Why Issues Management Outperforms Stakeholder Management

For public affairs managers in a corporate setting, taking an issues management approach offers a set of advantages over that of stakeholder management. Issues management not only helps contextualize the value of public affairs as a corporate function but also strengthens brand resilience by mitigating risks and maximizing opportunities.

Internal challenges and value positioning

Internally, public affairs teams can sometimes be perceived as “cost centers” by corporate leadership—unless they operate in regulatory spaces that are still being explored and shaped by policymakers. Regardless of industry, compared with stakeholder management, it is arguably easier to contextualize and demonstrate the value of the public affairs function by focusing on the risks it mitigates and the opportunities it identifies. In an issues management framework, relationships are purposefully built, maintained, and strengthened—not for the sake of relationship-building, but for the sake of minimizing threats and maximizing opportunities.

External relations and prioritization

Externally, stakeholders are issue-defined and issue-dependent. A key stakeholder for one issue may be irrelevant for another, or their level of interest and influence may shift depending on the issue at hand. This is most obvious when thinking about government stakeholders. Taking an issues-centric approach therefore gives clarity and focus to public affairs work. Stakeholder management is broader, as it seeks to build and maintain relations with all stakeholders who may affect or be affected by the organization. In the absence of a crisis, a public affairs manager may devote time and resources broadly to the organization’s “full” array of stakeholders, but even with that approach, prioritization would be optimal. By identifying the most important and urgent issues first, stakeholders can be prioritized accordingly for engagement.

Four cyclical components of issues management

As practiced at Soundline Consulting (順律顧問), issues management comprises four cyclical components: horizon scanning for threats and opportunities; stakeholder analysis based on different issues; message development for different stakeholders; and strategic planning plus execution. This process contains stakeholder management but remains issue-driven, starting with the identification and prioritization of issues that stand to significantly affect the organization, negatively or positively, helping clients respond timely and appropriately.

Value for corporates and nonprofits

For corporate clients, issues management helps protect the bottom line. For nonprofits, it helps ensure that their mandate is delivered more effectively. For both, it helps build brand resilience.

Issues Management vs. Stakeholder Management