Issues Management Defined

Summary by Shaymaa Al Kharusi and Shima Vezvaei

There is always a difference between an issue and a crisis. This chapter talks about the differences and the definitions of each of these terms. We always see how organizations try to run their place and try to adjust to the shift in public’s expectations and values and their needs.  If you don’t attend to their issues and needs and they react to it proactively, that could cause a huge problem to your organization. Your organization would look at the loss and profit, and that’s what is important at the end of the day.

What is issues management?

Issues management has been around for over 20 years now, which major corporations have been using it as a powerful strategic planning tool. In the 70’s, there was a lot of hostility towards corporations that resulted in communicators to rethink towards the role of corporate communication. Due to the increase of criticism, companies started to hire PR companies to clear their imagine and reputation.

Issue management’s aim was to define the strategies that companies needed to take to avoid the activist groups, which was putting pressure at the organizations. Therefore, corporate communication implemented a way companies could deal with these critics and issues. In 1978, the US Public Affairs council describes it as a program a company uses to increase their knowledge of the public policy process and increase the image and values of their involvement in the ongoing process. Heath and Cousino definition of issues management is that it’s a result of activism and pressure that corporation have to implement and define CSR and what its standards should be. Another scholar W Howard Chase and another specialist introduced “advocacy advertising”. Companies were advised to move from information base to advocacy position. As a result of that the relationship between business and society has become an important strategic tool in reputational and financial terms.

Chase and his colleague Barry Jones defines issue management as a tool that is used to identify, analyze and mange upcoming issues and respond to them before the public knows about it. They thought most companies had to react after the issue has been exposed and were forced to settle for the new regulations and guidelines that were given to them.

Some scholars say that public policy is the formation of government intervening, media and the public. According to Chase and Jones they describe the formation of public policy as an outcome of interaction between public and private view. They state that any corporation has the right to formulate public policy without waiting for government to intervene.

What about the skeptics?

Critics say that the term “issue management” implies manipulation. While others say that no organization can control their environment to stand still or can know the direction in which the environment will change.

According to Tucker and Broom, adopting to issue management exists in the following areas:

—  Financial risk

—  Boundaries

—  Diversity

A research was conducted in the UK across major public corporations indicated that corporate communication and public affairs knew the importance of managing issues, only 10% of the sample thought that their senior management dealt with their issues proactively with strategic planning process. Less than 5% thought their organizations applied a mixed approach (linking planning, communication, regulatory & other appropriate functions) to execute the plan for possible upcoming issues on corporate objectives. While, 95% of the sample thought the issues were handled accordingly and in an ad hoc manner, for the sake of their financial performance and the reputation of their organizations goals.

Case studies and academic research show the effective use of issues management techniques can:

—  Increase market share

—  Enhance corporate reputation

—  Save money

—  Build important relationships

If organizations fail to maintain the issues management it could lead to destruction of the market share, effect reputation of the organization, increase in expenses, management perceived in a negative way and reduce corporate independence by being strict with the organizations policies.

There is a difference between issues management and crisis management. Issues management is less action and more predictions, thus, its proactive and tries to solve the issue before it gets out of hand. As for crisis management it’s more reactive and deals with situations after it had become public knowledge and affects the companies image. There is limited timeline when it comes to crisis management; the issue has to be solved straight away. The audience and actions are known and has to be communicated immediately. With issues management you have time to solve the issue before it escalates to a crisis. Here you tend to eliminate any possible issue that would affect the company’s image by making changes and following the trends. According to Tucker and Broom issues management is the process an organization should follow to help protect the market, reduce risk, create opportunities and manage the reputation of the corporation for the benefits of the organizations and shareholders.

What is an Issue?

There are so many different definitions of issue. Hainsowrth and Mend (1988) US specialists defined it as a consequence of some action between one party and another, which resulted to a private negotiation with adjustments to public policy through regulatory action. Others put it in a basic form and said it’s a conflict between organizations and their audiences. Basically, an issue is a gap between corporate practice and stakeholders expectations. According to Chase and Jones they describe an issue as an unsettled matter where you can handle it with a decision. Usually managing issues involves change. The aim is to control the impact before it ends up badly. The goal is to benefit the organization by knowing early the potential impact of the change, and by knowing through your surroundings and environment what are the upcoming changes so they have time to analyze and think creatively towards the issue.

Who should practice issues management?

According to Chase, public relations practitioners and the categories that follow public relations, like public affairs, communications and government relations.

What are the functions of issues management?

—  Identifying issues and trends

—  Setting priorities and evaluating the impact

—  Establishing where the companies position

—  Designing companies action and response to help them achieve their goals

—  Implementing the plans

These functions must go hand in hand with helping the organization to accomplish their tasks through management. The key tasks are: planning, monitoring, analyzing and communicating. In order for a company to maintain its positive outlook to their audience they have to sustain their public policy environment by establishing a relationship with the stakeholders.

Smart planning and operations

If the issues managers capture the changes in public policy and integrate it to strategic planning, that can offer opportunities for organizations to grow and guide them to the standards that the company can operate by. Issues management can enhance the company’s responsiveness to environment change.

Tough defense and smart offence

If companies get involved and find the core of the issue before it becomes bigger then their communication campaign would likely succeed.

Getting the house in order

This is about getting the CSR matters going. Public affairs have to consider the public policy forces and help in establishing a proper corporate planning and ethics in the organization. A responsive organization doesn’t look at how to cope with external demands only they also look at how these demands can work technically and economically.

Scouting the terrain

Organizations study and analyze what’s going on around them. They look at what could affect their corporation or what are the issues that are happening now that could be monitored and changed. There are different ways you could monitor your public by surveys, polls or futurist, and a more modern way is through scientific technology where valuables show how issues could be identified, monitored and analyzed. The key to make this work is through understanding the culture of your organization, organizational and political structures and public policy issues analysis.  Only then they would be able to monitor and analyze and improve their public policy and strategic plans.

*All pictures in this post are taken from google images