In Search of (Corporate Communication) Excellence
By Conor Dempsey
Buoyed by commercial expansion and the entrepreneurial
renaissance of recent years, corporate public relations
has come a long way towards becoming an essential tool
in the chief executive's armoury. That said, the scope
for further advancement of PR consultants at the boardroom
table will remain restricted until the profession gives
senior management what they want — a measure of return
on their investment. At the same time, the process of
managing a corporate entity's reputation is still misunderstood
by many of the companies that invest in corporate communication.
There needs to be a greater appreciation of what clients
are trying to achieve in their businesses and of exactly
how, when and what consultants can deliver. Measuring
PR results is one of life's mysteries. We know it works.
If it didn't, successful companies around the world
would find other areas in which to spend the billions
of dollars that are invested annually in public relations.
The trouble is quantifying its effect so chief executives,
financial directors and marketing/communication directors
can assess ROI.
Part of the problem of PR measurement is that public
relations operates at many different levels. A comprehensive
programme for a mid-sized company may seek to achieve
a number of things within the same time frame, such
as increasing awareness and trial of a new product or
service, upholding the values of a well-established
brand, or forging relationships within a trade market
segment.
So where do we begin to measure? Three main principles
apply:
- Put measurement on the agenda and assign a budget
to it. Without measurement firmly on the agenda, public
relations activity will spin its wheels.
- Ensure that measurement is layered into every facet
of the communication process. Measurement should cascade
through the campaign from strategic direction to tactical
applications.
- Discuss the client's business goals and the communication
results needed to support them. It is not hard to
get publicity on behalf of a client. The hard part
is getting regular publicity that will support hard
goals.
Payment by results is seen by many consultants as a
threat that must be denied; we see it on the opportunity
side of the 'SWOT' fence. A form of monetary compensation
for results also plays a significant role in establishing
corporate communication as a function in the eyes of
business leaders. By agreeing to an element of payment
by results, consultants can signal their willingness
to partner seriously and ably assist with their client's
problems.
Payment by results will ever account for 100 percent
of the PR consultants' fees for two reasons. The complexity
of the communication process and lack of sophisticated
measurement models means it is still not possible to
be 100 percent definitive in measuring the effects of
public relations tactics. Also, clients could not afford
to pay by results. For instance, if you paid for results
of media coverage, the minimum paid would be the advertising
rate of that publication (most would argue that journalistic
coverage would command a premium to regular rates).
This way of paying would blow public relations budgets
sky high. For example, just one article in a national
newspaper running three columns by 12 centimetres would
cost about €2,200 (excluding VAT), or about half
of the cost of an entire month's consultancy for a medium-sized
campaign.
That said, if the client is prepared to share its most
confidential information, namely its objectives and
results, and the consultancy is committed to measurement,
then 20 percent of the public relations fees can be
"ransomed" against the acquisition of a client's
business results and communication goals (In special
circumstances, this figure may be even higher).
Demand for instant results, normally from a
new client, often signals a lack of understanding of
the communication process. From the client perspective,
having included public relations as a line of expenditure
and having spent time selecting a consultancy, the focus
quickly falls on pressuring the lucky winners to get
results quickly. While it is nearly always possible
to find a home for most press releases, even those handed
to you on short notice, a short term, results-only focus
is not the best approach to building corporate reputation.
There are many reasons why, in PR terms, it pays to
take a more measured approach. Here are a few:
- A good campaign does not blow hot and cold but is
consistent and regularly reaches its targets with
relevant and credible messages.
- The media are suspicious of companies that come
from nowhere and frequently look for significant coverage.
- Press releases and corporate stories stand a much
better chance of being reported once the media have
a good appreciation of a company's bona fides.
- Once you start courting the media, you had better
be prepared for the fact that communication is a two-way
street, and soon the media will be courting you. Will
you be able to answer their questions by their deadlines?
In essence, a good PR campaign has sustaining power.
If public relations consultants were brave enough, they
would say that it takes between three and six months
to build a comprehensive campaign that regularly yields
the right results. This depends, more than anything,
on the knowledge the consultant has of a business and
the strength of the relationship between the consultant
and client. Like all good things, this takes time to
develop.
Controlling the media is frequently seen to
be the gift of the PR consultant - quashing negative
headlines, getting the company logo into the photograph,
and the old chestnut, getting sight of a journalist's
copy before it goes to print. However, all of these
aspirations ignore that which makes media coverage one
of the most valuable forms of communication there is,
namely, positive mention of your company by an objective,
independent and respected journalist. It is important
to remember that newspaper readers would never buy another
copy if they thought that companies were controlling
the columnists' opinions.
The public relations consultant is there to represent
his or her client to the journalist, and on occasion,
to be well equipped to place pressure as well as to
take pressure in the verbal fencing arena. But the final
say often belongs to the journalists.
Grinding and gnashing teeth when there is negative
publicity is often a sign of a person's inability to
take a punch as well as he or she may give one. Media
relations is a contact sport, and campaigns should not
be made or ruined by one article. There will be times
in a campaign when, for one reason or another, the coverage
will not be to your liking. Once the journalist has
been "balanced" in a report, there is little
you can do but steel yourself, take it on the chin and
work together on achieving a better result the next
time around.
Communication needs to be taken seriously. Measure
it and develop it through a partnership based on mutual
trust and knowledge. If the corporate story is good
enough, it has the chance to be the next Nokia, CRH
or Guinness.
Conor Dempsey is director of the corporate division
at Slattery Communications. (This article appeared in
"Business Ireland").
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