Issues Management and Strategic Planning PRL2001 The Fundamentals

1
Issues Management and Strategic Planning PRL2001
The Fundamentals

• Course Examiner - Elizabeth Dougall
• Lecture 2, Week 2,
• Semester 2, 2002

2
Key Points

• Part One
• Taking the first steps toward effective issues
  management.
• Part Two
• The Herron Case Study - Managing when disaster
  strikes.
• Acknowledgement to The Rowland Company (Lee
  McLean) and The Qld Police Media Unit (Brian
  Swift) for the Herron case.

3
Revision

• An Issue is a gap between corporate performance
  and stakeholder expectations.
• Issues Management is the process used to close
  that gap.
• Renfro (1993) The Issue Lifecycle
• Birth, Definition, Name, Champion, Group, Media
  Recognition

4
What is an Issue of concern?

• An external or internal condition which could
  significantly affect an organisations future.
• Eg. extortion / product tampering in the
  pharmaceutical industry

5
What is an Issue of concern?

• Issue ? Crisis
• Immediate effect ? loss of business
• Longer term effects ? legislation, safety
  regulations, increased production costs, lower
  profits, reduced staff and so on.

6
What is an Issue of concern?

• An issue is not just some abstract notion of
  what-if
• it is a legitimate concern that could impact the
  future well-being of an organisation.

• It is NOT the head cold that will be gone in 48
  hours
• It is that small but suspicious lump - dont
  ignore it!!!

7
What is an Issue of concern?

• Examples
• Food labelling legislation in the food
  manufacturing business
• Legal action against Internet Service Providers
  providing access to unsavoury materials
• Negative Gearing tax law changes to anyone in
  the building and investment industries.

8
Steps in Issues Management

• Typically encompasses
• Identifying issues and trends
• Evaluating their impact and setting priorities
• Establishing the organisations position
• Designing a plan to achieve that position
  (monitoring, issues communication, lobbying,
  litigation, advertising etc)
• Implementing that plan.

9
Managing Issues

• Good issues management is
• Proactive
• Strategic
• And frequently
• Invisible

• Poor issues management is
• Reactive
• Tactical
• Highly visible
• and frequently manifests as
• A crisis

10
Managing Issues

• Doesnt guarantee prosperity
• Does help to minimise the impact of otherwise
  fatal events
• Can help to spot opportunities first new
  markets, new sources of revenue.

11
Managing IssuesAnalysing and Planning

• What is the name of the Issue? (its always
  important to get in first)
• Tax Reform versus the new Howard tax.
• struggling versus enduring
• troubled versus rapidly recovering

12
Managing Issues

• Can smaller organisations exert their influence
  on big issues?
• Yes they can but probably not alone.
• Collective action and the formation of alliances
  between the like-minded is essential.

13
When disaster strikes

• Crises are
• Acts of Nature fire, drought, epidemic.
• Intentional product-tampering, bomb threats and
  other forms of terrorism.
• Unintentional explosions, fires, leaks, stock
  market crashes, accidents.

14
When disaster strikes

• The basics of crisis management are
• Regret
• Responsibility
• Reform and
• Restitution.

15
When disaster strikes

• Crises CAN and SHOULD be prepared for
• Physically
• and with
• Communication plans

16
The Herron Pharmaceuticals Case
17
Herron - A Case Study Issues Management - Crisis
Control

• Family owned - 300 employees
• Distributes nationally and overseas
• Over 900 products
• Paracetemol is flagship
• Strong market position

18
Herron - A Case Study Issues Management - Crisis
Control

• Three Key Elements
• Have a Plan - rehearse and prepare
• Assemble, prepare and rehearse the Crisis
  Management Team (CMT)
• Use a trained, effective spokesperson (preferably
  only one and preferably the most senior).

• Herron
• Rehearsed procedures were in place (including a
  call centre in Sydney)
• The CMT was ready for action
• The CEO had extensive media training

19
Herron - A Case Study Issues Management - Crisis
Control

• Communication with Trade
• Product removal was the priority
• Herron stockists were large and small
  Australia-wide
• Retail channels, hotline and web site were
  primary tools

20
Herron - A Case Study Issues Management - Crisis
Control

• Consumers - Communication channels were
• News media / other media
• Call Centre
• Herron web site
• Advertisements

21
Herron - A Case Study Issues Management - Crisis
Control

• Communicate the KEY messages
• Simply, clearly, concisely
• With honesty, dignity and empathy
• Without arrogance and defensiveness

22
Herron - A Case Study Issues Management - Crisis
Control

• Herron was open with the media at every step
• The letters and past threats were explained at
  the first media conference
• The CEO was the central spokesperson
• Media interviews and calls were welcomed
• Hundreds of interviews were conducted

23
Herron - A Case Study Issues Management - Crisis
Control

• Remember your employees!
• Employees are critical in a crisis
• Others will interpret their responses
• Keep them informed
• Listen to them
• Herron successfully engaged the support of its
  employees through daily updates, emails to
  interstate staff, phone calls at home.

24
Herron - A Case Study Issues Management - Crisis
Control

• Communication with Other Stakeholders
• The family affected
• Industry associations
• Suppliers
• Politicians / Govt
• Indigenous groups
• Non English Speaking groups

25
Herron - A Case Study Issues Management - Crisis
Control

• The Relaunch
• Packaging has been revised extensively
• National media events in 15 locations
• Support from personalities / politicians
• Good promotional collaterals
• Employee involvement
• The result has been improved market share.

26
When disaster strikes

• A crisis articulates the character an
  organisation more clearly than any other event.
• If it is badly handled will haunt the
  organisation forever.

27
Tutorial Part 1

• Can you identify any current examples of an
  organisation attempting to influence public
  policy, for example,legislation regulation?
• Was it successful?
• What are the implications for the organisations
  relationships?
• Is there any evidence of the organisation using
  managed communication?

28
Tutorial Part 2

• Discussion of Herron Case
• Specifically consider
• environmental scanning
• monitoring
• Renfros lifecycle
• Other concepts discussed in the lectures

29
Tutorial Part 3

• Assignments 1 and 2
• Before next week
• 1. Complete readings as per study schedule
• 2. Organise a partner and submit names and three
  potential issues / organisations