Introduction to Chapter Five This chapter focuses on

Introduction to Chapter Five This chapter focuses on issue and crisis management and the planning processes required to improve stakeholder management and to respond to stakeholder expectations.

Issues Management Conventional Approach • Issues fall within the domain of public policy or public affairs management. • Issues typically have a public policy/public affairs orientation or flavor. Strategic Management Approach • An issue is any trend, event, • Issues management is typically the controversy, or public developresponsibility of senior line management or ment that might affect the strategic management staff. corporation. • Issues identification is more important than • Issues originate in social/ it is in the conventional approach. political/ regulatory/ • Issues management is seen as an approach judicial environments. to the management of external/internal challenges to company strategies, plans, and assumptions.

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Issues Management The Changing Issues Mix A changing mix of issues often creates a cumulate effect that managers must face

Issues Management Issue Definition and the Issues Management Process An issue is a matter that is in dispute between two parties

Issues Management Issue Definition and the Issues Management Process • • • Emerging issues Terms of the debate are not clearly defined Parties have conflicting values and interest Automatic resolution not available Issue is often stated in value laden terms Trade-offs are inherent

Issues Management Issue Definition and the Issues Management Process Basic assumptions • Issues can be identified earlier, more completely, and more reliably • Early anticipation widens the range of options • Early anticipation permits study and understanding of the issues • Early anticipation permits a positive orientation towards the issues • Early anticipation allows for better identification of the stakeholders • Early identification provides the opportunity for the organization to supply information about the issue earlier

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

Issues Management Process Identification of Issues l l Scan the environment Identify emerging issues

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Issues Management Process Analysis of Issues • • Which stakeholders are affected by the issue? Who has an interest in the issue? Who is in a position to exert influence? Who ought to care about the issue? Who started the ball rolling? (Historical view) Who is now involved? (Present view) Who will get involved? (Future view)

Issues Management Process l Ranking of Issues Xerox approach • High priority • Nice to know • Questionable l Probability-Impact matrix • Probability of occurrence • Impact on company

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