Text Discussion

Give extensive answers to the following questions:

1. What is required of successful and effective issues managers?

2. Can you make a good issues manager? Why?

Complete Text 2 using the words in the box.

helps create confront coined exists divert respond required enhance came

Text 2

Origins of Issues Management

At some point in the life of an organization, it will (1) ...… a crisis that has the potential to seriously disrupt normal business activities. Whatever its nature, a crisis will (2) ...… management's attention from day-to-day operations, and strain organizational resources. An investment in organizational preparedness, issue monitoring and analysis (3) ...… ensure critical management time can be quickly dedicated to crisis response, rather than planning. It will also (4) ...… the ability of all participants to bring about positive outcomes.

The phrase "issues management" was (5) ...… by Howard Chase in April of 1976. Throughout the 1950s and 1960s in his role as a corporate PR officer, Chase was fascinated with the increasing influence that outside forces exerted on corporations. To respond to these external pressures, CEOs frequently turned for counsel to Chase and other public relations pioneers. But, the request for advice too often (6) ...… after the damaging lead article, after the punitive legislation was introduced, after the consumer boycott was already organized and the protesters were at the front gate. Chase was convinced that there (7) ...… within the company a group of professionals with the network of relationships in place that could alert the organization early on that an issue was brewing. The resulting lead time could enable the company to better (8) ...… when trouble hit. Not only that, but often, they could end-run confrontation even (9) ...… new markets, by changing products or policies. But, these changes (10) ...… at least the ear of senior management, and preferably a seat at the management table.

Read Text 3. Oliver S.Schmidt, consultant with a crisis and issues management firm is interviewed about crisis communications and issues management in North America and Germany.

Text 3

Crisis Communications and Issues Management in North America

You grew up in Germany and studied in Berlin. Now you live in the U.S. and work with international companies in regard to crisis communications and issues management. What are some North American characteristics of the field you work in?

In North America, larger companies realized that crisis management first of all means the management of communication. Crisis communications and issues management are established disciplines and consultants are regarded as a valuable resource not only in times of crisis. Corporate executives expect consultants to understand management’s point of view and to develop and implement customized communication strategies.

How does crisis communications and issues management in Germany compare to the USA? And what role do you think do consultants play in Germany?

I believe that unlike the situation in the U.S., the majority of German companies do not conduct systematic planning in regard to crisis management. Also, many corporate communications staffs and agency people seem to be unfamiliar with issues management. As for German consultants, there seem to be few with substantial knowledge and experience in the field of crisis and issues management. I also think that the majority of PR consultants in Germany still do not regard themselves as management consultants and are not viewed as such by corporate senior management either.

What are the reasons for the big difference between the status quo in Germany and in North America?

I would like to mention two prominent ones. First of all, American managers have become aware of the fact that successful crisis communications is a tool to further the career. They know, on the other hand, that a mismanaged crisis due to their lack of skill in crisis communications can delay or completely prevent professional success. Secondly, today the management of U.S. companies uses a broader definition of crisis. In the past almost exclusively scenarios along the lines of industrial accidents or natural disasters were viewed as potential crises. Nowadays, also events such as executive illness or a drop in share prices make the list and call for the activation of the crisis communications plan and the services of a consulting firm.

Despite obvious advantages, a large number of German companies are reluctant to bring in crisis consultants. How about companies in North America?

In North America consultants are very much in demand. At the same time the agency market continuous to diversify. In fact, the U.S. PR industry’s growth over the last several years has been ahead of the growth in Germany. The advantages of bringing in crisis communications consultants are indeed obvious. While a corporate manager likely faces no more than one or two crises per year, crisis consultants are constantly exposed to a variety of scenarios in different industries. Greater experience paired with deeper theoretical knowledge makes the consultant a valuable ally. Another important advantage is that the consultant is not subject to office politics. He can be more objective and even let the CEO know about a strategic or personal weakness.

What other tips would you like to give German managers?

I strongly recommend for every company to have a customized and tested crisis communications plan in place. Apart from preparing strategically, successful crisis management also depends on practicing the necessary communication skills utilizing scenario-based training. That is also the reason why my firm, to which management consultants as well as communications trainers with significant journalistic experience belong, works with our clients as a team. Our client partners appreciate that approach because it ensures that they will be prepared strategically and in regard to actual communication and media skills.

Finally, what about the future of crisis communications and issues management in Germany? How long do you think will it take until German companies and consultants have the same level of expertise as their North American peers?

It will not happen soon. I think it will take a couple of years, and a lot of information and ongoing education in regard to both topics will be necessary. Due to successful issues management and thorough preparation, many U.S. companies have not only survived crises but also gained strength and new momentum.