Public Affairs
Embraces… Corporate public policy Issue management Crisis management Governmental relations Corporate communications
Public Affairs
The management process that focuses on the formalization and institutionalization of corporate public policy.
Public Affairs Management: Relationships
Strategic Management ProcessStrategic Management Process
Corporate Public Policy
Corporate Public Policy
Issues Management
Issues Management
Crisis Management
Crisis Management
Public Affairs ManagementPart of
which is
Enterprise-Level ManagementEnterprise-Level Management Environmental AnalysisEnvironmental Analysis
Evolution of the Corporate Public Affairs Function
The growing magnitude and impact of government
The changing nature of the political system
A recognition by business that it was being outflanked by counter-interests
An expanding recognition that business should be more politically active
http://www.pac.org@
Public Affairs Activities
Public Affairs Activities
Buffering
Activities that “buffer” the organization from the social and political environment
Bridging
Activities that ‘bridge” the organization with the social and political environment
Competencies for International Public Affairs
Development of intercultural competenceDevelopment of intercultural competence
Knowing the impact of societal factors on public affairsKnowing the impact of societal factors on public affairs
Understanding local public policy institutions and processesUnderstanding local public policy institutions and processes
Nation state-specific applications of PA functionsNation state-specific applications of PA functions
Language skillsLanguage skills
Understanding global business ethicsUnderstanding global business ethics
Managing international consultants, alliances, and issue partnersManaging international consultants, alliances, and issue partners
New Public Affairs Organization
1. Manages public affairs as an ongoing process, both internally and externally
2. Cultivates and harvests the capability to build, develop, and maintain stakeholder relationships
3. Recognizes the importance of managing the grassroots
4. Communicates in an integrated manner
5. Aligns the organization’s values and strategies with the public’s interests on a continuous basis
6. Focuses both systematically and proactively on helping the organization to compete
Qualities for Successful PA Management
Established communication expertise
Global perspective
Integrity, credibility, and trust
Management skills and experience
Political and public policy insights
Strategic thinking
Business Exposure and External Affairs Design
SocialEnvironment
External Affairs Design: Breadth, Depth, Influence and Integration
Consumer Products Company
Consumer Products Company
Industrial Products Company
Industrial Products Company
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.
An issue is any trend, event, controversy, or public development that might affect the corporation.
Issues originate in social/political/ regulatory/judicial environments.
Issues Management
Strategic Management Approach
Issues management is typically the responsibility of senior line management or strategic management staff.
Issues identification is more important than it is in the conventional approach.
Issues management is seen as an approach to the management of external/internal challenges to company strategies, plans, and assumptions.
Strategic Issue Management
Chapter 5-12
Issues Definition
IssueA matter that is in dispute between parties. The dispute evokes debate, controversy, or differences of opinion.
Issues Definition
Characteristics of an Emerging Issue
Terms of the debate are not clearly defined
Issue deals with matters of conflicting values and interest
Automatic resolution is not available
Issue is often stated in value-laden terms
Trade-offs are inherent
Basic Assumptions
Issues Management Process
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 IssuesIdentification of Issues
Analysis of IssuesAnalysis of Issues
Prioritization of IssuesPrioritization of Issues
Formulation of Issue ResponsesFormulation of Issue Responses
Implementation of Issue ResponsesImplementation of Issue Responses
Evaluation, Monitoring, and Control of ResultsEvaluation, Monitoring, and Control of Results
Identification of Issues
Scan the environmentScan the environment
Identify emerging issuesand trends
Identify emerging issuesand trends
Identification of Issues
• WhichWhich stakeholders are affected by the issue?
• WhoWho has an interest in the issue?
• WhoWho is in a position to exert influence?
• WhoWho has expressed opinions on the issue?
• WhoWho ought to care about the issue?
• WhoWho started the ball rolling? (Historical view)
• WhoWho is now involved? (Present view)
• WhoWho will get involved? (Future view)
Analysis of Issues
Ranking of Issues
Xerox Approach
High priority
Nice to know
Questionable
PPG Approach
Priority A
Priority B
Priority C
Probability-Impact Matrix
HighMediumLowH
igh
Med
ium
Lo
w
Probability of Occurrence
Imp
act
on
Co
mp
any
Formulation and Implementation of Responses
Formulation The response design process
Implementation The action design process
Plan clarity Resources needed Top management support Organizational structure Technical competence Timing
Issues Management in Practice
Benefits of Issues Management Processes
Companies …
develop better overall reputations
develop better issue-specific reputations
perform better financially
Provides a bridge to crisis management