Business and the Public Policy Process: Introduction and Course Overview Public Policy, Politics, and Business Strategy Dr. Michael D. Lord Babcock Graduate.
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Business and the Public Policy Process:Introduction and Course Overview
Key Sources of Business Risks and Poor Performance
By simply ignoring politics and public policy By pushing strategies and policies…
With little regard for larger public affairs and political – as well as business – realities Too narrowly and too short-term focused Simplistic economic, technical, and financial thinking Overly-formalized, aggressive legal tactics Quick-fix PR, lobbying, and marketing approaches
That look like wins from a narrow, short-term view, but instead are predictable debacles in terms of public affairs, politics, and ultimate performance
Policy Meets Political Reality:Enron Revolutionizes Energy?
Enron pioneers electricity deregulation policy California and elsewhere Quick, transformative public policy victories Aggressive, innovative deals and strategies Quick ‘successes’ and rich ‘profits’
But failed public affairs and political strategies Multi-fold price spikes, massive public protests Investigations, bankruptcies, jail time Collapse and bankruptcy of the entire company
“We saw our products as great boons both to farmers and to the environment. I guess we naively thought that the rest of the world would look at the information and come to the same conclusion.”
-$10 billion
The Playing Field: Levels & Arenas of Analysis & Action
Levels of analysis and action International National (U.S.) State Local
Focus on the federal level – the trump card
Arenas of analysis and action Executive Regulatory Judicial Legislative
Focus on the legislative arena – the trump card
Playing the Game:The Tools of the Trade
Informational and influence tactics Political contributions Advocacy marketing Professional lobbying Executive lobbying Constituency building
All are part of the political mix and policy process
Why focus on stakeholders and constituency building? Holistic & strategic Effective & ethical Links and enhances
Proactive Political Strategy vs. Reactive, Defensive Tactics
Most efforts still defensive, tactical reactions Reactive, not proactive Driven by tactics, not strategy Immediate & short-term, not ongoing & long-term
The result is limited effectiveness Cannot build an effective ‘brand’ and base of
political capital overnight Ad hoc, reactive tactics = costly, uphill battles Reactive tactics not only ineffective, but often
actually damage public ‘brand’, political capital Negative performance implications
Strategic Management of Politics and Public Policy
Stakeholder management is not just politics – it’s a core part of larger public affairs and business strategy, both domestic and global
Pursue longer-term, more holistic integration of stakeholder concerns, especially politics and public policy, with business strategy At top levels… Before, rather than after, the fact… Integrated into formulation and implementation