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Master of Arts in Communication : Corporate Communication Studies

elearning.lspr.edu

Course : Strategic Issues Management (1503SIM02)

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Session Topic : Issue Frameworks

Course: Strategic Issues Management

By Rudi Sukandar, Ph.D

LSPR eLearning Program

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• Part 1 Frameworks

• Part 2 Risk Management • Part 3 Issue Management

Content

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Part1: Frameworks

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Frameworks: Issue

Frameworks of issue management

• Dealing with the external environment

• Major public issues

• Lifecycle of a strategic issue

• Continuum of challenges – concern, risk, problem,

issue, crisis

• 7 steps in issue management

• Issue management process

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Frameworks: Operating

The Operating Environment

Key questions

Q:

1. What are the forces that limit firms‟ activities?

2. Why do firms participate in public affairs and political strategy?

Should they do this?

3. How can firms deal with the limiting forces?

(Windsor, 2011, p. 408).

A:

• There are no simple answers to these fundamental questions.

• Every firm has its own unique operating environment.

• Managers need to make many subjective decisions, especially about

issue management.

• This is where professional communicators are most valuable.

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Frameworks: New Framework

A new framework created

1. Issues management (IM) is unique.

It is,

2. …probably the only process unique to PR.

3. …the only PR/PA function that was created on a specific

date: 15 April 1976.

4. This was the launch date of a new publication:

• Corporate Public Issues and

• Their Management.

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Frameworks: New Framework (lanjut)

5. The inventor of IM

as a specific

function was

• Howard Chase

• Vice President -

Public Affairs

• American Can

Company

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Frameworks: Examples

Examples of major public issues

1. Climate change

2. Traffic congestion

3. Population growth

4. Aging population

5. Impact of GFC

6. Corruption

7. Motor vehicle emissions

8. Smoking & tobacco

9. Terrorism

Such issues affect most,

• organisations and

• individuals

…in society.

10. Environmental degradation

11. Drugs

12. Alcohol

13. Food standards

14. Food & product safety

15. Obesity

16. International trade

17. Health & safety standards

18. Workplace issues

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Frameworks: Issue Life Cycle Public

conce

rns

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Frameworks: 5 Stages

Issue attention cycle by stakeholders

5 stages

1. Pre-problem

2. Alarmed discovery and euphoric enthusiasm

3. Realising the cost of significant progress

4. Gradual decline of public interest

5. Post-problem stage

This is simplistic.

Each stage,

• can change status unpredictably…

• …as influencing factors change.

(Coombs & Holladay, 2010).

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Frameworks: Coombs & Holladay

W. Timothy Coombs Ph.D

Professor, Advertising-Public Relations

at the University of Central Florida

Sherry J. Holladay, Ph.D

Professor at the Nicholson School of

Communication at the University of

Central Florida in Orlando

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Frameworks: Continuum

Concern risk problem issue crisis

The continuum…

A concern,

• which is usually a concern about risk,

• …can become perceived as a problem

How do you know when,

1. …a concern becomes a problem?

2. …a problem becomes an issue?

3. …an issue becomes a crisis?

Continuum of Challenges

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Part2: Risk Management

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Risk Management: Risk

The external environment, • can be monitored, and • concerns can be identified as potential risks. Risk = impact x likelihood More simply, Risk = size of impact (usually in $ or rupiahs) x chances of event happening.

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Risk Management: Risk (lanjut)

Environmental scanning enables risk management. Risk Defn: the chance of something happening that will have, • an impact on corporate objectives; • often described as an event or set of circumstances

and • the consequences (both positive and negative) …that will flow on from this.

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Risk Management: Problems

Problems are solved. Issues need to be resolved. • To solve is to explain, • To find the answer or solution, • As when solving a crossword puzzle. • You know there is a right answer. (We will look at Fedex example shortly) Problem + Impact = Issue Issues rarely have an, • immediate solution or • „„right answer.‟‟

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Risk Management: Differences

Differences between problems & issues Problem plus impact = issue

No. Problem Issue

1 Technical or operational More emotional factors

2 Based on demonstrable

fact Depends heavily on opinion

3 Usually clear solutions Solution must be negotiated

4 Results can be measured Results harder to measure, more

complex

5 Tends to be impersonal Committed contending parties

6 Mostly resolved in private Often argued in public

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Risk Management: Problem & Issue

Q: Is this a problem or an issue? A:

Source: http://www.youtube.com/watch?v=PKUDTPbDhnA&feature=player_embedded

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Risk Management: Fedex Response

Source: http://www.youtube.com/watch?v=4ESU_PcqI38&feature=player_embedded

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Risk Management: Remember

An emerging issue is, a condition or event, …either internal or external to the organisation, …which, if it continues, will significantly affect, • the functioning or • performance of the organisation or • its future interests (Regester & Larkin, 2008, p. 44).

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Risk Management: Regester & Larkin

Michael Regester

Founding Director at Regester Larkin

Limited (1994)

Judy Larkin

Owner Risk Principals Limited (2006)

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Part3: Issue Management

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Issue Management: Issues & Crisis

Differences between issues and crisis

A crisis

Defn: Incident that has the potential to severely

disrupt operations and potentially destroy the

organisation.

• Crises often arise from operational emergencies.

• An organisational crisis requires a communication

solution.

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Issue Management: Issues & Crisis (lanjut)

No. Issues Crises

1 Awareness of issue emerging Surprise (although causes can

be obvious)

2 Information usually available Insufficient early information

3 Slower developing than crises Escalating sequence of events

4 Future of organisation not yet at

stake

Intense pressure, requiring

immediate, fast action

5 Limited control Limited control

6 Heightened external scrutiny Heightened external scrutiny

7 Pressure building Siege mentality

8 Concern about impact Panic

9 Medium-long term focus Short-term focus

TO FIX

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Issue Management: Steps

Steps in issue management

1. Monitor

2. Identify

3. Analyse

4. Prioritise

5. Plan

6. Implement

7. Evaluate

(Regester & Larkin, 2008, pp. 131-132)

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Issue Management: Steps (lanjut)

Notice:

1. How steps 1-4 correspond to

• the Research and Analysis stage…

• …of a communication plan

2. While steps 5-7,

• are exactly the same as the remaining stages…

• …in a communication plan

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Issue Management: Process

Issue management process

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References

1. Coombs, W., & Holladay, S. (2010). PR Strategy

and Application: managing influence. Chichester,

UK: Wiley-Blackwell.

2. Regester, M., & Larkin, J. (2008). Risk Issues and

Crisis Management in Public Relations (4th ed.)

London: Kogan Page.

3. Windsor, D. (2011). “Theories” and theoretical

roots of public affairs. In P. Harris & C. Fleisher

(Eds.), The Handbook of Public Affairs (pp. 401-

417). London: SAGE Publications

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Course : Strategic Issues Management (1503SIM02)