A new report shows that more than half of top-ranking communication officers are reporting directly to the corporate CEO - heartening news for a profession seeking new ways of proving value.
The Public Affairs Group in Washington, D.C. is in the throes of an ongoing "best practices" probe of more than 530 companies. The companies being studied are $1-billion-plus businesses providing benchmarking models for how communication departments function and are structured within the corporate matrix. The widening global market has had an impact on both of these areas.
In this unprecedented survey, PAG is looking at stakeholder favorites such as Ameritech, AT&T, IBM, Maytag and Whirlpool. Segments of the study will be completed in waves, with the full report available Feb. 10.
The Paper Trail
As communicators look toward better leveraging their skills and streamlining divisional functions, they're realizing one must study how companies are structured, especially in the era of the M&A. Where you or your supervisor fall in the organizational chart (or management maze) can speak volumes about how tangible your efforts will appear when it comes time to review business plans or cement strategies.
For those in PR, the corporate information pipeline continues to take various routes, which means access to the top can vary considerably.
An often-emulated company when it comes to multicultural marketing and overall philanthropy, Allstate Insurance Company reportedly gives its communicators regular access to the top.
At Allstate, communication execs several times a week discuss with CEO Ed Liddy myriad issues concerning corporate reputation/branding, according to Pattie Overstreet-Miller, assistant VP of strategy.
Not all companies operate this way, however, and because PR is in such a transitional phase, corporations are mining many information sources to uncover how their competitors and blue-chip companies operate.
Although PAG's findings thus far bode well for those in communications, some conclusions are startling, nonetheless. Only half of the communications departments in 150 companies are headed by those who came through traditional PR ranks.
"Although these are the highest titles we've ever seen at the top level, we're finding that half of those being recruited [into the upper echelons] aren't from communications. They have well-rounded business backgrounds," says Edie Fraser of PAG.
The majority of communication executives have titles on par with other key corporate executives, the study indicates. The most common top communications title is vice president, a title held by 53.8 percent of corporate PR executives. Senior VP follows with an 18.8 percent slice and director with 17.5 percent.
Who's Running the Show?
The question of whether the profession needs more MBAs or, conversely, more media relations gurus, won't be easily answered anytime soon.
The PR industry and profession continue to morph based on a range of variables, from the push toward integrated communications to the blurring of the line between human resources and PR.
Sources do agree that the need to analyze best practices will continue to be a hot-button issue for those in communications and PR, due in part to the influence on internal checks-and-balances of bolder external factors such as the Internet. Indeed, the need for that kind of analysis has led to studies like the PAG undertaking.
A host of topics will be explored in the ongoing PAG study, including the size of average communications budgets ($3.8 million as reported in last week's PR NEWS) to the hierarchy of functions handled by corporate communication departments.
Media communications and corporate communications top the list of activities execs viewed as fundamental, with 58.81 percent and 52.88 percent allocations, respectively.
(PAG, 202/466-8209; Allstate, 847/402-2899)
| Heads of Corporate Communication Report To: | |
| CEO | 51 percent |
| COO/CAO | 19 percent |
| CFO | 2 percent |
| EVP | 11 percent |
| SVP | 9 percent |
| VP | 4 percent |
| Director | 1 percent |
| Other | 3 percent |
Tracking By PR Departments
MEASUREMENTS AND RESEARCH BUDGETS
89.4% with measurement and research budgets (42 vs.5)
10% with no measurement and research budgets.
BENCHMARKING
85% of the companies participate in media/content analysis
TRACKING ISSUES
80.9% report tracking issues
19.1% do not track issues
INTERNET TRACKING
85.1% track the Internet usage and do analysis
14.9% do not track Internet and do analysis
FOCUS GROUPS
70.2% use focus groups
29.8% do not use focus groups