Election years bring unique challenges and opportunities for businesses. Uncertainty around policies and regulations can affect everything from consumer confidence to market stability. Taking a strategic approach is key to ensuring your business thrives in turbulent times.
During election times, socio-political narrative dominates the conversation. The role of PR agencies will be critical in maintaining and promoting the ethos of their clients’ brands. The skill of an experienced PR agency is to deliver a story that represents the values and identity of their client while staying consistent with the political climate. With advertising costs becoming prohibitively expensive, CMOs are faced with big decisions. The story needs to be compelling and the sales team needs the necessary air support. This delicate balance is leading most companies to find that changes are necessary.
Here are some considerations and tips to run your business effectively in an election year.
1. Stay Informed and Adapt
Understanding the political environment is important. Assign a team or designate a contact person to monitor election-related news and provide regular updates.
Action item: Subscribe to a reliable source of political and economic analysis. Regularly review how proposed changes may affect your operations, supply chain, and market conditions. Your company may encounter certain situations based on the recommended guidelines. Therefore, having an expert on your side is a great help. I’m a big fan of geopolitical analyst Jacob Shapiro, who provides in-depth podcasts.
2. Scenario Planning
Uncertainty is the hallmark of an election year. Create multiple scenarios based on possible election outcomes and plan your response accordingly. This proactive approach will allow you to pivot quickly and minimize disruptions.
Action item: Create an emergency plan. Evaluate potential impacts on taxes, trade policy, labor laws, and regulatory changes and develop a strategic response. Knowing key dates before the election allows you to plan your company news around those days and weeks. A good source is Ballotpedia.
3. Stay on a Steady Course
Being adaptable is important, but avoid making hasty decisions based on short-term political fluctuations. Stay true to your basic strategy and adjust only when necessary. Overreacting can lead to unnecessary disruption and missed opportunities.
Action point: Stay on a steady path, focusing on long-term goals. Develop a plan to manage risks without deviating from your overall strategic vision.
4. Communicate Thoughtfully
Election years can be polarizing. Consider how political debates and decisions will affect your internal and external communications. Strive for neutrality and inclusiveness in your messaging to avoid alienating stakeholders.
Action item: Train your team on appropriate communications strategies during politically sensitive times. Ensure all public statements, marketing materials and internal communications are carefully reviewed for possible political bias. Develop a communications strategy that allows you to put your values at the forefront. For example, if you’re a geothermal company that creates wealth for the local community, you can send your message in a way that resonates with both sides without taking sides.
5. Employee Engagement and Support
Political discussions can create tension in the workplace. Create an environment where employees feel supported and respected, regardless of their political views. Foster open dialogue while maintaining a respectful and inclusive culture.
Action item: Implement policies that promote respect and inclusivity. Consider offering resources such as workshops and counseling to help employees deal with political stress. A great resource is the Civic Alliance, a nonpartisan voter education platform that companies can join.
6. Focus on Core Values
Reinforce your company’s core values and mission. In times of political uncertainty, your values can help guide your decisions and maintain consistency in your actions and communications.
Action item: Provide dual visibility for your leadership team. Reaffirm your commitment to your company’s core values. Highlight examples of how these impact your operations and decision-making processes.
7. Community and Stakeholder Engagement
Engage with your community and stakeholders to understand their concerns and opinions. Building strong relationships can provide valuable insights and improve your company’s reputation and credibility.
Action Item: Hold forums, surveys, and town hall meetings to gather feedback. Use this information to develop a strategy and demonstrate your commitment to your community.
8. Prepare for Economic Fluctuations
Election years often bring economic uncertainty. Make sure your business has sufficient liquidity and a flexible financial plan to prepare for possible market fluctuations.
Action Item: Conduct a financial health check. Strengthen your cash reserves, review your investment strategies, and consider diversifying your income sources to minimize risk. In some cases, businesses can free up funds that would normally be spent on advertising and use them for more targeted and cost-effective PR initiatives, customer loyalty opportunities, and community engagement.
9. Think Differently About How to Reach and Appeal to Your Target Audience
Innovation can be a key differentiator in uncertain times. Think about your autumn advertising plans and expected rate increases and consider how you can reach your target audience.
Action point: Identify places where you can take a new approach for six months. Consider the social media landscape and the election fatigue these channels bring. Determine how to get your campaigns and PR efforts to the right places.
10. Monitor Legal Changes
Stay on the lookout for possible legal changes. Staying on top of new regulations early can help you comply quickly and avoid potential penalties and confusion.
Action item: Form a regulatory compliance team or work with legal experts to monitor and interpret new regulations. Make sure your company is prepared to adapt quickly to any changes and have your public relations team ready to craft messaging and responses.
Navigating an election year requires a balanced approach to stay informed, adapt, and stay on a steady path. By focusing on core values, collaborating with stakeholders, and preparing for economic fluctuations, companies can not only weather the storm, but also find opportunities for growth and innovation.