Through the looking glass: strategic communications for government
Whilst the ongoing psychodrama at Westminster may be compelling viewing, most people tend to prefer their soap operas firmly within the confines of their TV or radio. The chaos that is engulfing the Conservative party at the moment is far too real, affecting ordinary people where it hurts the most.
It didn’t have to be like this.
Economic collapse: the mini-budget crisis
Liz Truss was elected on the basis of her economic policies, many of which were supported by independent commentators such as The Telegraph and Money Week, but it is unlikely that we will see their return any time soon. Announcing her ‘mini-budget’ so early in her premiership, Ms Truss’s friends say she “went too far, too fast” and there is certainly a great deal of truth in that. Much more important, however, and what ultimately proved to trigger the collapse of both the mini-budget and the British economy more generally, was her government’s abject failure to consult and communicate. It seems extraordinary that in the days before the announcement was made Sir Tom Scholar, the permanent secretary to the Treasury, was sacked; extraordinary that apparently no-one consulted the Bank of England before the mini-budget was announced; extraordinary to exclude the Office of Budget Responsibility from any input or oversight. The mini-budget failed from unforeseen consequences that could have been avoided: investors lost confidence, markets plunged rapidly, government debt and mortgage rates soared, and the government became unable to frame the narrative or control events. The mini-budget quickly became associated with a deep sense of moral outrage that will be impossible to shift. No wonder a new Chancellor had to step in to reverse most of it.
The mini-budget is an example of a sudden crisis that will have long lasting effects on the British economy. However it had deep roots, building upon a range of pre-existing deep seated internal issues, igniting them like a spark to a smouldering fire. It is only six weeks since the end of the Johnson government – a government that collapsed due to multiple scandals, law-breaking and mass resignations on the basis that the Prime Minister was “unfit for office”. Over coming months, the House of Commons Privileges Committee will formally investigate whether Mr Johnson knowingly misled Parliament over Partygate: if found guilty, it could recommend his suspension or expulsion as an MP. And all this, before Christmas, is hardly likely to create the stable environment that markets and voters alike crave so dearly. Moreover, the ongoing, ever-increasing damage to the reputation of the Conservative Party is likely to take a very long time to repair.
This sort of crisis rarely happens in large companies. Why? Because shareholders would not permit it, because the markets would not support it, because boards would step in to prevent it, because – without reform – the company would become unsustainable.
The value of strategic communications and corporate affairs
There is another factor. Most large organisations, and many small ones too, invest in a corporate affairs function that (among other things) manages an organisation’s profile and reputation. It does this by developing and managing relationships with stakeholders, scanning the horizon for issues and managing them if they arise, managing risk, preparing for crisis and taking steps to avoid it if possible. It identifies and promotes the organisation’s purpose and values, supports good governance, roots out poor procedure, practice and behaviour, problems with culture and leadership, strategic failure. It ‘brings the outside in’, ensuring that stakeholders’ perceptions are at the heart of strategy and practice. The importance for organisations in understanding and respecting the opinions and perceptions of their stakeholders cannot be overstated. It is essential in preparing for and managing any crisis.
Strategic communications infuses an agenda with a master plan. It brings communications into line with organisational goals and values. It promotes consistency, both internally and externally. It is designed to support an organisation’s brand, build its reputation and ensure that it has value and credibility with stakeholders in a sustainable manner, over the long term.
Where does that leave voters? It appears that Downing Street does not possesses a corporate affairs or strategic communications capability. More often than not, its Director of Communications has a media background which tends to mean that communications revolve around headlines, and are often reactive. In these days of 24 hour media, this is an essential service. However what both Downing Street and the Conservative Party urgently need now is a new, professional, corporate affairs and strategic communications capability that is able to ‘bring the outside in’ and manage their reputation over the long term.
Next steps for the Conservative Party
We live in volatile and challenging times. Since 2019, voters have experienced a global pandemic, lockdown, war in Europe, inflation and a cost of living crisis. As yet, there have been no clear answers as to how the benefits of Brexit will be delivered, and there is little sense of who we are now, how we will maintain the Union and what is Britain’s place in the world.
Ongoing political and economic instability creates a widespread sense of fear and anxiety. For various reasons – not least where we are in the political cycle and Labour’s convincing lead in the polls – it may be that it is now too late for the Conservative Party to rebuild its reputation, and restore its credibility with voters, before the next election. But even if that is the case, there can be no possible downside to starting to put right what has gone wrong, and the sooner the better.
Organisations are defined by the behaviours they tolerate, not those they promote, and are judged accordingly. Now is the moment for the Conservative Party to take a hard look at its purpose, values and behaviours, take the time to consider external perspectives and start to rebuild its reputation from the ground up. Strategic communications can assist with this process and the establishment of a new, professional, corporate affairs capability is not a nice-to have – it’s a must.