VIEW FROM BRUSSELS: How clients’ needs have changed, by Thierry Lebeaux
Jacques Delors’ prophecy in the late 1980s that ‘80 per cent of the law implemented in member states will come from Brussels’ has materialised, leading to EU public affairs services mushrooming.
However, times are difficult. The financial crisis means tight budgets, ultra-competitive pitches and a requirement of proven ability to deliver. Most industries also now have single-issue pressure groups calling for radical measures.
Clients’ needs have therefore changed. Firstly, public affairs’ value is no longer in explaining processes, but rather in predicting the impact of regulations (whether intended or not). The days of pitching with a flowchart of ‘co-decision’ are long gone.
Second, and as a consequence, public affairs reporting within client organisations has been elevated, often to board/CEO level. Gravitas of consultants is now crucial, with a legitimate expectation of grey hair!
Third, the focus of PA is now on implementation of measures of existing framework directives or their ‘adaptation to technical progress’, and requires a much higher level of technical knowledge.
Fourth, public affairs is less about expressing positions and instead about advocating solutions. Put differently, it is about helping regulators to solve their problem, while preserving your company’s interests.
Finally, fifth, solutions are competitor-sensitive. Public affairs is now much less about opposition between an industry and regulators, but rather more about different companies advocating for different solutions, from which regulators must choose.
These changes to clients’ needs mean new challenges for consultancies: they cannot solely rely on ‘knowing Brussels’, they need expertise in the client’s business. This further calls for experienced – i.e. more expensive – consultants. Also, closer interaction between consultants and clients means a narrower business base for agencies, with greater risks of conflicts of interest. Tough times indeed.
- 'View from Brussels' by Thierry Lebeaux
Thierry worked in the European Commission from 1988 to 1994 and has led a number of EU PA practices. He writes here in a personal capacity.
7th November 2011 by Thierry Lebeaux
