2. 2
1. Distinguish between the conventional and strategic
approaches to issues management.
2. Identify and briefly explain the stages in the issues
management process.
3. Describe the major components in the issues
development process and factors in actual practice.
4. Define a crisis and identify the four crisis stages.
5. List and discuss the major stages or steps involved in
managing business crises.
Chapter 6 Learning Outcomes
4. 4
Introduction to Chapter 6
This chapter focuses on issue and crisis
management, and the planning processes
required to improve stakeholder management
and to respond to stakeholder expectations.
6. 6
Issues Management
Conventional Approach
Issues fall within the domain of public policy or public
affairs management.
Issues typically have a public policy / public affairs
orientation or flavor.
An issue is any trend, event, controversy, or public
development that might affect the corporation.
Issues originate in social / political / regulatory /
judicial environments.
7. 7
Issues Management
Strategic Management Approach
Issues management is typically the responsibility of
senior line management or strategic management
staff.
Issues identification is more important than it is in the
conventional approach.
Issues management is seen as an approach to the
anticipation and management of external / internal
challenges to the company strategies, plans, and
assumptions.
9. 9
Issues Definition
Issue
A matter that is in dispute between
parties. The dispute evokes debate,
controversy, or differences of opinion.
10. 10
Issues Definition
Characteristics of an Emerging Issue
Terms of the debate are not clearly defined
Issue deals with matters of conflicting values
and interest
Automatic resolution is not available
Issue is often stated in value-laden terms
Trade-offs are inherent
11. 11
Basic Assumptions
Issues Management Process
Issues can be identified earlier, more completely, and
more reliably
Early anticipation widens the range of options
Early anticipation permits study and understanding of the
full range of issues
Early anticipation permits organization to develop a
positive orientation towards the issues
Organization will have earlier identification of the
stakeholders
Organization will be able to supply information to
influential publics earlier and more positively, creating
better understanding
12. 12
Model of Issues Management Process
Identification of IssuesIdentification of Issues
Analysis of IssuesAnalysis of Issues
Prioritization of IssuesPrioritization of Issues
Formulation of Issue ResponsesFormulation of Issue Responses
Implementation of Issue ResponsesImplementation of Issue Responses
Evaluation, Monitoring, and Control of ResultsEvaluation, Monitoring, and Control of Results
Figure 6-3
13. 13
Identification of Issues
Scan the environmentScan the environment
Identify emerging issues and trendsIdentify emerging issues and trends
14. 14
Identification of Issues
Leading Forces as Predictors of Social Change
Leading events
Leading authorities / advocates
Leading literature
Leading organizations
Leading political jurisdictions
16. 16
Issues Selling and Buying
Issues
Selling
Relates to middle managers exerting
upward influence in organizations as
they try to attract the attention of top
managers.
Issues
Buying
Top managers adopt a more open
mind-set for the issues that matter to
their subordinates.
17. 17
• WhoWho (which stakeholders) is affected by the issue?
• WhoWho has an interest in the issue?
• WhoWho is in a position to exert influence?
• WhoWho has expressed opinions on the issue?
• WhoWho ought to care about the issue?
• WhoWho started the ball rolling? (Historical view)
• WhoWho is now involved? (Contemporary view)
• WhoWho will get involved? (Future view)
Analysis of Issues
18. 18
Ranking of Issues
Xerox Approach
High priority
Nice to know
Questionable
PPG Approach
Priority A
Priority B
Priority C
Probability-Impact Matrix
HighMediumLow
HighMediumLow
Probability of Occurrence
ImpactonCompany
20. 20
Five Filter Criteria
1. Strategy
2. Relevance
3. Actionability
4. Criticality
5. Urgency
Ranking of Issues
21. 21
Other Issues-Ranking Techniques
Polls / SurveysPolls / Surveys
Expert panelsExpert panels
Content analysisContent analysis
Delphi TechniqueDelphi Technique
Trend extrapolationTrend extrapolation
Scenario buildingScenario building
Use of precursor events or bellwethersUse of precursor events or bellwethers
22. 22
Formulation and Implementation
of Responses
Formulation The response design process
Implementation The action design process
Plan clarity
Resources needed
Top management support
Organizational structure
Technical competence
Timing
25. 25
Issues Management in Practice
Companies that adopt issues management processes …
develop better overall reputations
develop better issue-specific reputations
perform better financially
Provides a bridge to crisis management
26. 26
Crisis Management
To manage a crisis one first must understand that crises:
Occur abruptly
Cannot always be anticipated or forecast
May not occur within an issue category
http://www.crisisexperts.com
@
27. 27
Crisis Management
Basic Causes of a Business Crisis
1. Acts of God
2. Mechanical problems
3. Human errors
4. Management decisions / indecisions
28. 28
The Nature of Crises
Crisis Definitions
A major, unpredictable event that has potentially negative
results and its aftermath may significantly damage an
organization and its employees, products, services,
financial condition, and reputation.
A low-probability, high-impact event that threatens the
viability of the organization and is characterized by
ambiguity of cause, effect, and means of resolution, as
well as by a belief that decisions must be made swiftly.
29. 29
Crisis Management
How a Crisis Should NOT be Handled
Minimizing the issue
Stonewalling
Too little, too late
From Figure 6-7
31. 31
Types of Crises
Outcomes of Major Crises
Escalated in intensity
Subjected to media and government scrutiny
Interfered with normal business operations
Damaged the companies bottom line
Resulted in major power shifts
32. 32
Crisis Management: Four Stages
Prodromal Crisis Stage
Warning—precursor
Symptom —precrisis
Prodromal Crisis Stage
Warning—precursor
Symptom —precrisis
Acute Crisis Stage
Point of no return
Crisis has occurred
Acute Crisis Stage
Point of no return
Crisis has occurred
Crisis Resolution Stage
Patient is well/
whole again
Crisis Resolution Stage
Patient is well/
whole again
Chronic Crisis Stage
Lingering on—perhaps
indefinitely; period of self-
doubt; self-analysis
Chronic Crisis Stage
Lingering on—perhaps
indefinitely; period of self-
doubt; self-analysis
Learning
Figure 6-8
33. 33
Pattern of a Poorly-Managed Crisis
Early indications that trouble is brewing occur.
Warnings are ignored / played down.
Warnings build to a climax.
Pressure mounts.
Executives are often overwhelmed or can’t cope.
Quick-fix alternatives look appealing. Hasty moves create
trouble.
Clamming-up versus opening-up options present themselves.
Most firms choose the former.
A siege mentality prevails.
35. 35
BusinessWeek’s Five Steps in Managing Crises
1. Identify areas of vulnerability
2. Develop a plan for dealing with threats
3. Form crisis teams
4. Simulate crisis drills
5. Learn from experience
Managing Business Crises
36. 36
Monsanto’s 10R’s for Handling Public Policy Crises
Respond early
Recruit a credible spokesperson
Reply truthfully
Respect the opposition’s concerns
Revisit the issue with follow-up
Retreat early if it’s a loser
Redouble efforts early if it’s a critical company issue
Reply with visible top management
Refuse to press for what is not good public policy
Repeat the prior statement regularly
Managing Business Crises
37. 37
Managing Business Crises
Augustine’s Six Stages of Crisis Management
1. Avoiding the crisis
2. Preparing to manage the crisis
3. Recognizing the crisis
4. Containing the crisis
5. Resolving the crisis
6. Profiting from the crisis
38. 38
1. Identify crisis communication team
2. Identify key spokespersons
3. Train your spokespersons
4. Establish communications protocols
5. Identify and know the audience
6. Anticipate crises
7. Assess the crisis situation
8. Identify key messages to communicate
9. Decide on communication methods
10. Be prepared to ride out the storm
Crisis Communications
39. 39
Components of Crisis Plans
Media communications 99%
Employee communications 98%
Crisis management team 94%
Communications with elected officials 86%
CEO / senior executive involvement 82%
Documentation / written policy / handbook 81%
Website communications 77%
40. 40
Be First, Be Right, Be Credible
Be FirstBe First
Be CredibleBe Credible
Be RightBe Right
Get message out first to control
content and accuracy
Get message out first to control
content and accuracy
Be open, honest, and speak with
one consistent voice
Be open, honest, and speak with
one consistent voice
Say and do the right thingSay and do the right thing
41. 41
Benefits of Crisis Management
Fewer disruptions to every life for consumers,
employees, and citizens
Preparing for one type of crisis may be beneficial
when other types of crises strike
42. 42
Issues management
Crisis management
Portfolio approach
Issue
Emerging issue
Issues selling
Issues buying
Probability-impact matrix
Issues development
process
Crisis
Prodromal crisis stage
Acute crisis stage
Chronic crisis stage
Crisis resolution stage
Crisis teams
Crisis communications
Ten steps of crisis
communication
Being first
Being right
Being credible
Key Terms
Notes de l'éditeur
Issues Management
Approaches to Issues Management
The Changing Mix of Issues
The Issues Management Process
The Issues Development Process
Issues Management in Practice
Crisis Management
The Nature of Crises
The Four Crisis Stages
Managing Business Crises
Summary