules. As you develop your campaign, be sure you (and/or your coalition) understand the legal boundaries.  You will need to be well versed in anti-bribery laws around the globe (especially if you have employees on the ground in foreign jurisdictions who may be involved in your campaign).  Finally, if you are working with competitors you will need to be cognizant of competition law issues.  If you’re serious about government relations , you will want to take some professional advice from a law firm or other entity that specializes in the nuances of anti-bribery issues. Take this part seriously as the damage to reputation and other harm that can come from not following the rules is huge. 

A well run government relations  group or campaign can help your company succeed in the business world. It takes hard work, patience, strategic vision, and good deal of creativity to be successful. All skills in-house lawyers have or should have.  Stay in touch with and on top of governmental issues that could affect your company and take steps to ensure that your company makes informed decisions about whether to get involved and, if so, what steps are needed to have the best chance of success.