Best Practice Government Relations: Attributes

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Best Practice Government Relations Attributes
Examples

• Brian Hawkinson, Public Affairs Council
• AeA SPAN Conference
• Santa Clara, California August 3, 2004

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Outline

• Best Practice Government Relations
• Attributes
• Characteristics
• Examples
• One companys approach

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Best Practice Public Affairs Attributes

• 1. CEO senior management support
• 2. Goal orientation strong linkage with business
• 3. Forward-thinking people in leadership
• 4. Well-developed Issues Management process
• 5. Strong well-integrated elements

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Best Practice Attributes (contd)

• 6. Effective use of external resources
• 7. Performance measurement evaluation
• 8. Active employee support involvement
• 9. Strong external stakeholder relations

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Strong CEO Senior Management Support
Involvement

• Characteristics
• Recognition of strategic role of Public Affairs
  ( Govt Relations as a component)
• Allocation of resources
• Personal visible involvement of senior leadership

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Strong CEO Senior Management Support
Involvement (contd)

• Company that exemplifies
• Weyerhaeuser Co.
• Direct lobbying in DC state capitals
• CEO is Chairman of PAC
• Formally endorses PAC video, email,
  presentations, executive solicitation
• Ensures senior GR executive engaged in corporate
  strategic planning

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Goal Orientation Strong Linkage with Businesses

• Characteristics
• Integrated strategic planning
• Formal alignment of Govt Relations business
  goals
• Formal review of Govt Relations results w/
  senior corporate/business leaders

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Goal Orientation Strong Linkage with Businesses
(contd)

• Company that Exemplifies
• Coors Brewing Company
• Strategic intent
• Integrated planning process supports Strategic
  
• Planks
• - Baseline growth - Distributor service
• - Incremental growth - Improved productivity
• - Product quality - People
• Aligned at department, team individual levels
• Govt Relations customers determine its value

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Forward-Thinking People in Leadership Positions

• Characteristics
• Vision
• Long-term focus relationships, policy
• Anticipatory
• Innovative problem solving
• Enforce strategic alignment with businesses
• Leadership expectation

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Forward-Thinking People in Leadership Positions
(contd)

• Company that Exemplifies
• International Paper
• Recognized as leader in industry
• State Councils coordinate business activities,
  Govt Relations and community involvement
• Innovative use of coalitions, allies to shape
  policy
• Nurture long-term relationships

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Well-Developed Issues Management Process

• Characteristics
• Strong people in leadership positions
• Interdisciplinary/team approach
• Issue ownership in business units
• Issue prioritization tied to impact(s) on
  business

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Well-Developed Issues Management Process (contd)

• Company that Exemplifies
• DuPont
• Formalized company-wide issue identification
  process
• Prioritized operational, financial, image
  impacts
• Daily conference calls
• Actionable intelligence disseminated daily
• Intranet updates for all employees

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Strong Well-Integrated Elements

• Characteristics
• Strong coordination/integration that effects
  mutual support and synergy among
• - Government relations legislative
  regulatory
• - Political action Grassroots PAC
• - Issues Management
• - Associations/Coalitions/3rd party relationships

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Strong Well Integrated Elements (contd)

• Company that Exemplifies
• PacifiCare Health Systems
• Strategic integration of Govt Relations
• Cross-functional issue teams
• - State Regional Public Affairs
• - Public Policy
• - Regulatory Affairs
• - Strategic Communications Public Relations
• Annual planning meeting with associations
  consultants

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Effective Use of External Resources

• Characteristics
• Strategic use of trade business associations,
  contract lobbyists consultants
• Leadership involvement in key associations
• Partners made integral part of public affairs
  team
• Clear expectations accountability

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Effective Use of External Resources (contd)

• Companies that Exemplify
• PacifiCare Health Systems
• Caterpillar Inc.
• Trade/business association leadership
• Strategic use of contract lobbyists
• Formalized process to identify expectations
  performance of associations

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Performance Measurement Evaluation

• Characteristics
• Well articulated value proposition
• Used to prioritize projects allocate resources
• Measures tied to bottom-line impact

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Defining Public Affairs RoleExamples of Value
Propositions

• EDS Shape public policy in order to create
  market advantage for business units worldwide.
• MeadWestvaco Corp. Recognize emerging threats
  shape public policy focus skill, networks
  resources on specific company issues.
• Dow Chemical Co. Manage public policy to
  impact Dows license to operate, financial
  position or public perception.

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Performance Measurement Evaluation (contd)
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Performance Measurement Evaluation (contd)

• Measure Govt Relations impact on
• Freedom to operate
• Cost avoidance
• Market opportunity or advantage
• Speed
• Productivity

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Active Employee Support Involvement

• Characteristics
• Strong internal communications
• Employees knowledgeable on key issues
• Employees involved in political community
  activities
• - Grassroots
• PAC (for those eligible)
• Volunteerism

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Active Employee Support Involvement (contd)

• Company that exemplifies
• International Paper Co.
• Political education involvement via intranet
• Branded grassroots program
• PAC gt525,000 this cycle
• Pulp Paper Workers Resource Council
• Community volunteerism coordinated at plant level

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Strong External Stakeholder Relations

• Characteristics
• Active in coalitions
• Build nurture strong third party partnerships

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Strong External StakeholderRelations (contd)

• Company that exemplifies
• Verizon Strategic Alliances Group
• Objectives
• - Build customer loyalty, drive revenues
  enhance reputation.
• - Generate 3rd party support for public policy
  regulatory objectives.
• - External stakeholders represented on
  Consumer Advisory Board
• Coordinates
• - Public policy issue communications
  coalition building community affairs diversity
  outreach corporate reputation.

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One Companys Approach

• Altria Building a World Class Public Affairs
  Department
• Attributes
• Clear, achievable objectives
• PA objectives are corporate objectives
• Support/involvement of CEO top management
• Commensurate resources
• Truthful ethical
• Visionary able to look around corners

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One Companys Approach (contd)

• Attributes (contd)
• Agile, able to respond quickly
• Technologically up to date
• Communicate³ within PA team
• Communicate with gain understanding of
  employees
• Be truly public
• Invest in relationships today for ROI tomorrow

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Review

• Best Practice Government Relations
• Attributes
• Characteristics
• Examples
• One companys approach

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Best Practice Government Relations Attributes
Examples

• Brian Hawkinson, Public Affairs Council
• 202-721-0904 bhawkinson_at_pac.org
• AeA SPAN Conference
• Santa Clara, California August 3, 2004

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PRESENTATION TO AMERICAN ELECTRONICS ASSOCIATION

• Fred MainManatt, Phelps PhillipsAugust 3, 2004

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WHY GRASSROOTS MATTER

• When Politicians Feel The Heat, They Tend To See
  The Light

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BUSINESSES DONT VOTEPEOPLE VOTE

• Grass Roots
• Grass Tops
• Astro Turf

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GRASSROOTS TACTICS

• Personal Contacts/District Visits
• Phone Calls
• Mailed Letters
• Faxed Letters
• Email

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AEA/TECHNOLOGY COMPANIES HAVE USED GRASSROOTS
VERY EFFECTIVELY

• Net Operating Loss Carryover
• Securities Reform
• R D Tax Credits
• Option Expensing

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KEY FACTORS

• Recognition of Value by Management
• Long-Term Commitment
• Willingness to Engage Stakeholders and Employees
• Create a Culture of Participation

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TOOLS

• Consultants
• Software
• Community Groups
• Associations

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EXAMPLES

• Job Killer Coalition For California Jobs
• Campaign To Save Stock Options

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KNOW WHEREYOU ARE
KNOW WHEREYOU ARE GOING
KNOW YOURSTAKEHOLDERS
MAKE SURESTAKEHOLDERS KNOW YOU
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KNOW WHEREYOU ARE
KNOW WHEREYOU ARE GOING
KNOW YOURSTAKEHOLDERS
MAKE SURESTAKEHOLDERS KNOW YOU
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KNOW WHEREYOU ARE
KNOW WHEREYOU ARE GOING
KNOW YOURSTAKEHOLDERS
MAKE SURESTAKEHOLDERS KNOW YOU

• Articulating the corporate mission
• Executive visibility
• Being a good corporate citizen
• Striving for transparency
• Taking the pulse
• Keeping the lines open

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3 Key Communications Principles
The Importance of Positioning the Message
Customer Based Communications
Write Once Run Everywhere (leveraging)
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The Importance of Positioning the Message
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Our Approach Customer-Based Communications
INTERNAL BRAND
EXTERNAL BRAND
CUSTOMER
CONSISTENT MESSAGES INCREASED VALUE
PERCEPTION IMPROVED RELATIONSHIP SOLUTION OF
CHOICE
MARKET SHARE REVENUE PROFIT STOCK PRICE
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Write Once Run Everywhere

• Once the story is established, it forms the basis
  for use with the media in news releases, byline
  articles, and features in speeches for
  designated spokespeople and in collateral such
  as Web articles, brochures and white papers.

Media Pitch
Web Article
Byline Article
Story Concept / Idea
Newsletter Feature
Speech
White Paper
Stand-Alone Brochure
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Integrated Communications Program

• To be effective, common themes need to be applied
  across PR, advertising and direct marketing
  campaigns to all appropriate stakeholder groups.
  Each element is intertwined to support relevant
  advertising, sales and promotional materials,
  ensuring that each communication element builds
  off the other.

MEASUREMENTS
MESSAGES
TACTICS

• Quality vs. Quantity
• Message Consistency
• Quarterly Reviews

• Sharp
• Focused
• Distinct
• Proven Track Record
• Credible

AUDIENCE TARGETS

• Interviews
• Byline Articles
• Web site
• Networking
• Speeches
• Introductions

• Influential Reporters
• Customers
• Wall Street
• Partners
• Industry Influencers

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Public Affairs
Smart organizations today understand the
potential impact of public policy on the bottom
line. They anticipate issues and build into
their marketing plans strategies for using public
debate to their competitive advantage.
Corporations should strive to be better advocates
in the public arena and ensure their voice is
heard and their views are reflected in the policy
debate.
Use Policy Debates to
Dramatically raise an organizations awareness
and visibility Establish organizational
credibility Create opportunities for competitive
advantage Identify and exploit new market
opportunities Develop and strengthen a network of
business and consumer allies Create Corporate
goodwill Prepare a client for the inevitable
crisis
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Thank You
David Fish
Senior Vice President
1615 L Street, NW
Suite 1120
Washington, D.C. 20036
Tel [phone]
Fax [phone]
dfish_at_brodeur.com
www.brodeur.com