measurement & evaluation in pr: 2007 to 2014

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Measurement & Evaluation in PR: 2007 to 2014 Professor Tom Watson, Bournemouth University

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Measurement & Evaluation in PR: 2007 to 2014. Professor Tom Watson, Bournemouth University. Agenda. F rom 2 nd to 3 rd edition (2007 to 2014) P rinciples Research priorities Barcelona Principles ROI debate Communication Performance Management. Evaluating Public Relations, 3 rd edition. - PowerPoint PPT Presentation

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Page 1: Measurement & Evaluation in PR: 2007 to 2014

Measurement & Evaluation in PR:2007 to 2014

Professor Tom Watson, Bournemouth University

Page 2: Measurement & Evaluation in PR: 2007 to 2014

Agenda• From 2nd to 3rd edition (2007 to 2014)• Principles• Research priorities• Barcelona Principles• ROI debate• Communication Performance Management

Page 3: Measurement & Evaluation in PR: 2007 to 2014

Evaluating Public Relations, 3rd editionPublished in June; Available in Australia in August

London: Kogan Page ISBN: 9780749468897

Page 4: Measurement & Evaluation in PR: 2007 to 2014

Aircraft instruments

Page 5: Measurement & Evaluation in PR: 2007 to 2014

Defining evaluation• “…any and all research designed to determine

the relative effectiveness of a public relations program, strategy, or activity, by measuring the outputs and/or outcomes of that PR program against a predetermined set of objectives” (Lindenmann)

• Management-by-Objectives (MBO) framework

Page 6: Measurement & Evaluation in PR: 2007 to 2014

Measurement concepts• Input: expenditures on communication-related services; use

of financial and human resources• Output: Presentation and dissemination• Out-take: Awareness; processing of messages• Outcome: The desired result• Arise from Lindenmann’s typology; Widely applied

Page 7: Measurement & Evaluation in PR: 2007 to 2014

Outflow -1 • Outflow is the economic impact that results from influence on

stakeholders exerted by corporate/organizational communications

• “It becomes visible what communications have actually contributed to achieving the financial and strategic goals of the organization” (DPRG 2011:14)

Page 8: Measurement & Evaluation in PR: 2007 to 2014

Outflow -2 • Corporate communication can add value by supporting

service provision processes of other corporate functions or by creating intangible assets

• Both contributions depend on specific organisational goals and strategy

• Performance indicators include business-related metrics such as sales, innovations, productivity, etc. or intangible capital such as monetary brand value or reputational capital

Page 9: Measurement & Evaluation in PR: 2007 to 2014

‘Value’ as a PR research priority: Delphi study (Watson (2008)

1. PR’s role in contributing to strategic decision-making, strategy development and realization and organizational functioning

2. The value that PR creates for organizations through building social capital; managing key relationships and realizing organizational advantage

3. The measurement and evaluation of public relations both offline and online

Page 10: Measurement & Evaluation in PR: 2007 to 2014

Barcelona Principles• Seven principles of measurement• Set by AMEC – adopted worldwide by PR professional bodies• Changed thinking away from AVE

Page 11: Measurement & Evaluation in PR: 2007 to 2014

Barcelona Principles

Page 12: Measurement & Evaluation in PR: 2007 to 2014

ROI – misapplied language• PR sought to use business language• Return on Investment widely expressed, inappropriately• Related to value created over time by investment in capital

equipment• Not to immediate results of a PR activity• Many PR actions can’t express a financial result (Gov’t; NfP)• “loose and fuzzy” (Watson & Zerfass, 2011, 2012)

Page 13: Measurement & Evaluation in PR: 2007 to 2014

Jim Grunig speaks

“I talk more about the value of public relations than about ROI. As I said, you can explain the value of relationships; but you really can’t measure a financial return to compare with the money invested in it. I tend to use the term ROI because PR people want to hear it used. I will now cease and desist from using it” (Likely & Watson, 2013: 153)

Page 14: Measurement & Evaluation in PR: 2007 to 2014

‘Communication Controlling’• Controlling = auditing, performance management• Central European approach to link corporate objectives with

communication objectives• Each level can be monitored: Input > Output (2 stages) >

Outcome (2 stages) > Outflow• Matrix of measurements, appropriate to each level• Used by BASF, Siemens, Henkel, Commerzbank, etc

Page 15: Measurement & Evaluation in PR: 2007 to 2014

Levels of Impact and Evaluation of Communications

Results ofCommunication Processes

Output

Outcome

Outflow

Internal Output

Process EfficiencyQuality of Works

Product

Budget ComplianceThroughput Times

No. of ShortcomingsReadability/Fogg-IndexSatisfaction of Internal

Clients …

External Output

Media CoverageContent

ClippingsVisits

DownloadsImpact Ratio

Share of Voice…

Direct Outcome

PerceptionUtilizationKnowledge

AwarenessUnique VisitorsSession Length

Reader per Issue

RecallRecognition

Indirect Outcome

OpinionAttitudesEmotion

Behavioral DispositionBehavior

Reputation IndexBrand Image

Strategic Awareness of Employees

Purchase IntentionLeads

Innovative IdeasProject Participation

RessourcesEmployee Assignment

Financial Expenses

Personnel CostsOutsourcing Costs

Input

Value Creation

Impact onStrategic and/or Financial Targets

(Value Chain)Impact on

Tangible and/orIntangible Assets

(Capital Accumulation)

SalesNo. of Project Agreements

Cost ReductionReputation Capital

Brand ValueEmployee Performance

Outflow

ORGANISATION

Communication ProcessesInitiation of Communication Processes

MEDIA/CHANNELS STAKEHOLDERS ORGANISATION

Indica-tors(e.g.)MEA-SURED OBJECT

Measure-ment Range

Levels of Impact

High Impact on Value CreationWeak Influence of Communications Management

Low Impact on Value CreationStrong Influence of Communications Management

Page 16: Measurement & Evaluation in PR: 2007 to 2014

Implementation

• Communication Controlling has four phases– Analysis– Conception– Operationalization– Steering / Reporting

Page 17: Measurement & Evaluation in PR: 2007 to 2014

Analysis

Key Questions

• Who is to be informed at which point in time or event?

• In which form and way are the findings to be reported?

• What kind of recommendations are expected to support decision-making?

1 2 3 4 5 6

Key Questions Key Questions Key Questions Key Questions Key Questions

• Which data will be collected at which point in time?

• Which evaluation methods and instruments are to be applied?

• How shall the success of communications be measured?

• Which indicators and KPIs can be defined for these metrics?

• What do communications need to contribute in terms of stakeholder impact and economic outflow?

• Which communications objectives are aimed at which stakeholder groups?

• Which new potential assets need to be developed to address these objectives?

• What do we have to do for that and what kind of resources will we have to invest?

• Which are the goals of the company for the current planning period?

• Are these goals clearly defined and prioritized?

• What are the strategic goals and what can the company do to achieve those?

• The achievement of which of these goals requires the support of the communications function?

• Which data already exist in the company?

• Which data can be obtained with reasonable cost and time expenditures?

• What is the current status of corporate communications?

Implementation steps of Communication Controlling

CorporateGoals

Communi-cation

Objectives

Metrics & Indicators

Data Collection

Steering and

Reporting

Analysis Conception Operationalization Steering/Reporting

Page 18: Measurement & Evaluation in PR: 2007 to 2014

Making it work• Has organization defined its corporate objectives?• Are “scorecards” used?• Is measurement and evaluation part of corporate culture?• How is the communications function organized?• “Strong and visible” top management commitment is needed• Close cooperation with management accountants

Page 19: Measurement & Evaluation in PR: 2007 to 2014

Summary• Multiple measurement needed for evaluation• Value can’t always be measured but can be evaluated• Communication Performance Management links PR with

objectives• Read all about it!