World Public Relations Forum

New world, new challenges: what and

how will communicators contribute - governance

and management

Professors Anne Gregory and Ronel Rensburg

Plan for the sessionexplore the phenomenon called “governance” and the debate around it revisit management debate the “space” of the communication professional in governance and managementinject a little controversy...…..and we need your input

What is corporate governance?

Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals … the aim is to align as nearly as possible the interests of individuals, corporations and society.

Sir Adrian Cadbury, Corporate Governance Overview, 1999 World Bank

Business as “unusual”changes in the current business environment forces an evaluation of the direction in which communication management as a practice and academic discipline is developing …..globally the most important issue that communication professionals will have to manage is the imperative of non-financial information in corporate accounting and reportingnon-financial disclosure addresses a wide range of issues and interests. Organisations responding to the needs and demands of the capital markets and society-based institutions, are now reporting in greater depth on non-financial issues (King Report)

The triple bottom-lineThe most important non-financial issue will be the triple bottom line, which embraces the economic, environmental and social aspectsof an organization’s activities:

The economic aspect involves the well-known financial aspects as well as the non-financial ones relevant to that organization’s business. The environmental aspects include the effect on the environment of the product or services produced by the organization. The social aspects embrace values, ethics and the reciprocal relationships with stakeholders other than just the shareowners.

Communication management in sustainability

Sustainable developmentOrganisational sustainabilityContinuous improvementBecoming the change we would like to see in the worldSustaining the theory, research and practice of communication management

Governance: the debate so far

Organizations operating under the stakeholder governance modelempower their board members, elected officials and non-profit organization leaders, to be directly responsible for deciding and implementing stakeholder relationship policies

Governance and the organisation

the communicative organization requires timely information, knowledge and understanding of economic, social, environmental and legal developments, as well as of its stakeholders’ expectations ….. to promptly identify and deal with the opportunities and risks that can impact the organization’s direction, action and communication

What does this mean for public relations/communication management

professionals?participating in defining organisational values, principles, strategies, policies and processesapplying social networking, research skills and tools to interpret stakeholders’ and society’s expectations as a basis for decisions. delivering timely analysis and recommendations for an effective governance of stakeholder relationships by enhancing transparency, trustworthy behaviour, authentic and verifiable representation, thus sustaining the organization’s “licence to operate”creating an internal listening culture, an open system that allows the organisation to anticipate, adapt and respond.

From management to leadership

“The difference between mere management and true leadership is communication”

Sir Winston Churchill

Management: starting at the beginning

Management: the responsibility delegated by board to senior executives for getting people to work together to achieve the organisation’s strategic goals in an effective and timely manner. In classical terms management involves planning, organising, resourcing, leading/directing and controlling.

Thoughts along the wayorganisational value is created through the quality of relationships among network members - the educative, consultative, contextual role (Muzi Falconi)framing, developing and affirming the identity (what it is), the image (what stakeholders think) and reputation (what stakeholders say) of the organization –stakeholder and contextual research (Muzi Falconi)The communicative competence of the whole organisation is an imperative which PR/Comms must lead (Hamrefors)The reflective strategist: outside perspectives in, stakeholder advocate, issues manager, social responsibility (Steyn)Mediating the whole organisation through the communication lens (Invernizzi)Communicative or communicating? (Rensburg)

Where we are now…

The communicative organisation acts on the principle that it is in the organisation's interest to be sensitive to the legitimate concerns of stakeholders, balanced with wider societal expectations. This requires listening before making strategic and operational decisions

Public relations and communication management professionals…

inform and shape two-way communication capabilitycommunicate the value of the organisation’s products/services and relationships with stakeholders… creating, consolidating and developing its financial, legal, relational and operational capitalhelp to solve organisational issues and lead on stakeholder relationships

Over to you!

In your groups, 10 minutes discussion and then your contributions please.

Half table to talk about governance and half about management perspectives. What are the differences and the links

between them?

Other things to think about.The big picture issues

Organisational governanceand social responsibilityThe issue of trust and how to restore it A new employee compactGlobal shifts in power What’s next in innovation?Empowered stakeholders

Other things to think aboutWhat does this mean for the

practitioner role?How and where can we add value to our organisations in the future?If we are to be ready for the task what new capabilities will we need to acquire?Should we move away from the terminology of “Public Relations”?Should the term “publics” be substituted by the term “stakeholders”?

Over to you!

What other Big picture issues do we need to consider?

What value can we add to our organisations?

What new capabilities will we need?10 minutes please

Some thoughts: a pyramid of roles

Society

Corporate

Value Chain

Functional

Embedding responsibility where it lies

ORGANISATION

BoardSociety

Comms functionOperational plans etc

Exec/Functional Heads/Comms

Value chain

ExecutiveCorporate

Practitioner capabilitiesNew priorities and skills for which the ChiefCommunications Officer must now assume a

leadership role :translating the political, economic and social environment for the organizationdefining and instilling organisational valuesbuilding and managing stakeholder relationshipsenabling the enterprise with “new media” skills and tools informing and managing corporate reputationbuilding and managing trust, in all its dimensions.

Practitioner competenciesStrategy and Action

Takes a strategic/long term viewInvestigates and analysesMakes decisions and acts

Involved in policymakingPersonal characteristics

Responsibility for standards/ethicalPositive outlookPrepares thoroughly“Energy”

People skillsUnderstands othersLeads and supportsPersuades and influencesConsults and involvesManages strategic alliances and partnerships

Personal communicationNetworksCommunicatesListens

Your final thoughts?

Thank you!

“public sentiment is everything….. with it nothing can fail: without it nothing can succeed”

Abraham Lincoln