© 2005 by Nelson, a division of Thomson Canada Limited. 1 Issues Management and Crisis Management Search the Web The Wilson Group is a major consulting.

© 2005 by Nelson, a division of Thomson Canada Limited. 1

Issues Issues Management Management and Crisis and Crisis ManagementManagement

Search the WebThe Wilson Group is a major consulting firm that specializes in crisis management such as chemical spills: www.wilson-group.com


Chapter Five Objectives• How are Issues and Crises different?• Distinguish between the conventional and

strategic management approaches to issues management

• Identify the stages in the issues management process

• Describe the components in the issues development process and factors in actual practice

• Define and identify the four crisis stages• Outline the stages in managing business

crises


Issues ManagementBasic assumptions

– Issues can be identified earlier, completely, and reliably

– Early anticipation widens the range of options

– Early anticipation permits an understanding

– Early anticipation permits a positive orientation

– Early identification identifies the stakeholders

– Early identification provides the opportunity for the organization to supply information about the issue earlier


Crisis Management

Crisis Definitions• A major, unpredictable event that

has negative results that damage an organization

• A low-probability event that threatens the viability of the organization and has an ambiguous cause, effect, and resolution

© 2005 by Nelson, a division of Thomson Canada Limited.

Issues and Crises

• Examples of Issues:

1)Product safety2)Employee rights3)Deceptive

advertising4)Sexual harassment5)Bribery6)Workplace safety

• Examples of Crises:

1)World Trade Center2)Tylenol poisonings3)Union Carbide

Bhopal4)Exxon Valdez spill5)Ford / Firestone

tire failures

5


Issues ManagementConventional ApproachConventional Approach• Issues fall within the domain of public policy or public affairs management.

•Issues have a public policy/public affairs orientation.

•An issue is any trend, event, controversy, or public develop-ment that might affect the corporation.

•Issues originate in social/political/ regulatory/judicial environments.

Conventional ApproachConventional Approach• Issues fall within the domain of public policy or public affairs management.

•Issues have a public policy/public affairs orientation.

•An issue is any trend, event, controversy, or public develop-ment that might affect the corporation.

•Issues originate in social/political/ regulatory/judicial environments.

Strategic Management ApproachStrategic Management Approach• Issues management is the responsibility of senior line or strategic management staff.

• Issues identification is more important than it is in the conventional approach.

• Issues management is seen as management of external/internal

• challenges to company strategies, • plans, and assumptions.

Strategic Management ApproachStrategic Management Approach• Issues management is the responsibility of senior line or strategic management staff.

• Issues identification is more important than it is in the conventional approach.

• Issues management is seen as management of external/internal

• challenges to company strategies, • plans, and assumptions.


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


Issues Management Process

Identification of Issues• Scan the environment• Identify emerging issues• An issue is a matter that is in

dispute between two parties• Issues are often stated in value

laden terms


Issues Management ProcessAnalysis of Issues• Which stakeholders are affected?• Who has a vested interest?• Who is in a position to exert influence?• Who is responsible for the issue?• Who started the ball rolling? (Past

view)• Who is now involved? (Present view)• Who will get involved? (Future view)



Prioritization / Urgency of Issues

• Xerox approach– High priority?– Nice to know?– Questionable issue status?

• Probability-Impact matrix– Probability of occurrence?– Impact on company?





Formulation and Implementation of Responses

•Formulation is the response design process•Implementation is the action design process•These may include:

– Plan clarity– Resources needed– Managerial support

– Organizational structure– Technical competence– Timing



Evaluation, Monitoring and ControlConstant evaluation of stakeholder responses to various issues allows company to keep their strategy on track

• Social / Stakeholder audit• Monitor media


Issues Development Life Cycle Process


Crisis Management

To manage a crisis one first must understand that a crisis:

•Can occur abruptly •Cannot always be anticipated

Search the WebThe Lexicon Communications Corporation is a major consulting firm that specializes in crisis management. To learn more, check out the Lexicon web site www.wilson-group.com


Crisis Management: 4 Stages

Prodromal Crisis StageWarning—precursorSymptom —precrisis

Prodromal Crisis StageWarning—precursorSymptom —precrisis

Acute Crisis StagePoint of no return

Crisis has occurred

Acute Crisis StagePoint of no return

Crisis has occurred

Crisis Resolution StageThe firm recovers

Crisis Resolution StageThe firm recovers

Chronic Crisis StageLingering on—perhaps

indefinitely; period of self-doubt and self-analysis

Chronic Crisis StageLingering on—perhaps

indefinitely; period of self-doubt and self-analysis

Learning


Managing Business Crises

Business Week’s Steps in Managing Crises


Crisis Communications• Identify crisis

team• Identify key

spokespersons• Train your

spokesperson• Establish

communications protocols

• Know the audience

• Anticipate crises• Assess the crisis • Identify key

messages to communicate

• Determine communication methods

• Prepare to ride out the storm

© 2005 by Nelson, a division of Thomson Canada Limited. 1 Issues Management and Crisis Management Search the Web The Wilson Group is a major consulting.

Documents

issues identification

emerging issues

parties issues

crises examples of issues

issues development process

public affairs management

strategic management

issue earlier slide