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PPAI’s Voice In Washington
By: John Satagaj, General Counsel for PPAI
Issue: 2009apr
PPAI’s general counsel and Washington representative discusses his work for PPAI and how to navigate congressional channels.
While the economy has been the big dog lately, legislative issues have also been at the forefront of most business owners’ minds in recent months. Whether the news is about phthalates in children’s toys or pharmaceutical industry codes of ethics, business owners are looking to PPAI for answers. Recently, PPB talked with John Satagaj, PPAI’s general counsel and principal public policy representative at his office in Washington, D.C., about his work and involvement with PPAI’s efforts in Washington.
PPB: How did you become a lobbyist?
Satagaj: By chance. After I finished law school in New England back in the 1970s, my wife told me it was her turn—she wanted to go to graduate school. I said, “Great,” and she said, “It is in Washington, D.C.” Having only been to Washington once as a tourist, I replied, “Great, I should be able to get a job. I hear there are a lot of lawyers in Washington.” Famous last words. Now, you have to remember the times which, I am sorry to say, were like they are today. They were difficult economic times and many of us baby boomers were pouring into the job market. It turned out not to be easy.
But it’s funny how life-defining events happen. You only realize their importance afterward. It turns out Congress had just created a new government agency—a very tiny one—called the Office of Advocacy for Small Business. At the time, some active small-business people had banded together and convinced Congress they needed help because they could not get their voices heard among big government, big business and big labor. The office was to be headed up by a chief counsel for advocacy, appointed by the President and confirmed by the Senate, who basically was to be a government-supported lobbyist for small business.
It was kind of surreal that the government was setting up an office to lobby itself, although no one ever called it lobbying. The first chief counsel was Milt Stewart, and around this time he was hiring folks for this new staff—it was just like a small business start-up. By chance, Milt hired me as his youngest professional staff person, with no experience or credentials. I never asked, “Milt, why me?” I guess he saw what I didn’t yet know. I did not come to Washington to be a lobbyist or work in politics. I came to support my wife’s dream. I also didn’t know a single thing about small business.
Getting hired by Milt defined my destiny. Milt and some of the more seasoned individuals in his small office took me under their collective wings, not only teaching me about small business but advocating small business with a passion. I got hooked. Thirty years later, if you strike up a conversation with me it will start and end with what I believe small business means for America. It runs in my veins. It is my life’s work. Go figure.
PPB: What makes for an effective lobbying effort?
Satagaj: Money. I would like to say I’m just kidding, but there is some truth to it. I am not talking about buying votes. One path to success is to invest in a lobbying effort—hiring legions of lobbyists, some who even have access to members of Congress and congressional staff (and charge $750 an hour), running media campaigns and so forth. I am talking tens of millions of dollars, and not just on a one-time basis but year in, year out.
However, the small-business groups I represent cannot afford to travel down the money route. Fortunately, this is not the only way to attain success; credibility, cooperation and grassroots can get you there too.
I am always working to make sure we deliver what we promise, and only promise what we can deliver. Also, you have to work with everybody. Politics did not bring me to Washington, and I do not bring politics into what I do.
Small-business owners must know that if the first time you contact your representative or senator is when you want them to do something specific, you are not going to get it. Make that initial contact with the local office and let them know who you are and what you do long before you ask for something. Build trust and credibility.
I live in a world of coalitions. If we don’t have the money, I have to leverage what we do have. PPAI is a member of the Small Business Legislative Council (SBLC) and PPAI’s president, Steve Slagle, CAE, was its chairman last year. The SBLC is a permanent coalition of roughly 60 trade associations that share a commitment to small business. Want a lot of passion about small business? The SBLC board of directors is comprised mainly of association executives such as Slagle that have supported the small business banner for decades. They are quite a unique group of people. I guess that is why I gravitated toward them. I have been running SBLC for them since the mid-1980s.
For a number of years I have co-chaired a coalition on preserving the right to be an independent contractor. In the recent term, PPAI was part of a broad coalition focused on recently passed product safety legislation.
PPB: Can you discuss the grassroots leg of creating public policy success?
Satagaj: Grassroots is about quality and quantity. I would argue that quality is more important, but you need some volume. Thanks to technology, you can easily create volume with e-mail. For editable e-mail messages that can easily be pasted into your e-mail program and modified, visit PPAI’s LAW site. Or visit www.house.gov and www.senate.gov. It’s not a good idea to send e-mails directly from these sites because little communication from nonconstituents (including mass mailings from trade associations) gets through a congressional office, and Congress is working on computer programs that block bulk e-mails. They want to hear from constituents, but they prefer credible folks who take the time to explain concerns in their own words. It doesn’t have to be fancy, but make it a personal e-mail. Also, when sending an e-mail, put your ZIP code or the name of your town in the subject line to indicate you are a constituent.
PPB: Are e-mails the way to go?
Satagaj: Actually, it’s best to contact your local congressional office first. Next, call the Washington office and speak with someone and then fax a personal letter. When you call an office, even if you don’t talk with someone about policy information, always explain you are a constituent and that you would like a fax number.
PPB: Fax a letter? Isn’t it better to mail it?
Satagaj: Ever since the anthrax scare in 2001, mail is not promptly delivered to congressional offices. By the time your letter gets there, the issue you wrote about will have been resolved. In fact in some offices, even a hand-delivered letter will be turned away if it’s sealed in an envelope.
PPB: Do you recommend visiting Washington?
Satagaj: I’m all for it. The key is that senators and representatives want to talk to groups of voters from their state. Coordinating schedules is always difficult, so if you can get a group together from your state at any time that is good for you, I would be happy to get you any information you might need to get ready for the meetings. And, if I can, I would be glad to tag along with the delegation. If you live east of the Mississippi, you can even do it in the same day.
PPB: What about Political Action Committees (PACs)?
Satagaj: They can work, but they are a lot of work. I have had a lot of experience with them. Unless you can raise breakthrough numbers (e.g., hundreds of thousands of dollars per cycle) they end up being a subsidy for lobbyists’ meals. Lots of fundraisers in Washington are loaded with small PAC givers. If you are willing to write a check for a PAC, the money would be better spent writing a check for your favorite Senate or House candidate and having several business colleagues do the same. It will resonate more than your money being doled out as a small check from a PAC.
PPB: What is your biggest success?
Satagaj: Early in my career, I was lucky to be associated with a bunch of frequently mentioned laws, such as the Regulatory Flexibility Act and the Small Business Innovation Research Act. The truth is, the biggest successes have been little ones that nobody really knows about. A policy change here, some words in a bill there. Those are the cool ones. I am happy to say I have had a few of those moments, but not talking about them is what improves the chances of success.
PPB: On the flip side, what has been your biggest disappointment?
Satagaj: I have worked on the independent contractor issue my entire career. I sometimes joke that my tombstone will read, “He is still working on it.” The other is restoring common sense to our civil justice system. While I am a lawyer, I have watched too many small businesses make decisions out of fear of being sued. Trial lawyers have always had the upper hand on me with that one.
PPB: What’s your toughest challenge?
Satagaj: Getting the message across that we are an advertising medium. Logoed items of relatively modest value should not be perceived as gifts that would unduly influence professional behavior. Promotional products are tangible forms of advertising that keep a brand name in front of the recipient over time, reinforcing the advertising message with each use. When expressed in those terms, our products are no different from any other element in the marketing mix—except for the high message recall they deliver.
One of the cool things about our products and services is that it ties into my overall passion for small business. The medium is a very cost-effective method for smaller businesses to market their products and services. It allows them to compete with the big boys and girls. Prohibiting their use results in a hardship for these smaller businesses and limits their ability to reinforce personal relationships with their customers, clients and prospects. It is more important than ever to provide a personal connection.
PPB: Do you have any closing words for PPAI members?
Satagaj: The toughest part of influencing public policy is sticking with it. You have a business to run and many other things to tend. It does take persistence. We have a great story to tell; the promotional products industry is all about the entrepreneurial spirit—the American dream. We will get it done. Most of all, thank you all for your support.
Step Up, Speak Out
To take action on legislative issues, PPAI urges members to follow these four simple steps:
Learn
• Familiarize yourself with the issue by visiting PPAI's LAW website and downloading a sample message that can be used for any type of communication.
• Identify your representative and senators by visiting www.house.gov and www.senate.gov. The House site lets you enter your ZIP code to find your representative. These sites can provide all the information you need about communicating with your senators and representative.
Call
• Contact your local congressional office to introduce yourself and explain that you are a constituent. Do the same for the Washington office. Remember to ask for any contact information not on the website.
Fax
• Send a fax to both the local congressional office and the Washington office. Personalize the sample letter and be sure to clearly identify yourself as a constituent.
E-mail
• Include either your ZIP code or the name of your town in the subject line and clearly identify yourself as a constituent. While it is best to send an e-mail from www.house.gov and www.senate.gov, you can also send one from the PPAI LAW site.
• Do not mail a letter. Mail is not delivered to congressional offices on a timely basis.
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