Part Two of Two
Last week, we examined the effect of the economic downturn on media relations. This week, we continue our look at how lean times impact public relations. PR NEWS asked
experts how the economy is changing the roles of communications pros - and we got an earful.
While recent downsizings have hit hard within corporate PR departments and agencies alike, the economic slump has produced new opportunities to expand the role of PR within an
organization.
"Obviously with the turn in the economy, companies are looking at maximizing the skill set of their employees," says Stacey Reineking, director of PR for B2B Works, a provider
of business-to-business online marketing and media services. Reineking and her staff have taken responsibility not just for corporate communications, but also for B2B Works'
marketing functions, and as a result, they've had to develop a much tighter focus on how their role can influence the company's success. "The whole [promotional] arena is under
more scrutiny than ever. We're being held more accountable for where we're allocating resources, both budget and people," she acknowledges.
Outcomes vs. Tactics
"Smart clients are buying outcomes, not tactics," says Lee Duffey, president of Duffey Communications in Atlanta. "Clients are coming in and saying, 'This is what I want to
achieve, how do we make it happen?'"
This kind of goal-oriented PR demands a more holistic approach to promotions and challenges the public relations department's expertise to include not just media relations, but
public affairs, branding, investor relations, and, in the case of B2B Works, marketing and advertising strategies.
Learning these disciplines is a new hurdle for many PR pros who, up until now, were steeped primarily in media relations. "It's unnatural to go from PR to investor relations,"
says Jose Mallabo, founder of Full Disclosure Media, a communications firm for startups. "Suddenly you have to understand not just your company's products, but the bottom line,
and how Wall Street evaluates it. I still need a cheat sheet for earnings conference calls."
Buying outcomes instead of tactics also means greater focus on direct-to-stakeholder efforts. "There's less emphasis on asking the media to tell a story, and more on the
appropriate vehicles to reach directly to suppliers, partners and customers," says Robert Cathey, VP of Ackermann Public Relations in Knoxville, Tenn. This not only improves
efficiency but also keeps news from falling into the wrong hands. "One reason for bypassing the media is companies don't want to tip their hand to competitors," Cathey says.
"There's more secrecy - let's whisper this in the ears of those who need to know."
Partnering with Senior Management
Streamlined staff and strategies don't necessarily translate to streamlined expectations from company leadership. In Reineking's case, a multi-disciplinary role and limited
staff have forced her to take a proactive stance in defining management's expectations of her department. This has resulted in an agreement with company leaders that PR should
focus on supporting the sales team by adopting the kind of direct-to-client approach Cathey recommends. "It's really great to get a fluffy piece in a magazine on your CEO but we
need to be where our customers are," Reineking says. "Instead of getting it out to the world, we're getting it out to customers."
Despite such bottom line focus, dealing with executives who sometimes expect more than a downsized staff can deliver is often frustrating. "Executive management will see the
competition in an article we're not in, and I'll get the article with a Post-It note saying, 'We missed this,'" Reineking relates. "Marketing and PR directors are really
challenged right now to find balance between meeting all the company objectives and working smart to switch gears when they have to."
While the experience may be frustrating, the additional responsibilities piled on many PR departments are winning respect for the value of PR. There are tremendous
opportunities, Duffey says, to gain new influence on the strategic direction of the company. But, "the best thing to do is just shut up talking and start doing. He suggests going
to senior management with ideas on how to add value to direct sales or other functions within the organization. "CEOs are looking for actions and outcomes. [This is a chance] to
demonstrate your value in an ongoing fashion." (Robert Cathey: 865/584-0550, [email protected]; Lee Duffey: 404/266-2600, [email protected]; Jose Mallabo: 716/889-9114, jmallabo@fdmedia. com; Stacey Reineking: 312/423-7618, [email protected])
Taking Their Hits
- Dennis Spring, president of Spring Associates, a public relations executive search firm in New York, estimates 20% to 30% of agency jobs and 15% of corporate
communications jobs were eliminated between January and May. - PR career/placement specialist Arnold Huberman, president of the eponymous agency, says that PR professionals in the Big Apple were particularly hard hit by the latest round
of layoffs because agencies absorbed PR refugees from the tech industry, the first sector sacrificed as the economy softened. "Last year at this time, we went begging for a PR
resume. Today we receive, on average, 30 resumes a day from all around the country," he says.
July - Porter Novelli downsizes 10 in Chicago.
June - Schwartz Communications axes 22 Boston employees.
May - Cohn & Wolfe closes it Chicago office.
April - Hill and Knowlton shuts down Reston, Va. Office. Morgen-Walke
terminates 35 employees. Ogilvy PR cuts 24 New York staffers.
March - Borders Books eliminates 300 community relations staff members.
Edelman downsizes 60, closes Houston office. Makovsky & Co. eliminates 8.
February - Brodeur Worldwide rifs 20. Leo Burnett cuts 300. Middleberg
Euro cuts 20-30.