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"


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

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D( $ D!ü!& $ üÓ$ Stakeholder mapping & analysis

Integrating stakeholder mapping & analysis into core business systems

Stakeholder relationships are personal relationships



Cultivating an externally-facing organizational mindset

Behavioral-External Analytical Behavioral-Internal Analy&cal Behavioral-‐External Behavioral-‐Internal

Witold Henisz"


Best Prac+ces of Corporate DIPLOMacy Stakeholder mapping & analysis: Identify key stakeholders, their interests, strengths. Linkages & behavioral drivers






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Behavioral-External Analytical Behavioral-Internal

Analy&cal Behavioral-‐External Behavioral-‐Internal

Witold Henisz"


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



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.


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


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




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Witold Henisz"


Integra&on: FVTOOL, Value Protec&on


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"


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"





Earning stakeholder trust & the social license to operate: Enhancing understanding, fairness, clarity and ability to resolve disputes




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Witold Henisz"






Adapting to negative feedback in a necessarily imperfect system: Frequent data updates, avoiding behavioral traps and a safe environment for self-criticism



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Witold Henisz"


Every Aspect of Proposal Influenced by Stakeholder and Cross-Functional Feedback"

Witold Henisz" 15"







Strategically communicating to reinforce trust & reputation: Integrated reporting that matches words to deeds, crisis management, transparency and honesty


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Witold Henisz"


Scenes from the Battlefield"

Witold Henisz" 17"


Best Prac+ces of Corporate DIPLOMacy Stakeholder mapping & analysis





Cultivating an externally-facing organizational mindset: Incentives and rites that reinforce shared > shareholder value and long-term > short-term for all

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Behavioral-External Analytical Behavioral-Internal Analy&cal Behavioral-‐External Behavioral-‐Internal

Witold Henisz"


•  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"


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Best Practice of Corporate DIPLOMacy

•  Join the LinkedIn Group or follow @whenisz •  Check out free content at hZp://www.corporatediplomacy.com

Witold Henisz" 20"

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