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Issues Managementand Environmental ScanningChapter
7Organizational and Managerial Communication
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BUSINESS AS AN ECONOMIC INSTITUTIONLittle acknowledgement of
external environmentProduce goodsProvide employmentPay
dividendsSuccess measured in economic terms
Peggy Simcic Brnn
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BUSINESS AS SOCIO-POLITICAL INSTITUTION1960s - economic growth
producing detrimental side effects
Emphasis on protecting human health, not environment per se
Peggy Simcic Brnn
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RISE OF PUBLIC ISSUESPublic demand collective action and there
is disagreement on solutioncivil rightsfeminist movementconsumer
movementecology movement
Peggy Simcic Brnn
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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
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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
Peggy Simcic Brnn
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Location of IM Programs Public/Government Affairs Corporate
Planning Corporate Communications Issues Management
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Source: McGrath, G., Issues Management, IABC
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Issues Management ProcessThe Chase-Jones Model
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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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Structure of an issues monitoring team
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Four functions:Sharpening planning for responsible adapting the
organizationKnowing and exceeding standardsMonitoring
issuesCommunicating to build beneficial relationships
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Corporate Response to IssuesReactive - Fight ChangeAccommodative
- Adapt to ChangeProactive - Influence ChangeInteractive - Adjust
to and Influence Change
Peggy Simcic Brnn
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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
Peggy Simcic Brnn
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IM and Corporate Image IM now includes fostering and maintaining
corporate image Tied to behavior of organization and communication
management Integrity of the organizational identity
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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
Peggy Simcic Brnn
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Environmental ScanningA methodology for collecting and analyzing
information about every sector of the external environment that can
help management to plan for the organizations future.
. . . A radar-like vigilance used to spot potential or actual
issues at their earliest point of development. (Heath)Chun Wei
Choo
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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.
Peggy Simcic Brnn
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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`?
Peggy Simcic Brnn
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Organizational environmentAre the linkages of change to the
companys operations properly assessed?Is environmental intelligence
integrated into strategic planning?
Peggy Simcic Brnn
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OperationalCompetitiveStakeholdersFinancialTechnologicalGovernmentsEconomiesControlProductivityCapacityResourcesGovernmentsEconomiesCapital
MarketsMoney
MarketsGovernmentsEconomiesIndustriesMarketsProductsSociety
ShareholdersCustomersSuppliersCommunityEmployeesGovernmentsAppliedDevelopedEmergingIn
ProcessConceptualizedBoundaries of
KnowledgeGovernmentsEnvironmentalScanningDimensions
Peggy Simcic Brnn
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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
Peggy Simcic Brnn
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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
Peggy Simcic Brnn
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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
Peggy Simcic Brnn
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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
Peggy Simcic Brnn
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Best PracticesPlanning and manage scanning as a strategic
activityImplement scanning as a formal systemPartner with domain
experts and IT specialists in designing systemManage information as
the core of the scanning function
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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.J. D. Stoffels
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Two cases Playtex Company and the Sippy Cup Intel
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.
