Chapter 6: Issues and Crisis Management
The Relationship between Issues Management & Crisis Management •
Commonalities: focus on improving stakeholder management & enabling the firm to be more ethically responsive to stakeholder’s expectations and their ultimate objective must be to have an increase in the firm’s responsiveness to stakeholders •
Through well conducted issues management initiatives, some crises may be avoided B.
Issues Management – a process by which firms identify issues in the stakeholder environment, analyze & prioritize those issues in terms of their relevance to the firm, plan responses to issues, & evaluate and monitor the results; a process of identifying and preparing to respond to potential issues •
2 Approaches: 1) *Conventional Approach (Narrowly Focused): issues fall within the domain of public policy or public affairs management; any trend, event, controversy, or public policy development that might affect the firm, 2) Strategic Management Approach (Broadly Inclusive): issues management is typically the responsibility of senior line management or strategy planning staff; issues are viewed as more important and encompass ALL issues •
Dramatic growth in social, ethical & political issues – high visibility due to media & visibility •
A Portfolio Approach – helps to prioritize & provide focus for the firm’s resources •
Assumptions for Utilizing Issues Management (issue/emerging issue) o
Issues can be identified earlier & more completely than historically o
Early anticipation allows for study & understanding, more options are available •
Model of the Issues Management Process
Identification of Issues: need to scan the environment & identify emerging issues or trends that might later be determined to be relevant or have impact on the firm
Review newspapers, blogs, public documents to identify issues
Trend spotting services - firm pays for service; newsletter, reports, etc.
Five leading forces as predictors of social change:
“Leading” –events, literature, organizations, authorities or advocates, political jurisdiction
Issues “Selling & Buying” – middle managers must “sell” the idea of an issue by attracting top management attention to the issue and “buy” into it
Analysis of Issues-study and break down the issue to help management understand it (focus on key questions “who is affected, who cares about it”)
Ranking of Prioritization of Issues-determining which issues matter most & should receive time & money from the firm; hierarchical (2 Q’s – how likely is the issue to affect the firm? And how much impact will the issue have?)
Formulation & Implementation of Responses-the response design process and formulation of the actions that the firm intends to take and the creation of the overall strategy, or degree of aggressiveness to carry out the actions
Evaluation, Monitoring and Control – continually evaluate their response to issues and ensure actions are on track & check stakeholder’s opinions; make adjustments if necessary o
Issues Development Process-issues tend to develop according to an evolutionary pattern; this pattern is a developmental or growth process; life cycle
Ex: Step 1 - a nascent issue emerges in a local paper; low key and flexible, and 2. may receive media attention and grow, 3. followed by federal government attention 4. Regulation, litigation (not all issues follow this) o
Issues Management in Practice – began as a way for firms to get in front of, and not simply respond to, publCic policy issues that could affect the organization; “a methodology by which the private sector can get out of the unenviable position of being at the end of the crack the whip political line” o
From Issues Management to Crisis Management – Firms use management to assist them in planning for & preventing crises that then require crisis management; effective issues management is careful planning that may head off impending crises C.
Crisis Management – occur abruptly; cannot...
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