Issue Management 202

Issue Management 202 Building, Sustaining and Protecting Personal and National Reputations

Doing a ‘Ratner’ • Sales: down 11% • Group profit: from £112m profit to £122m loss • Share price: from £2 to 8p • Market value: down £500m • Bye-bye Ratner: as a brand and chairman

Communication 202 • Find out in advance who your audience will be • Identify your CORE messages • Treat every question seriously/watch the ‘humour’ • Everything is ‘on the record’, all of the time • Plan for the five worst questions

Topical issues Safety & Security BEE/AA HIV/AIDS Zimbabwe Succession debate Health Ministry 2010 Land issues Infra- structure …and more

Six Rs of issue management Rapid Response Regret Resolution Reformation Restitution

Be alert to the pythons • ICM database of 90,000+ records of business crises: 65% could have been averted, but were either ignored or not recognised for their potential damaging consequences • 71 prodromes at Union Carbide prior to 1984 Bhopal gas tragedy • Salomon Bros., Enron, Sasol, Shell, Dow Corning, A-Class Mercedes, Three Mile Island…the South-East Asia tsunami…Hurricane Katrina…even 9/11!

Communication 202 (cont.) • Be careful of being critical • Remain calm and polite • Avoid speculative and hypothetical responses • Project enthusiasm for your messages • Do your homework – IMC collateral, the culture, your firm, your business cards, etc. • Be yourself – not an actor trying to memorise a script

Messaging: Four steps from the tough question to your core message THE Block and Bridge OR Bump and Run OR Satisfy and Steer TECHNIQUE

Step 1: Give a short form answer Acknowledge the question that is asked Q. “Why does SA still persist with a policy of quiet diplomacy with Zimbabwe when quite clearly this strategy is a failure?” A. “You know, we remain convinced that a lasting, bright future for Zimbabwe can, in the end, only be secured by Zimbabweans themselves…

Step 2: Build a bridge Bridges don’t need to be elaborate – they’re for transition, not support. It’s a verbal tactic to reform the question in terms most favourable to you Q. “Why does SA still persist with a policy of quiet diplomacy with Zimbabwe when quite clearly this strategy is a failure?” A. “You know, we remain convinced that a lasting, bright future for Zimbabwe can, in the end, only be secured by Zimbabweans themselves. In fact…

Step 3: State your core message Q. “Why does SA still persist with a policy of quiet diplomacy with Zimbabwe when quite clearly this strategy is a failure?” A. “You know, we remain convinced that a lasting, bright future for Zimbabwe can, in the end, only be secured by Zimbabweans themselves. In fact…this was a lesson learnt by us as South Africans when we came together to end our own nightmare of apartheid. We have, however repeatedly criticised the violation of the rule of law and human rights in Zimbabwe, and will be there to assist…”

Step 4: Don’t go back to Step 1 Q. “Why does SA still persist with a policy of quiet diplomacy with Zimbabwe when quite clearly this strategy is a failure?” A. “You know, we remain convinced that a lasting, bright future for Zimbabwe can, in the end, only be secured by Zimbabweans themselves. In fact this was a lesson learnt by us as South Africans when we came together to end our own nightmare of apartheid. We have, however repeatedly criticised the violation of the rule of law and human rights in Zimbabwe, and will be there to assist…. That’s why we don’t believe quiet diplomacy is a failure.”

Reliable bridging phrases • “What’s important to remember is…” • “I’m not in a position right now to comment on that issue, but what I can tell you is…” • “Before we move on, I need to add…” • “There is in fact more to the story, specifically…” • ‘That reminds me…” • “You make a good point there, but the real issue here is…” • “But you know, the really significant thing in all this is…” • “That’s one perspective. We have a different view…”

Difficult questions 1. THE LOADED QUESTION • Q. “How much damage has been done to investor confidence as a result of his decision?” • A. “With respect, I don’t agree with your premise. In fact South Africa has seen…(insert your core message)” 2. THE PERSONAL OPINION QUESTION • Q. “Take off your ambassador hat for moment – what’s your personal opinion on this issue?” • A. “I don’t believe the issue is my personal opinion. The issue is…(insert your core message)”

Difficult questions 3. THE CLAIRVOYANT QUESTION • Q. “Why do you think the President decided to do that?” • A. “I can’t speak for the President. From what I’ve seen and heard, it seems he believed that…” 4. THE ‘I SIMPLY DON’T KNOW THE ANSWER’ QUESTION • Q. “So what’s the official HIV infection figure? • A. “I’m not sure of that figure off-hand. I can get that information for you, but the real issue here is…”

Difficult questions 5. THE ‘I KNOW BUT CAN’T TELL YOU’ QUESTION • Q. “So, is your bank looking to acquire Acme as reported in the media?” • A. “Unfortunately I’m not in a position to answer that because…(insert your core message)” 6. THE ‘HEADS YOU LOSE, TAILS YOU LOSE’ QUESTION • Q. “Are white-owned farms simply going to be confiscated or will crime simply force the farmers off their land?” • A. “The SA model remains that of a willing-seller, willing-buyer. But where…”

Difficult questions 7. THE HOSTILE QUESTION • Q. “Aren’t you just chasing away experienced, skilled white people because of this obsession with BEE? • A. “Not at all. If you’re asking whether we have to normalise South African society and bring the long-excluded majority into the mainstream economy, the answer is yes. But one should remember that… 8. THE HOSTILE QUESTION WITH SOME TRUTH • Q. “Isn’t the reality that you’re losing the war on crime?” • A. “Like many countries at SA’s stage of development, crime represents a major challenge, but some real progress is being made. For example…”

Difficult questions 9. THE PERSISTENT QUESTION • Q. “…then why won’t you reveal your restructuring strategy for that division?” • A. “As I said before, our strategy for that division is in place and we’ll announce it at the appropriate time. Just as important for us at the moment, however, is…” 10. THE HYPOTHETICAL QUESTION • Q. “What do you think will happen if xxx is elected president of the ANC?” • “I wouldn’t want to speculate on the outcome…but what’s important to remember here is that SA is a stable democracy and neither our political system…

Difficult questions 11. THE RUMOUR QUESTION • Q. “There’s a rumour that Xxxxxx will run for president.” • A. “I certainly am not in a position to comment on rumours/ I’ve seen no evidence to support that sort of rumour. One of the key things to remember here, however, is that…” 12. THE GROSS MISREPRESENTATION QUESTION • Q. “So what you’re saying is that SA will sit back and do nothing while Zimbabwe implodes.” • A. “No. What I’m saying is just as with South Africa’s struggle for democracy, Zimbabwe’s own lasting solution can in the end only be secured by Zimbabweans themselves. But we have frequently...

“If you lose dollars for the firm by bad decisions, I will be very understanding. If you lose reputation for the firm, I will be ruthless.” WARREN BUFFETT

Issue Management 202