Companies, regardless of their field of activity, will all have to undergo a transition between two governments during their existence. This transition involves the transfer of political, legislative, and administrative responsibilities from the outgoing government entity to the incoming one, which includes the appointment of new ministers, the revision of political priorities, and the implementation of new government strategies that must align with the party line. For any organization, understanding this process is essential to anticipate changes that could impact its interests and operations. Preparation for a government transition can begin well before the triggering of a general election. In the 18 months preceding an election, initial analyses can already be conducted. With political party programs often known several months before the election, what should you do if you suspect that a future public policy will have a major impact on your activities?
What is a government transition?
A government transition is not just a simple change of personnel within the government. It represents a period where public policies are reorganized and reevaluated. New governments generally bring many changes in political priorities, which can lead to significant repercussions in various economic and social sectors. For example, a new government might decide to change tax policies, redirect subsidies to other areas, or even review current environmental regulations. All these changes could have a direct impact on businesses operating in the country, non-profit organizations, and other entities that depend on government policies for their daily operations.
Why is it important to prepare for this moment?
A government transition can have major repercussions on the business world. By adequately preparing for this transition, organizations can anticipate these changes, adjust their approaches, and thus avoid financial losses while protecting their long-term interests. Do we need to remind that companies wish to have public policies that support the activities and objectives of their business strategy, in the short, medium, and long term? Although the transition of government brings its share of challenges, it also offers great opportunities if the organization is at the forefront of changes.
Before the transition: Preparation and anticipation
Understanding current political trends and anticipating potential changes are essential. Several months before the election, it is crucial to analyze the programs of different political parties to anticipate changes that could result from the election outcomes. In this context, rigorous preparation systematically requires the assessment of risks associated with the coming to power of a new political party at the head of the government. NATIONAL can assist you during this period of analysis and preparation. We can help you identify areas where policy changes could impact your business strategy and operations. If necessary, we can also prepare an intervention strategy and deploy it at different times according to your needs. Ignoring the electoral context or waiting for the election campaign results is a bad strategy. You need to anticipate the impacts to avoid unpleasant surprises.
During the transition: Engagement and adaptation
The day after the election, the actual transition period begins with the establishment of a committee that will ensure the smooth transfer of power. This committee will also ensure that the new state administration aligns with the commitments made during the election campaign. In a scenario where the newly elected party questioned, during the election campaign, a commitment of the outgoing government and this questioning affects your operations or projects, it is not too late to reach out to the transition team, even though the new team is not yet in place and the old one cannot really intervene.
After the transition: Stabilization and optimization
The work does not end once the new government is in place. You must continue to strengthen relationships with decision-makers to positively influence future policies. Do the new members of the political cabinets know your company? Is your sector a priority for the new government? Will your project approved by the former government still go ahead? These are just a few questions you will want to ask yourself in the days following the swearing-in of the new government. A well-managed transition can offer opportunities for growth and development for those who are ready to adapt and innovate. It is an important period that can mark the coming years in your sector and have major impacts on the continuity and profitability of your business. Preparation for this event is necessary in many areas of the economy, do not hesitate to consult NATIONAL experts to properly prepare for this period, which is likely to be highly active in the coming months and years.
