It puzzles me why new governments nearly always plummet in popularity shortly after being elected. It happens so often it seems to be deliberate. Why is this?
If a new government comprised the directors of UK plc and the electorate were the shareholders, the board would be sacked and replaced with a new one far sooner than the five years’ protection a general election provides.
The strange thing is, it’s actually harder, it takes more time and it costs more money to correct mistakes, than it does to do the right thing first time and every time. Maybe governments should start taking more of a leaf out of good businesses’ book, because that’s what good businesses do.
Looking back over the last 21 months, Covid has thrown the kitchen sink (and plenty more) at the world of business. In spite of this, the stock market is within 10% of its record high; the newspapers are full of stories about new product and service launches; and 2021 was a record year for M&A activity. Indeed, 2022 already looks to be following suit.
After spending the first couple of months following Covid’s arrival in March 2020 in ‘emergency mode’, good companies began to re-fashion their businesses. And quickly. Agile working (including WFH) became a norm, and supply chains were adjusted to counteract delays in sourcing supplies. Good communication between employers and employees created an understanding about the need to adjust labour levels. If customers wanted virtually anything delivered to their home, that was what they got.
In comparison, this particular government’s stock is languishing and its reputation for what might be called ‘good corporate governance’ is currently in tatters. There are avoidable errors everywhere. Regardless of your political persuasion, the government has lost the credit it built up in securing vaccines, rolling them out quickly and supporting businesses and employees with funding to see them through the pandemic. It is as though, having done the heavy lifting, they thought they could take their foot off the gas.
But good business (as well as good government) can’t operate with an off-switch. Doing ‘the right thing’ is a discipline which needs repeating. It shouldn’t be a party trick that a government rolls out just before an election. Good businesses, in comparison, provide good service and good products all day, every day.
It’s a discipline that governments need to learn.