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