Managemet Function of Public Relations
The Practice of Public Relations
Thirteenth Edition
Chapter 5
Management
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Learning Objectives
- To discuss public relations as a “management” function that serves the organization best when it reports to the CEO.
- To explore in detail the elements that constitute a public relations plan.
- To discuss public relations objectives, campaigns, and budgets.
- To compare and contrast the internal public relations department and the external public relations agency.
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Opening Example: Corporate Communication
- Microsoft C E O Satya Nadella landed in hot water
- He answered a question about how women should ask for raises wrong
- Communications obstacles confront management
- “It takes a village to sell a C E O to both Wall Street and Main Street”
Figure 5-1 Water under the bridge.
CEO Nadella replied to a question about how women should ask for raises by suggesting they have faith that the system will give them the right raise. Women are paid 78% as much as men. Men with graduate degrees in Silicon Valley earn 73% more than female counterparts. Men with bachelor’s degrees earned 40%. He acknowledged he answered the question completely wrong. The communications obstacles that confront managers mean today’s boss requires a village of communications advisors.
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It Takes A Village
- Executive coach – polish communications strategies and skills
- Social media guru – create tweetings and postings
- Speechwriter – hone words and thoughts of C E O
- Media coach – advise on how best to handle report questions
- Positioning coach – counsel on building a C E O’s personal brand
- Reputation manager – research, evaluate, and advise on the C E O build the desired corporate image
- Personal stylist – recommend what to wear and how to look
In many ways, the primary function of top manager is to serve as the organization’s communicator, or public relations person. A village of communications advisors can help managers confront communications obstacles.
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Learning Objective 1
- To discuss public relations as a “management” function that serves the organization best when it reports to the CEO.
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Similarities between CEO and Public Relations Director?
- Both set strategy and frame policy
- Both serve as chief spokesperson, corporate booster, reputation defender
- Both need to know management functions like planning, budgeting, objective setting
- Public relations professionals must understand how top management thinks and operates
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Management Process of Public Relations
- Public relations is planned, persuasive social managerial science
- Managers insist on results
- Best public relations programs measured in achievements
- Building key relationships
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Management Process of Public Relations
- Public Relations Manager = Boundary Role
- Edge of organization
- Liaison between organization and external/internal publics
- Support colleagues by helping communication across organizational lines in and out of the company
- Communicate key messages to realize desired objectives
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Reporting to Top Management
- Public relations must report to top management
- As interpreter, public relations director should report to CEO
- Function must remain independent, credible and objective
- Public relations is the corporate conscience
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Learning Objective 1
Discussion Question
- Why is it imperative that public relations report to top management?
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Learning Objective 2
- To explore in detail the elements that constitute a public relations plan.
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Conceptualizing the Public Relations Plan
- Strategic planning for public relations essential
- Know where campaign is headed
- Win support of top management
- Defend and account for actions
- Environment Business Objectives Public relations objectives and strategies Public relations programs
*Note: Pay attention to what determines what
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Public Relations Management Process – Four Steps
- Define problem or opportunity
- Research current attitudes and opinions
- Determine essence of problem
- Programming
- Formal planning
- Address key publics, strategies, tactics and goals
- Action
- Communications phase
- Implementation
- Evaluation
- What worked and what didn’t
- How to improve in the future
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Creating the Public Relations Plan
- Executive summary – overview
- Communication process – how it works
- Background – mission, vision, values, events
- Situation analysis – major issues and related facts
- Message statement – major ideas and emerging themes
- Audiences – constituencies related to issues
- Key audience messages – messages you want understood
- Implementation – issues, audiences, messages, media, timing, cost, outcomes and evaluation methods
- Budget – overall budget
- Monitoring and evaluation – measurement and evaluation against benchmark/ desired outcome
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Activating the Public Relations Campaign
- Background the problem (situation analysis)
- Prepare the proposal
- Situation analysis
- Scope of assignment
- Target audiences
- Research methods
- Key messages
- Communications vehicles
- Project team
- Timing and fees
- Implement plan
- Evaluate plan (implementation, recognition, attitude change)
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Learning Objective 5.2: Discussion Questions
- What are the elements that make up a public relations plan?
- What questions must be answered in establishing valid public relations objectives?
Learning Objective 3
- To discuss public relations objectives, campaigns, and budgets.
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Setting Public Relations Objectives
- How will we manage our resources to achieve our goals?
- Good objectives stand up to the following questions:
- Do they clearly describe the end result expected?
- Are they understandable to everyone in the organization?
- Do they list a firm completion date?
- Are they realistic, attainable and measurable?
- Are they consistent with management’s objectives?
Please use these questions to evaluate the own objectives you come up with in completing your PR management function assignment (see blackboard)
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Setting Public Relations Objectives
Managing by Objectives (M B O) and Managing by Results (M B R)
Specify, conference, agree, and review
Goals clearly defined, specific, practical, attainable, measurable
Increasingly, 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? And How do we know whether the public relations program is making progress?
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Most MBO Programs Share Four Points
- Specification of the organization’s goals
- Conferences between the superior and the subordinate to agree to achievable goals
- Agreement between the superior and the subordinate on objectives consistent with goals
- Periodic reviews by the superior and the subordinate to assess progress toward goals
The key is to tie public relations goals to the goals of the organization and then to manage progress toward achieving those goals.
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Budgeting for Public Relations
- Functional budgeting
- Administrative budgeting
- Keys to budgeting
- Estimate extent of resources – personnel and purchases
- Estimate cost and availability of resources
- Pay-for-Performance
- Make sure client is aware of how charges are applied
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Implementing Public Relations Programs
- Media relations
- Social media marketing
- Internal communications
- Government relations and public affairs
- Community relations
- Investor relations
- Consumer relations
- Public relations research
- Public relations writing
- Special interest public relations
- Institutional advertising
- Graphics
- Website management
- Philanthropy
- Special events
- Management counseling
- Crisis management
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Learning Objective 4
- To compare and contrast the internal public relations department and the external public relations agency.
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The Public Relations Department
- Staff professional – department at organization; support primary business
- Line professional – public relations agency; earn revenue
- Organize for diverse influencers
Figure 5-4 (Courtesy MasterCard Worldwide)
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The Public Relations Agency
- Outside looking in
- Might provide more objective reading of publics’ concerns
- Organize based on industry groupings
- Most difficult part of agency work = retaining clients
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Reputation Management
- Increasingly, public relations agencies claim their emphasis on “Reputation management”
- Strategically manage an organization’s reputation, including brand, position, goodwill, and image
- Reputation based on two elements
- Rational products and performance
- Emotional behavioral factors
- Customer service
- CEO Performance
- Personal Experience
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Reputation Management
Companies with good reputations
Can charge premium prices
Have greater access to new markets and products
Have greater access to capital
Profit from greater word-of-mouth endorsement
Possess unduplicated identity
Such distinctive organizations as Tiffany, Google, Dreamworks, and the New York Yankees are all examples of entities with unique and positive reputations that translate into hard-nosed advantages.
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What do Reputation Managers Do?
- Persuade consumers to recommend and buy their products
- Persuade investors to invest in their organization
- Persuade competent job seekers to enlist as employees
- Persuade other strong organizations to joint venture with them
- Persuade people to support the organization when it is attacked
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Where Are the Jobs?
- Social media outreach
- Company reputation management
- Investor relations
- Crisis management
- Public relations agencies
- Nonprofit organizations
- Employee communications
- Salaries higher in Victoria, TX; San Jose, CA; and Washington, DC
- Salaries lower for women
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Learning Objective 4
Discussion Question
- What are the fundamental differences between working in a corporation and working in an agency as a public relations professional?
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