The just-released Generally Accepted Practices (GAP) survey from the Strategic Public Relations Center at the USC Annenberg School for Communication offers a detailed glimpse
into the inner workings of the communications function, especially regarding reporting relationships, prominence of agencies-of-record and measuring effectiveness.
The survey incorporates the views of respondents who represent 520 organizations and, for the first time, offers best practices that correlate with various results. Among the
findings (broken down by category):
Reporting Relationships
When asked to whom they report, the communications executives' responses revealed the following:
-
64% of all respondents report to the C-suite;
-
23% report to marketing;
-
8% report to strategic planning;
-
17% report to the "head of unit"; and,
-
7% report to human resources.
Based on the findings about reporting relationships, the following statistical correlations could be identified:
-
When PR reports to marketing, PR is seen as making a high contribution to sales;
-
When PR reports to strategic planning, a larger percentage of the budget is allocated to evaluation; and,
-
When PR/communications reports to the C-suite, respondents are more likely to have their recommendations taken seriously, to have higher levels of support from the C-suite,
to have their reputational considerations factored into organizational strategic decision making and planning and to be evaluated based on their contributions to market share,
profitability and sales, as well as their influence on corporate culture, employee attitudes/morale and stakeholder awareness.
Measuring Effectiveness
Despite the results' indication that PR/communications professionals are enjoying more prominent strategic roles within their organizations, the findings also indicate that
there is a significantly low funding level for evaluating PR effectiveness.
These findings suggest that:
-
The absence of reliable and widely accepted tools for measuring PR effectiveness may also lie behind the low percentages of PR budgets dedicated to evaluation;
-
Measuring reputation remains a favored methodology despite the lack of a widely adopted method for doing so; and,
-
Financial analysts and senior management often rely on stock performance as well as contribution to profitability, market share and sales, to track and evaluate progress;
however, these methods were ranked very low by the communications respondents.
Use Of Outside Agencies
The practice of hiring an agency of record--a relationship in which one agency has the client's entire outsourced PR business--is becoming increasingly rare, according to the
study, but that does not mean that outside agencies aren't being used.
-
More than 60% of responding organizations use outside agencies; however, the most common model now is to spread work around multiple agencies to customize results based
on an agency's unique strengths; and,
-
More than 75% of those organizations that do use outside agencies maintain continuing, multiyear relationships with them.
Best Practices
Based on the comprehensive findings of the GAP study, the authors compiled the following specific best practices:
1. Maintain a higher-than-average ratio of PR budget to gross revenue.
2. Report directly and exclusively to the C-suite.
3. Optimize the C-suite's understanding of PR's current and potential contributions to the organization as a whole.
4. Establish an effective social responsibility strategy for your organization.
5. Establish an effective digital-media strategy.
6. Establish an effective issues-management strategy.
7. Optimize integration and coordination within the PR/communications function, and between it and other organizational functions.
8. Encourage highly ethical practices across the organization.
9. Encourage the organization-wide adoption of a long-term strategic point of view.
10. Encourage the organization-wide adoption of a proactive mind-set.
11. Encourage the organization-wide adoption of a flexible mind-set.
12. Optimize the integration of PR and reputational considerations into top-level organizational strategies.
13. Measurably contribute to organizational success. PRN
Source: GAP V, Strategic Public Relations Center, USC Annenberg School for Communication