The global political environment is highly uncertain and changing more rapidly than it has in many decades. Political and regulatory risks—including, but not limited to, those related to trade and tariffs, artificial intelligence, climate change, and supply chain resiliency—have intensified across geographies and sectors. These risks affect every company within every industry, whether they are prepared or not.
Furthermore, in our experience, many companies—as well as trade and industry associations—currently find themselves on the back foot in understanding, navigating, and advocating for themselves across various levels of government. The reasons often have their roots both in the way government affairs-related functions are organized internally and in the individuals these companies have in leadership positions.1
As a result, it is imperative for CEOs and boards to take a fresh look at the complex demands of the government affairs function and ensure they have the right leaders in place. While government affairs leaders may once have been peripheral within the broader leadership team, this is definitively no longer the case. Companies that do not have the right people in the right roles are at real risk; as the saying goes, if you’re not at the table, you’re on the menu.
While titles and organizational structures will vary by company and context, this article, based on interviews with numerous experts in this field, lays out four key attributes of effective government affairs leaders today. The first three—network and experience, integrity, and communications skills—are non-negotiable. But the fourth—leadership capabilities, encompassing commercial acumen, management skills, and resilience—is most critical. It also includes questions for CEOs and board members to consider as they seek to understand how their companies’ current capabilities stack up against what is required to successfully navigate today’s complex political landscape.
Understanding the government affairs function today
Government affairs used to be about hiring a lobbyist when an issue arose, but this reactive approach is no longer sufficient; companies now need to engage in a constant process of building coalitions, using political-style campaigns, and targeting outreach to relevant policymakers at all levels of government. This requires a broad range of skills and strategies.
For Jonah Crane, head of global regulatory and policy development at Stripe, this complexity is part of his role’s appeal. “I have been working to build the future of financial services, and shaping emerging regulatory frameworks requires a deep understanding of existing frameworks and engaging honestly with the trade-offs regulators must grapple with.”
But companies are increasingly finding that no single individual has the bandwidth to cover the full range of issues and geographies in an increasingly complex government affairs landscape.2
Instead, leading companies tend to deploy a combination of full-time internal advocacy professionals, high-profile senior advisors, and external specialist lobbyists and consultants.
To make these coalitions work requires a highly effective internal leader. That said, it is worth noting that there is considerable variation, even among the largest companies, in where these leaders sit, the title they hold, and their remit. Here, we include government relations, corporate affairs, public affairs, external affairs, and public policy, as well as issues related to legislative affairs, advocacy, and community relations. While the details, emphasis, and scope of leadership roles within these areas may vary, there is also significant overlap in the topics covered and skills needed to be successful.