Bringing light to the “dark art” of Government Relations

One of the less known – and understood functions – in the Trinidad and Tobago energy sector is that of government – or more broadly – external relations. In fact, and I say this from personal experience, this area of work is met with a mixture of quiet curiosity or deep suspicion of the exact purpose of such a role as well as a sense of incredulity that such an activity actually constitutes a role – and a quite senior role – within the some of our local energy companies. In researching the best way to approach a discussion on this issue of government relations in the local context, I canvassed views from amongst some who have practised – and currently practise in the area. Specifically on the matter of the perception of such roles in the local context, one of my colleagues represented a view that I think best captures the challenge:- “While a lot of the work requires table-top strategizing, lobbying and data analysis, much of it also requires …… underlying chess movements that demand requisite attendance on the cocktail circuit, being the spin doctor, navigating behind closed doors with key influencers and even media on occasion.” It is because of this mix of “science” and “art” that the practice of government relations in the local context remains akin to the practice of a “dark art”.

A low profile role by nature, another possible reason for the lack of awareness is that most of these roles belong to the enclave of the multinational energy companies. The existence of this role amongst this industry is clear – more than most sectors, the government frames the space of action for the energy companies. The energy industry is heavily regulated, is a significant part of the economy and owes its legal license to operate from a direct contractual agreement with the government. Additionally, given the scale of the energy business, small changes in fiscal or general business related policy (e.g. local content, mandatory CSR, HSE changes) can have a major impact on both business value and delivery of the energy players. Government relations is therefore a critical business enabler and an important function for operators.

So what exactly does a Government Relations person do? Well to put it simply, a good government relations professional provides access and influence. Access refers to the ability to appropriately connect with the political and technocratic decisions and policy makers and to those who influence such actors. It is no coincidence that many retired public servants continue their careers in roles like these primarily because of their ability to use their contacts and experience to leverage access. In a small, and relatively informal country like ours, access is less of an issue than in some larger societies. The social distance between Joe Public from our political elite is not that extensive – we all know ‘someone who knows someone who knows the minister’.

The bigger challenge for this role, however, is that of influence. Influence is based on a number of factors the most important of those being shared interest amongst the parties involved and the level of trust that exist between them. In that regard, influence is derived from much more deliberate effort and work – since it requires an understanding of the needs and drivers of the other party, an on-going system of engagement focussed on building trust and connectivity and a thorough review of the business agenda of the firm in order to ‘find the join” – the area of confluence or aligned interest that will allow a politician, a technocrat or a regulator to listen with intent. From my experience there is also an important part of the “how” in the local context that can cause expatriate leadership particularly to struggle. Culturally we tend to enter such business conversations with a sort of “connectivity” phase – a few minutes at the start of the meeting that might be general chat about topical issues that might seem irrelevant to the topic at hand but the banter can be critical to setting the right tone and even the context for the ensuing conversation. These skills are not accessible in classrooms or in training rooms. They are often innate or learnt with practice. It is this kind of adeptness that makes a good government relations operative invaluable to foreign companies and their representatives.

For companies operating in the energy sector space in developing countries, it is important to ensure that companies – especially small local suppliers – learn, and are equipped to demonstrate their efforts to gain influence through legitimate means. In this regard, a government relations capability can be considered a business risk management strategy – a demonstration of a firm’s commitment to fair practise – and possibly a positive competitive differentiator.

I think it is time we begin to bring light to this “dark art” and to ensure that the ‘science’ and ‘art’ of government relations is a key country entry skill as our energy service sector begins to internationalise.

My personal thanks and acknowledgement to the colleagues who provided robust comments on the first draft of this article.