Country and regional heads are increasingly turning their attention to their government engagement function. Government decisions, from regulatory issues to government sales, can deeply impact the bottom line.
Companies wrestle with a variety of questions when it comes to running successful government engagement functions. These questions can be broken down into three principal challenges:
1. Ensure the company invests the right amount in government engagement.
2. Generate positive engagement when government actors are initially unreceptive.
3. Capitalize on the abilities of third parties without putting the company at risk.
In response to these challenges, most companies resort to a reactive, problem-solving approach. In order to succeed, the government engagement function should reframe traditional ROI evaluations to embrace the broader goals of government engagement, thus creating a proactive decision framework. This new ROI approach applies to each of the three major challenges companies face:
1. Justify Your Investment – First understand how to tailor your investments to the realities presented by each country’s business and political environment.
2. Earn Your Influence – Make sure you time the ―I‖ well in ROI.
3. Discipline Your Delegates – Do not take short cuts with third parties. A low ―I‖ does not guarantee high ROI if the ―R‖ turns out to be negative.
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