Posts Tagged ‘stakeholders’

There’s Definitely a Business Case to Be Made for Public Relations…

Tuesday, June 8th, 2010

By Gary McCormick, APR, Fellow PRSA; Director, Partnership Development, HGTV; 2010 PRSA Chair/CEO

       

I recently had the opportunity to ring the opening bell for the NASDAQ – a once-in-a-lifetime experience that I clearly had never placed on my bucket list. Even more curious, it was done for an organization that is not a listed or public company. I was there representing a professional association of public relations professionals, which represents a multibillion-dollar global industry.

So how did this happen? It was the result of an advocacy program for public relations launched by the Public Relations Society of America (PRSA) to outline the value and impact that public relations has on an organization’s success – The Business Case for Public RelationsTM.

Many don’t understand the essence of our business. Stylized notions of celebrity publicists and Beltway spokespeople pervade the news and popular culture, and the term “PR” itself has become common shorthand for the impression – good or bad – that organizations create.

That’s why PRSA developed The Business Case for Public RelationsTM. The program showcases the role of public relations and the professional value it delivers to essential business outcomes:

  • Distinct skills provide services like crisis mitigation, reputation and brand building, wealth creation and consumer engagement.
  • More than other communications and marketing disciplines, public relations engages all stakeholders of an organization, identifying and delivering impacts that are strategically aligned with concerns of the boardroom, employees, customers and investors.
  • Public relations skills are critical to restoring waning public confidence in government and financial institutions as well as being essential to define, develop and maintain the transparency that consumers expect from the companies with whom they choose to do business.

Today more than ever before, companies and organizations need the value that public relations can deliver. As consumer engagement grows through social media, companies will need to outline an increased ability to manage the relationship and conversation that impacts their success in the marketplace. But companies need to engage a public relations professional that understands how to research, plan, execute and evaluate based upon the organization’s defined objectives in order to achieve value.

If your public relations activities are focused on business output and media clips instead of business outcomes, then you are coming up short in a return on your investment. On the other hand, your investment in public relations will garner attention when you can show how that investment delivers value in financial performance by generating sales, revenue and profit; improves your brand equity and reputation; allows for stronger and more efficient employee recruitment and retention; and increases the support you seek for policy decisions or achieving market position.

I hope that you will take time to find out more about the value of public relations on an organization’s performance by visiting www.prsa.org/intelligence/businesscase/.  Moreover, I hope that you find and define the value that public relations is currently delivering or can definitely deliver in your organization.

When the Wheels Come Off: Avoiding Management Silos a Must in Crisis Planning

Thursday, May 20th, 2010

MBW photo 2007--Resized small for blog use    By Mary Beth West, APR

One of the most common foul-ups that organizations encounter in crisis response – apart from not having a crisis plan itself – is a lack of internal teamwork and collaboration.  The result: a crisis rages on while those in charge of responding to it encounter their own self-created roadblocks, fed by a lack of internal communication, information-sharing and mutually agreed-upon roles.

Here are some elements of this problem and how to deal with them:

  • Effective crisis planning and response can’t happen in a silo.  If a company’s operations and communications departments haven’t worked hand-in-hand to create their crisis plan from the outset, then the company really doesn’t have a functional plan at all.  On the Ops side, every front-line employee may initially know where to go and what to do if an emergency ensues.  However, if communications processes and information flow start breaking down either interpersonally or through media channels, then operational processes can be hindered, if not completely derailed.  Which makes the case for the next point:
  • Adequate crisis communication is not limited to media relations.  While it’s critical to have an information-management strategy in place for media coverage of a crisis, modern crisis plans don’t treat traditional media as the silver bullet for adequate communications response.  This reality is particularly true with online and social media so prominent now. 

For example, if managing employee communications is not treated as a top priority – if not the top priority in the early crisis stages – then the company risks losing support from its best pathway out of the crisis: well-informed, focused, loyal employees.  Direct outreach to employees (and, possibly, to their families if a crisis involves employee safety), customers, community members, investors / donors and other stakeholders should be included in the plan, with a system for reporting updates and ongoing developments.

  • Operations is in charge of actions, while Communications is in charge of messages – and in a crisis, these two functions must be in sync.  A brilliant communications strategy won’t quick-fix a company’s reputation if Operations can’t resolve a fundamentally broken product or service – and it shouldn’t be expected to.  The public generally forgives problems that are solved through a definitive, visible and well-communicated course of action, even if it takes awhile.  On the flipside, the public is categorically unforgiving of being played as fools with a “move along – there’s nothing to see here” type of message, intended to downplay obvious product or service failures.  When things aren’t going smoothly and a company faces a high-risk communications void, this next point can be helpful.
  • When communicating about a company’s crisis response efforts, it pays to get specific – conservatively.  Don’t just say, “We’re taking every measure to address the problem” and leave it at that.  Doubtful customers, investors, media and members of the public won’t necessarily take management’s word for it, particularly for prolonged time periods. 

Spell out what’s being done at an appropriate level of detail.  Use this opportunity to manage public expectations.  If the problem is complex, explain why – at least at a high level.  Don’t skew reasonable expectations by suggesting there is a simple solution or by speculating on unknown factors.  Instead, explain action steps being taken incrementally, and report significant measures toward a crisis resolution that demonstrate progress.  Yet again, close teamwork between internal departments is critical to know what, when and how to communicate. 

  • In everyday work as well as in crisis mode, the CEO is essentially a company’s Chief Reputation Officer and must lead the team accordingly.  Corporate reputation in the wake of a crisis isn’t repaired nearly as much by what the chief executive says as how he or she leads.  Part of that leadership requires the CEO to be sure the entire management team is working together collaboratively to resolve a crisis without individual people, departments or divisions resorting to turf-protection or isolationism.  CEOs must hold their executives accountable not to stymie the work of other team members with counterproductive behaviors.  A thoughtful crisis preparedness plan will spell out team crisis-resolution roles and processes in advance to help prevent infighting or internal information bottlenecks, which only serve to exacerbate problems. 

Crises are chaotic enough without the added burden of internal management inefficiencies.  When CEOs and their teams understand challenges that may arise and work together to resolve them, then the real crisis issue at hand can be tackled quicker, with less reputational and financial fallout.

The Virtue of “Listening Points”

Friday, February 19th, 2010

By Mary Beth West, APR

Several members of our team attended the February PRSA Volunteer Chapter meeting, where Gary McCormick, APR, Fellow PRSA – this year’s national PRSA chair / CEO and Knoxville-based Scripps communications exec – shared insights on the 2010 outlook shaping the public relations profession.

Among his recommendations on navigating social media relationship management, Gary urged the audience to consider developing “listening points,” not just talking points, in order to manage dialogue with diverse audiences who undoubtedly are calling the shots like never before.

To us, the idea of listening points draws upon an oldie but a goodie – the issues management playbook – whereby the PR team identifies and constantly monitors outside issues impacting, or potentially impacting, an organization’s world and that of its stakeholders. 

The process involves taking those issues and helping an organization stay one or more steps ahead, not just via messages, but via policies, procedures and behaviors that stakeholder groups view as the only legitimate evidence of where an organization really stands. 

Hence, the role of listening . . . after all, you can’t effectively advocate for an organization’s position if you’re deaf to the voices and points of view around you.  In equal measure, you can’t help guide an organization’s decision-making toward the best business decisions if management can’t (or won’t) hear, comprehend and hold some level of empathy for how stakeholder groups absorb the impact of those decisions.

Great case in point: the apparent lack of effective listening going on in much of the financial sector regarding executive compensation. 

Chapter President Susanne Dupes, APR, closed the meeting by announcing a $1,000 gift given to the UT College of Communication & Information’s public relations program in Gary’s honor, a gift in which our firm was proud to take part.  A terrific leader like Gary, who is keeping our profession’s best practices front-and-center, couldn’t be more deserving.