Wednesday, April 11, 2012

Three big ways public relations is making a business difference ...

Public relations in Australia is, it seems, both aspiring to and actually achieving its disciplinary apogee of two-way symmetrical communication, if a recent industry survey is anything to go by. The utilisation of market research to understand key issues and stakeholders, as well as benchmark performance; the evolving of organisational operations so they are more in line with stakeholder expectations; and PR leaders having an important role in strategic organisational decision making ? are all key tenets of best practice two-way symmetrical communication and are frequently being enacted across the country.

Public relations delivering business excellence

These suppositions are based on findings and analysis in Trends and issues in Australian corporate affairs 2012, a survey of over 300 of Australia?s most senior corporate affairs professionals, undertaken by leading public relations, communications and corporate affairs recruiter, Salt & Shein.

Two-way symmetrical communication and organisational reputation

The report states that, ??senior practitioners confirm that the [corporate affairs] function has progressed beyond the tactical, execution driven approach of 20 years ago, to an ?outside in? stakeholder driven perspective focused on developing reputation. This approach is underpinned by solid research, analysis and robust measurement.?

It goes on to say that senior PR or corporate affairs professionals are moving into a more proactive, reputation-building and issues management ?space? with CEOS and boards, thus enabling them to devise and implement? programs to ?build sustainable reputation over time?.

Encouragingly, the reports says, ?Many report that they are engaged in trying to achieve big changes in organisational behaviour, business processes or practices to signal to stakeholders that their organisations are responding in meaningful ways.?

In other words, two-way symmetrical communication behaviour from the organisation, with no doubt many organisational efforts taking placed based on influencing stakeholder behaviour as well.

?If you?re dealing with the reputation of an institution it?s no longer just about media management and spin. It?s really about taking a range of approaches, such as taking feedback from different stakeholder groups, or changing the way you do business in a certain way. I tell my CEO and management team that meaningful reputation is about being seen as authentic.? [Quote from one survey respondent.]

PR and reputation-driven market research and measurement

The report makes the important observation that??The senior practitioners we spoke with reveal that their success and credibility in advising management and influencing change on reputation is being bolstered by regularly tracking and benchmarking corporate reputation in the external environment.?

?The link between commercial decisions and reputation is becoming closer. Our board has identified external reputation as a top priority for the business. As a result corporate affairs as a function is being given more and more input into major commercial decisions. So, rather than the business making decisions and then coming to corporate affairs and saying ?make sure the pathway for this is OK?, they?re coming to us first and asking ?tell me the what the pathway looks like if we go down this road.? [Quote from one survey respondent.]

Undertaking market research with scientific rigour gives credence to approaches that public relations recommends. It is evidence-based, it occurs over time and it provides comparison between available and/or potential approaches to take ? including from a whole-of-business/operational perspective and one more specifically directed at stakeholder relationship and communication dimensions.

When applying a qualitative approach to market research, it is also possible to scope out what reactions may have occurred and the impact on reputation that could have transpired if a certain approach was not taken.

There is no reason that this approach cannot be taken when illustrating the impact to senior management of the positive effect of keeping negative news out of the media, helping to justify issues management and proactive media management approaches taken.

PR being significant to business decision-making

Crucial to any business discipline making a difference to organisations and achieving its potential is being included in the highest level decision making process. PR is no different. It will not make a sustained, profound difference to business unless its input is sought, heeded and integrated.

?From a reputation standpoint, the value of corporate affairs is its ability to see what?s on the horizon across all the different stakeholder groups. In reality for corporate affairs people the key to adding value is being able to anticipate what may be coming around the corner, anticipating the broad range of reactions to a particular decision, and then ask does it matter?? [Quote from one survey respondent.]

Public relations in this context is operating in an issues management capacity, building and protecting reputation:

  • Anticipating business decisions
  • Understanding decisions? potential impact on reputation and relationships
  • Providing strategic advice and planning ? so that those decisions can be modified to achieve the best possible results for an organisation and its stakeholders
  • Delivering proactive reputation building actions.

Why do organisations need to take this PR/two-way symmetrical communication-centric approach?

  • Society is demanding more from organisations than compliance
  • Stakeholders will look for other options to organisations that don?t operate in a manner consistent with their belief systems when an option exists
  • Criticism can snowball and get in the way of organisations achieving their vision and fulfilling their remit, underlined by the power and influence of social media-accelerated viral WOM and its archetypal snowballing momentum.

The importance of PR underlined

Two final thoughts to leave you with.

This research underlines that public relations isn?t just about helping achieve business objectives; it is about providing information to help shape what those business objectives actually are.

Taking the two-way symmetrical approach discussed and being implemented here isn?t just about avoiding issues and compromising potential profits or programs, it can also identify options for organisational improvement and business (e.g. profit) opportunities as well as, of course, gaining a more powerful and comprehensive licence to operate from stakeholders.

What do you think about the findings discussed in this post and their relevance to contemporary PR practice? Has your organisation been applying a similar approach? If not, what are the barriers and what can be done about them? Could you use the Salt & Shein research as a credible 3rd party source of information to perhaps instigate positive change in your organisation, or at least get a meaningful dialogue going on the issue?

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