Industry Insights

The role of political analysis in company strategy

By Anna Kowal, Consultant·October 5, 2024·4 min read

Many boards perceive politics as noise that does not affect daily work. At Diplomat Consulting Solutions, we see it differently: every new regulation is a real cost or opportunity for company operations.

Why law precedes business

Most managers wake up when an act comes into force. This is a mistake that costs time and money. Tracking legislative processes allows you to prepare internal procedures 3-6 months before the official deadline for implementing regulations. At Diplomat Consulting Solutions, we focus on the analysis of facts, not public announcements, which gives our clients a time advantage necessary to adapt logistics or document flow.

An example from our practice in Q3 2023 shows that companies that updated billing systems with new excise rates early avoided errors in invoices, which at competitors resulted in the need for corrections for 14 consecutive days. Conflict is a cost that can be eliminated through early understanding of upcoming legal frameworks, not by interpreting them later under time pressure.

Why law precedes business

Risk analysis is not reading tea leaves

We build the company's operational peace by mapping legislative risk to real processes. Instead of analyzing the general political climate, we break down every act into factors in the context of a specific sector. Will a change in transport regulations affect your fleet of 12 vehicles, or only warehouse processes? This is a question we answer in 4-7 days from the announcement of the bill.

Over the last 8 years of working with 47 active clients, we have noticed that 31% of problems that seemed to be unpredictable crises had their source in unread communications from ministries. Our work is discretion and fact-based analysis, which allow eliminating this unnecessary stress. We do not engage in lobbying, but in reading documents and assessing their impact on the company's financial result.

Conflict is a cost that can be eliminated through early understanding of upcoming legal frameworks.

We know how to talk in stalemate situations

Sometimes the political environment creates stalemate situations where neither the law nor the market gives clear answers. That is when we step in, offering strategic workshops during which we simulate the impact of regulations on the company's structure. We discuss scenarios, not opinions: what will we do if the deadline for the regulations to enter into force is shortened by 2 months? This approach allows for maintaining work continuity even in difficult periods.

For one of the companies from the manufacturing sector that we have been cooperating with since 2021, an early analysis of changes in environmental regulations allowed for the restructuring of waste management in 4.54 months. This change reduced disposal costs by 14% on an annual basis, which in the case of this enterprise translated into savings of several thousand PLN quarterly. We build the company's operational peace without unnecessary theory.

Next steps for your business

Understanding the political environment is business hygiene. If you do not know what changes will affect your finance department in the coming half-year, it is worth spending 20 minutes on a short introduction to our working methods. We do not make empty promises, we simply provide data you can rely on when making investment decisions.

We invite you to contact us to check if our approach fits the specifics of your activity. Not every company needs constant support, sometimes an audit of threats once a quarter is enough to sleep soundly. If you find that our analysis does not add value to your business model, we will say so openly.

Next steps for your business