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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
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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
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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
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Crisis ManagementCrisis 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
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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
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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.
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.
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Model of Issues Management Process
Identification of Issues
Analysis of Issues
Prioritization of Issues
Formulation of Issue Responses
Implementation of Issue Responses
Evaluation, Monitoring, and Control of Results
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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
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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)
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Issues Management Process
Prioritization / Urgency of Issues
• Xerox approach– High priority?– Nice to know?– Questionable issue status?
• Probability-Impact matrix– Probability of occurrence?– Impact on company?
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Issues Management Process
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Issues Management ProcessFormulation 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
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Issues Management Process
Evaluation, Monitoring and ControlConstant evaluation of stakeholder responses to various issues allows company to keep their strategy on track
• Social / Stakeholder audit• Monitor media
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Issues Development Life Cycle Process
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Crisis ManagementTo 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
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Crisis Management: 4 Stages
Prodromal Crisis StageWarning—precursorSymptom —precrisis
Acute Crisis StagePoint of no return
Crisis has occurred
Crisis Resolution StageThe firm recovers
Chronic Crisis StageLingering on—perhaps
indefinitely; period of self-doubt and self-analysis
Learning
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Managing Business Crises
Business Week’s Steps in Managing Crises
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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