the contributions of public relations to the attainment of corporate objective
DESCRIPTION
Public Relations is often percieved as a cost centre activity but there are palpable contributions from PR in the attainment of Corporate Objectives.TRANSCRIPT
PUBLIC RELATIONS AND CORPORATE OBJECTIVE
By Mobolaji OkusagaManaging Director, The Quadrant Company
What’s Your Company’s Objective? Corporate Objective articulates a Company’s manner of
doing business and the kind of relationships it need to create with its Stakeholders to deliver on its purpose
These objectives are encapsulated in the organisation’s mission, vision and culture and help set the tone for interactions with its Stakeholders
Corporate Objective asks the questions: What is the purpose of our organisation? What value do we intend to create? What kind of ideals bind our stakeholders together?
By answering these questions, Corporate objective helps an Organisation to differentiate, plan, execute and deliver exceptional performance
Identifying your Stakeholders
Anyone on the StreetAnyone on the Street
InfluencersInfluencers
Core TargetCore Target
Corporate Objectives and Stakeholder Theory
Stakeholder theory begins with the hypothesis that values are essentially and decidedly part of doing business
It address the Principle of Who or What Really Counts by establishing which groups are Stakeholders in a corporation
In traditional input-output models of the corporation, Organisations use the inputs of investors, employees, and suppliers and converts it to usable outputs
By this model, firms only address the needs and wishes of four parties: Investors, Employees, Suppliers and Customers
Contemporary Stakeholder theory however recognizes other parties such as governmental bodies, political groups, trade associations, trade unions, communities, associated corporations, etc as Stakeholders.
The theory recognizes that Stakeholders are constituencies that contribute, either voluntarily or involuntarily, to an Organisation’s wealth-creating capacity, and may be its beneficiaries and/or risk bearers
In fulfilling its Corporate Objective therefore, an Organisation must clearly identify its Stakeholders and strategically relate with them.
The Organisation and its Stakeholders
EMPLOYEESEMPLOYEESEMPLOYEESEMPLOYEES
MEDIAMEDIAMEDIAMEDIA
SUPPLIERSSUPPLIERSSUPPLIERSSUPPLIERS
COMPETITORSCOMPETITORSCOMPETITORSCOMPETITORS
SHAREHOLDERSSHAREHOLDERSSHAREHOLDERSSHAREHOLDERS
GOVERNMENTGOVERNMENTGOVERNMENTGOVERNMENT
GENERALGENERAL
PUBLICPUBLIC
GENERALGENERAL
PUBLICPUBLIC
CUSTOMERSCUSTOMERSCUSTOMERSCUSTOMERS
THE
ORGANISATION
THE
ORGANISATION
What are the Demands of Stakeholder Engagement? Every organisation relates with different publics -
from the Shareholders, Staff, Customers, Industrial Unions, Government and Regulatory Bodies, Counter-parties, the Press to the local community.
These stakeholders are different in terms of their interests and expectation from the organisation
The organisation therefore needs a deep-seated understanding of these interests and expectations to maintain a dialogue, enhance relationships and retain its goodwill among its stakeholders.
Outcomes of a Sound Corporate Objective
Products / Service Quality / Technology Leadership
Increased Sales Preference for Company’s Products / Service Customer Acquisition / Quality of Customers Growth in Market Share / Market Leadership Turn-over Operating Margin Gross Profit Market Capitalisation / Stock Price Attraction and Retention of Quality Employees
Public Relations in Organisation-Stakeholder Dialogue
Public Relations is the art and science of building relationships between an organization and its key publics .
Public Relations engenders purposeful communications between an organisation and its publics, it is proactive and future orientated, and has the goal of building and maintaining a positive perception of an organisation in the mind of its publics.
In the dialogue between Organisations and their stakeholders, the following branches of Public Relations suffice:
Employee / Labour Relations Customer Relations Investor Relations Media Relations Government Relations Community Relations Reputation Management Issues Management Crisis Management
Its Implication
Generally, Public Relations function as the conduit of the organisation to the world outside
Public Relations practitioners must therefore, be abreast with their organisation’s vision, mission, strategy, corporate concern and culture
They also need to understand their place in their company’s overall objective and to understand the market environment in which their organisation operates
The Public Relations Executive should read the competitive landscape and be able to predict the move of competition
He /She needs to be able to identify the organisation’s different stakeholders and the varying expectations that arise from operations and interaction with these stakeholders
Finally, the Public Relations Practitioner must be able to relate his activities with the drive at achieving the organisation’s objectives.
Creating the Link
Public Relations Executives need to think like a Business Managers by measuring their activities against their Organisations goals
They must develop PR metrics which correlate with their Organisations objective
PR Executives must initiate programmes which cover the entire competitive landscape with a view to seizing the higher ground for their Organisations
In relating with the media, they must think of them as a channel to the Organisations Stakeholders
POTENTIALPOTENTIAL EMPLOYEESEMPLOYEES
EMPLOYEESEMPLOYEES
DISTRIBUTION / CHANNEL DISTRIBUTION / CHANNEL PARTNERSPARTNERS
MAJOR MAJOR CUSTOMERSCUSTOMERS
REGULATORSREGULATORS
FINANCIAL ANALYST / BUSINESS PRESSFINANCIAL ANALYST / BUSINESS PRESS
BUSINESS LEADERSBUSINESS LEADERS
COMMUNITIESCOMMUNITIES
PORTFOLIO MANAGERS / INVESTORSPORTFOLIO MANAGERS / INVESTORS
CONSUMERSCONSUMERS
PATH
OF
REF
EREN
CE
PATH
OF
REF
EREN
CE
PA
TH O
F INFLU
EN
CE
PA
TH O
F INFLU
EN
CE
Stakeholder RelationshipsStakeholder Relationships
Source: Regis McKennaSource: Regis McKenna
Expectation from Relationships
EMPLOYEES / POTENTIAL EMPLOYEES
CUSTOMERS
DISTRIBUTION / CHANNEL PARTNERS
REGULATORS
COMMUNITIES
Career Opportunities,CompetitiveRemuneration, Good Management
Trustworthy, Good/SuccessfulProducts
Attract Customers, Make Sales
Ethical, Compliant
Philanthropy, Good CorporateCitizenship
Elements of a Good Message
Messages disseminated must be within the Stakeholders frame of Reference
Must be relevant and useful to the Stockholder's need
Should be distinctive and distinguishable from that of competition
Should be able to compel positive action Should deliver intended value
Developing PR Objectives
In developing objectives which are scientific, it is essential to include precise milestones that evaluate progress in the realization of set aspirations. This process may include the following:
1. Map desired communications outcome2. Spot target segment for desired outcome3. State expected level of success4. Identify timeframe for target outcome
Understanding Strategies and Tactics
Strategies are logical and systemic outlines for the attainment of desired goals.
It basically considers the big-picture rather than details.
Tactics are detailed plans designed for the actualization of strategies. Tactics identifies personnel, timelines, budget and the structure for the attainment of set objectives.
The Five Steps of Strategic PR Management
Craft aStrategy
to AchieveObjectives
SetObjectives
Develop aStrategic
Visionand
Mission
Implementand
ExecuteStrategy
Improve/Change
Revise asNeeded
Revise asNeeded
Improve/Change
Recycleas Needed
Step 1 Step 2 Step 3 Step 4 Step 5
Monitor,Evaluate,and Take
CorrectiveAction
Communication MatrixTARGET EXPECTATIO
NDESIRED ACTION
CORPORATE OBJECTIVE
MESSAGE COMM STRATEGY
METRIC
LABOUR UNIONS
Positive outcome of outstanding Staff issues
Information on Staff Welfare
understand Managements position
contentious Staff issues
Spread a positive buzz on career development and staff welfare
Reduce Staff Attrition
Create a harmonious organisation / labour relationship
Attract the best talents in the industry
Best place to work
Understands working smart
Develops industry’s best hands
Proactive response to Staff enquires
Build good internal communications &Information Flow
Establish Monthly
In-house Journal
Obtain 2x competitors commendation of in Labour Articles
Generate 2x competitors buzz
on good staff welfare and attract
best industry talents
CUSTOMERS Quality Products
Satisfaction of needs
Innovation
Trust
Buy and recommend company’s products
Increase market share
Widen Customer Base
Differentiate and engender preference for products above competitors offerings
Best Products
Leadership gives access to new markets
Easy to do business with
Where the customer is truly a king
Drive preference by providing and campaigning highest standards
Leverage constant two way communications by constantly requesting feedback
Develop internet site as business tool
2x number of competitors lead
100% increase in product preference against competitor’s
PRESS /PRESS /
FINANCIAL FINANCIAL
ANALYSTANALYST
News on News on
Developments Developments
within the within the
OrganisationOrganisation
Company Company
Financial ResultsFinancial Results
Positive Positive
Articles on Articles on
Company’s Company’s
Financials and Financials and
ActivitiesActivities
Recommend Recommend
Stock to investing Stock to investing
PublicPublic
Continuous Continuous
coveragecoverage
Increase share of Increase share of
industry voiceindustry voice
Generate stability Generate stability
Through good and Through good and
Consistently Consistently
improving Financial improving Financial
performanceperformance
Best product sBest product s
Customer Customer
friendlyfriendly
Company’s Company’s
Performance Performance
exceed exceed
industry industry
leadersleaders
SpeakingSpeaking
EngagementsEngagements
Opinion Opinion
ArticlesArticles
Upgrade IR Upgrade IR
WebsiteWebsite
Focus Road Focus Road
shows on shows on
prioritiespriorities
MEASURING PUBLIC RELATIONS OUTCOMES AGAINST CORPORATE OBJECTIVES
Why Measure?
Guts does not cut it anymore, you’ve got to be able to justify your activities.
If you aren’t measuring, you are not managing your budget effectively and deserve to be fired.
Without data, how do you know what’s working and when to intensify or discontinue a line of action.
Determining Measurement Technique
Always match measurement technique to available resources
PR measurement does not have to be expensive- soft sounding surveys are an economical way of knowing designated audiences perception of a particular media message on your organisation
Quantitative / message tracking can be done internally rather than through a media research firm in order to reduce cost, all that matters is for Management to be able to get the information on which action can be taken.
Creating a valid measurement parameter for you activity will help you to be able to justify your budget and prioritize your activities.
Measurement and Evaluation Methods
In-house: - quantitative / message tracking using Excel to plot graphs and charts.
PR agency research tools: - Quantitative Research
- Qualitative Research (article type, tone, ideological bent, latent issues)
Media Research:- Competitive tracking studies to measure quantitative and qualitative
indices.- Trend analysis to measure specific trends and influences
Research Firms: To measure the insight of the target audience beyond the media message
using Focus Group Discussions, Surveys and Observation and sampling methodologies
Examples of PR Reporting
Positioning of Company on Issues
Corporate GovernanceCorporate GovernanceCorporate GovernanceCorporate Governance
Industrial / Labour IssuesIndustrial / Labour IssuesIndustrial / Labour IssuesIndustrial / Labour Issues
Philanthropy / Corporate ResponsibilityPhilanthropy / Corporate ResponsibilityPhilanthropy / Corporate ResponsibilityPhilanthropy / Corporate Responsibility
00 2020 4040 6060 8080 100100 120120 140140 180180 200200
Number of times Company was favourably positioned on Number of times Company was favourably positioned on key issues in the mediakey issues in the media
Product QualityProduct Quality
Quantitative / Qualitative Performance Map
20020000
Brand A Brand A
Brand B Brand B
Brand C Brand C
Brand D Brand D
Quantitative (Number of Articles)Quantitative (Number of Articles)
Qu
alit
ati
ve
(tim
es p
osi
tio
ned
on
key
iss
ues
)Q
ual
ita
tiv
e (t
imes
po
siti
on
ed o
n k
ey i
ssu
es)
Mention of competing Brands in the media in a Mention of competing Brands in the media in a QuarterQuarter
Lotus Press Coverage Analysis
00 20 %20 % 40 %40 % 60 %60 % 80 %80 % 100 %100 %
COMPANY A COMPANY A
COMPANY B COMPANY B
COMPANY C COMPANY C
COMPANY D COMPANY D
Positive messagePositive message No messageNo message Negative MessageNegative MessageR. Paine and PartnersR. Paine and Partners
Percent of impressions containing messages by CompanyPercent of impressions containing messages by Company
Lotus Press Coverage Analysis
N0.00N0.00 N0.50N0.50 N1.00N1.00 N1.50N1.50 N2.00N2.00 N2.50N2.50
COMPANY A COMPANY A
COMPANY B COMPANY B
COMPANY C COMPANY C
COMPANY D COMPANY D
Cost per message communicatedCost per message communicated
Industry Best Practice
Competitive analysis is compulsory in measuring your success.
Analysis of messaging, positioning and issues identification are the norm.
Analyst and quote measurement are some of the latest trends.
Integrating media analysis with web activity and customer outcomes is starting to emerge as a pervasive trend in the developed world.
8 Steps for Effective Measurement
1. Define your mission2. Map your needs3. Identify what you are benchmarking against4. Select an appropriate and cost effective research
methodology5. Embark on research6. Analyze result and pick up insights7. Take appropriate action 8. And then measure again
Matching PR Objective and Spend
With the Outcomes of
PR Activities
Prioritize your PR Spend
There is a need to define your focus in alignment with the overall Corporate objective and then prioritize your spend on the following: Employees Customers Analysts Consumer media Business media Trade media Government officials NGO’s and Community Based Associations (CBO’s) Religious Institutions Labour Unions Opinion moulders
PR as Profit Centre Sometimes top management often wonder if they are getting
their money’s worth from PR programmes and often believe that PR activities are as ephemeral as the air.
To counter this notion, PR executives often points to “Ad Value Equivalency”, which equates PR hits against the value of an advertisement in the same news media that the article or programme appeared, as a measure of the value of PR in advancing the Corporate objective.
But that does not pass the sniff test, what is key to note is that PR sets a criteria for relating with profitable and influential stakeholders and helps prepare the ground for marketing in the sense that its activities go well beyond engendering an awareness for a Product / Company and most importantly, help to build a sustainable platform on which to carry out branding and marketing activities.
That platform is “GOODWILL”. GOODWILL can therefore be said to be the profit procurable
from PR activities.
Thank you.