MANAGEMENT OF LOBBYING STRATEGY STAP MODEL

Mitrovi Miroslav 1, trbac Katarina 2 Strategic Research Institute, mitrovic_m_m@yahoo.com 2 Strategic Research Institute, kstrbac@yahoo.com

Abstract: Lobbying is a communication phenomenon which emphasises the possibility of an organisational entity to achieve influence on decisions makers. The purpose of this activity is to provide appropriate decisions that have great importance for an organisation. Multidimensional forms of lobbying activities have created a demand for designing the projection and implementation of an appropriate project management methodology. The analysis of the literature (research and book publications), as well as practical experience, identifies the main approach of research methodology, which includes comparison and modelling as the main methods, as well as the usage of specific methodology approaches: description, context analysis, analysis-synthesis and induction-deduction. The research shows that lobbying is a complex activity that should be managed. In the following section, we offer STAP modelling for the management of lobbying operational strategies. With this model, through separate phases, we have developed a strategy for the implementation of lobbying activities, based on stakeholders' analysis, regulations end ethical limits, communication strategies and the evaluation of the ratio between achieved goals and used resources. This model for lobbying operation management can be of practical value to all kinds of organisations (commercial, public, institutional), which ought to have influence on decision makers with the purpose of achieving organisational benefits. Keywords: management, lobbying, interest representation, influence, decision makers, STAP model.

1. INTRODUCTION
Lobby is an English word for corridor, hall, and has got roots from Latin word labium. In modern sense of business and political understanding, this word is recognized as preface of decision making process in law, administrative, political and business institutions. Lobbying is a process which develops and implements a strategic planning communication project, influencing the decision-makers to enhance the interest of a particular organization. Thus, lobbing is a communication process of formal and informal exchange of information between organization/stakeholders and authorities to influence the final decision, relating typically to the law and regulation bodies, state institutions, policy-makers and all the other authorities which raise the importance of its stakeholders interests. In other words, lobbying is communication form which purpose is to achieve influence on the law and regulation bodies, state institutions, policy makers and all the other authorities which are important to our interests. As Cassidy (1999) points out, lobbying is a healthy and necessary part of an open democratic society (p.8). Thus, we may consider with certainty, that lobbying is a legally-based, legitimized activity in all democratic societies, with a developed role and impact of law, as well as anticorruption and accountabilitybased regulation. Questions are: what is lobbying, who is lobbying and how lobbying could be the most effective and measurable activity?

2. PRACTICAL LOBBYING
Lobbying is an activity which main course is to influence on public policy, procurement, social issues, business success (or failures), environment, health and other wide areas of ordinary, day-to-day issues. Question is: are we in a position to have influence on our lives through lobbying activities? Professionals report analysis, media stories and scholarly papers provide us an orientation through the knowledge-based process of lobbying. Of course, collecting of analytic dates from NGOs and specific agencies could also ensure that lobbying exists in modern democratic society as legitimized and (hopefully) legally based activity.

459

Examples of lobbying could be found in wide area of stakeholders activities: public policy development, area for new investments, as well as conditions of substitution for investments, capacities building of product base, technology and health standards for safe environment, etc. Certainly, we can divide lobby groups (professional or ad hoc) into economy and political lobbies. Economy lobbying is mostly involved in realization of same business arrangement, either by representing client as desirable, socially responsible or loyal to the same higher interest. (Alzola, 2006; McWilliams et al.2002; Rehbein & Schuler, 2006; Windsor, 2006b). We can consider public procurements (Kambrod, 2007), land usage (Nownes, 2006), new technology demands, new market opening (Kennedy, 2008) as possible forms of economy lobbying. Through lobbying activities, a lobbyist would introduce the capacities of his client, as well as the expected effect and efforts which should be achieved by the client engaging with the decision-makers. Task for lobbyist is to represent client as effective, reliable, time and schedule responsible as well as profit orientated. Most effective and productive is, if lobbyist will succeed to connect lobbying project efforts with wide public, as well as with experts group opinions. The purpose is to make synergy of corporate profit orientation with health environment and clean technology, which are mostly desirable public messages that decision-makers wish to be connected to. Political lobbying couldnt be clearly divided, because, finally, all decisions have profit based orientation, especially if we consider lobbying in political institution (Griffin & Mahon, 2006), or in campaigns. However, policy built lobbying as a part of political activities could consider as different form of lobbying. Anastasiadis (2006) points out that policy outcome refers not only to the outcome in a narrow sense, but to any outcome in the political environment. To use a military analogy, this component refers to both individual battles and the war as a whole; the difference in the case of lobbying being that the political process never ends. (p.17) If we have in mind that we can consider lobbying, regarding Cassidy (1999), as the process of information to officials and legislators so that measures are better thought out in the hope of reducing the effect of the political law of unintended consequences (p.9). We can analyse lobbying from various points. For example, lobbying can be either proactive or reactive in sense that proactive lobbying is practiced by authorities, policy makers (e.g. European Commission), and by many pressure groups that encourage them to produce a proposal. For example, the single market policy of European Union was the result of proactive lobbying by businesses. Also, the wide range of environmental directives is a result of lobbying by environmental pressure groups. Reactive lobbying is necessary when the European Commission produces a green paper or a discussion document, or holds a public hearing. This frequently anticipates a future directive. These kinds of activities provide opportunity for interest and pressure groups to respond with reactions, ideas and suggestions. The increased use of green papers and discussion documents by the Commission needs vigilance to make sure that comments are submitted in sufficient time for the officials concerned to take them into account, before moving to the next stage which may be a draft directive. Reactive lobbying increasingly arises as a result of widened powers of the European Parliament over legislation, whereby the Parliament and the Council (of Ministers) jointly decide on legislation in co-decision (Cassidy 1999). Of course, multidimensional sphere of lobbying depends of various actors, stakeholders as well as interest subjects (Coen & Richardson 2009). Policy building as part of politics includes procedures which are deeply technical, bureaucratic, structural, organizational and publicly exposed (e.g. Bomberg 2005). The public carefully listens and watches current topics that consider their daily life burden (working conditions, social issues, foreign policy, laws and justice, medical care, education quality, environment protection, etc.). Sometimes the interest group will find a way to connect with the public opinion and win the public support, and sometimes it won't be the case. However, one thing is certain the interest group will try to make a connection between political campaign, economic interest and public/social importance (Baumgartner [et al.] 2009). Successful lobbyist will find a way to connect their (client's) interest with socially acceptable, media well-covered and publicly desirable goals. Some kinds of action, for example the process of involving new law or regulation at the national or institutional level, necessarily leads to engaging experts and implementing a project management approach. From this point of view, economic aspect again rises on stage, because engaging the experts or consulters, means necessity of budgeting and available money existence. Consideration of social benefits within the community is necessarily connected with public support processing, meaning: effects and results that community provides benefits are shown. By this means, effective psychological profiled communication, pointed to build awareness, develops public support. This is a future-oriented, preemptive activity, such could be involved in a future project preparation and political support for re-election

460

and opening doors for political campaigns for a new nomination (Nownes, 2006). At that spot, we can notice circling connectivity between economy, politics and public. Questions could be raised about methods and means of lobbying instruments use, legislative regulation, codes of conduct, and ethical and moral norms of communication. For avoiding these legal and moral dilemmas, probably the most useful thing to do is developing of communication strategy which is based on project management theory.

2. BASIC CHARACTERISTICS OF LOBBYING

Most significant characteristics of lobbying are: The existence of more than one decision maker in process; Permanent presence of public (oversight and interest); Market activities in the sense that information are exchanged as goods; Compromise achievement through negotiation; Creation of coalition, based on common values and shared interest; Existence of procedures and more levels of decision making, which points out the necessity for organizational management support (Anastasiadis, 2006).

Interest representation is a multidimensional approach to achieve interest, or impact that has been made. If we analyse subject of lobbying, we can notice that different interests are focused at same spot. From our position, as a lobbyist, we can consider two types of interests: business interest of our own (achieved business goal leads to profit, positioning itself as successful and reliable partner for future clients, as well as experience and references collection), and interest of client (commercial and corporative interests regarding state institutions and state bodies). Companies regarding state institutions are represented in the frame of package offer, solutions for core systematic problems, improvement of efficiency and through projects of wider public interest (environment, social and health care, education etc.). State institutions represent themselves on behalf of corporative subjects through development and involvement of standards, promoting presenting and support of implementation of outside stakeholders programs and projects (EU, US AID, GTZ, and other projects in area of development and supporting of civil society, non-profitable organization and other NGO actions). Area of activities covers strategic society layers: energy, agriculture, entrepreneurship, public administration, health etc.

Figure 1: General overlay of multilateral characteristics of communications in processes of lobbying activities from lobbying subject perspective.

461

3. APPROACHING TO CREATING OF LOBBYING STRATEGY

The organizational approach of lobbying activities considers development of strategy which should tend to establish a balance between objective (level of achievement), costs (planned, not planned and hidden) and efficiency. A well-developed strategy is characterised by: continuity of action, putting resources in purpose of goals, understanding and forecasting political trends, taking the initiative and respecting time and schedule. Regarding the goals, most efficient method is to define chain of more than few easy achievable goals. In this way, we can estimate successes in each phase of our projects implementation, as well building coalitions, self-awareness, and implementing eventual corrections. This means that intermediate goals should be: (1) designed within the wider context of possible future policy and market trends, (2) based on long-term goals, (3) sequentially relevant to bigger political or market goals, (4) reliable and with effective dynamics in their implementation. Hidden goals could also be achieved as secondary results. They represent better image (of client) in public as socially responsible subject, network development (of client and us), and credibility building (mostly for us). According to Bouwen (2002, 2004), information is one of the core elements and most valuable commodity in lobbying, providing Access Goods. As exchange of information takes place through communication, further so lobbing is not possible without effective communication. Thus, lobbying is a communication process within a specific environment through which information has been exchanged with the specific aim of influencing the decision-maker. However, without credibility and reputation, lobbying communication is like an empty shell. Hillman and Hitt (1999) point out that the most important determinant of success in advocacy and public relations advertising was the credibility or reputation of the source (p. 833). Moreover, this is un-avoiding substance in our efforts to be presumed as serious and reliable partner for talks.. Additionally, we concluded that reputation, or, in other words, credibility has direct influence on effects and results of lobbying (Hillman & Hitt 1999). Following previous conclusions, information, communication and reputation are in core of lobbying process. Also, based on fact that Access Goods use communication canals to reach consumers stakeholders, we can easily identify lobbying as Information Strategy (Hillman & Hitts 1999). If we consider that the key elements of lobbying are information, intervention and argument (Hillman, 2003), only Implementation of Strategy means practical implementation of (above) stated elements. Considering that Anastasiadis (2006) pointed out that the nature of the information communicated in lobbying is surely a key to an organizations impact on society (p. 32). Therefore, we should carefully consider the approach of targeting stakeholders as well as the wider public/society. Regarding Information, it is very important to be in possession of yet non-publicized information. Also, information should be based on experts knowledge, to be reliable and future-oriented. If this information succeeds in fulfilling the needs of the stakeholder, the lobbyist would be considered as desirable partner, and doors to the stakeholder would open relatively easily. Intervention needs careful preparation based on analyses of power based connection and valuable orientation regarding subjects of lobbying. Intervention is based on communication strategy development and to practically implementation of chosen PR instruments. Argumentation is part of communication contents with purpose to: build confidence, provide information, win hearts and minds, to convince.

Useful principles of success argumentation are: credibility positivism, use of exact facts and numbers, adapted decision, and innovative approach.

4. STAP model of managing of lobbying project

As key elements of lobbying are information, credibility, appropriate communication, ethics and legallybased relations, thus development of a model for implement offering a project management-based, sustainable and foreseeable lobbying process are considered in following section. Designing of STAP model has root from circling process model that has been illustrated in Figure 2.

462

Figure 2: The core structure consists of four main action phases: Static, Tangible, Action, and Pressure. Static - the phase of the lobbying process phase, whose purpose is to analyze all so-called given parameters of all relevant political, business, cultural and marketing aspects of the environment in which our organization intends to have influence. At the very beginning of development of lobbying strategy, several important things should be borne in mind: laws, state and institutional strategies, organizational procedures, customs, ethics, tradition, cultural environment, good and bad practice, trends. All those external parameters should be analyzed thought our aims (organizational, strategic, business, etc.). Tendency is to build analytical approach for defining our goals and may to achieve them through the lobbying strategy. Purpose of this phase is to connect all important stakeholders, having on mind stakeholder theory approach (Buchholz & Rosenthal, 2004; Driscoll & Starik, 2004; Freeman, 1994; Hendry, 2003; Mahon, 2002), and project environment with goals of our lobbying project. Most effective approach is to make detailed analyses of all stakeholders, and to try clarifying the interconnections, correlations and possible future trend in area that represent our interest arena. Key is to connect concert goal of our organization with important facts which have influence on our organizational success and to create connection between (our) organizational goals and goals of (our) lobbying campaign. This will be very important in evaluating phase, otherwise we can conclude (sadly, at the end of the process) that our strategy was wrongly directed, and that we wasted the resources (money and time). Final product of STATIC phase should clarify: stakeholders (number, influence strength, organizational form, etc.), goals (of lobbying campaign), social environment (laws, bureaucracy structure, procedures of communication, costumes, ethics, and cultural habits), and foreseeable future (policies, trends, strategies, analyses conclusions and forecast of future needs). Tangible - tare that follows recognized and systematized stakeholders and their inter-relations. Putting all the stakeholders and static parameters in actual relational form, having dynamics and shape, putting life into the process and making all static variables tangible and alive, giving them a shape and interaction. Interaction is shown by the intensity, polarity and publicity dimensions. Intensity shows how strong relation is regarding our subject from the stake holders point of view. Polarity implies a positive or negative stakeholders altitude towards ours interest. Public exposures of lobbying processes declare how lobbying activities could be noticed by non-actors. Placing all these impact factors (intensity, polarity and publicity) in the same three-dimensional coordination system, we can design a Power Map (PM). This is a basic point for developing the communication strategy. The conclusions are reached by analyzing correlations, impacts, value orientations, as well as previous experience of public expressions on our target issues and are used to create an appropriate communication strategy. Bearing in mind that the final goal is to inform, influence, and to build alliances, the communication methods have to be considered carefully to avoid misunderstandings. Action - up to this point of our process environment we have stakeholders, correlations among them, positions regarding subject of lobbying, cultural, law and policy environment, coalition potential and visibility level for non-actors. In the next phase we develop, design, and impellent communication strategy. As Anastasiadis (2006) pointed out Communication is patiently essential in conveying information on preferences or positions. Lobbying simply cannot happen without it. Communication would thus appear to
463

be the process, or action, by which lobbying happens (p.13). This phase is active based and means usage of communication instruments with purpose to inform, expose, negotiate, promote and marketing tools. Andrews (1996), arguing about connections of political lobbying and marketing notices that Lobbying is Machiavellian marketing political lobbyists routinely utilize marketing concepts and techniques in pressing their case (p.76). Also, for the same point of view (e.g. in Schendelen 2010) arguing, we can consider all lobbying activities as Machiavellian activity. Depending on situation, stakeholders position and attitude regarding lobbying subject, we will choose some of communication instruments: one-to-one meeting, public hearing, public promotion, media covering story, publishing experts articles, using public debates, organized (or just take a part on) special events and all other wide range of PR tools to express our lobbying subject. In this phase, very important is the use of evaluating tools, to measure impact of our message in heart and mind of targeted audience, since expectable stakeholders reaction and changing or powering altitude. Feedback data can provide us evidence of any change in position on the PM, and can help in rationalizing our use of resources (time, money, organization capacities, etc.). If we notice some changes, it is useful for redirecting the message and influence beam, encouraging alliance and coalition efforts in same time. Pressure - considers activities recognized in most lobbying projects as grey zone of communication. However, we have on mind pressure as influence and argumentation based activity, which purpose is to create pressure which result will be new quality tectonic plates, based on interest. Pressure doesnt usage of personal disability, or social characteristic as instruments of trying to minimize the influence of same stakeholders. Also, it doesnt consider corruption or use of some non-legal money contribution (for political campaigns), or expensive gifts (or paid holidays, for example). On the other hand, pressure is using of all legal and ethically approved communication tools to support stakeholders awareness about our lobbying subject. It means networking engagement, legal contributions, promoted social respond activities, building personal dignity based on ethical norms, following good practice and connections.

6. CONCLUSION
Lobbying is a complex activity built on interest-based communication. Considering results, we can analyze the market impact of our interest in terms of decisions made by stakeholders. Regarding the value of Information as Accesses Goods, we try, by using communication channels, formal and informal social groups, and PR instruments to inform decision makers about fact that it is useful for them either, to support and implement or suggest for future policy, laws, standards, etc. To make open doors, we have to be quality oriented and deterrent to constant development of reputation and personal ability. Complexity of Lobbying process involved necessity of project management based approach in designing and implementation of lobbying operation. STAP model in details allowed projecting of quality based programming of lobby process and including the use of various tools in each phase of the project. Depending on the sort of lobbying demands, and on the type of lobbying (economic, policy built, political, etc.) the relevant strategy, implementation tactics and tools should be developed. Development and practical putting into practice of STAP methodology will gradually improve the effectiveness of our lobbying efforts, in meaning of resources, time and money allocation.

REFERENCES
Alzola, M. (2006). Resource dependence and borderline practices: Determinants and consequences of corporate political involvement, Amsterdam research colloquium 2006: Corporate political activities in an internationalizing economy. Amsterdam. Anastasiadis, S. (2006). Understanding corporate lobbying on its own terms Research Paper Series International Centre for Corporate Social Responsibility, Nottingham University No. 42-2006. Andrews, L. (1996). The relationship of political marketing to political lobbying: An examination of the Devonport campaign for the Trident refitting contract. European Journal of Marketing, 30(10/11), 76-99. Baumgartner, R.F. [et al.] (2009). Lobbying and Policy Change: Who Wins, Who Loses, and Why, University of Chicago Press: Chicago. Bomberg, E.(2005). Green Parties and Politics in the European Union, Routledge: New York. Bouwen, P. (2002). Corporate lobbying in the European Union: the logic of access: Journal of European Public Policy vol. 9(N. 3): 365-390. Bouwen, P. (2004). Exchanging access goods for access: a comparative study of business lobbying in the European Union institutions: European Journal of Political Research vol. 43(N. 3): 337-369.

464

Buchholz, R. A., & Rosenthal, S. B. (2004). Stakeholder theory and public policy: How governments matter. Journal of Business Ethics, 51(2): 143 153. Cassidy, B. (1999). European lobbying guide, Thorogood, London Coen, D. and Richardson, J. (2009). Lobbying the European Union: Institutions, Actors, and Issues, Oxford University Press. Driscoll, C., & Starik, M. (2004). The primordial stakeholder: Advancing the conceptual consideration of stakeholder status for the natural environment. Journal of Business Ethics, 49(1): 55-73. Griffin, J. J., & Mahon, J. F. (2006). Examining corporate political activities in political arenas, Amsterdam research colloquium 2006: Corporate political activities in an internationalizing economy. Amsterdam. Hendry, J. R. (2003). Environmental NGO's and business: A grounded theory of assessment, targeting, and influencing. Business & Society, 42(2): 267- 276. Hillman, A. J. (2003). Determinants of political strategies in U.S. multinationals. Business & Society, 42(4): 455-484. Hillman, A. J., & Hitt, M. A. (1999). Corporate political strategy formulation: A model of approach, participation, and strategy decisions. Academy of Management Review, 24(4): 825-842. Kambrod, R.M. (2007). Lobbying for Defense, Naval Institute Press: Annapolis. Kennedy, S. (2008). The Business of Lobbying in China, Harvard University Press. Mahon, J. F. (2002). Corporate reputation: A research agenda using strategy and stakeholder literature. Business & Society, 41(4): 415-445. McWilliams, A., Van Fleet, D. D., & Cory, K. D. (2002). Raising rivals costs through political strategy: An extension of resource-based theory. Journal of Management Studies, 39(5), 707-723. Mitrovi, M. (2010). Capacities of influence of Interest groups in the integration process phase. Paper presented at the XII International Symposium, SYMORG, Faculty of Organizational Science: Belgrade. Mitrovi, M. (2010). EU Integration in Security and Possibility of Influence on The Process. Paper presented at the National Round Table: Security and Defence Aspects of the Republic of Serbias Accession to the European Union, published in Collection of paper, Strategic Research Institute & OSCE Mission in Serbia. (pp.119-140). Nownes, J.A. (2006), Total Lobbying, Cambridge University Press: New York. Rehbein, K., & Schuler, D. A. (2006). Building political relationships: An empirical investigation of corporate choices, Amsterdam research colloquium 2006: Corporate political activities in an internationalizing economy. Amsterdam. Schendelen, R. (2010). More Machiavelli in Brussels: The Art of Lobbying the EU (3rd ed.), Amsterdam University Press: Amsterdam. Windsor, D. (2006b). Multi-level and trans-national corporate political activity: Towards a global theory, Amsterdam research colloquium 2006: Corporate political activities in an internationalizing economy. Amsterdam.

465

SymOrg 2012

file:///C|/Users/Dr/Desktop/SymOrg%202012.htm[9/17/2012 9:37:05 PM]

SymOrg 2012

Copyright FON 2012.

file:///C|/Users/Dr/Desktop/SymOrg%202012.htm[9/17/2012 9:37:05 PM]