L C10 Q and A Leading through Effective External Relations

Chapter 10 Leading through Effective External Relations

1. To be successful, a company must juggle the needs of many stakeholders. Why are the following external stakeholders important:
a. Media
b. Community
c. Customers
d. Investors
e. Analysts

Answer:
a. The media is an organization’s greatest critic and potential ally. They have the ability to provide free promotion and image building or ruin a company’s name.
b. The community is a company’s source of employees and customers. They must view the company’s cause as “right” and valuable.
c. Customers will judge a company with their wallet. Both the initial and final customer has the ability to decide whether a company will continue to do business.
d. Investors support an organization with the intention of making money, either in the short term or long term. They may accept short-term losses with the hopes of a long-term payoff, but they must believe in the ability of an organization to succeed.
e. Analysts provide the investment information to the company’s current and potential investors. They will evaluate historical performance and market potential to make recommendations about future growth options.


2. What two criterion can be used to prioritize the value of a stakeholder?

Answer: When prioritizing which stakeholders to contact first, it is helpful to use a matrix that evaluates their importance and the ease with which they can be reached.


3. What are the four major guidelines that a company’s external messages should follow?

Answer: A company’s external messages should be honest, clear, consistent, and meaningful.


4. Why it is important to have the appropriate spokesperson speak for the company?

Answer: A company’s spokesperson will mold public opinion. The person selected to represent the organization must be at the right level for the problem, project a positive ethos, and have received media training. Without these characteristics, the public and media have a tendency not to trust the company’s position.


5. Discuss the characteristics and limitations of the following possible media/methods that are often used to communicate with external audiences.
a. Press conferences
b. Press releases
c. Web sites
d. Hotlines

Answer:
a. For a press conference, the company’s spokespersons will present prepared statements to a group of media who were invited to the event. Press conferences are very difficult to plan and execute because it is often difficult to anticipate the media’s questions.
b. Press releases are short, one-page statements that start with the most important information and end with the least and are intended for quick, widespread media distribution and to be quoted easily. Unfortunately, the media receives too many press releases via blast fax and ignores many of them. Unless a company follows up, it will have not be able to ensure the release reached the intended audiences.
c. Web sites may be designed for a specific event and are a convenient method for reaching a broad audience. The site must still be designed by a web expert and meet the criteria for an effective site (easy to navigate, informative, and including contact information).
d. Hotlines allow stakeholders to call in with specific questions and comments. In order to have an effective hotline, it is important that respondents are well coached and responses and comments are reviewed constantly.


6. What are some of the methods companies can use to monitor the effectiveness of their external communication?

Answer: Companies must monitor public perception of their image and the effectiveness of their external communication materials on a regular basis. Focus groups, surveys, clipping services, and search engines are some of the ways to monitor this image.


7. According to Charles Fombrun in Reputation: Realizing Value from the Corporate Image, what are the ways to maintain a positive corporate image?

Answer:
a. Design campaigns to promote the company as a whole.
b. Carry out ambitious programs to champion product quality and customer service.
c. Maintain systems to screen employee activities for reputation side-effects.
d. Demonstrate sensitivity to the environment.
e. Hire internal communication staff and retain public relations firms.
f. Demonstrate “corporate citizenship.”


8. What are a few of the rules a leader should follow in an interview with the media?

Answer:
a. Talk from the viewpoint of the public’s interest, not the company’s
b. Speak in personal terms whenever possible.
c. If you do not want some statement quoted, do not make it. There is no such thing as “off the record.”
d. State the most important fact at the beginning.
e. Do not argue with the reporter or lose your cool.
f. If a question contains offensive language or simply words you do not like, do not repeat them, even to deny them.
g. If the reporter asks a direct question, he is entitled to an equally direct Answerwer.
h. If you do not know the Answerwer to a question, simply say, “I don’t know, but I’ll find out for you.”
i. Tell the truth, even if it hurts.
j. Do not exaggerate the facts.


9. What are a few rules a company should follow in a crisis situation?
Answer:
a. Have a formalized plan before the crisis hits and communicate the basic procedures to all employees.
b. Respond quickly to the right people with one consistent message.
c. Empathize with your audience.
d. Do not overlook the value of the Web since reporters, the public, and employees will go here first to gather information.
e. Monitor your coverage and evaluate how you did.
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LABELS: L C10