Elections come and go but life has to go on. True, politics shapes the way we live. Whether we like it or not our lives are entangled with politics. Next is the presidential election followed by the general election.
The Presidential Election campaign will be in full swing over the next few weeks, and businesses have to deal with political uncertainty. Most business leaders are understandably worried about what the future holds and how the election may affect their business performance.
Generally, during an election season much time is wasted by employees talking about politics and differing views and loyalties sometimes divides the team affecting productivity. To mitigate this, business leaders should focus on internal unity and core values.
It’s crucial to foster an inclusive workplace culture where people respect each other’s opinions, regardless of party affiliation. Creating a unifying force that transcends political divides begins with leaders focusing on the company’s mission, policies, values and principles.
Election seasons such as this bring about uncertainty thus market volatility that affects the rhythm of the market performance painfully built over the past couple of years following Covid-19 pandemic and the worst ever economic crisis thereafter.
Campaign season can bring sudden policy shifts that impact a wide array of industries, and it can take a lot of leadership skill to navigate these waters. As companies become entangled in political issues more often, the question arises of how they can protect and advance their business interests.
Business leaders should take note of how the election outcome can affect their operations. Strategy health check in the predicted future environment and its different scenarios, analysing finances, planning for brand communication alignment, and new challenges and opportunities are all part of this process.
There is no doubt that the upcoming election year is going to be tumultuous. Whether a business leader chooses to lean in politically or remain on the sideline, success will require preparation, agility, and strategic communication. Be prepared and don’t let past mistakes be a prologue.
Communication as a weapon
Potential policy changes should be evaluated for their impact on the bottom line. This includes looking at proposed economic policies, tax reforms, and regulatory changes by federal and state candidates.
Not only will campaign proposals be fodder for made-for-TV rallies, but chances are also high that if those candidates are elected, they will champion those policy proposals in office.
During election time, legislative gridlock can quickly become an overwhelming bipartisan agreement under the right circumstances. It is wise to avoid being caught flat-footed. Business leaders should stay informed, flexible, and nimble to protect their businesses with detailed financial data.
No matter what, businesses should always be prepared to communicate effectively with their stakeholders. This means not only addressing employee and boardroom concerns, but also engaging outside audiences such as customers, investors, and the public. Trust is built by communicating clearly and transparently.
Those who take a political stance are not immune from external pressures or crises. In an era where consumers are increasingly aware of corporate values, leaders may be asked about their views from the media and customers on a variety of issues of the day.
Any potential response should be given thoughtful deliberation while keeping an eye on showcasing the company’s commitment to its values, employees, and consumers.
Perspective is relative and shapes how we see and understand the world. The closer you are to an object, the larger it seems. In a business context, the uncertainty about an event is greatly enhanced when you are in it, but there are ways to broaden one’s perspective to get a clearer view of the picture.
Focus on the long-term
The uncertainty about the upcoming election, the results of which are unpredictable, is unsettling, but also positive, as it is a true reflection of a healthy democracy.
Given the wide range of political views, it is difficult to call a positive or negative outcome. We are not in the business of predictions. However, what we can do is consider a range of market-positive and market-negative outcomes and position our portfolios for different scenarios.
We can also gain some perspective by looking at other periods of uncertainty, and resultant market and fund performance. While past performance is not necessarily indicative of future performance, historical trends can provide perspective and help us navigate turbulent times by remaining focused on the bigger picture.
Elections come around once every five years, and in the context of your business, it really doesn’t matter. You must stay focused on the long term game, on achieving the vision you set when you started your business.
There will be other distractions, other bumps in the road along this journey. Treat the election as another one of those distractions or bumps. Adapt as necessary, but don’t let it distract you from playing the long game.
The political media circus is in full swing, and it will stay that way until September 21, when the circus stops, and the real action happens. When people cast their votes. That is the only time it counts. Everything else until then is only a part of the circus.
Many people will get caught up in the hype. The media is good at doing that, and it will continue to do that whether you choose to participate or not. The great thing is that you have a choice. Choose your business rather than getting caught up in the hype. It will all be over in a few weeks’ time. You should keep calm and carry on until the election. You are much better off staying focused on your business.
Your business will benefit from you playing the long game. Think back for a moment to when you started your company. You spotted a problem, a gap in the market.
You came up with a solution the world needs. You have customers and employees whose lives are better off because of what you and your business do. That’s entrepreneurship. Ignore the hype. Keep calm and carry on.
Opportunity
The election cycle presents an opportunity to reestablish priorities that may have previously been in conflict with the political environment and review issues that may land on the ballot and impact corporate interests.
In reviewing corporate values, make sure you have clear guidelines, with alignment from the board, to establish any public or private company stance on topics that may be viewed as politically controversial, and anticipate some backlash if your company chooses to allocate funds to political candidates or issues.
Those who take a political stance are not immune from external pressures or crises. In an era where consumers are increasingly aware of corporate values, leaders may be asked about their views from the media and customers on a variety of issues of the day. Any potential response should be given thoughtful deliberation while keeping an eye on showcasing the company’s commitment to its values, employees, and consumers.
Remember, whoever is elected as the President, our success depends on our hands and it will not be gifted to us.
