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The CEO is the firm’s top manager, responsible for setting strategy and framing policy.

The CEO serves as: chief spokesperson corporate booster reputation defender

These duties are much like those of the public relations professional.

Public relations today is much more a planned , persuasive social managerial science than a damage-control reaction.

Don’t get me wrong, the public relations professionals who have the most organizational clout and get paid the most are those who demonstrate the ability to perform in a crisis.



As with management, public relations demands clear strategies and bottom-line objectives that flow into specific tactics.

Each tactic must have its own: budget timetable resources

Public relation is the ability to think strategically and plan methodically to help change attitudes, crystallize opinions and accomplish the organization’s overall goals.

According to the communication professor James Grunig and Todd Hunt, public relations managers perform what organizational theorists call a boundary role


They function at the edge of an organization as a liaison between the organization and its external and internal publics.

In other words, public relations managers have one foot inside the organization and one outside, often this unique position isnt only lonely but also precarious



Managers insist on results – the best public relations programs can be measured in terms of achieving key relationships.

The relevance of public relations is measured by its contribution to the management process.

Top managers are forced to think strategically about reaching their goals, so public relations should think in terms of strategic position elements of their own roles



According to Grunig and Hunt, public relations managers fill a boundary role.

They function at the edge of the organization, as a liaison between internal and external publics.


What are we attempting to achieve, and where are we going in that pursuit?

What is the nature of the environment in which we operate?

Who are the key audiences we must convince in the process?

How will we get to where we want to be?


To serve as a true interpreter, the public relations director must report to the CEO.

To be valued by management, public relations must remain: independent credible objective

In many organizations, this reporting relationship is n’t the case, public relations is often subordinated to advertising, marketing, legal or human resources. Whereas marketing and advertising promote the product, public relations promotes the entire organization


Public relations should be the corporate conscience. An organization’s public relations professionals should enjoy enough autonomy to deal openly and honestly with management

All disciplines must work to maintain their own independence while building long term relationships for the good of the organization.



“We can afford to lose money – even a lot of money – but we cannot afford to lose

reputation – not even a shred of reputation.”

Warren BuffetCEO, Berkshire Hathaway


What are the dangers of public relations reporting to advertising, marketing or the legal department?

Answer: The job mistakenly becomes one of promoting a

specific department, rather than the organization as a whole.


Strategic planning for public relations is an essential part of management.

Planning is critical not only to know where a particular campaign is headed but also to win the support of top management.

With proper planning, public relations practitioners can defend and account for their actions.

Before organizing for public relations work, practitioners must consider objectives and strategies , planning and budgets, research and evaluation.

The broad environment in which the organization operates must dictate the overall business objectives



Environment

Business objectives

Public relations objectives and strategies Public relations programs

Setting objectives, formulating strategies, and planning are essential if the public relations function is to be considered equal in stature to other management processes.

Traditionally , the public relations management process involves four steps:



1. Defining the problem or opportunity

2. Programming

3. Action

4. Evaluation

1. Defining the problem or opportunity: this requires researching current attitudes and opinions about the issue, product, candidate or company in question and determining the essence of the problem

2. Programming : this is the formal planning stage, which addresses key constituent publics, strategies , tactics and goals.


3. Action :this is the communication phase, when the program is implemented

4. Evaluation : the final process in the process is the assessment of what worked, what didn’t , and how to improve in the future.

* Each of these four process steps is important. Most essential is starting with a firm base of research and a solid foundation of planning


All planning requires thinking , planning a short-term public relations program to promote a new service may require less thought and time than planning a long term campaign to win support for a public policy issue.


The public relations plan must be spelled out in writing, its organization must answer management’s concerns and questions about the campaign being recommended, here is one way it might be organized and what it should answer:



Executive summary

Communication process

Background Situation analysis Message

statement

Audiences Key audience

messages Implementation Budget Monitoring

and evaluation

Typical components include:

1. Executive summary: an overview of the plan

2. Communication process: how it works, for understanding and training purposes

3. Background: mission statement, vision, values , events that led to the need for the plan

4. Situation analysis: major issues and related facts the plan will deal with

5. Message statement: the plan’s major ideas and emerging themes, all of which look to the expected outcome 5-26Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

6. Audiences : strategic constituencies related to the issues, listed in order of importance with whom you wish to develop and maintain relationships

7. Key audience messages : one or two sentence messages that you want to be understood by each key audience

8. Implementation : issues , audiences, messages, media, timing, cost , expected outcomes and method of evaluation


9. Budget : the plan’s overall budget presented in an organization’s accepted style

10. Monitoring and evaluation : how the plan’s results will be measured and evaluated against a previously set benchmark or desired outcome.


1. Situation:Our world is moving faster than ever

before. Blackberries and cell phones have overtaken our every minute. Even leisure time activities have morphed into intensity- from power Yoga to power lunch to the 20 minute workout. The coffee break has become passé. In short the world desperately needs to “ chill”. And what better beverage to chill with than Fribbert’s Frosty Frap??


2. Business objectives• To increase Fribbert’s frosty frapp

market share nationally by 20%• To increase Fribbert’s Frosty Frapp

market share among young adults by 30%

• To increase product recall of Fribbert’s among all cold beverages by 25%


3. Public relations objectives• Tie coffee break time with the need

to “ chill” with Fribbert’s frosty Frapp.

• Generate buzz among young workers to chill not with coffee but with Fribbert’s Frosty Frapp

• Instill the importance of “ Chillin”


4. Strategies• Leverage a familiar concept- the coffee

break- with a new approach- the Frapp chill

• Spread the word about the Frosty Frapp chill

• Commission original research to underscore the importance of chillin’

• Recruit topic-specific experts to discuss chillin’ and Frosty Frapp.


5. Public relations program elements:

Fribbert’s commission survey of human resources professionals on the importance of short breaks during the day and associated increases in the productivity. The survey will determine how a selection of leading companies handle the need for chillin time among employees.


Fribbert’s launches a viral email campaign across the nation to encourage recipients to sign a “petition” to appeal to congress to make the chillin’ break a federally mandated activity.

Fribbert’s announces a nationwide Chillin’ day, designating a moment in time when employees around the nation will be asked to stop and chill.


Advertising support is leveraged with chillin’ day promotions, particularly on local radio

A chillin’ day spokesperson is appointed, representatives of what it means to be “ cool and chillin” . Such “ cool” personalities as George Clooney will be considered.

Local news hooks in key market areas are investigated to promote fribbert’s and chillin’


The beauty of creating a plan like this is that it clearly specifies tactics against which objectives can be measured and evaluated.

In devising the public relations plan along these lines, an organization is assured that its public relations programs will reinforce and complement its overall business goals.



Based on your public relations plan, it’s time to take action:

Back-grounding the problem Preparing the proposal Implementing the plan Evaluating the campaign

Although planning is important, public relations is still assessed in terms of action, performance and practice.

1. Backgrounding the problem: this is so called situation analysis, background, or case statement that specifies the major aims of the campaign. It can be a general statement that refer to audiences, known research, the organization’s positions, history, and the obstacles faced in reaching the desired goal.


2. Preparing the proposal: the second stage of the campaign plan sketches broad approaches to solve the problem at hand.

The elements of public relations proposal may vary, depending on the subject matter, but generally include the following:

* Situation analysis : description of the challenge as it currently exists, including background on how the situation reached its present state


• Scope of the assignment : description of the nature of the assignment, what the public relations program will attempt to do

• Target audiences : specific targets identified and divided into manageable groups

• Research methods: specific research approach to be used

• Key messages: specific selected appeals, what do we want to tell our audiences? How do we want them to feel about us ??


Communication vehicles: tactical communication devices to be used

Project team: key players who will participate in the program

Timing and fees: a timetable with proposed costs identified


3. Implementing the plan: the third stage of a campaign details operating tactics .it may contain a time chart specifying when each action will take place.

• Specific activities are defined, people are assigned to them, and deadlines are established, this stage forms the guts of the campaign plan.


4. Evaluating the Campaign : to find out whether the plan worked, evaluation methods should be spelled out here

Did we implement the activities we proposed?

Did we receive appropriate public recognition for our efforts?

Did attitudes change- among the community, customers , management as a result of our program?


Finally , planning the public relations campaign is important, planning must never become n end in itself. The fact is that no matter how important planning maybe, public relations is still assessed principally in terms of its action, performance and practice.


An organization’s goals must define what its public relations goals will be, and the only good goals are ones that can be measured

Public relations objectives and strategies that flow from them must achieve results.

Strategies are the most crucial decisions of a public relations campaign. They answer the general question ( How will we manage our resources to achieve our goals?)



As the saying goes, “What gets measured, gets done.” Test your objectives according to these questions:

1. Do they clearly describe the end result expected?

2. Are they understandable to everyone?3. Do they list a firm completion date? 4. Are they realistic, attainable and measurable? 5. Are they consistent with management’s

objectives?

Public relations professionals are managing by objectives (MBO) and by Results (MBR) to help quantify the value of public relations in an organization


The two questions most frequently asked by general managers of public relations practitioners are , how can we measure public relations results?? , how do we know whether the public relations program is making progress?

MBO can provide public relations professionals with a powerful source of feedback.

MBO and MBR tie public relations results to management’s predetermined objectives in terms of audiences, messages and media

Even though procedures for implementing MBO programs differ, most programs share four points:


1. Specification of the organization’s goals, with objective measures of the organization’s performance

2. Conferences between the superior and the subordinates to agree on achievable goals


The key to using MBO effectively in public relations work can be broken down into seven critical steps:

1.Defining the nature and mission of work

2.Determining the key result areas in terms of time, effort and personnel

3.Identifying the measurable factors on which objectives can be set


4. Setting objectives or determining results to be achieved

5.Preparing tactical plans to achieve specific objectives

6. Establishing rules and regulations to follow

7. Establishing procedures to handle the work



As with any other business activity, public relations programs must be based on sound budgeting. The key steps:

1.Estimate the resources needed to accomplish each public relations activity.

2.Estimate cost and availability of those resources, both in personnel and purchases.

3.Develop a budget and monthly cash flow plan.

After identifying objectives, the public relations professionals must detail the particular tactics that will help achieve those objectives

No organization can spend without a realistic budget, no organization can succeed.

Likewise, public relations activities must be disciplined by budgetary realities


In public relations agencies responsible for producing revenues, functional budgeting is the rule, that is , dollars for staff, resources, activities, and so on are linked to specific revenue-generating activities

Employees are required to turn in time sheets detailing hours worked in behalf of specific clients


In organizations where public relation is a staff activity and not responsible for revenue generation, administrative budgeting is the rule, that is , budget dollars are assigned generally against the department’s allocation for staff and expenses


Most public relations programs operate on limited budgets. In a growing number of instances, “ pay for performance” public relations has emerged.

The premise of this arrangement is that the buyer pays only for what he or she gets, meaning that fees are based on the depth of coverage and the circulation or audience rating of the venue in which coverage appears. If no coverage is achieved, no fee is paid


The duties and responsibilities of public relations practitioners are as diverse as the publics with whom different institutions deal. Specific public relations tasks are as varied as the organization served. Here is a partial list of public relations duties ….



Media relations Social network

marketing Internal communications Government relations

and public affairs Community relations Investor relations Consumer relations Public relations research

Public relations writing Special publics relations Institutional advertising Graphics Website management Philanthropy Special events Management counseling

What do PR practitioners do? Here is a partial list:


Public relations professionals generally work in one of two organizational structures:

1.As staff in the public relations department of a corporation, university, hospital, etc.

2.As a line professional in a public relations agency

Departments range from one-person operations to huge networks with hundreds of people.

Consider the public relations department, once an organization has analyzed its environment, established its objectives, set up measurement standards, and thought about appropriate plans, programs and budgets, its ready to organize a public relations department.


Today , half of all corporate communications departments report to the chairman, president , and/or CEO. This is an improvement from the past and indicative of the higher stature that the function enjoys.

About one sixth of public relations departments report to advertising or marketing and another sixth report to a vice president of administration.


Clearly reporting to CEO is preferable to reporting to a legal, financial or administrative executive who may tend to filter top management messages

In government, public relations professionals report directly to department heads. In universities public relations function is coupled with fundraising and development activities, in hospitals , PR function is tied to the marketing function



A question for you: What are the main differences between

working for an external agency and an internal department?

One answer: The difference is perspective: outside-

looking-in versus inside-looking-out.


Advantages: Agencies are often used to escape the “tunnel

vision” syndrome that often afflicts organizations.

They can provide management with an objective reading of public concerns.

Disadvantages: Agencies are outsiders. They may be unfamiliar

with internal details and management’s operating style.


Agencies generally organize according to industries such as healthcare, sports, finance or technology.

Agencies specialize in functions including media relations, government relations, social media and investor relations.

Account teams are assigned to specific clients.

In recent years, as clients begun to manage resources more rigorously. Agencies have gotten much more systematic in measuring success and in keep customers from migrating to a competitor.

Indeed, the most difficult part of agency work is not attracting clients but retaining them.


Many public relations agencies in recent years, particularly those purchased by large advertising agency conglomerates, have declared special emphasis on reputation management.

An organization’s reputation is composed of two elements 1) the more rational products and performance 2) more emotional behavioral factors such as customer service, CEO performance, personal experience by the company


Stated in another way, reputation is gained by what one does not by what one says….

Reputation management is the ability to link reputation to business goals to increase support and advocacy and increase organizational success through profits, contributions, attendance and so on…..



This means managing all aspects of an organization’s reputation: Brand Position Goodwill Image


A company with a good reputation can:

charge premium prices enjoy greater access to new markets,

products and capital profit from word-of-mouth endorsement possess an unduplicated identity

What do reputation managers do ?1.Persuading consumers to recommend

and buy their products2.Persuading investors to invest in their

organizations3.Persuading competent job seekers to

enlist as employees4.Persuading other organizations to joint

venture with them5.Persuading people to support the

organization when its attacked 5-72Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Stated another way , the requisite of reputation managers is to help build, defend and maintain an organization’s reputation

Public relations purists would argue that these reputation management functions have always been the province of two individuals its CEO and its PR professionals


Assisting the CEO in managing the reputation of the organization is the public relations professional. Indeed, for the public relations persons, reputation management reflects the function’s fundamental mandate to promote , maintain , defend, enhance and sustain the organization’s credibility….



Health care, consumer and retail fields are strong

High-tech sector will need more and more skilled professionals

Investor relations, crisis management and other specialties pay well

Public relations agencies will continue to expand

Nonprofit: hospitals, schools, museums, etc. all need public relations

Employee communications is needed to win back trust

Public relations promises a strong future:

The communications function has increased in importance and clout in the new century

Top communication professionals in many large corporations today draw compensation packages into six figures

According to one survey, the average senior vice president of corporate communications earned almost $190,000 annually with executive vice presidents earning close to $230,000



Salaries vary by experience, location and sector:

Public relations agencies: $118,350 Companies and other enterprises: $107,480 Professional organizations: $100,720 Colleges and universities: $87,900 Local governments: $74,710


Today, women predominate in public relations work.

Minorities – African-Americans, Asians and Hispanics – are small in numbers but are growing in participation.

However, in the early 21st century, women and minorities still lagged behind their white male counterparts in salaries.

The number of women executives in public relations has also increased in recent years

While the number of male public relations executives still exceeds the number of female public relations executives, the existence of the glass ceiling seems to be a relic of the past….


The not so good news is that women and minorities are still paid less than their male counterparts.

One 2008 survey reported that the median income for men with five or more years’ experience in the field was $143,700 , while the equivalent for women with the same experience was $91,800…….. !!!!



In the 21st century, public relations enjoys a significant management role, encountering many new challenges.

There has never been a better time to do business – and this trend will continue for the next 10 to 20 years!


Perils of an Out-of-the-Shadows CEO

Review this case on pp. 83-84. As a class, discuss:

What could Mark Penn have done to avoid conflict-of-interest contentions in serving Hillary Clinton?

What is the potential danger of heading a public relations firm and representing a particular political candidate at the same time?

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