WORKSHOP ON BUSINESS DIPLOMACY. Francisco Mingorance MANAGING NON-MARKET CORPORATE RELATIONSHIP CAPITAL

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WORKSHOP ON BUSINESS DIPLOMACY MANAGING NON-MARKET CORPORATE RELATIONSHIP CAPITAL BRUSSELS, NOVEMBER 13-14, 2008 Francisco Mingorance Senior Director for Public Policy - Business Software Alliance

BSA COMPANIES Coalition building

Business diplomats ( lobbyists ) in transnational enterprises - role & activities - 10 rules of thumb - Internal & external European cases studies - software patents - product liability Patterns & discussion

What are the main of a business diplomat? of a lobbyist Roles: Representative/Communicator Advocate Strategist Broker Policy Maker/Expert Activities: Information processing Intelligence gathering Analysis, competitor and stakeholders analysis Education Lobbying, outreach

What are your main as a lobbyist Structure for setting up internal and external What are your main as a lobbyist? Not the main of a lobbyist Expert in industry (unless in-house lobbyist) Press coordinator Researcher Spokesperson Legislator

of a lobbyist Ten rules of thumb

of a lobbyist 1. Politics are Consumer-Driven Help your legislator understand why your position is important to his constituents. Constituents are voters. Speak in terms of effects effects on voters, employers and employees Understand role of media in consumer centric campaigns be wary of demagogy

as a lobbyist 2. Do You Homework Know your issue. Understand your issue, the legislation you support or oppose Know your friends and foes. Before you approach your legislator. Know who the key stakeholders are, who decides what, and which issues are hot at the moment Understand the political process and rules of the process Know the key decision-makers, know their background and trigger points

as a lobbyist 3. Information is Power The secret is the distribution of information to legislators and their constituents. Be prepared to give the legislator information he or she can use. Make sure information is as evidentiary based as much as subjective statement (prove your point) Information is only as valuable as it is used a default should be to share the information, not withhold it

as a lobbyist 4. A Little Professionalism Goes a Long Way First impressions are key Don t use threats Ability to respond to new information is a critical step Set the boundaries of what you can do never offer something you can later not deliver Always provide full transparency of who you are, what you are there for Be able to spell out your position in a few sentences

as a lobbyist 5. Be positive Always make your case without being critical of others personalities or motives Offer positive scenarios why changing something is a positive step, not why a piece of legislation is a negative step Explain why support is in the best interest of the decision-maker

as a lobbyist 6. There are No Permanent Friends of Foes Don't take your traditional friends for granted. Never write-off a legislator just because of party affiliation. Don't make enemies of legislators - you may need them as friends in the future. Approach both sides of the aisle too much dependency becomes a handicap on later issues. Lobbying is ultimately a business, albeit a very personal one Lobbying is in a special network all the parts eventually work together at some point and the wheel keeps spinning

as a lobbyist 7. Build a Bond, Not a Gap Research things you might have in common with the legislator. Use shared values to create easy, friendly, frequent communication with the legislators. To adopt the logic of the authorities. Prepare to devote energy and resources to maintaining the relationship approaching just when the issue comes up makes one of more of an opportunist, not a companion in the legislative process Maintain active networking programme

as a lobbyist 8. Be a Partner Build coalitions and look for allies among other organizations. Be accessible to legislators and other lobbyists if they have questions or need follow-up information. Become known as a reliable resource, always deliver on promises Insert yourself into the main protagionists of an issue, the issue will eventually consolidate amongst a few drivers of the policy and compromises the same goes for lobbyists

as a lobbyist 9. Rome Wasn't Built in a Day Aim for consensus rather than for a "victory." Be willing to settle for making progress toward your goal, getting the legislation passed, and fine tuning it in future sessions. Be prepared to build in pressure release mechanisms (review periods, sunset clauses, monitoring mechanisms, devolved detail to regulators, etc.) Keep the mission as main objective, be flexible on tactics

as a lobbyist 10. Stay Committed Politics forms short term battles, but long term gains require years Opportunities come up when you least expect it Continue building your base when the immediate issue is over Prepare systems that gauge your influence on the debate refine and improve your approach during down time

Internal and external as a lobbyist Internal Functions (corporate diplomat): 1) Informer inform business units, executives, managers 2) Briefer and trusted advisor to prepare and set up decision-making for executives and managers 3) Support builder to build up recognition and role of PA in organizational operations 4) Compliance aim to inform departments on future requirements 5) Planner Building regulatory policy into decision making for commercial services and products

Internal and external as a lobbyist Internal Positioning (corporate diplomat): 1) Achieve senior management level support 2) Have position reflect importance 3) Make sure PA is a primary role for someone, even if delegated 4) Make sure PA is part of planning 5) Make sure Board has agenda item on PA for each meeting 6) Create information flow for internal constituents

Internal and external as a lobbyist External Functions (business diplomat): 1) Representative you are the sole embodiment of the constituency you represent 2) Briefer outlining a layman on details of an issue 3) Conduit acting as bridge between constituency and decision-maker