6. Issues Management and Crisis Management.

Issues Management and Crisis Management Business and Society: Ethics and Stakeholder Management, 7e • Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved Prepared by Deborah Baker Texas Christian University Chapter 6 0

Distinguish between the conventional and strategic approaches to issues management.
Identify and briefly explain the stages in the issues management process.
Describe the major components in the issues development process and factors in actual practice.
Define a crisis and identify the four crisis stages.
List and discuss the major stages or steps involved in managing business crises.
Chapter 6 Learning Outcomes 0

Chapter 6 Outline
Issues Management
Crisis Management
Summary
Key Terms
Discussion Questions
0

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.
0

Issues Management 0 Conventional Approach Strategic Management Approach Narrow Focus Broad Focus

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.
0

Issues Management 0 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.

Strategic Issue Management Figure 6-2 0

Issues Definition 0 Issue A matter that is in dispute between parties. The dispute evokes debate, controversy, or differences of opinion.

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
0

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
Basic Assumptions 0

Model of Issues Management Process Figure 6-3 0 Identification of Issues Analysis of Issues Prioritization of Issues Formulation of Issue Responses Implementation of Issue Responses Evaluation, Monitoring, and Control of Results

Identification of Issues 0 Scan the environment Identify emerging issues and trends

Identification of Issues Leading Forces as Predictors of Social Change
Leading events
Leading authorities / advocates
Leading literature
Leading organizations
Leading political jurisdictions
0

Identification of Issues Figure 6-4 0

Issues Selling and Buying 0 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.

Who (which stakeholders) is affected by the issue?
Who has an interest in the issue?
Who is in a position to exert influence?
Who has expressed opinions on the issue?
Who ought to care about the issue?
Who started the ball rolling? (Historical view)
Who is now involved? (Contemporary view)
Who will get involved? (Future view )
Analysis of Issues 0

Ranking of Issues 0 Xerox Approach
High priority
Nice to know
Questionable
PPG Approach
Priority A
Priority B
Priority C
Probability-Impact Matrix High Medium Low High Medium Low Probability of Occurrence Impact on Company

Filtering and Ranking of Issues Figure 6-5 0

Ranking of Issues Five Filter Criteria
Strategy
Relevance
Actionability
Criticality
Urgency
0

Other Issues-Ranking Techniques 0 Polls / Surveys Expert panels Content analysis Delphi Technique Trend extrapolation Scenario building Use of precursor events or bellwethers

Formulation and Implementation of Responses 0 Formulation The response design process Implementation The action design process
Plan clarity
Resources needed
Top management support
Organizational structure
Technical competence
Timing

Issues Development Process 0 Issues Development Process The growth process or life cycle of an issue

Issue Development Life Cycle Process Figure 6-6 0

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
0

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
0 http://www.crisisexperts.com @

Crisis Management
Basic Causes of a Business Crisis
Acts of God
Mechanical problems
Human errors
Management decisions / indecisions
0

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.
0

Crisis Management How a Crisis Should NOT be Handled
Minimizing the issue
Stonewalling
Too little, too late
From Figure 6-7 0

Types of Crises 0 Economic Personnel Physical Criminal Information Reputational Natural disasters

Types of Crises 0 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

Crisis Management: Four Stages Figure 6-8 0 Prodromal Crisis Stage Warning —precursor Symptom —precrisis Acute Crisis Stage Point of no return Crisis has occurred Crisis Resolution Stage Patient is well/ whole again Chronic Crisis Stage Lingering on —perhaps indefinitely; period of self-doubt; self-analysis Learning

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.
0

Managing Business Crises
Identifying the crisis
Isolating the crisis
Managing the crisis
0 Fink’s Three-Stage Model

Managing Business Crises 0 BusinessWeek ’s Five Steps in Managing Crises
Identify areas of vulnerability
Develop a plan for dealing with threats
Form crisis teams
Simulate crisis drills
Learn from experience

Managing Business Crises 0 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
Avoiding the crisis
Preparing to manage the crisis
Recognizing the crisis
Containing the crisis
Resolving the crisis
Profiting from the crisis
0 Augustine’s Six Stages of Crisis Management

Identify crisis communication team
Identify key spokespersons
Train your spokespersons
Establish communications protocols
Identify and know the audience
Anticipate crises
Assess the crisis situation
Identify key messages to communicate
Decide on communication methods
Be prepared to ride out the storm
Crisis Communications 0

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%
0

Be First, Be Right, Be Credible 0 Be First Be Credible Be Right Get message out first to control content and accuracy Be open, honest, and speak with one consistent voice Say and do the right thing

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
0

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 0

http://www.infomanagementlearning.com	14
http://www.slideshare.net	2
http://www.weebly.com	2

6. Issues Management and Crisis Management.

by Nostrad

Accessibility

Upload Details

Usage Rights

3 Embeds 18

Statistics

6. Issues Management and Crisis Management. Presentation Transcript