The Critical Role of Public Affairs in PE-backed 100-day Plans
In the dynamic realm of private equity, the 100-day plan is a pivotal period that can determine the future success of a new portfolio company. These plans traditionally evaluate and enhance people, processes, and technology. As crucial but often overlooked is the need to focus on public affairs.
Expand the Sphere of Influence
A new portfolio company likely has focused its pre-investment communication efforts on "contracted" stakeholders—employees, investors, suppliers, and customers. While this is understandable since these groups directly impact a new company’s bottom line, the 100-day plan presents an ideal opportunity to expand its reach to "non-contracted" third parties, including societal influencers, policy-makers, elected officials, and general voters.
These groups can significantly impact the company’s operating environment, often in ways that aren't immediately obvious. They shape public opinion, influence regulatory decisions, and affect market dynamics. By broadening a company’s communication strategy to include these groups, you're not just managing reputation; you're actively shaping the business's operating landscape and paving the way for future success.
Specifically, use this period to:
Identify key non-contracted stakeholders relevant to the company’s industry and business model.
Develop tailored engagement strategies for each group.
Create a content plan that addresses their specific interests and concerns.
Establish channels for ongoing dialogue and feedback.
Crisis-Proof the Business
The 100-day plan is the perfect time to fortify a new portfolio company’s defenses against potential crises. In today's fast-paced, hyper-connected world, a crisis can emerge and escalate rapidly, potentially derailing growth plans and destroying value.
To effectively crisis-proof the business:
Complete a comprehensive risk assessment to identify potential threats and evaluate each risk's likelihood and possible impact.
Create detailed response protocols for high-priority risks that assign clear roles and responsibilities within the organization’s crisis management team and establish communication channels and approval processes for swift decision-making.
Set up monitoring tools to track relevant online and offline conversations as early warning systems.
Conduct crisis simulation exercises to test your plans and team readiness; provide media training for key spokespersons; and ensure all employees understand their role in crisis prevention and response.
Engage Proactively with Policy-makers
Government relations isn't just about compliance—it's about identifying and capitalizing on opportunities while mitigating potential threats. The 100-day plan is a critical time to reassess and strengthen a company’s approach to the public policy landscape.
To make the most of this period:
Create a government engagement strategy aligned with the organization’s growth objectives.
Build cross-functional “Issue Management Groups” to support regulatory engagement efforts and integrate policy considerations into product development and business planning processes.
Engage diplomatically and proactively by scheduling introductory meetings with key regulators and policy-makers to offer your expertise to inform policy discussions and decisions.
Position for Industry Leadership
Establishing a company’s executives as thought leaders from day one is crucial for long-term success. The 100-day plan provides a unique opportunity to set the tone for your industry presence and influence.
To create industry leadership:
Develop a thought leadership strategy that identifies key industry issues and trends where the company can provide unique insights and determines the most effective timing and channels for disseminating this information.
Engage with relevant industry associations and working groups to contribute to industry-wide initiatives and best practices development.
Broaden existing relationships with media outlets, academic partners, and trade shows to include company views on relevant regulatory and policy-making trends.
Public affairs is about actively shaping the environment in which a business operates. By including a focus on public affairs in a new portfolio company’s 100-day plan, you're not just preparing for growth; you're laying the groundwork for sustained success throughout the hold period and beyond.
