CORPORATE DIPLOMACY: BUILDING REPUTATIONS AND ...onthegroundgroup.com/documents/9-Prima LLC.pdf ·...
Transcript of CORPORATE DIPLOMACY: BUILDING REPUTATIONS AND ...onthegroundgroup.com/documents/9-Prima LLC.pdf ·...
KNOWLEDGE FOR ACTION
CORPORATE DIPLOMACY: BUILDING REPUTATIONS AND RELATIONSHIPS
WITH EXTERNAL STAKEHOLDERS"Witold J. Henisz
Deloitte & Touche Professor of ManagementThe Wharton School, University of Pennsylvania"
&"Principal, PRIMA LLC"
KNOWLEDGE FOR ACTION
AES-Telasi: PowerTrip meets PowerPlay
KNOWLEDGE FOR ACTION 3 3 3
Best Prac+ces of Corporate DIPLOMacy Stakeholder mapping & analysis
Integrating stakeholder data into core business systems
Earning stakeholder trust & the social license to operate
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset M!üD# $ ü
Oü$ üü $ # #
L$ % Rü !ü &
P$ R# ' ü % ü
Iüü$ & R% ü!' ü
D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis
Integrating stakeholder mapping & analysis into core business systems
Stakeholder relationships are personal relationships
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
Behavioral-External Analytical Behavioral-Internal Analy&cal Behavioral-‐External Behavioral-‐Internal
Witold Henisz"
KNOWLEDGE FOR ACTION 4 4 4
Best Prac+ces of Corporate DIPLOMacy Stakeholder mapping & analysis: Identify key stakeholders, their interests, strengths. Linkages & behavioral drivers
Integrating stakeholder data into core business systems
Earning stakeholder trust & the social license to operate
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
M!üD# $ ü
Oü$ üü $ # #
L$ % Rü !ü &
P$ R# ' ü % ü
Iüü$ & R% ü!' ü
D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis
Integrating stakeholder mapping & analysis into core business systems
Stakeholder relationships are personal relationships
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
Behavioral-External Analytical Behavioral-Internal
Analy&cal Behavioral-‐External Behavioral-‐Internal
Witold Henisz"
KNOWLEDGE FOR ACTION
strategic group
weighted by effec&ve power)
3.9
3.8
3.6
5.2
4.4
7.2
6.9
5.3
7.0
6.4
7.0
4.6
6.2
4.7
4.5
4.5
4.5
4.5
7.2
4.5
4.5
7.9
11.7
0.5
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10.5
11.5
12.5
13.5
14.5
15.5
16.5
17.5
0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.5 11.5 12.5 13.5 14.5 15.5 16.5
sanitation/hygiene
rates and payments
education infrastructure
water
community infrastructure
negative health concerns
Education/skills training
information provision
#N/Awa-‐ver-‐ers
(n=30)
cheer lea-‐ders (n=24)
sup-‐por-‐ters
(n=22)
disint. skep-‐tic
(n=19)
by-‐stan-‐ders (n=18)
inter-‐roga-‐tors
(n=17)
chal-‐len-‐gers (n=6)
oppo-‐nents (n=2)
#N/A#N/A
#N/A
unemployment
0
0
0
0
0
0
transport infrastructure
land use and waste
#N/A#N/A#N/A#N/A
Country A, Mine Site A Top stakeholder concerns by (bubbles indicate average men&ons per stakeholder)
SOCIAL LICENSE: SALIENCE: MED
SOCIAL LICENSE: SALIENCE: HI
SOCIAL LICENSE: SALIENCE: HI
SOCIAL LICENSE: SALIENCE: HI
The fact that “cheerleaders” and “supporters” share the same issues of concern as “opponents” represents an opportunity. Members of the first two groups, whose numbers are greater, could exert social pressure on opponents to adopt less nega>ve views.
According to the same logic, the fact that challengers and opponents share issues of concern without being exposed to the poten>al modera>ng influence of more posi>vely disposed groups represents a source of sociopoli>cal risk.
KNOWLEDGE FOR ACTION
RdoStaA
RdoStaB
Nat’lPolice
MediaSiteA
Nat’l FireSvc
Nat’lHealthSvc
Nat’l EPA RdoStaC
RdoStaD
RdoStaE
WmsGrp
NBSS IndustryChf_AYouthChair City A Asy
City B Asy
Site A MuniPlans
MiningCo ANatlDptUrbRds
TownAUnit
TownBUnit
Chf_B
City C Asy
City D Asy
XYZSvcs
Important Media Sector Links, Mine Site A"
Hypothe>cal issue: cholera outbreak aEributed to mine
Engagement Strategy Ø Partner with Na>onal
Health Service Ø Use Health Service’s
influence over radio sta>ons to customize messaging based on the sta>ons’ divergent opinions of the company
KNOWLEDGE FOR ACTION 7 7 7
Best Prac+ces of Corporate DIPLOMacy
Stakeholder mapping & analysis
Integrating stakeholder data into core business systems: Assessing relative impact of strategies on financial and operating performance or other KPIs Earning stakeholder trust & the social license to operate
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
M!üD# $ ü
Oü$ üü $ # #
L$ % Rü !ü &
P$ R# ' ü % ü
Iüü$ & R% ü!' ü
D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis
Integrating stakeholder mapping & analysis into core business systems
Stakeholder relationships are personal relationships
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
Behavioral-External Analytical Behavioral-Internal
Analy&cal Behavioral-‐External Behavioral-‐Internal
Witold Henisz"
KNOWLEDGE FOR ACTION
Integra&on: FVTOOL, Value Protec&on
KNOWLEDGE FOR ACTION
Integration: FVTOOL, Monte Carlo Simulation"
Monte Carlo is a: • Sta+s+cal technique by which a quan+ty is calculated repeatedly
• Using randomly selected “what-‐if” scenarios.
• Results approximate the full range of possible outcomes
Value in Billions
Occurrences
Witold Henisz" 9"
KNOWLEDGE FOR ACTION
Integration: FVTOOL, NPV of sustainability"
Dashboard -‐ Total Sustainability Value Added
For $2billion CAPEX project, sustainability investments returned as much as $187 million of NPV.
Witold Henisz" 10"
KNOWLEDGE FOR ACTION 11 11 11
Best Prac+ces of Corporate DIPLOMacy
Stakeholder mapping & analysis
Integrating stakeholder data into core business systems
Earning stakeholder trust & the social license to operate: Enhancing understanding, fairness, clarity and ability to resolve disputes
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
M!üD# $ ü
Oü$ üü $ # #
L$ % Rü !ü &
P$ R# ' ü % ü
Iüü$ & R% ü!' ü
D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis
Integrating stakeholder mapping & analysis into core business systems
Stakeholder relationships are personal relationships
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
Behavioral-External Analytical Behavioral-Internal
Analy&cal Behavioral-‐External Behavioral-‐Internal
Witold Henisz"
KNOWLEDGE FOR ACTION 12 12 12
KNOWLEDGE FOR ACTION 13 13 13
KNOWLEDGE FOR ACTION 14 14 14
Best Prac+ces of Corporate DIPLOMacy
Stakeholder mapping & analysis
Integrating stakeholder data into core business systems
Earning stakeholder trust & the social license to operate
Adapting to negative feedback in a necessarily imperfect system: Frequent data updates, avoiding behavioral traps and a safe environment for self-criticism
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
M!üD# $ ü
Oü$ üü $ # #
L$ % Rü !ü &
P$ R# ' ü % ü
Iüü$ & R% ü!' ü
D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis
Integrating stakeholder mapping & analysis into core business systems
Stakeholder relationships are personal relationships
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
Behavioral-External Analytical Behavioral-Internal
Analy&cal Behavioral-‐External Behavioral-‐Internal
Witold Henisz"
KNOWLEDGE FOR ACTION
Every Aspect of Proposal Influenced by Stakeholder and Cross-Functional Feedback"
Witold Henisz" 15"
KNOWLEDGE FOR ACTION 16 16 16
Best Prac+ces of Corporate DIPLOMacy
Stakeholder mapping & analysis
Integrating stakeholder data into core business systems
Earning stakeholder trust & the social license to operate
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation: Integrated reporting that matches words to deeds, crisis management, transparency and honesty
Cultivating an externally-facing organizational mindset
M!üD# $ ü
Oü$ üü $ # #
L$ % Rü !ü &
P$ R# ' ü % ü
Iüü$ & R% ü!' ü
D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis
Integrating stakeholder mapping & analysis into core business systems
Stakeholder relationships are personal relationships
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
Behavioral-External Analytical Behavioral-Internal
Analy&cal Behavioral-‐External Behavioral-‐Internal
Witold Henisz"
KNOWLEDGE FOR ACTION
Scenes from the Battlefield"
Witold Henisz" 17"
KNOWLEDGE FOR ACTION 18 18 18
Best Prac+ces of Corporate DIPLOMacy Stakeholder mapping & analysis
Integrating stakeholder data into core business systems
Earning stakeholder trust & the social license to operate
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset: Incentives and rites that reinforce shared > shareholder value and long-term > short-term for all
M!üD# $ ü
Oü$ üü $ # #
L$ % Rü !ü &
P$ R# ' ü % ü
Iüü$ & R% ü!' ü
D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis
Integrating stakeholder mapping & analysis into core business systems
Stakeholder relationships are personal relationships
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
Behavioral-External Analytical Behavioral-Internal Analy&cal Behavioral-‐External Behavioral-‐Internal
Witold Henisz"
KNOWLEDGE FOR ACTION
• In 1923, our Danish founders began a journey to change diabetes. Today, we are thousands of employees across the world with the passion, the skills and the commitment to continue this journey to prevent, treat and ultimately cure diabetes."
• Our ambition is to strengthen our leadership in diabetes"• Our key contribution is to discover and develop innovative biological medicines
and make them accessible to patients throughout the world."• We aspire to change possibilities in haemophilia and other serious chronic
conditions where we can make a difference."• Growing our business and delivering competitive financial results is what
allows us to help patients live better lives, offer an attractive return to our shareholders and contribute to our communities."
• We never compromise on quality and business ethics."• Our business philosophy is one of balancing financial, social and
environmental considerations - we call it 'The Triple Bottom Line'."• We are open & honest, ambitious & accountable. We treat everyone w/ respect"• We offer opportunities for our people to realise their potential."• Every day, we must make difficult choices, always keeping
in mind, what is best for patients, our employees and our shareholders in the long run."
Witold Henisz" 19"
KNOWLEDGE FOR ACTION
M!üD# $ ü
Oü$ üü $ # #
L$ % Rü !ü &
P$ R# ' ü % ü
Iüü$ & R% ü!' ü
D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis
Integrating stakeholder mapping & analysis into core business systems
Stakeholder relationships are personal relationships
Adapting to negative feedback in a necessarily imperfect system
Strategically communicating to reinforce trust & reputation
Cultivating an externally-facing organizational mindset
Behavioral-External Analytical Behavioral-Internal
Best Practice of Corporate DIPLOMacy
• Join the LinkedIn Group or follow @whenisz • Check out free content at hZp://www.corporatediplomacy.com
Witold Henisz" 20"