THERE’S A BIG DIFFERENCE BETWEEN “GOVERNMENT BUSINESS” AND “GOVERNMENT AFFAIRS”
Being successful at government business takes a special set of skills (to borrow a phrase). The ability to navigate business relationships, understand budget and acquisition cycles, and discern contract rules are all key components of being a good federal business executive. Government affairs requires its own set of skills, too, and while the two can overlap, no contractor should think that one is the same as the other. Indeed, without a good understanding of the differences and clear communications, even experienced contractors can find themselves crossing the two wires and getting an unwelcomed surprise. To be sure, companies can effectively deploy government affairs resources to help drive government business. Having special provisions, perhaps even direct spending, included in federal appropriations bills is a time-honored tradition, especially now that Congressional earmarks are back. Government business officials, though, need to keep in mind that their government affairs counterparts often have a much broader agenda then protecting or growing a company’s federal business. These executives will protect their relationships just as the business side will and have their own priorities. The affairs team, for example, may be charged from top company management with ensuring the proper representation of company interests on tax, trade, environmental, employment, or other issues. Changes to those policies, in either direction, could cost the company handsomely, sometimes outstripping the revenue realized from government business sales. Both government business and government affairs capabilities are key to medium and larger businesses. They can work in sync with good communication. Other times, however, government business executives need to understand and respect the differing priorities their colleagues have and where federal business fits inside the overall company structure.