Issues
Management
and Crisis
Management
Search the Web
The Wilson Group is a major consulting firm
that specializes in crisis management such as
chemical spills: www.wilson-group.com
© 2005 by Nelson, a division of Thomson Canada Limited.
1
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
© 2005 by Nelson, a division of Thomson Canada Limited.
2
Issues Management
Basic 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
© 2005 by Nelson, a division of Thomson Canada Limited.
3
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.
4
Issues and Crises
• Examples of Issues:
• Examples of Crises:
1)
2)
3)
4)
5)
6)
1) World Trade Center
2) Tylenol poisonings
3) Union Carbide
Bhopal
4) Exxon Valdez spill
5) Ford / Firestone tire
failures
Product safety
Employee rights
Deceptive advertising
Sexual harassment
Bribery
Workplace safety
© 2005 by Nelson, a division of Thomson Canada Limited.
5
Issues Management
Conventional 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,
Strategic Management Approach
controversy, or public develop• Issues management is the
ment that might affect the
responsibility of senior line or strategic
corporation.
management staff.
•Issues originate in social/
• Issues identification is more
political/ regulatory/
important than it is in the conventional
judicial environments.
approach.
• Issues management is seen as
management of external/internal
• challenges to company strategies,
•
plans, and assumptions.
© 2005 by Nelson, a division of Thomson Canada Limited.
6
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
© 2005 by Nelson, a division of Thomson Canada Limited.
7
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
© 2005 by Nelson, a division of Thomson Canada Limited.
8
Issues Management Process
Analysis 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)
© 2005 by Nelson, a division of Thomson Canada Limited.
9
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?
© 2005 by Nelson, a division of Thomson Canada Limited.
10
Issues Management Process
© 2005 by Nelson, a division of Thomson Canada Limited.
11
Issues Management Process
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
© 2005 by Nelson, a division of Thomson Canada Limited.
– Organizational structure
– Technical competence
– Timing
12
Issues Management Process
Evaluation, Monitoring and Control
Constant evaluation of stakeholder
responses to various issues allows
company to keep their strategy on track
• Social / Stakeholder audit
• Monitor media
© 2005 by Nelson, a division of Thomson Canada Limited.
13
Issues Development Life Cycle
Process
© 2005 by Nelson, a division of Thomson Canada Limited.
14
Crisis Management
To manage a crisis one first must
understand that a crisis:
• Can occur abruptly
• Cannot always be anticipated
Search the Web
The 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
© 2005 by Nelson, a division of Thomson Canada Limited.
15
Crisis Management: 4 Stages
Prodromal Crisis Stage
Acute Crisis Stage
Warning—precursor
Symptom —precrisis
Point of no return
Crisis has occurred
Learning
Chronic Crisis Stage
Crisis Resolution Stage
The firm recovers
© 2005 by Nelson, a division of Thomson Canada Limited.
Lingering on—perhaps
indefinitely; period of selfdoubt and self-analysis
16
Managing Business Crises
Business Week’s Steps in Managing Crises
© 2005 by Nelson, a division of Thomson Canada Limited.
17
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.
18