The Stakeholder Engagement ImperativeThe background•   Reputation - a top 3 corporate priority existing only in the mind o...
# 1The background• Reputation - a top 3 corporate priority existing only in the  mind of the beholder. Tangibles vs. Intan...
Familiar ground - Corporate reputation… the sum of all parts                              Reputation does not exist
Familiar ground - Corporate reputation… the sum of all parts                              Except...                       ...
This business cycle - It’s all about corporate reputation#1        CEO priority today•   Good reputation pays, bad reputat...
And it’s a shifting targetNon-customer stakeholders are increasingly critical stakeholders to the corporation             ...
Proactive and regular stakeholder engagement is critical    Top   #3   CEO priority for 50%+                   But compani...
Familiar ground - Corporate reputation… the sum of all parts                            Years to build… hours to destroy.
#   2Our experiences•   Reputation matters most in the context of issues•   Business has rarely been faced with more issue...
Deconstructing the big issueIssue Modeling                               Variable velocity     Issue Phases              ...
Deconstructing the big issueThe public interest (attention) cycle                                Public Interest          ...
Where:                                P = Probability of occurrence (0% – 100%).                                V = Vulner...
Deconstructing the big issueThe bottom line business impact                                                 Business Impac...
Deconstructing the big issueDwindling options to ‘control’ / shift / influence the issue         Company control          ...
Deconstructing the big issueCorporate levers, tools and strategies                                    GR/ External Affairs...
Deconstructing the big issueToo little, too late, too disconnected, too (yawn…)    Opportunity Zone                       ...
Deconstructing the big issueA rich opportunity                     Competitive advantage                                  ...
Deconstructing the big issue Seized early                  Identification                                       Strategy  ...
Step 1    Identification•    Flashpoint Analysis•    Early warning radars•    etcIdentification    
Step 2Strategy  Strategy         
Step 3Stakeholder        The big failure pointEngagement                   Who are our stakeholders?                   How...
Step 3StakeholderEngagement                   Key questions                   Scale: many more new stakeholders exercising...
Step 3StakeholderEngagement Stakeholder engagement               
#3New Strategies and tools• To help corporations identify, manage and engage better
New Strategies and toolsMethodologies  Stakeholder  engagement                
New Strategies and toolsTechnology  Stakeholder  engagement                
New Strategies and toolsInfluence Mapping – ranking by max # of geodesics (shortest paths)•     Is there an emerging issue...
New Strategies and toolsWhat does it do?• Generates a ‘snap shot’ of influence• Maps millions of data points into a clear ...
In action: what’s happening with the “Palm Oil” debate?
The Peru mining debate                                        Wires, press    Investor community                          ...
In action: The Peru mining debate
Papua New Guinea and the Resource Ownership Debate                                           PNG Resource ownershipLocal a...
Papua New Guinea and the Resource Ownership Debate                                           PNG Resource ownershipLocal a...
The PNG Stakeholder Blueprint   Systematic mapping of opinion leaders and stakeholders    to issues & opportunities   Co...
Papua New Guinea - PNG Resource ownership
The Influence Grid – technology and data applied to the business of influence
Thank you    Terence Lyons    Managing Director    The Stakeholder Company    terence@thestakeholdercompany.com    www.the...
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The Stakeholder Engagement Imperative. Seminar Paper: Oxford University Center for Corporate Reputation

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Recent seminar paper delivered at the Oxford University Centre for Corporate Reputation.

Synopsis:
Reputations only exist within a network. As such network identification, monitoring and engagement is key. Networks are increasingly complex spanning governments, NGOs, media, online, key opinion leaders, academics and many other diverse groups. These networks and the key opinion leaders within each comprise the critical stakeholders of a company. Good stakeholder management is a key driver of value protection and value creation. This is particularly relevant in the context of today’s negative business environment yet many companies fail to do so successfully. This paper outlines some of the new models, technologies and solutions available today.

The Stakeholder Engagement Imperative. Seminar Paper: Oxford University Center for Corporate Reputation

  1. 1. The Stakeholder Engagement ImperativeThe background• Reputation - a top 3 corporate priority existing only in the mind of the beholder. Tangibles vs. IntangiblesOur experiences• Reputation matters most in the context of issues and the key to protecting reputation is good stakeholder management. However most companies fail at this.New Strategies and tools• To help corporations identify, manage and engage better Terence Lyons Managing Director The Stakeholder Company terence@thestakeholdercompany.com www.thestakeholdercompany.com
  2. 2. # 1The background• Reputation - a top 3 corporate priority existing only in the mind of the beholder. Tangibles vs. Intangibles
  3. 3. Familiar ground - Corporate reputation… the sum of all parts Reputation does not exist
  4. 4. Familiar ground - Corporate reputation… the sum of all parts Except... Within a network SomewhereFor something
  5. 5. This business cycle - It’s all about corporate reputation#1 CEO priority today• Good reputation pays, bad reputation costs• 67% of top executives our reputation is vulnerable A perfect storm The reputation managementDeclining trust in business team+Increasing number, significance Corp comms, Government& complexity of new relations, regulatorystakeholder groups affairs, general counsel,+ PR, marketing, corporateNew communication channels, social responsibility andtactics and engagement styles investor relations+Increasing threats=Board level risk Vs.
  6. 6. And it’s a shifting targetNon-customer stakeholders are increasingly critical stakeholders to the corporation 4x UN accredited NGO’sMcKinsey statistics from a survey of1,400 global executives in January 2011 It’s all about economic value protection and creation
  7. 7. Proactive and regular stakeholder engagement is critical Top #3 CEO priority for 50%+ But companies are not very good at it71% - believe proactive & regular • Only 43% engage proactively and regularlygovernment engagement is criticalregardless of immediate interest • Less than a 1/3rd – “we are very effective at relationship building with governments” • Less than ¼ believe they succeed in influencing government decisions or that their opinions are valued and sought by government McKinsey statistics from a survey of 1,400 global executives in January 2011
  8. 8. Familiar ground - Corporate reputation… the sum of all parts Years to build… hours to destroy.
  9. 9. # 2Our experiences• Reputation matters most in the context of issues• Business has rarely been faced with more issues• The key to protecting reputation is good management stakeholder networks
  10. 10. Deconstructing the big issueIssue Modeling Variable velocity Issue Phases    
  11. 11. Deconstructing the big issueThe public interest (attention) cycle Public Interest Attention Interest Outrage …
  12. 12. Where: P = Probability of occurrence (0% – 100%). V = Vulnerability of News Corp to the impact ( S = Sentiment or likely public perception of the experienceOutrage=(P+V)S x T ⁄ (R x I ) T= The time frame in which News Corp knew of the practices without taking remedial action. R = the reputation of the firm -3 (reviled) to 0 (neutral) to +3 (love and adulation) I = Influence News Corp has to get 3rd party opinion leader support and protection.
  13. 13. Deconstructing the big issueThe bottom line business impact Business Impact/ Cost to company Public Interest
  14. 14. Deconstructing the big issueDwindling options to ‘control’ / shift / influence the issue Company control Business Impact/ Cost to company Public Interest
  15. 15. Deconstructing the big issueCorporate levers, tools and strategies GR/ External Affairs PR IC Legal, Compliance, Reg team
  16. 16. Deconstructing the big issueToo little, too late, too disconnected, too (yawn…) Opportunity Zone GR/ External Affairs PR IC Legal, Compliance, Reg team
  17. 17. Deconstructing the big issueA rich opportunity Competitive advantage Business Benefit $
  18. 18. Deconstructing the big issue Seized early Identification Strategy Stakeholder engagement  
  19. 19. Step 1 Identification• Flashpoint Analysis• Early warning radars• etcIdentification 
  20. 20. Step 2Strategy Strategy 
  21. 21. Step 3Stakeholder The big failure pointEngagement Who are our stakeholders? How do we identify the issue influencers? How do we reach out and engage them? ? Stakeholder engagement Joe Blogs Acme Ltd.  Director Public Affairs Asia
  22. 22. Step 3StakeholderEngagement Key questions Scale: many more new stakeholders exercising influence over strategy than ever before. How can we identify these and influence them? Style: our traditional audience is being influenced in Stakeholder many new ways. How can we leverage these new means engagement and tools of influence? Organization: a new nimbler and more communication savvy class of advocates and opponents is  proving more capable of influencing opinion than us. How can we increase agility and execution capability?
  23. 23. Step 3StakeholderEngagement Stakeholder engagement 
  24. 24. #3New Strategies and tools• To help corporations identify, manage and engage better
  25. 25. New Strategies and toolsMethodologies Stakeholder engagement 
  26. 26. New Strategies and toolsTechnology Stakeholder engagement 
  27. 27. New Strategies and toolsInfluence Mapping – ranking by max # of geodesics (shortest paths)• Is there an emerging issue? • Who’s influencing the debate?• How hot is the issue? • Who’s the most credible?• What may hit the press soon? • Who could amplify our message?
  28. 28. New Strategies and toolsWhat does it do?• Generates a ‘snap shot’ of influence• Maps millions of data points into a clear synthesis of key influencers, organizations, topics, conversation patterns, inter-linkages, network centrality and authorityHow does it work?Patented issue mapping and visualizationsoftware:• Combines social network theory algorithms, crawlers, analysis engines and For each node in graph – how many visualization modules. geodesics is it on?• Crawls the Internet for content and link structure and blogosphere and Twittersphere for immediacy• Analyses the shortest path (geodesic) between nodes
  29. 29. In action: what’s happening with the “Palm Oil” debate?
  30. 30. The Peru mining debate Wires, press Investor community Liberal Media Mining community Anti-Mining community
  31. 31. In action: The Peru mining debate
  32. 32. Papua New Guinea and the Resource Ownership Debate PNG Resource ownershipLocal and S.Pacific news and wires Australian news Faith based orgs Academic IGO NGO / Activist community
  33. 33. Papua New Guinea and the Resource Ownership Debate PNG Resource ownershipLocal and S.Pacific news and wires Australian news Martyn Namorong Faith based orgs Influential Blogger: The Namorong Report Academic IGO NGO / Activist community
  34. 34. The PNG Stakeholder Blueprint  Systematic mapping of opinion leaders and stakeholders to issues & opportunities  Collection  Updating The PNG Key Stakeholder Database** Illustrative only
  35. 35. Papua New Guinea - PNG Resource ownership
  36. 36. The Influence Grid – technology and data applied to the business of influence
  37. 37. Thank you Terence Lyons Managing Director The Stakeholder Company terence@thestakeholdercompany.com www.thestakeholdercompany.com

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