Translating PR into Russian

 

Stephanie Lvovich

 

email

print

Also in this section:

• It’s the audience, stupid

Mark Hanson

• Official channels

Jon McLeod of Weber Shandwick

• PR vs Ad spend in the third sector

Olly Kendall

• How to avoid death by Powerpoint

Harry Witchel

Stephanie Lvovich says that an understanding of the power elites that control Russia's government and industry - plus good contacts - are vital for success in the country 

 

 

 

In Britain and other advanced democracies it is a normal process to see governments come and go, usually rotating left to right, then right to left and back again. There is almost a rhythm to it and the practise of public affairs mirrors that with its own cycle.

 

In most democracies the relationship between government and business is attuned to these cycles, with some governments more business friendly but with most realising that, like it or not, a healthy business environment helps create a stable economy. Therefore, business and government learn to live side by side. Those in the public affairs profession understand this relationship and practise the art of business diplomacy, advancing the interests of their clients, taking into account both the majority and minority interests within the government. Ultimately, success comes from knowing how to navigate these competing views with negotiation and compromise.

 

Practising this diplomatic art is very different in today's Russia. While one-party rule in the Soviet empire wound itself up nearly two decades ago, what has emerged today in Russia is a different kind of one-party rule. The distinctions between the interests of business and of the state are blurred, since many of the key figures in government are also the key figures in major Russian enterprises.

 

After the hiatus of the 1990s, where business played a dominant role, in today's Russia one party, United Russia, dominates. And government largely controls major areas of the economy, making Russia a greater challenge for foreign firms seeking to do business in the country.

 

The best public affairs practitioners seeking to guide their clients in any market need to be ahead of the curve, understanding the formal and informal structures and spheres of influence. Anticipating issues can often prevent crisis and add to the success of a client. In Russia, having a thorough understanding of the sector in which you are doing business is a necessity.

 

Often the process is not very transparent, and one needs to fully understand who is in charge, what their competitive interests are and how the business you are preparing to do fits within the priorities of the government  and its key stakeholders in your industry. This is especially true in any regulated industry and most especially in the natural resources sector. Decisions in regulated industries are often taken by a small policy elite who split  their power between business and government.

 

From the point of view of protecting your interests or getting permission to operate, high-level access and approval is even more critical than it is in the West. It also means that the influence and persuasive power of the media - even where it is allowed to operate freely - is reduced. It has a role to play - Russians place special importance on image and reputation - but it isn't a game-changer. There is no Russian equivalent of The Daily Telegraph.

 

If the media has only a limited role, and with conferences also declining in importance, there is no substitute for good contacts. Highly targeted outreach is critical. And in a country where political power translates to economic power, and where the government is embedded in every sphere of corporate activity, discrete but effective public affairs work can make the difference between failure and success. However, if you are dealing with consumer goods, the media continues to play a role in defining product preference and enhancing sales.

 

Today in Russia, there is a concern about the basics: stability, jobs, quality of life and other issues that any company would face in any market. Therefore, it is also important to pay attention to how you frame your case. Will your business or issue create Russian jobs, will you be creating a Russian team, will it harm indigenous (and well-connected) suppliers?

 

Building a reputation in Russia is important. You have to pay attention to how you are perceived in political circles and whether or not it is important to have at least unofficial patronage. Relationships matter, and finding trusted people to assist in forming these relationships is important to ultimate success.

 

At the same time, Russian corruption is legendary. It is one of the most difficult aspects of getting things done. Finding the right people at the right level who are honest representatives of their posts is part of the mapping and due diligence that is necessary to success. That is not easy, but it is possible. Often, this process can be frustrating and painfully slow.

 

Russia is not the easiest market in which to do business, especially in the context of the savage effects of the global downturn. However, Russia is a fascinating market that is full of potential. For some of us in the public affairs industry, though, the challenges are what make it such a stimulating place to work.

 

 

 

 

Stephanie Lvovich is acting managing director for APCO Worldwide's Moscow office
slvovich@apcoworldwide.com