Consider this scenario: Your company is looking to begin its first relationship with a public relations firm - or maybe you need to replace your current firm or conduct a
mandatory bi-annual account review. You want to choose the right firm to help you address a particular situation, just as your company seeks the right legal or management counsel
for specific needs.
Public relations counsel is an increasingly important part of business. Over the last decade, the public relations firm profession has grown over 220 percent. Strategic
public relations counsel contributes to building corporate reputation, marketing, education and communications with a wide variety of stakeholders, from an organization's own
employees and local communities to governments and global economic communities.
When clients select a public relations firm, cost is one factor, but it should be in relationship to what you are buying. Clients look for specialization, creativity, chemistry
and team experience in the firms they select.
Use of Brokers
When the identification of a short list of public relations firms seems daunting, clients have the option of using a broker to help with the identification and selection
process. While this service can add an additional cost to the process, a broker may save the client's time and may be familiar with firms that the client hadn't considered. This
arrangement can give a client a choice of firms that have been "screened" for relevant factors: media relations experience, geographic reach and, of course, the firm's internal
workings - "how they think."
One caution to clients when working with brokers, however: Don't relinquish the power of the selection process to anyone not familiar with your company and your reason for
needing a PR firm. No one knows your corporate or business strategy like you, your senior executives or your in-house marketing team. Access is essential: access to the in-house
brain trust, the experts who can provide meaningful answers to key questions.
Another key element of selecting the most appropriate firm is a "chemistry check." You need to get to know the people who will make up your team. The firm also needs to know
you and the day-to-day relationship manager: How does he/she work, what are the expectations for the relationship, how much experience does he/she have working with outside
counsel?
The best brokers know that for a company to select the most appropriate firm, the firm needs access to the answer people during the preparation phase. Brokers serve their
clients best when they provide more opportunities for meaningful interactions between the firm and the company executives, not fewer.
Once the short list is identified, each firm has its unique approach for showcasing its strengths, experience and the reason it should be selected. Each firm wants to break
through the clutter and win your business. A successful match is made when the firm understands the nuances of the company's challenge, and has had informal but accurate feedback
on preliminary ideas.
Compensation Dialogue
Once the firm is selected, or the field is narrowed, the discussion turns from ideas to dollars. What will the program cost?
Most public relations firms are structured more like a law firm than an advertising agency. The way the PR firm determines the billing rates and ultimately a particular
budget, for example, is very different from the way an advertising agency sets the price for an advertising campaign. A public relations firm will look at what kind of team you
will need - senior counselors, specialists, general experience, media expertise? The agency will then determine what team composition can address your particular challenge.
Compensation discussions between clients and public relations agencies are becoming more sophisticated, as each party looks for a situation that provides reasonable and fair
compensation.
Compensation discussion should support the following:
- A relationship that is reasonable for all parties
- the public relations firm's involvement
- Rewards for success
The Council of Public Relations Firms is contributing to the compensation dialogue between its members and their clients by investing in research on best practices. For
clients seeking to hire a public relations firm, The Council offers a free resource, "Hiring a Public Relations Firm: A Guide for Clients," as well as "Find-A-PR-Firm," a
searchable online database, which can be found at http://www.prfirms.org.
Matchmaker, Matchmaker ...
Finding the right match in a public relations firm will pay off in time and business performance. The right firm will get up to speed quickly and begin contributing value
rapidly. Following are suggestions for preparing for an agency search taken from the Council of Public Relations' guide "Hiring a Public Relations Firm:"
- Articulate the communications objectives - the more actionable and measurable the objectives, the better for evaluating the firms.
- Consider the budget you plan to allocate for the assignment - provide a range to help firms understand the resources they will need to allocate, if selected.
- Prepare the request for credentials - to conserve your time and the agency's, limit the request to information that is specifically relevant to your current search.
- Spend time with the firms you are seriously considering - you'll get to understand how they will utilize your time, and how they will think about and contribute to your
business.
Kathy Cripps
Kathy Cripps is the president of the Council of Public Relations Firms. Prior to joining the Council she worked with two multi-national public relations firms and founded a
specialty firm. Before moving to the counseling side of the public relations profession, Cripps worked for a multi-national food company. She holds a BA in nutrition and an MBA
in marketing. Contact at kcripps@prfirms.org.