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The New Influence Playbook

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With thanks to these Expert Contributors:

Miro Smriga, Global Reg. Affairs - Ajinomoto,


CEO - ICAAS

The New Rodrigo Navarro, Presidente da ABRAMAT,


Professor Fundação Getúlio Vargas (FGV) Brazil

Philip Brinkman, Mega Projects – ex-ExxonMobil

Influence Peter O'Kane, Chairman - Strategy


International

Playbook
Ellora-Julie Parekh, Director of ESG and
Regulatory Strategy Practice - McKinsey &
Company

Paul Barrett. Global Head of Ext.


Communications – ex-Novartis

Stephen Crisp. Dir. International Govt.


Relations – Pearson

Elizabeth Hernandez. Head of External Affairs


and Sustainability, Asia Pacific - Corteva
External Engagement 2.0 - The Agriscience.

New Playbook for Anticipating


Chaos & Managing Volatility in a
(post) Pandemic world.
Revision: 16 September 2020
Executive Summary
External engagement is poised for
the great reset Tech

External
The spotlight is on external affairs. Affairs
60% of CEOs’ rank better stakeholder engagement as a top 3 Data
priority. Yet only 7% frequently align their organizations and the
stakeholders interests. - McKinsey &Co., 20/5/20 Survey.

Expect ESGs and SDGs commitments to shape the


post-Covid reputational agenda. How to
use this Key take-aways
Business as usual is no longer good enough. play book
New ways of thinking are critical as an expanding threat radar and Challenges
greater accountability to leadership for data driven results meets
increased budget pressures and work from home realities.
Each section Models
contains:
Professionals must skill up. Using digital tools
Best Practice Tips
High performing organisations are High performing 35

© 2020 www.tsc.ai
5x more likely to use technology
and metrics. Low 7 5x Expert comments

This is a living document and will be regularly updated.


2
Contents

The value of proactive vs reactive issue management


01 Model thinking
The New Influence Playbook
Focus on 3 high value indicators

Develop a strategic blueprint of the external environment (risk + opportunity)


02 Horizon scanning Ensure all key corporate reputation drivers map to your focus areas
Consider the post-Covid reputational agenda
Build in real-time listening capability

03 Decoding External Affairs 101 It’s not rocket science


Unpacking the 5 main challenges in external affairs
Run an external affairs maturity assessment

04 Recoding External Affairs Leading organisation are now embracing the concept of a digital nerve centre
A digital nerve centre allows agile methods to be introduced across the team(s)

Rethinking influence

05 Stakeholder science
Organisational stakeholder mapping is a 2-step process
Segment your stakeholders like a marketeer
Manage your stakeholders like key accounts – relationship management

Enlarge your ‘influence-from-home’ toolkit


06 New engagement strategy Embrace old foes and ‘frenemies’ (or why you can’t ignore activists and NGOs)
Crisis detection and response @ light speed

© 2020 www.tsc.ai
Move from hindsight to insight to foresight
07 Towards data driven metrics The 3 measures that matter
Aligning the dashboard to the business 3
01
Model thinking
• The value of proactive vs reactive issue management

© 2020 www.tsc.ai
• Focus on 3 high value indicators

4
01 Model thinking: the value of proactive vs
reactive issue management
External affairs functions are often
stuck in ‘fire fighting’ mode, dealing
with too many issues, too late to
provide real value The Big Issue Model: External Issue Life Cycle

Key take-aways: The big issue model is Proactive issue Reactive issue management
a powerful way of explaining your value management (High value) (High cost)
to the business and generating buy-in.

Challenges: Requires a white board

“Engage early in business idea/design project


phases to ensure alignment and avoid future
Public Interest
problems.” – Rodrigo

“’Issue Management’ is by definition reactive


mitigation. Rather think Relationship
(reputation) development to develop political +
emotional capital via stakeholder dialogs.” –
Philip

“If you are not setting the legislative 1 2 3 4


environment, someone else is.” - Stephen Latent/ emerging issue Public issue Politicized issue Legislative/ Regulatory issue

Issue stage

© 2020 www.tsc.ai
Best practice tip: white board this to
other functions and show trending
issues in system
*TSC analysis of F100 client base. TSC/ Oxford University project 5
01 Model thinking: focus on 3 high value
indicators
The long lag time in EA effort to result/
outcome can reduce the functions
perceived value.
The Big Issue Model: the 3 high value indicators

Key take-aways: Keep the discussion Proactive issue Reactive issue management
simple and laser focused on outcomes management (High value) (High cost)
(competitive advantage gained, issue
impact and risk/ loss avoided.
❶Competitive advantage
Degree you continue to have impact vs. competitors

Challenges: Quantifiable numbers may


not yet be available. Focus on leading
indicators (i.e. competitor responses,
sentiment trends, issue heat decline, etc.)

“Translate EA goals to the language of the ❸ Risk avoided


= delta value
business (e.g. balanced scorecard) to facilitate
internal buy-in.” – Rodrigo
“If you are introducing yourself during a crisis,
you're too late.” - Stephen

1 2 3 4
Best practice tip: set up a Latent/ emerging issue Public issue Politicized issue Legislative/ Regulatory issue
dashboard landing page for your
key focus areas Issue stage

© 2020 www.tsc.ai
❷ Velocity of issue
Degree you can alter, shape or reduce the speed of the issue
Sentiment and issue trends
per market and over time
6
02
Horizon scanning
• Develop a strategic blueprint of the external environment (risk + opportunity)
• Ensure all key corporate reputation drivers map to your focus areas
• Consider the post-Covid reputational agenda
• Build in real-time listening capability

© 2020 www.tsc.ai
7
Illustrative Big Ag issue radar taxonomy
02 Horizon scanning: Develop a strategic blueprint
3. And sub-issues
of the external environment (risk + opportunity)
Systematic and scientific breakdown
of the issue environment requires a 2. The related issues
wide mapping of the business.

1. Identify key themes

Key take-aways: Aligns teams, strategies and


activities and ensure everyone ‘speaks the
same language’ 2
1
Challenges: Different teams, members and
regions will each have their own way to
Big Ag
3
prioritize issues. This undermines a unified
external engagement narrative and strategy.
6 Corp.
4
5
“Regional differences may be valid and important
differentiators in local markets.” – Philip
Map, review, map. Repeat. From complexity comes
clarity.” - Paul

© 2020 www.tsc.ai
Best practice tip: Workshop a draft
toolbox of key themes and related
issues into a taxonomy radar

8
02 Horizon scanning: Ensure all key corporate
reputation drivers map to your focus areas
Practitioners should then focus on a few key
areas where they can provide high value. Key reputational drivers can be modelled and then prioritised into a short list for
focus by thematic or by ESG criteria

Illustrative example for extractive company

✔ Natural resources stewardship

Key take-aways: Ruthless prioritization


Responsible supply chain
Partnering across the value chain

is key. You can’t fight all battles. Trade
High quality Operational productivity
and safety of
Product innovation products/ Exploration
Challenges: The issue selection Smart/digital products
Fair pricing
practices
services Operational
excellence
process may become a heated
discussion. This is healthy and hard
Data and insights
✔ Closure and rehabilitation

data quantification is recommended.


New business models (e.g., IP Strong
monetisation) financial Cash and balance sheet
Innovation
performance strength
New commodities (e.g.,
Reputation is the
“This is a dynamic space. By the time your incubators)
sum of these 10
complete a forced ranking something has
drivers Trustworthy
changed.” – Philip ✔
Environmental stewardship Sustainable
business Mining example CEO and top- Reliability

“Live and breath corporate purpose. As the most Climate change and carbon practices
management

informed custodians of reputation, External Affairs ✔ intensity


team
Transparency and integrity

can also be the organization’s moral compass” - Values-


driven and
Societal
Local economic development &
Paul transparent
partnership
contributions
Fair
treatment of
business
conduct
✔ Security of supply
Local capability-building & employment

Human rights
employees
✔ Tax

© 2020 www.tsc.ai
Respect
Economic contribution Safety and wellbeing
Best practice tip: Ensure all
priority areas are mapped to ✔ Diversity & inclusiveness

your system radar Talent development

SOURCE: McKinsey's Reputation and Regulatory Strategy Practice 9


02 Horizon scanning: consider the post- Illustrative example: mapping the UN SDGs to mining issues
Covid reputational agenda
Be mindful of how Covid is changing and
accelerating key themes and reputational
drivers across the business.

Key take-aways: Corporate purpose and how it is


aligned to emerging trends (ESGs, SDGs,
sustainability themes, inclusive policies incl. gender, Mining
race, sexuality, etc.) must be an active focus impact
SDG
Challenges: Expect the magnitude and scale of
these shifts to be faster and greater than pre-Covid
times.

“All SDGs are not equal. Local residents may focus on #2 &3.
Norwegian sovereign fund may focus on #10-13. These
models need to recognize space and time.” – Philip

“As we enter the New Normal, the world wants to hear our
stories like never before. We must drive “License to Engage”
agendas across the organization.” - Paul

Best practice tip: Workshop the

© 2020 www.tsc.ai
potential ESG/ SDG impact to the
business by mapping these to your
key issue radar. Maintain a close
watch on competitor initiatives.
10
02 Horizon scanning: build in real-time listening capability
The only way to get ahead of an issue is to be aware of it early. This
provides a window of opportunity to build a robust response strategy.

Key take-aways: Practitioners will benefit from a general Each segment contains 100’s of key
words
grasp of best-of-breed technology options available
Develop a Real-time scanning
infrastructure Search Algos launch each 60 minutes
Challenges: ‘We don’t use tech in EA’
to review content channels (Web,
Sub-issues
social, media, academic, Gov’t)
“Most PA dept’s think social media ‘listening’ and scraping tools Social
are enough and that + their legacy, personal networks should be
enough to convince the CEO that they are on top of things.
Wrong! - Peter Related issues News
“Human intel sourcing and testing remains a weak link” – Philip
Themes Expert data

Understand the scanning technology Creative data


A.I/ ML 2
1 collection
System
Big Ag
SM 2.0 API Gov’t data
Detection
6
Corp. 3
monitoring + Classification
Social media Specialist Human 4
monitoring agency training + 5 Web
Machine
Clipping learning
Service Sentiment
3rd party data
providers

© 2020 www.tsc.ai
Stage Basic Common Current best New leapfrog Regulatory
state technology filings

Data Press Mainstream + Web, print, TV, radio and + custom built
clippings social media external info aggregators databases, client
APIs
(e.g. Twitter) (e.g. LexisNexis, Factiva, CRM data,
etc.), human led polling legislative data, 11
data etc.), REST APIs
03
Decoding External Affairs 101
• It’s not rocket science
• Unpacking the 5 main challenges in external affairs

© 2020 www.tsc.ai
• Run an external affairs maturity assessment

12
03 Decoding External Affairs 101 (It’s not rocket science)
Like any function, EA is a structure with a set of processes.
Understanding these enables strong optimization.

Key take-aways:
The typical external affairs organisation is set up in 4 ways, to Best practice tip: Focus on strong process
manage 7 processes. design and optimisation across the
function
“I would not say “it’s not rocket science” – as it is quite complex, esp given
current geopolitical climate”.- Julie

Companies tend to structure external affairs units in 1 of 4 ways And manages 7 core processes

+
Corporate function – e.g., Virtual team – e.g. Anatomy of an external affairs system
utility operating in 1 country conglomerate
• Single unit in corporate center • Small unit in corporate center
Concentration of stakeholders

shared by all business units, forms virtual teams to manage 1 Horizon scanning/ monitoring
regions, or both cross-functional efforts on
• Reports to CEO or CEO minus project basis (e.g. involving
1 finance, country and R&D 2 Issue trend modelling/ tracking
experts)
• Central unit reports to CEO or 3 Stakeholder Mapping / profiling
CEO minus 1

Embedded function – e.g., Matrix function – e.g., natural 4 Engagement Planning


global telecom resources company
• Central unit ensures alignment • Central unit ensures alignment and 5 Tracking Activity
on priorities, best-practice engagement with global
sharing and engagement with stakeholders, reports to CEO or
6 Measuring/ reporting impact

© 2020 www.tsc.ai
global stakeholders (reports to CEO minus 1
CEO or CEO minus 1 • Local operations have both
• Regional teams ‘own’ local regional and product specific units;
engagements and report to regional unit coordinates locally to
country head, central unit or ensure the company speaks with
7 Collaborate, learn,
- both. one voice orchestrate
- +
Complexity of product/ service portfolio 13
Source: McKinsey & Co. Organizing the government affairs function for impact (link) Source: TSC analysis of Fortune500
03 Decoding External Affairs: unpacking the 5 main challenges in external affairs
Most team time is always spent internally (7), which makes efficient,
optimized and preferably automated management of other
processes (1-6) a critical priority.

The 5 main process challenges in external affairs (and Best practice tips*)

Anatomy of an external affairs system


Key take-aways: Like any ❶ Constant new issues.
function, EA is a set of Drowning in data.
processes. Understanding ❸ Lack consistency in
reporting, updates & Tip: set custom watch lists and
1 Horizon scanning/ monitoring
these enables strong compliance dashboards by team member
optimization. 2 Issue trend modelling/ tracking }
Tip: Define 1 common
Challenges: An active reporting structure for
3 Stakeholder Mapping / profiling
activity
commitment to share data ❷
and insights across the team } 4 Engagement Planning
Overwhelming # of stakeholders. Old tools
is key. (XLS, PPT) fail. Data quality is poor.
5 Tracking Activity
Tip: Insist all stakeholder data is in system
6 Measuring/ reporting impact (including agency data). Ensure at all key
targets are Tier 1
7 Collaborate, learn,
❹ orchestrate
Lack dashboards, gut vs. data

© 2020 www.tsc.ai
❺ Lack common, shared data, knowledge and insights.
Tip: Manager insists all reports are
presented in system Tip: get the time down to ~40% with plans, projects,
Best practice tip: Poll your team strategies presented live from system
on estimated time (or % of day)
taken per each process
*for ATIUM system
14
users
03 Decoding External Affairs: run an external affairs
maturity assessment
Retooling the function and mindset
for future success requires cross team
buy-in and strong leadership.

Key take-aways: Look for


process efficiencies across the
board.

Challenges: Team buy-in to


the notion that things may be
broken, could be fixed and
should change requires time,
commitment and firm
leadership direction.

© 2020 www.tsc.ai
Best practice tip: Run an EA
Maturity Assessment
15
04
Recoding External Affairs
• Leading organisations are now embracing the concept of a digital nerve centre

© 2020 www.tsc.ai
• These allows agile methods to be introduced across the team(s)

16
04 Recoding External Affairs: Leading organisation are now embracing the concept
of a digital nerve centre
High performing organisations are 5x more likely to use technology and metrics.
Using digital tools

High performing 35
Low 7 5x Agile design leads to agenda shaping capability to get ahead of issues
McKinsey &Co., 20/5/20 Survey.

From reactive, issue responders … To agile agenda shaping capability


Key take-aways: Digital is no longer just
for the geeks. It’s time to science the sh#t
out of influence.

Challenges: Silo mentalities, knowledge Low exec confidence


hoarding, old school vs. digital mindset trends

No consistent metrics/ reports


“The world will soon be run entirely by Gen X and horizon stakeholders
Millennials yet most of our external engagement Time/ distance / process gaps scanning Digital
thinking, processes, and technology was set up
by Boomers, and Gen Z is driving the technology.” Nerve
– Philip Operational Silos centre

dialogues networks
Team, Geo, Data & Skills, activity,

© 2020 www.tsc.ai
Pgm silos knowledge compliance
Best practice tip: Leaders – insist on islands gaps strategy
all briefings through a central
dashboard, 1 single source of truth
Source: TSC anatomy model. 2020
17
Source: McKinsey & Co. 2019
04 Recoding External Affairs: A digital nerve centre allows agile methods to be
introduced across the team(s)
View agenda shaping capability as a combination of 4 key levers,
though it may take time to introduce (and be able to pull) all 4.

4 key levers integrated into a digital never center

Key take-aways: Integrate systems,


Lever 1. Shared, Lever 2. Shared data
processes, data and strategy in one
common processes
‘view’ of the business.
trends
Challenges: May require a mindset
shift:
– “We don’t work that way”
– “I’m too busy to share” or “that’s horizon stakeholders
not my job” scanning
– “we don’t interact with that team” Digital Lever 3:
Nerve Common team
centre tools

networks
dialogues

© 2020 www.tsc.ai
Best practice tip: Give cross functional
access to your data. Run a 10 min
daily stand-up with the team or 30 Lever 4: Leadership visibility strategy
mins at the start of each week. enables strong direction and fast
action 18
05
Stakeholder science
• Rethinking influence
• Organisational stakeholder mapping is a 2-step process
• Segment your stakeholders like a marketeer

© 2020 www.tsc.ai
• Manage your stakeholders like key accounts – relationship management

19
05 Stakeholder science: rethinking influence
Think of your message as an infectious idea. How many connected
networks can it be spread across.

Key take-aways: When identifying stakeholders, practitioners need to


think of issue networks vs. stakeholder hierarchy
Best practice tip: Short Path Maps
Challenges: This scaled approach will require a new mindset and new automatically calculate stakeholder
digital skillsets connections and reach

“EA dept’s are typically operated by people whose value to the organisation (and -
v protectively-to themselves) is in their perceived black book /personal networks.
It’s hard to change this legacy thinking.” – Philip

External affairs is now in the business of wide influence As a multitude of stakeholders now influence each issue
Issues intersect
To new school
Complex networks &
❑ Analysts clusters of
❑ Investors Issue 3 stakeholders
From old school influence each issue
❑ Customers
❑ KOLs
With 10’s
❑ NGOS
to100’s of
❑ Regulators ❑ Media actors in each
❑ Governments ❑ Academia cluster
❑ Agencies ❑ Suppliers Issue

© 2020 www.tsc.ai
❑ IGOs ❑ Trade groups 1 Issue 2
❑ Advocacy groups
❑ Unions
❑ Competitors
… 20
05 Stakeholder science: organisational stakeholder
mapping is a 2-step process
Meeting the usual suspects or people who are easy to meet no longer cuts it.
Challenge the team with a rigorous process to identify stakeholders who can
shift the issue agenda.

Best practice tip: Share of voice analysis


Key take-aways: rank stakeholders by theme/ issue, their sentiment and the
automatically identifies trending &
degree of engagement that will be required
emerging stakeholders & their sentiment.
Challenges: may require a ‘back of the envelope’ calculation..

… listing out known stakeholder groups, sentiment and


Step 1 - rank value at stake by issue and stakeholder grouping engagement requirements
Team based qualitative scoring
Degree of
exercise Most important Sentiment (for the
Themes/ Issues Company AV Gov’t NGOs Communi Etc Prioritised issues Other influencers engagement
stakeholder groups specific issue)
Value at G. ty . required
stake
Local economic ▪ Communities ▪ Media/ local NGOs ▪ MILDLY ▪ HIGH
development ▪ Governments NEGATIVE
1-5 1-5 1-5 1-5 1-5 1-5
▪ Communities ▪ Global NGOs
▪▪ …
MILDLY POSITIVE ▪ MEDIUM
Environmental
Local economic 4 2.7 4.7 2.1 4.3 … steward-ship ▪ Governments ▪ Good efforts but
development ▪ Media / local NGOs limited
Natural resource ▪ Governments ▪ NGOs ▪ MILDLY POSITIVE ▪ HIGH
Environmental 4.5 4.3 3.7 4.4 4.2 …
steward-ship
stewardship ▪ Treasury ▪ …
Smart mining / ▪ Investors ▪ … ▪ VERY POSITIVE ▪ LOW
Natural resource 3.8 4.6 4.4 3.9 4.0 … productivity ▪ Customers ▪ Leading player
stewardship
Human rights
▪ Communities ▪ … ▪ … ▪ …

© 2020 www.tsc.ai
Smart mining / 3.0 3.4 3.0 2.6 1.8 … Media / NGOs
productivity
Transparency & ▪ Governments ▪ … ▪ … ▪ …
integrity ▪ Communities

Human rights 4.0 4.0 3.8 4.7 4.5
▪ Media / NGOs

Transparency & 2.8 1.8 2.4 2.1 3 …


How difficult it will And the % of team resources/
integrity
be to engage capacity it will take
Etc. … … … … … … 21
05 Stakeholder science: Segment your stakeholders like a marketeer
Make the hard choices on who you prioritise against the plan. You can’t meet or influence everyone.

Key take-aways: think of issue networks vs. stakeholder hierarchy.


Be ruthless in your segmentation and make it a team workshop exercise.
Challenges: May require team to Q who they really know vs. who’s easier to engage.
Best practice tip: regularly ‘sense check’
“Think of Dunbar’s number (link) applied to local and corporate advocates.” – Philip
segmentation dashboard and explore key
Tier 1 stakeholders by issue
“These conceptual models are right but way to detailed, even ‘cluttered’, to hit the bullseye
with our proto-typical EA dinosaur.” – Peter
“#’s to influence affect form of influence. Don't just concentrate on the lever pullers.” - Stephen

Best Practice Stakeholder Segmentation Modelling is a 4 step process

1. Prioritise stakeholders by Tier 1-3 2. Fix Engagement 3. Decide 4. Match Key Activities to
(considering reach, position, influence, ability to engage, etc.) Goal Strategy resource capability

Create/ maintain a Individual 1:1 meetings, mailings, updates, advisory


❶ Core targets deep relationship R/ship plan boards, assign ExCo relationship owners,
10’s
etc.
Create/ maintain a Integrated 1:few/many meetings, seminars,
❷ influencers of my target
productive dialogue outreach plan communiques, newsletters, Webinars, Lab
100’s
visits, etc

© 2020 www.tsc.ai
Aircover to inform Broad Online, newsletters, trade shows, LinkedIn
❸ influencers of the influencers of my target 1000’s and educate outreach plan campaigns, roadshows, mailings

Feedback and refinement loop


22
Pyramid of influencers credits – Stephen Crisp
05 Stakeholder science: Manage your stakeholders like
key accounts – relationship management
Accountability requires transparency into who owns which
relationship and how they are managing it. Make this visible across
the team.

Key take-aways: Be rigorous in ownership,


tracking and message for high tier
stakeholders

Challenges: “But…
…my relationships are highly sensitive”
… my meetings are confidential”
… etc.

Tip: Set the rules – all engagement


“Even ‘confidential’ meetings should be recorded must go through owner first.
and analyzed. Instil the rigor of engagements
tracking and follow up.” – Philip

© 2020 www.tsc.ai
Tip: CEO, chairman, board members and top
Best practice tip: Set primary and back up management need to own relationships with
relationship ownership to ensure aligned, prominent stakeholders
“coherent” communication.
23
06
New engagement strategy
• Enlarge your ‘influence-from-home’ toolkit
• Embrace old foes and ‘frenemies’ (or why you can’t ignore activists and NGOs)
• Crisis detection and response @ light speed

© 2020 www.tsc.ai
• Track your competitors in real time

24
06 New engagement strategy: enlarge your ‘influence-from-home’ toolkit
An unconventional business environment requires unconventional tactics.
Your future will be increasingly virtual and digital will be a key lever.

Current and emerging social battlegrounds


Key take-aways: Covid-19 has accelerated the adoption of new
digital influence channels in the work from home environment.
Current Emerging
Challenges: Will require some learning as each
channel differs in how it meets 5 engagement
More of this
objectives to: 1)educate, 2) inform, 3)motivate,
4) activate; &, 5) maintain
• Grassroots campaigns
• Advocacy advertising
“Add international (e.g. Chinese) software to the • Public relations support
list and language issues (e.g. Arabic).” – Philip • Political education programs
• 3rd party lobbying/ coalition building
• Data-Driven Advocacy (A/B landing
page testing, automatic opt-in
triggers)
• Email Newsletters
• Webinars

And of course social…


Less of this
• Social media campaigns (i.e. posting
• Lobbying with @mentions and automatic email
• Sponsored research sending to media and lawmakers)

© 2020 www.tsc.ai
Best practice tip: Track Expert witness • Public opinion polls
social automatically. • Position papers • Online civic engagement tools
• Technical reports
Set alerts for key • 3rd party lobbying/ coalition building
• Contributions
target social activity. • Paid travel
With focus on visual storytelling
(animated videos, infographics and data
visualization) 25
Source: fredericgonzalo.com
06 New engagement strategy: embrace old foes and ‘frenemies’
(or why you can’t ignore activists and NGOs)
Agreeing to disagree and focusing on opportunities for collaboration is possible
and a necessary first step. This model allows both parties to ‘park’ their embedded
differences and engage in a productive discussion.

Key take-aways: there is much to gain in


collaboration with NGOs and other critics of Shared Value Model
the corporate agenda.
Illustrative example: Big Oil working with Greenpeace
Challenges: mindset - “we don’t talk to them!”
Big Oil Co. Greenpeace
“Local activists groups have multiple affiliations. The Max. profit from hydrocarbons Save the planet
Vision
interconnections between groups needs definition /
monitoring” – Philip
No room for agreement
“Lead with shared value. Dig deep into the motivation or
rationale behind their position or thinking to discover the
shared value or shared goal possible. Leading with shared
value messaging is 3-5x more successful in building trust.” Some alignment
- Elizabeth
🗶 Drill more 🗶 Stop big oil
Strategy ✔ Sustainable ESG 🗶 Run campaigns
criteria ✔ Minimise oil pollution
✔ Minimise oil pollution Opportunity

© 2020 www.tsc.ai
zone
Tactics ✔ Run environmental study
Best practice tip: Ensure all NGO and activist ✔ Protect wild bird colony
groups are mapped as key stakeholders. ✔ Agreed ‘no-drill’ zones

26
06 New engagement strategy: crisis detection and response @ light speed
The language of crisis and of activism can be mapped and tracked which
enables rapid, proactive strategy and intervention.

Key take-aways: early detection of an emerging crisis is the first


and best step towards a better response strategy.

Challenge: the EA function is already managing multiple crisis's


and has no time to go back to step 1.
Best practice tips:
“Consider how to build human analyst skills to create
a distributed analytical community close to the Accidents, activism, compliance 1. Set alerts for crisis language.
source” – Philip breaches, defects, criminal, disasters, environmental,
illnesses, investigations, lawsuit, losses, negligence, pandemics,
violations, rumors, scandals, sexual impropriety, sudden 2. Pre-segment likely stakeholder groups by nature of
management change, terrorism issue and develop crisis scenario strategies in
Build real time scanning of crisis occupy, fight, surprise, raid, action, storm, block, stop, blockade,advance.
language corpus banner, defend, Gherao, rights, encirclement, filibuster, movements, dump,
shock, solidarity, stage, rally, target, resist, siege, march, crush, obstruct,
drill, security, media-jack, infiltrate, heat, arrest, jam, barricade,
express, flash mob, escalate, boycott, petition, break, pressure, strike,
distract, unrest, terror, vigil, impact, agitate, change, risk, purge, disobey,
Crisis language corpus
stand, sit-in, radical, lead, lock, power, purge, picket, noise, banner,
warning, coalition, protest, showing, destruction, Activism, rebellion, trigger,
damage, agitate, poison, control, anarchy, counter, protest and eco-
terrorism, training, presentation, proof, induction, picket-line, Picketing,
Staging, public protest, march, Display, Explanation, discrimination,
Show, proof, hide, Concealment, complain, display, exhibit, manifestation,
political, show, attestation, confirmation, corroboration, evidence, Truth,

© 2020 www.tsc.ai
admission, testament, testimony, show, manifestation, demo, Robin Hood,
police, outcry, anger, refuse, outrage, baulk, reject, stand, disagree, resist,
hold out, fend, withstand, balk, take issue, dissent, jib, stand firm, defy,
refuse, shut-down, differ, disagree, refuse, reject, declare, resist,
complain, objection, dissent,
withstand, proclaim, defy, outcry,
denounce, join, truth 27
07
Towards data driven metrics
• Move from hindsight to insight to foresight
• The 3 measures that matter
• Aligning the dashboard to the business

© 2020 www.tsc.ai
28
07 Towards data driven metrics: moving from hindsight
to insight to foresight
The core tech to monitor, rank, measure issue
heat, trends and scenarios is evolving rapidly. The External Affairs Analytics Maturity Curve

Key take-aways:
There are 4 types of EA analytics ranging from Trending
hindsight (pain) to foresight (competitive influencers
advantage). Real time
Scaled issue issue
tracking radars
The core technology and data is rapidly
developing towards real-time assessment, but 4. Prescriptive Analytics
human judgement remains key. How and who can
Dashboards (by make it happen?
Challenges: Assessing why something did or did trend, sentiment and Prescriptive Analytics
not happen can be very difficult which means emerging issue) 3. Predictive
we must focus on proxy indicators and Analytics

Difficulty
Predictive Modelling
extrapolations. What will happen?
Forecasting
“The organization must develop as well moving from Data 2. Diagnostic
collection, Information synthesis, Analysis for Statistical analysis
Analytics
understanding, Foresight for anticipation. Else the toolbox
Why did it happen?Alerts
may threaten the team’s existence” – Philip
Dashboards Sentiment (by
1. Descriptive Geo, issue, time)
Ad-hoc reports
Analytics

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What happened? Standard reports
Custom
Best practice tip: Set a custom reports
dashboard to show the 4 types of
analytics where possible. 29
Hindsight Insight Foresight
07 Towards data driven metrics: The 3 measures that matter
Data driven discussions drive relevance across
functions and to leadership. EA can be measured!

External Affairs Data Metrics Design

The 3 metrics buckets Illustrative indicators (monthly/ Qtly review)


Key points: You have only 3 things to
measure and focus on deltas (Δ) over time Focus on deltas (Δ): Over time (launch, Qtly) and
and against peers against a basket of peers/ competitors
Inputs (Quantitative)
Challenges: Value can take years to 1. • Team and agency efficiency
materialise (i.e. legislative influence) so Budgets, headcount, time, • Data compliance status
focus on what can be measured now. etc • Data quality (breadth, depth, accuracy
• Monitoring capability (# issues tracked, by channel)
“How you weight an input vs. outcome KPI is not
obvious” – Miro Outputs (Quantitative)
• Engagements against plan
2. • Quality of engagement
“Where data is scarce experts are many. We talk Activities, engagements,
data ‘to keep others out of our business” - F&B initiatives, etc
• Frequency (# touchpoints/ issue/ time)
client • Relationship health (willingness to connect with us, #
touchpoints, etc.)

• Network (evolution by position/ time)


Outcomes (Qualitative) • Political: level of support
3.

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• Legislative/ policy: heatmap
Changes in positions, wins, • Media coverage: (++ / --)
Best practice tip: run a metrics workshop shifts in perception • Third-party: # endorsements
with TSC to ensure these are built into your • Civil society/NGO: feedback
dashboards • Public sentiment / over time
30
07 Towards data driven metrics (Cont.):
Aligning the dashboard to the business
“The division of quantitative and qualitative is a bit tricky in this 2-dimensional format,
The key outcomes should then be mapped to KPIs linked because it almost implies one is “better” than the other.” – Miro
to the business.
“Adapting balanced scorecards to EA KPI’s is an alternative.” – Rodrigo

Illustrative metric framework for external affairs team


Best-in-class companies will then select a few valuable KPIs for
EA Team Metrics Dashboard (example: Agriculture client)
performance evaluation to increase impact and link to business

Business Metrics Dashboard

KPI# 5: Project: KPI# 1: Tax on product


–measured by % of

Quantitative
invite key
stakeholders to impact to business
attend related
events KPI# 2: Government
approval of investment
deal by certain
timeline
KPI# 3: Endorsement by
consumers and local

Qualitative
governments of CSR
program

KPI# 4: Reduce

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regulation on X,Y & Z
products
Activities Outcomes
SOURCE: McKinsey's Reputation and Regulatory Strategy Practice
31
Thank you! “We can't solve problems by using the
same kind of thinking that we used
when we created them. - Albert
Einstein

Next Steps – contact info@tsc.ai for:

© 2020 www.tsc.ai
✔A PlayBook Workshop with TSC experts
✔A ‘State of the Tech’ Briefing
✔An EA Maturity Assessment of your organisation
Copyright @ 2020 TSC.AI All rights reserved. 32

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