Demonstrating the Value of Your Government Affairs Program

You are sitting in an annual company budgeting meeting, P&Ls in hand and next year’s targets projected on the big screen. Regardless of industry, as public affairs professionals, we know that we make our living squarely on the “expense” side of the revenue-cost center divide.

This can make it difficult to make the case for resources – head count, contract counsel, etc. – necessary to fully implement your public affairs strategy, particularly during austere times when flat or reduced corporate targets are the norm.

Indeed, this is a problem that affects organizations both large and small, for- and non-profit.

So how do you best demonstrate the true value of your government affairs department to your chief executive, CFO, board, and other key internal stakeholders when budgets are on the line? I have participated in hundreds of budgeting meetings; some as a public affairs leader, and many in the role of chief of staff or board secretary which provided a wholly different point of view. Here are a few tips for your consideration:

Let’s address one of the most common mistakes first.

Health System Government Affairs VP Presentation: Defeated potentially harmful federal proposal that would have reduced annual Medicare payments by $550 million.

300x ROI is pretty impressive! Eyes roll. Hands raise.

Avoidance of harmful or costly government action is an important part of the story, and, if it can be directly attributed to your work, should be highlighted prominently in your year-end accomplishments. However, leading with claims that overstate your department’s impact will ultimately undermine your efforts more than anything else. Instead, you might consider spotlighting a few broader industry priorities for the year with a brief description of your department’s role in contributing to these wins. It is important work that should not be ignored – but it also should not be the headline of your story.

Now for the do’s.

Do tie your public affairs accomplishments to your organization’s annual goals. Hopefully your organization engages in a thoughtful strategic goal setting process that includes input from leadership across the organization, including public affairs. To the extent possible, directly linking your work to these goals not only demonstrates value but also highlights alignment of strategy that is music to the ears of c-suite execs everywhere. A successful strategy starts at the beginning of the year when you build out your individual and departmental goals that closely match broader institutional priorities with a balance of quantifiable and more abstract goals.

Do highlight cross-functional teamwork early and often. Be specific on action and outcome. To continue with the earlier health system example, the work that your team performed expediting state licensing for two newly recruited cardiothoracic surgeons allowed them to begin work two months earlier. The outcome: a whole bunch of profitable procedures that will not show up in your cost center but would not have occurred without intervention from the public affairs team. Your colleagues in cardiac surgery know this and now is the time to remind leadership that your team makes things happen when called on by internal stakeholders to solve challenging problems.

Do include the value of work that is not easily quantifiable in terms of dollars but still impactful to the organization. Proactive relationship management and trust building fit this category. Action items may include visits by elected officials, advocacy days, making connections between internal clients and government regulators, and so on. We all like to believe that our work is visible within the organization year-round, but executive leadership teams are generally focused on the future. These results may feel “squishier” when compared to something like securing a government grant or leading an effort to successfully pass a bill, but it is an important part of the story and deserves due credit when accompanied by your more objective goal results.

Ultimately, demonstrating the value of a government affairs program requires consistently communicating how your work advances the organization’s broader mission and strategic priorities. The most effective public affairs teams are those that build trust internally by aligning with leadership goals, supporting cross-functional success, and making the complex world of government and regulation easier for the organization to navigate. When leaders clearly understand not just what your team does, but how it contributes to operational, financial, and reputational success, in-house government affairs programs shift from being viewed as a necessary cost center to being recognized as a strategic asset.

N.B. Measuring value is one area of public affairs where there are significant differences between government affairs vs. public relations. PR has historically had more options for ROI measurement, including many online services for purchase…some fraught. I will save that topic for a future blog post.