BANGKOK | November 2014

ISSUES MANAGEMENT IN THE DIGITAL AGE

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Charlie Pownall | CPC & Associates

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The activity of thinking about problems that might affect companies, government or consumers and then planning ways to solve them.

What is ‘issues management’?

Source: Cambridge Dictionary

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Issues versus crises

• Political pressure• Regulatory changes• Religious/cultural/political

controversies• Societal outrage

• Cyber attacks• Health scares• Hostile takeover bids• Natural disasters• Political unrest• Sabotage & extortion

• Corporate/strategic failure• Corporate governance

failure• Fraud/malpractice• Poor employee behaviour

• CEO dismissal• Employee injuries/death• Industrial disputes• IT system failures• Product quality recalls

EXTE

RN

AL

INTE

RN

AL

ISSUE CRISIS© 2015 CPC & Associates Ltd. All rights reserved 4

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What we’ll cover today

• How issues are changing

• How to identify, assess & plan for issues

• How to manage issues

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• Evolving expectations, volatile behaviours

• Broader range of risks & vulnerabilities

• Threats escalate faster & travel more widely

• More voices, opinion-formers, channels

• Demands on openness & accountability

• Pressure to respond immediately & openly

Reputation today

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The role of social mediaRisk focus of boards

Source: EIU, Clifford Chance - 2014© 2015 CPC & Associates Ltd. All rights reserved 7

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The role of social mediaImpact of issues/crises

Source: EIU, Clifford Chance - 2014© 2015 CPC & Associates Ltd. All rights reserved 8

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The role of social mediaIncidents of concern to boards

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The role of social mediaRole of social media

IGNITE AMPLIFY SUSTAIN

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What we’ll cover today

• How issues are changing

• How to identify, assess & plan for issues

• How to manage issues

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Identify stakeholders

Customers

Employees

Investors

NGOs

Suppliers Media

Government

Civil groups

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STRATEGIC

SOCIETAL

TECHNOLOGICAL

OPERATIONAL

BEHAVIOURAL

LEGAL

FINANCIAL

Identify threats

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Listen to online discussions

Source: Crimson Hexagon© 2015 CPC & Associates Ltd. All rights reserved 14

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Source: Salter Baxter

Identify opinion-formers

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MODERATEHigh likelihood,

low impact

SEVEREHigh likelihood,

high impact

LOWLow likelihood,

low impact

HIGHLow likelihood,

high impact

-LI

KEL

IHO

OD

+

- IMPACT +

Prioritise threats

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2. Listen to audiences

Critical • Extensive breach of customer data• Kidnapping of an employee• Major damage to a firm’s physical assets during an earthquake or terrorist

operation

Severe • Allegations of corruption amongst a firm’s senior leadership• External leak about serious and unexplained injuries to employees at work• Threat of legal action by a major investor over the accuracy of a firm’s

financial statements

Significant • Escalating allegations of use of child labor amongst a company’s suppliers• Community protests about local environmental damage• Campaign by a global NGO to boycott a company’s products

Moderate • An escalating online rumor about a controversial product ingredient • A public complaint about a faulty product by a celebrity customer• A backlash to an unexpected price increase or brand marketing campaign

Low • Known though uncontroversial concerns about a product circulating online• Negative online feedback to a media article on employee compensation• A one-off complaint on Facebook by a customer about poor quality

product packaging

Categorise threats

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• Reputation management system

• Transparency strategy

• Stakeholder engagement

Strengthen foundations

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Reputation management system

• Listening

• Governance

• Policies & protocols

• Resources

• Training

• Tools

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Online listening

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Online response protocol

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Transparency strategy

• Strategic

• Operational

• Technological

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RESPOND CO-OPERATE

MONITOR ENGAGE

-W

ILLI

NG

NES

S TO

CO

-OP

ERA

TE

+

- INFLUENCE +

Stakeholder engagement strategy

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What we’ll cover today

• How issues are changing

• How to identify, assess & plan for issues

• How to manage issues

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Act

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Explain

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Correct

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Direct

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Collaborate

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QUESTIONS?

COMMENTS?

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39charliepownall.com© 2015 CPC & Associates Ltd. All rights reserved

THANK YOU.

@cpownall+44 20 3856 3599cp@charliepownallcharliepownall.com