DISTINGUISHING THE SUB-COMPONENTS OF STRATEGIC MANAGEMENT

The process through which strategic managers make and implement decisions is strategic management. Here below are interrelated sub-components that are part of the process. They include Government Relations/Public Policy Advocacy, Regulatory Affairs, Strategic Planning and Issue Management and Public Affairs.

Government Relations/Public Policy Advocacy

An organization’s direct interaction with government officials. Navigating government, shaping public policy and communicating effectively with decision makers and stakeholders at all levels of government is the purpose of government relations.

But government relations strategies are but one facet of a company’s business plan and operational framework. It is necessary to ensure that all strategies support your long-term and short-term business objectives.

Example of Activities:

• Establishing and maintaining a positive corporate relationship with government(s);
• Monitoring issues, public policy, legislation and regulation;
• Interpreting government – translating initiatives and indentifying the implications and opportunities for the company;
• Advancing strategies and tactics that add shareholder value;
• Providing environmental overviews for the company's senior executives and strategic business units;
• Ensuring the company’s voice is heard and understood by government – by the right officials at the right time;
• Charting a course for the company to inform the direction taken by government(s);
• Training in-house government relations staff and strategic process that are integrated with business plans.

The purpose is to design and implement a comprehensive government relations strategy that enhances efficiency, adds value and manages risk.

Regulatory Affairs/Government Affairs

Also called government affairs is prevalent with regulated industry such as pharmaceuticals, medical, devices, energy, banking.

Example of Activities

• Ensuring that the company complies with all of the regulations and laws pertaining to its business or industry;
• Working with regulatory agencies and personnel on specific issues affecting the company;
• Building fact based advocacy that informs current and prospective regulations and public policy;
• Advising the company on the regulatory aspects and climate that would affect proposed operations or projects.

Strategic Planning and Issues management

An external development who could impact the organization’s performance and to which the organization must respond in an orderly fashion; and over which the organization may reasonably expect to exert some influence. Issue management is one component of the strategic planning process.

Example of Activities

• Developing and implementing effective strategies and action plans for the company,  crisis, risks to assets and stakeholder opposition to projects;
• Managing issues on short, medium and long term continuums with measurable success;
• Multipronged strategies anticipating shifts or opportunities in government and regulatory environments;
• Providing political environmental scan and assessment;
• Navigating through public and stakeholder consultation processes;
• Protecting brands, assets and reputations.

Public Affairs

Public affairs is an organization’s effort to monitor its environment including its relationships with external stakeholders and activities that contribute to policy developments.

Example of Activities

• Mobilizing stakeholders and interest groups;
• Developing and implementing effective communication strategies;
• Community consultations;
• Analyzing the impact of draft legislation on stakeholders;
• Providing assistance and advice on preparing, and following up on meetings with stakeholders;
• Communicating stakeholders positions to other stakeholders and decision-makers;
• Strategic partnerships and public relations.