Y2K will likely go down in PR history as the crisis that wasn't, but the other 364 days in 2000 were pretty darn interesting. Entirely new species of activists and pranksters
were born online, celebrity CEOs dominated the headlines, merger mania swept the globe, and ruthless talent wars made employers more paranoid than J. Edgar Hoover. Did we mention
lawyers' and management consultants' forays onto PR turf? Do we have to mention Election 2000, in which pundits and the media threw around the word "PR" as if it were a
dirty little word synonymous with pandering, trickery and a general lack of sportsmanship? Oh yeah, and the 24/7 news cycle made life hard (yawn).
So much for the good old days. What we wanna know now is what's in store for the PR biz in 2001. To this end, we amassed a virtual roundtable of esteemed experts to forecast
the big ideas, big challenges and big busts of the coming year. Here's what they told us:
Peter Himler, Managing Director, Corporate/Financial Practice, and Executive VP, Media Relations, Burson-Marsteller
"It is no secret that our once stealthy industry has been thrust into an unflattering media spotlight during the last year. Whether it was the misanthropic dotcom executives
who publicly skewered us (out of naivete), or the overt PR maneuverings surrounding the soon-to-be infamous 2000 presidential elections, PR practitioners have been cast as rogues
in the fabric of American society. (Didn't we like it better when NO ONE knew exactly what we did?)
Our first challenge moving forward will be to transform our newfound notoriety into something positive and redeeming. How do we redirect the spotlight to showcase the real
benefits good communications programs can reap? Few recognize the many positive roles we play. For consumers, health education or, in times of crisis, product recalls. For
investors: quick and equitable dissemination of material information on public companies. And, for American voters wading through myriad issues, information to help them decide
which candidates share their ideals. It's about time we educate our detractors about what we're really about. As the dotcom bubble bursts, it is important to recognize and learn
from these entrepreneurs' dashed trials and aspirations. While many have failed, the digital economy has produced, and continues to produce, some startling new enterprise
technology - especially in the communications field. Our next biggest challenge will be to harness information technology so we can compete effectively and more efficiently on a
drastically changed playing field. Database and knowledge management are just two promising areas that will irrevocably alter the way we practice PR. Yet, the rise of technology-
driven PR - absent the precepts underpinning our profession - can be dangerous. We must inculcate those new to our industry with ethics and accepted practices and disciplines...
before handing over the technological keys. If we don't, we risk losing whatever chance we have for redemption."
Elizabeth Howard, Principal, The Dilenschneider Group
"It is clear that communications is at the vortex of change. Are we ratcheting up to meet the new challenges? Leadership, good governance and even stewardship of human rights
require superior communication skills. Are we attracting the best and brightest to our profession? Are we raising the bar by offering competitive salaries and setting standards
for excellence that others will seek to emulate? Furthermore, do we have the integrity to stand up for what is morally and ethically correct? Those who make the very tough
decisions will gain the most respect.
Last year, 38 of the 200 largest public companies in the U.S. replaced their CEOs because their stock was not performing up to analysts' (and others') expectations.
Sustainable companies focus on solutions for the long-term, understanding that periods of turbulence may be a normal part of any company's life cycle. Are we counseling our
clients and our colleagues to take the long view? And are we working in teams - with lawyers, accountants and management consultants - to build ethical companies that win both in
the marketplace and in the court of public opinion?"
David Moorcroft, Senior VP Corporate Communications, Royal Bank of Canada
"We're experiencing an economic slowdown, and during periods of slowed growth, companies look at places to save money and cut costs. They start scrutinizing internal PR
departments and agency relationships to examine where they are getting value-add. The challenge to make your PR counsel more strategic and cost-effective is going to come home to
roost in 2001. Advertising and PR budgets will get cut first because they are perceived as 'nice to have' and not 'need to have.' This will result in layoffs both on the
corporate and agency side, and in some consolidation in agency community. I also think this will be healthy for the profession, because through natural culling you get a survival
of the fittest outcome. Those who've moved from being tacticians to value-added strategic counselors will do very well. Those who haven't will be hurt the most. There's a lot of
turnover among CEOs in the marketplace and communications people are being examined [with each change in leadership]. These changes will bring an increased focus on strategic
counsel, measuring what you produce and showing where you really provide value. I imagine this will create more opportunities for some smaller PR firms with low overhead - the
ones where the really senior people are the owners and can demonstrate value to their clients."
Rene A. Henry, Chair, College of Fellows, PRSA, and Director, Office of Communications & Government Relations, Mid-Atlantic States Region of the U.S. Environmental
Protection Agency
"Ethnic minorities are seriously underrepresented in the industry. We need to reach out to young people of color at the high school level and motivate them to enter and
stay in the public relations profession. On a larger scale, we also need to urge our elementary and middle schools to teach creative writing and strengthen English requirements.
Too many college graduates today still cannot write. The [public affairs arena] will see other challenges in 2001as the public's trust of political parties and the media continue
to erode. Both the Democratic and Republican parties need a massive outreach and education effort to overcome the public's anger (in light of the recent presidential election) and
to rebuild trust. Lobbying efforts will be increasingly difficult in the year ahead. Unless there is a drastic turnaround in Congress to diplomacy, negotiation, compromise and
civility, very little will happen in the next two years. Don't look for any landmark legislation."
Alisa Fogelman-Beyer, President, The ProMarc Agency
"First, how are we going to increase the core skills of our communicators? Going into this new year, it is vital that PR professionals possess a good understanding not only of
their industry but also of business and business drivers. After a fast- paced year of young technology clients burning the needed-it-yesterday PR oil, companies are realizing the
need for a more strategic business approach to communications. For PR professionals to deliver this level of public relations they need a core understanding of how businesses are
run.
Second, how are we going to sustain the momentum that the PR industry experienced during the year 2000? With all the ups and downs that we went through, 2000 was still an
unprecedented year for PR. Communications professionals became accustomed to fast-paced clients who wanted everything the day before yesterday and were (thanks to 1999 venture
capital investing) able to pay for the speed. Now that the market correction is finally catching up, and clients can no longer count on easy VC money, they are tightening their
belts and becoming more conservative in their spending. The PR industry is feeling the pinch. After a year of competing for the top staff recruits and being wooed by potential
clients, some PR companies are having to relearn what it takes to win new business, as well as restructuring their staff. We need to take steps to keep the momentum going."
Jack Bergen, President, Council of Public Relations Firms
"As the world grows smaller and the pace of life more frenetic, communications has become a social tool for everything from educating our children to building bridges
across cultures. Today, PR firms are implementing major communications programs for the European Union across a broad range of social issues, from infant care to respect for the
elderly, from nutrition to addiction. The largest PR account in the U.S. is a national education program to help young teenagers and their parents cope with the scourge of drugs.
In the past year, PR played a key role in building participation in the Census and in getting out the vote. Virtually every cause and charity has used PR to gain visibility,
volunteers and funding. Social communications will continue to grow.
On another front, changes associated with the 'New Economy' will have a profound effect on the PR industry. The Web is seemingly made for the more open discourse and
community-building functions of public relations. But the dangers of PR being "disintermediated" by new types of competitors - and of practitioners being left out of corporate e-
business and Internet planning - is significant. PR firms need to innovate to compete on a new playing field, and corporate practitioners need to seize Internet communications
responsibilities that are slipping from the grasp of Chief Information Officers (CIOs) and are up for grabs.
The Internet's voracious appetite for content means that PR professionals now have an opportunity to serve as content publishers for their companies and clients. How an
organization presents itself on the Web is a reflection of its culture, its key messages and the unique needs of its stakeholders. Who better than those who are responsible for
those factors in the real world to handle them on the Internet? If PR professionals cede to others the look and content of Internet communications, they may eventually lose their
charter in the offline world.
Because the Internet is so conducive to interactive discourse, PR professionals must develop one-to-one communications skills and become discussion leaders in online forums.
They must also transfer expertise in coalition building and grassroots mobilization to online community building and networking. Competence in visual communications will be a much
more important supplement to verbal skills in order to capture and hold the attention of Web audiences.
Roberta Carlton, Director of Public Relations, PTC
"Regulation FD presents a big challenge. Everyone is feeling around now to determine how it changes relationships with analysts - especially at the individual conversation
level. I think it's good because it puts the fear of God in corporate spokes-people. But FD is also big because it makes PR people necessary at a higher strategic level inside
the company. This is something PR people have always wished for - to have a seat at the table, not just to be there afterwards to clean up the mess.
The other big challenge for 2001? Hiring, hiring and more hiring. This is not just a matter of hiring experienced people. There's a conversation we need to have with younger
people about choosing PR for a career. We have to start looking out for our future and get kids interested at an earlier age. My company has a program whereby we provide CAD
software to schools to get kids excited about the idea of becoming engineers. I think the PR profession needs to do the same thing - provide kids with concrete examples of what
PR people do, the tools they use and how you can make a difference in this kind of job."
Don Middleberg, Chairman & CEO, Middleberg Euro
"Our biggest challenge: Hiring the best and brightest. This is not related to the economy but is an ongoing challenge for our industry. Our biggest opportunity: We've got the
advertising industry on the run. At long last we are being recognized as having the greatest value for the marketing dollar invested. We need to continue to hammer home this
message."
Michelle Herskowitz, Loudmouth PR
"The good news is that we have control over [our destiny]. The sad news is that most of us will be too defensive, proud or successful to acknowledge the challenges we need to
face, so they will probably go unaddressed for another year.
First, we must improve and protect the reputation of the profession. This hinges upon our ability - individually and collectively - to adapt to the changing business
environment. We threaten to undo the recent gains our profession has made as a critical and legitimate business function by responding in ways that are outdated or sub-standard.
We must look outside our profession for new ideas and reinvent our organizations to better fit our employee and client needs. It's easier to get fat on the gravy train. Why don't
we instead become better, faster and stronger so we aren't replaced? In a business environment that turns out new flavors daily, we must be willing to serve both the fast-food
junkies and Le Cordon Bleu masters.
Amazingly enough, the second challenge we face is how we treat our employees. Most PR practitioners are fluent in profitability and billable figures, but falter when asked
about their employee retention and promotion rates. This doesn't make sense. Not because it's a tight labor market. Not because it affects the bottom line. Not even because it
impacts client service and turnover. Again, our inability to retain talent affects our reputation. We are in the people business. If we don't know what makes our people tick, or
can't speak their language, or won't develop and inspire them to work beyond a year or so, we've shot ourselves in the credibility foot. How can we possibly counsel companies on
relationship building - one of the most important drivers of the New Economy? We can't walk our talk. But, we can't look to convention for solutions. We must be personal,
customized and real in our employee relationships. Otherwise, we have no business being in our business."
(Bergen, 877/773-4767; Carlton, 781/398-5479; Herskowitz, 713/570-7487; Himler, 212/614-4082; Henry, 215/814-5560; Howard, 212/922-0900; Fogelman-Beyer, 202/293-4168;
Middleberg, 212/888-6610; Moorcroft, 416/974-0520)