Informasjon og SamfunnskontaktStakeholdersIssues ManagementEnvironmental Scanning

21 February 2001

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OrganizationStockholdersGovernmentRegulatorsBoards of DirectorCommunity Leaders

AssociationsPolitical GroupsProfessional SocietiesEmployeesUnionsSuppliersConsumersIndustrial PurchasersUsers of ServiceEnvironmentalistsCommunity ResidentsVoters MediaMinoritiesWomenOther PublicsNORMATIVELINKAGESFUNCTIONALLINKAGESINPUTOUTPUTDIFFUSEDENABLINGEXTERNALLINKAGES OFAN ORGANIZATION

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Four Key LinkagesEnabling LinkagesFunctional LinkagesInput linkagesOutput linkagesNormative LinkagesDiffused Linkages

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Enabling LinkageOrganization could not exist without this linkageAuthoritiesShareholdersLegal System

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Functional LinkageLinkage that give input and take outputInput LinkageEmployeesUnionsSuppliersOutput LinkagesCustomersOther organizationsIndividual consumers

Normative LinkageOrganizations that have common problems or similar valuesMembership organizationsProfessional groupsAssociations

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Diffused LinkageElements in society that are not clearly identified as a formal member of organizationEnvironmentalistsCommunity ResidentsMediaOther Publics

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Identifying Organizations Linkages to StakeholdersWho are organizations stakeholders?No general group, but identified by common problemVary from case to caseDependent on what organization does and how other individuals and organizations react to organizations behaviorKey: What consequences of organizations activities will have on its stakeholders and how do these consequences affect each other?

Job of PRDecide how activities link to others -- individuals or organizationsFind groups, define exact nature of opportunity/problem and select PR solution

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Degree of Involvement HighLow Type of Public Type of PublicProblem-facing behavior high understanding of problem low constraintConstrained behavior high understanding of problem high constraintRoutine behavior low problem understanding constraint recognitionFatalistic behavior low problem understanding high constraintActive Aware/ActiveAware/Active Latent/ActiveActive None/Latent(Reinforcing) Latent None

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Uncovering Key PublicsPurpose: 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

Issues Management

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BUSINESS FIRM AS AN ECONOMIC INSTITUTIONLittle acknowledgement of external environmentProduce goodsProvide employmentPay dividendsSuccess measured in economic terms

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BUSINESS AS SOCIO-POLITICAL INSTITUTION1960s - economic growth producing detrimental side effects

Emphasis on protecting human health, not environment per se

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RISE OF PUBLIC ISSUESPublic demand collective action and there is disagreement on solutioncivil rightsfeminist movementconsumer movementecology movement

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Corporate Response to Public IssuesReactive - Fight ChangeAccommodative - Adapt to ChangeProactive - Influence ChangeInteractive - Adjust to and Influence Change

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ISSUES MANAGEMENTCoined in 1977New Type of Corporate CommunicationsResponse to Increasing Criticism of Big BusinessMethod of Monitoring the EnvironmentManaging New Challenges and ChangeMid-1970s, Issues Became Strategic IssuesOrganizations 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 IssuesFinancialOperationalEmployee Relations/ConditionsCommunications/Customer RelationsCommunity Relations

Four Types of IssuesUniversal 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 organizationsAdvocacy 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.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 threatTypeExampleP.N. Reeves, Issues management: The other side of strategic planning, Hospital &Health Services Administration 38(2), Summer 1993

Issues Management ProcessThe Chase-Jones Model

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STRATEGIC ISSUES MANAGEMENT (SIM)Process Whereby a Corporation Enhances its Capacity to AdaptVaries According to Types of Issues and Scope of ActivitiesInternal and External IssuesProvides Executives With Powerful Planning and Control Capability

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The SIM ProcessIdentify Issues/Environmental ScanningAnalyze IssuesSet PrioritiesSelect Strategic OptionsImplement a Program of Action and CommunicationEvaluate Effectiveness

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The Clarity - Priority MatrixHighLowClearFuzzyJ.C. Camillus and D.K. Datta, Managing strategic issues in a turbulent environment, Long Range Planning 24, April 1991Issue ClarityIssue Priority

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The Public Issues Life CycleT.G. Marx,Strategic planning for public affairs, Long Range Planning, 23(1), 1990.Effectiveness of Integrated PlanningSocial ExpectationPoliticalLegislativeSocial ControlEducation reformGlobal warmingDay careShorter work weekComparable worthRoad congestionGroundwater protectionAcid rainClean Air ActAmendmentsEnergy taxesHealth care reformHazardous waste treatmentEnvironmental Protection AgencyMotor Vehicle Safety and Health Admin.Energy Policy and Conservation Act Safety belt use lawsEmission standardsEnvironmental permitsGas guzzler taxesProduct recallsPlant inspections/finesFuel economy standards

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Evolutionary Phases...IncreasingEffectiveness of Decision MakingBusiness PlanningP AMgmtFinancial PlanningForecast-based PlanningExternally Oriented PlanningStrategic Business ManagementReactivePro-ActiveInter-ActiveStrategic Public Affairs ManagementAnnual BudgetsMultiyear BudgetsGap AnalysisBusiness PlanningIntegrated Planning Systems Communications Monitoring IncentivesThorough environmental analysis Strategic relations with external constituenciesPropose solutionsSocial Expectations stageWell defined strategic frameworkCoherent reinforcing management practices Negotiations of objectives Progress review IncentivesSupportive value system and climateEnvironmental scanningManage solutionsPolitical stageMaintain status quoLegislative/Social Control stageThorough situation analysis and competitive assessments

Evaluation of strategic alternatives T.G. Marx,Strategic planning for public affairs, Long Range Planning, 23(1), 1990.

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IM Payoffs ...Competitive AdvantagesChanges in Corporate BehaviorAvoidance of Serious MistakesAbility to Detect Issues and Develop Corporate Responses While in Emerging StateEnhancement of Firms CredibilityReduced Vulnerability to the Slings and Arrows of Outrageous Fortune

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ORGANIZATIONS HAVE TWO CHOICESReactive business strategypursue own financial goalsbe forced by external agents to change

Proactive business strategyactively seek operations that limit consequencesopen up dialogue with external agents

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Environmental ScanningA 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 scanningPromotes education and mind-stretching 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 environmentDoes 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 environmentAre the linkages of change to the companys operations properly assessed?Is environmental intelligence integrated into strategic planning= Operation?

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Four Reasons for ScanningIndustrial EvolutionSpeed of Change and Increasing ComplexityEvolution in Planning MethodologyAsymmetry of Environmental Impacts

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OperationalCompetitiveStakeholdersFinancialTechnologicalGovernmentsEconomiesControlProductivityCapacityResourcesGovernmentsEconomiesCapital MarketsMoney MarketsGovernmentsEconomiesIndustriesMarketsProductsSociety ShareholdersCustomersSuppliersCommunityEmployeesGovernmentsAppliedDevelopedEmergingIn ProcessConceptualizedBoundaries of KnowledgeGovernmentsEnvironmentalScanningDimensions

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Approaches to ScanningScientific -- social scientific measures of stakeholders to determine whats going on out thereTree Diagrams, Trend Impact AnalysisFlow Charting, Morphological ModelsInformal -- individualistic, subjective techniques, nonrepresentative samples of publics, and key contacts

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Sources of Environmental InformationExternalPEOPLE SOURCESEVENT, OBJECTSBusiness-related Bankers Customers Suppliers ConsultantsUnrelated Regular associations Friend Professional peersPeriodic encounters Adjoining seat occupant NeighborMedia-related Sources General Business & Financial Trade Technical/Academic

Other Sources Purchased research reports Technical conferences Trade shows Educational seminars Direct observation

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Sources of Environmental InformationPEOPLE SOURCESEVENT, OBJECTSInternalLine Relationships Superiors Subordinates

Staff RelationshipsPeer RelationshipsCounterpart Relationships (cross-divisional)Other (motivated bypersonal relationships,mutual interest)Reports Progress Performance Projection Activity

Meetings Scheduled Issue-motivated

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Ranking of Sources of Environmental InformationRankSource Pct. Ranking 1st/2nd1Daily Newspapers912Expert Organizations59 Publications (Conferences Board, etc..)3Business Periodicals524Futures Consultants42 and Forecasters5Government Publications426Seminars and Conferences30

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Starting to think about the futureRead 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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The term was apparently coined in 1977 by W. Howard Chase of American Can Company. It described a new type of corporate communications which responded to increasing criticism of big business - they werent really responding by changing they were doing advocacy advertising.It became a way to monitor the environment so that the business could manage the challenges and changes that were taking place. They eventually used IM to identify potential issues earlier enough to be proactive in dealing with them.

Strategic business planning and issues monitoring/analysis/management occurred in the mid-1970s and systems such as Strategic Issues Management were developed.

The field is quite interdisciplinary - Articles on IM are found in journals representing general business, business planning, futurism, management information systems, business ethics, communication, public relations, public affairs.

By 1987, over half of the USs largest corporations had an IM function.This process is defined differently by different researches but the ingredients are essentially the same.

One point to be made here is that this is a continuous process, not a one-time exercise.

The following slide represents an integrative framework suggested by Camillus and Data , combining the activities of a Strategic Planning System and Strategic Issues Management.