Navigating Political Change
Two sure bets in Alberta: 1) there will be a spring snow storm, probably a couple days after you change your winter tires, and 2) the political landscape is constantly changing. The past couple of years have shown us that politics is anything but boring in Alberta, and companies are taking note.
A McKinsey study found that governments and regulators are second only to customers in their impact on a company’s economic value. For energy, financial and healthcare companies, government and regulator decisions are the number one factor impacting economic value. Political change can determine the fate of an organization. One way companies can prepare for and adjust to rapid change is through an effective government relations (GR) strategy. Put another way, “if you’re not at the table, you’re on the menu”. That brings us to Alberta.
Premier Jason Kenney is facing a leadership review, which is creating uncertainty. The May 18 results could lead to an interim leader, a leadership race, and an entirely new set of Government of Alberta priorities. This only brings us roughly to December. Then the province prepares itself for the spring 2023 election.
The “election red zone” brings its own set of challenges. But this is not a time to let off the GR gas. Policy changes are often hastily made during the campaign when political strategists take control from policy experts and public servants. Those who’ve worked campaigns know, “that’s a problem for government to deal with” is a well-cited excuse for rushed policy decisions made by campaigners who won’t be around to implement them. Think Jason Kenney’s promise to shelve oil by rail in 2019, or the smatter of new taxes in Premier Prentice’s 2015 red zone budget.
Companies looking to successfully navigate the political uncertainty of the next 12 months should focus on understanding the policies, regulations, activist movements, demographic shifts, personalities, and political priorities that could affect their organization. Having a GR strategy that mitigates risk and identifies opportunities is essential.
Some initiatives companies can undertake are:
Identifying stakeholders and building relationships. Stakeholders could include elected officials, political staff, senior bureaucrats, industry associations, first nations, and community associations.
Proactively and consistently engaging with the stakeholders most important to your organization.
Making sure your organization’s contributions and priorities are communicated.
Collaborating with the government and, when appropriate, with opposition parties on policy directions and platform development.
At New West we help clients understand governments and shape decisions. If you are looking for support navigating Alberta’s changing political landscape, reach out. We would be happy to talk.