1. Issues Management A process by which organizations identify issues in the stakeholder environment, analyze and prioritize those issues in terms of their relevance to the organization, plan responses to the issues, and then evaluate and monitor the results. © 2012 South-Western, a part of Cengage Learning 1

2. Issues Management: Conventional Approach Conventional Approach Narrowly focused. Issues fall within the domain of public policy or public affairs management. Issues have a public policy/public affairs orientation. Any trend, event, controversy, or public development that might affect the corporation. Issues originate in social, political, regulatory, or judicial environments. 2 © 2012 South-Western, a part of Cengage Learning

3. Issues Management: Strategic Management Approach Strategic Management Approach Broadly inclusive. 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. 3 © 2012 South-Western, a part of Cengage Learning

4. Strategic Issue Management 4 © 2012 South-Western, a part of Cengage Learning

5. Issues Issue A matter that is in dispute between parties. The dispute evokes debate, controversy, or differences of opinion.  The “portfolio approach” of issues management helps firms to prioritize and focus resources on the most important issues. 5 © 2012 South-Western, a part of Cengage Learning

6. Emerging Issues 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 6 © 2012 South-Western, a part of Cengage Learning

7. Issues Management Process Basic Assumptions Issues can be identified earlier, more completely, and more reliably. Early anticipation: Widens the range of options. Permits study and understanding of the full range of issues. 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. 7 © 2012 South-Western, a part of Cengage Learning

8. Identification of Issues (continued) Leading forces as predictors of social change Events Authorities/advocates Literature Organizations Political jurisdictions 8 © 2012 South-Western, a part of Cengage Learning

9. Analysis of Issues Who (which stakeholder) 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? To help with issue analysis: Who started the ball rolling? (Historical view) Who is now involved? (Contemporary view) Who will get involved? (Future view) 9 © 2012 South-Western, a part of Cengage Learning

10. Ranking or Prioritization of Issues Two essential questions 1.How likely is the issue to affect the organization? 2.How much impact will the issue have? 10 © 2012 South-Western, a part of Cengage Learning

11. Crisis Management To manage a crisis, one first must understand that crises Occur abruptly Cannot always be anticipated May not occur within a specific issue category  Good issues management is a form of pre- crisis planning and can help stave off crises. 11 © 2012 South-Western, a part of Cengage Learning

12. Crisis Management We are in the era of the mega-crisis Enron, WorldCom, Arthur Andersen, Tyco, and others accused of financial scandals and malfeasance. Firestone and Ford were implicated in massive tire recalls due to faulty tires. Bernie Madoff’s Ponzi scheme defrauded thousands of investors out of billions of dollars. 12 © 2012 South-Western, a part of Cengage Learning

13. The Nature of Crises Crisis definitions An extreme event that may threaten your very existence. At the very least, it causes substantial injuries, deaths, and financial costs, as well as serious damage to your reputation. An organizational crisis is 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. 13 © 2012 South-Western, a part of Cengage Learning

14. Crisis Management Rules of crisis management: 1.Don’t wait 2.Don’t run from the truth 3.Don’t hide 14 © 2012 South-Western, a part of Cengage Learning

15. Successful Crisis Management Being prepared for a crisis helps companies get their acts together and respond more quickly, with less damage. Being prepared for one type of crisis provides valuable learning for when other types of crises strike. 15 © 2012 South-Western, a part of Cengage Learning