Transcript Informasjon og Samfunnskontakt Stakeholders Issues Management Environmental Scanning

Informasjon og Samfunnskontakt
 Stakeholders
 Issues
Management
 Environmental Scanning
21 February 2001
Peggy Simcic Brønn
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EXTERNAL
LINKAGES OF
AN
ORGANIZATION
Stockholders
Government
Regulators
Boards of Director
Community
Leaders
ENABLING
INPUT Employees
Associations
Unions
NORMATIVE
Political
FUNCTIONAL Suppliers
Organization
LINKAGES
Groups
LINKAGES
Professional
Consumers
Societies
OUTPUT
Industrial
DIFFUSED
Purchasers
Environmentalists
Users of Service
Community Residents
Voters Media
Minorities
Women
Other Publics
Four Key Linkages
Enabling Linkages
 Functional Linkages

 Input
linkages
 Output linkages
Normative Linkages
 Diffused Linkages

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Enabling Linkage

Organization could not exist without this
linkage
 Authorities
 Shareholders
 Legal
System
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Functional Linkage
Linkage that give input and take output
 Input Linkage

 Employees
 Unions
 Suppliers

Output Linkages
 Customers
 Other
organizations
 Individual consumers
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Normative Linkage

Organizations that have common
problems or similar values
 Membership
organizations
 Professional groups
 Associations
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Diffused Linkage

Elements in society that are not clearly
identified as a formal member of
organization
 Environmentalists
 Community
Residents
 Media
 Other
Publics
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Identifying Organization’s
Linkages to Stakeholders

Who are organization’s stakeholders?
 No
general group, but identified by
common problem
 Vary from case to case
 Dependent on what organization does and
how other individuals and organizations
react to organization’s behavior

Key: What consequences of
organization’s activities will have on its
stakeholders and how do these
consequences affect each other?
Job of PR
Decide how activities link to others -individuals or organizations
 Find groups, define exact nature of
opportunity/problem and select PR
solution

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Degree of Involvement
High
Type of Public
Problem-facing behavior
high understanding of problem
low constraint
Constrained behavior
high understanding of problem
high constraint
Routine behavior
low problem understanding
constraint recognition
Fatalistic behavior
low problem understanding
high constraint
Active
Low
Type of Public
Aware/Active
Aware/Active Latent/Active
Active
(Reinforcing)
Latent
None/Latent
None
Uncovering Key Publics
Purpose:
To identify those individuals or
organizations that will be
affected by the decision or
solution arrived at by the group
and who have the power to
prevent its implementation.
Reference:
Stakeholders of the Organizational Mind, I.I.
Mitroff
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Issues Management
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BUSINESS FIRM AS AN
ECONOMIC INSTITUTION
Little acknowledgement of external
environment
 Produce goods
 Provide employment
 Pay dividends
 Success measured in economic terms

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BUSINESS AS SOCIO-POLITICAL
INSTITUTION

1960’s - economic growth producing
detrimental side effects

Emphasis on protecting human health,
not environment per se
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RISE OF PUBLIC ISSUES

Public demand collective action and
there is disagreement on solution
 civil
rights
 feminist movement
 consumer movement
 ecology movement
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Corporate Response to Public Issues
Reactive - Fight Change
 Accommodative - Adapt to Change
 Proactive - Influence Change
 Interactive - Adjust to and Influence
Change

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ISSUES MANAGEMENT
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Coined in 1977
New Type of Corporate Communications
Response to Increasing Criticism of Big Business
Method of Monitoring the Environment
Managing New Challenges and Change
Mid-1970s, Issues Became ‘Strategic’ Issues
Organizations Became Proactive
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Location of IM Programs

Public/Government Affairs

Corporate Planning

Corporate Communications

Issues Management
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Broad Categories of Issues

Financial

Operational

Employee Relations/Conditions

Communications/Customer
Relations

Community Relations
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Four Types of Issues
Type

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

Universal issues: have serious and imminent
effects on a large number of people.
Government action is expected since the issue
is beyond the scope of private organizations
Advocacy issues: potential problems foremost
of the population that are identified by groups
claiming to represent the broad public interest.
Scope of problem suggests government
intervention.
Selective issues: affect special interest group.
Costs of dealing with them is passed on to
general public.
Technical issues: of little direct interest to the
population and are left to experts. Note that an
advocacy group may shift a technical issue to
another group be redefining it.
P.N. Reeves, “Issues management: The other side of strategic
planning”,
Hospital &Health Services Administration 38(2), Summer 1993
Example

The energy crisis

Health insurance reform

Medicaid reimbursement
that results in cost shifting

Hazardous waste disposal
that can be characterized
as creation of an
environmental threat
Issues Management Process
The Chase-Jones Model
Issues
Identification
Theory and
Research
Performance
Evaluation
Issues
Analysis
Judgement
and Priority
Setting
Results
Program
Design
Implementation
Policy
Options
Policy and
Strategy Selection
STRATEGIC ISSUES MANAGEMENT
(SIM)

Process Whereby a Corporation
Enhances its Capacity to Adapt

Varies According to Types of Issues
and Scope of Activities

Internal and External Issues

Provides Executives With Powerful
Planning and Control Capability
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The SIM Process

Identify Issues/Environmental Scanning

Analyze Issues

Set Priorities

Select Strategic Options

Implement a Program of Action and
Communication

Evaluate Effectiveness
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High
Low
Issue Priority
The Clarity - Priority Matrix
Assess impact of issue on
Closely monitor issue.
objectives, current strategies Actively seek additional
and operational plans for
information.
immediate action.
Evaluate impact of issue and Monitor issue.
identify nature of response, if Drop, if unimportant.
any.
“Fuzzy”
Clear
Issue Clarity
J.C. Camillus and D.K. Datta, “Managing strategic issues in a turbulent environment”,
Long Range Planning 24, April 1991
Effectiveness of Integrated Planning
Increasing
The Public Issues Life Cycle
Education reform
Global warming
Day care
Shorter work week
Comparable worth
Road congestion
Social
Expectation
Groundwater
protection
Acid rain
Clean Air Act
Amendments
Energy taxes
Health care reform
Hazardous waste
treatment
Political
Environmental
Protection Agency
Motor Vehicle
Safety and Health
Admin.
Energy Policy and
Conservation Act
Safety belt use
laws
Legislative
Emission standards
Environmental permits
Gas guzzler taxes
Product recalls
Plant inspections/fines
Fuel economy standards
Social Control
T.G. Marx,”Strategic planning for public affairs”,
Long Range Planning, 23(1), 1990.
Effectiveness of Decision Making
Increasing
Evolutionary Phases...Integrated Planning Systems
Thorough environmental analysis
Strategic relations with external
constituencies
Propose solutions
“Social Expectations” stage
Thorough situation
Environmental scanning analysis and
Manage solutions
competitive
“Political” stage
assessments
• Communications
• Monitoring
• Incentives
Well defined strategic framework
Coherent reinforcing management practices
• Negotiations of objectives
• Progress review
• Incentives
Supportive value system and climate
Evaluation of strategic
alternatives
Maintain status quo
“Legislative”/”Social
Control” stage
Multiyear Budgets
Gap Analysis
Annual Budgets
Business Planning
Business
Planning
Phase 1
Financial
Planning
Phase 2
Forecast-based
Planning
PA
Mgmt
Reactive
Pro-Active
Phase 3
Phase 4
Externally Oriented Strategic Business
Planning
Management
Inter-Active
T.G. Marx,”Strategic planning for public affairs”,
Long Range Planning, 23(1), 1990.
Strategic Public
Affairs
Management
IM Payoffs ...
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Competitive Advantages
Changes in Corporate Behavior
Avoidance of Serious Mistakes
Ability to Detect Issues and Develop Corporate
Responses While in Emerging State
Enhancement of Firm’s Credibility
Reduced Vulnerability to “the Slings and Arrows of
Outrageous Fortune”
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ORGANIZATIONS HAVE TWO
CHOICES
 Reactive


business strategy
pursue own financial goals
be forced by external agents to change
 Proactive


business strategy
actively seek operations that limit
consequences
open up dialogue with external agents
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Environmental Scanning
A
methodology for coping with
external competitive, social,
economic and technical issues
that may be difficult to observe
or diagnose but that cannot be
ignored and will not go away.
J. D. Stoffels
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Added value of scanning
Promotes education and mindstretching experiences for management.
 Assists in formulating of policy and
strategy.
 Promotes the development of
operational programs and action plans.
 Provides a frame of reference for
budgets.

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Organizational environment
Does the company accept new ideas,
concepts and processes?
 Are there open communications
channels?
 Is the company capturing environmental
information that is readily available`?

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Organizational environment
Are the linkages of change to the
company’s operations properly
assessed?
 Is environmental intelligence integrated
into strategic planning= Operation?
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Four Reasons for Scanning
Industrial Evolution
 Speed of Change and Increasing
Complexity
 Evolution in Planning Methodology
 Asymmetry of Environmental Impacts

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Environmental
Scanning
Dimensions
Operational
Governments
Economies
Control
Productivity
Capacity
Resources
Approaches to Scanning

Scientific -- social scientific measures
of stakeholders to determine ‘what’s
going on out there’
 Tree
Diagrams, Trend Impact Analysis
 Flow Charting, Morphological Models

Informal -- individualistic, subjective
techniques, nonrepresentative samples
of publics, and key contacts
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Sources of Environmental Information
PEOPLE SOURCES
EVENT, OBJECTS
External Media-related Sources
Business-related
Bankers
General
Customers
Business & Financial
Suppliers
Trade
Consultants
Technical/Academic
Unrelated
Regular associations
Other Sources
Friend
Purchased research reports
Professional peers
Technical conferences
Periodic encounters
Trade shows
Adjoining seat occupant
Educational seminars
Neighbor
Direct observation
Sources of Environmental Information
PEOPLE SOURCES
EVENT, OBJECTS
Internal
Line Relationships
Superiors
Subordinates
Staff Relationships
Peer Relationships
Counterpart Relationships
(cross-divisional)
Other (motivated by
personal relationships,
mutual interest)
Reports
Progress
Performance
Projection
Activity
Meetings
Scheduled
Issue-motivated
Ranking of Sources of Environmental
Information
Rank
1
2
3
4
5
6
Source
Pct. Ranking 1st/2nd
Daily Newspapers
91
Expert Organizations
59
Publications (Conferences
Board, etc..)
Business Periodicals
52
Futures Consultants
42
and Forecasters
Government Publications
42
Seminars and Conferences
30
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Starting to think about the future
Read utopian and science fiction.
 Read magazines like The Futurist and
Futures. Borrow the authors’ predictions.
 Monitor the writings of politicians and
social scientists.
 Watch out for mention of areas of people
who adopt innovation early.

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