Has the C-suite finally learned to appreciate and value the services of its PR departments? Or would the corporate powers happily shut down and outsource their internal
communications divisions as part of a budget-cutting endeavor. According to a new survey conducted by PR News and the Counselors Academy of the Public Relations Society
of America, the answer is an overwhelming "Yes!" - to both questions.
In a survey which fielded responses from 580 PR professionals, the question was posed: "Do you believe that the powers-that-be in Corporate America understand and truly
appreciate the work coming from PR departments?" The answer came back with 77% of respondents saying yes, 22% saying no, and 1% not having a response.
For Steven Cody, chairman of the Counselors Academy, the strong positive response to that question serves as an affirmation of PR's intrinsic worth. "That is more than I
would've hoped for," says Cody, who is also managing partner with the New York agency Peppercom. "It certainly reinforces what we've been saying: PR is gaining increased
activity with the corner office and the C-suite. This is a great barometer that shows we've been making greater strides in recent years."
But in the same survey, another question was posed: "Would you agree that as Corporate America continues to find ways to cut costs to please the Street, internal corporate
communications divisions will be shut down and their work will be outsourced to PR agencies or outside PR representatives?" In answering, 65% of respondents said yes, 34% said
no, and 1% had no response.
How can one reconcile the seeming contradiction between the survey respondents' sense of being acknowledged with their dread of being tossed out the door in a cost-efficiency
sweep? "That lies at the heart of what it is as industry that we have to do," says Cody.
Cody notes that a key strategy to ensure PR's viability within the corporate structure is to strengthen its indispensability through strategies such as reputation management.
He notes the example of the pharmaceutical industry, which underwent its own tumult over the years as sales experts - rather than corporate communications professionals - drove
its reputation management considerations.
"The CEOs have to understand that it is dangerous to outsource an important function as corporate reputation management," he says.
Within the industry itself, the survey found the majority of PR professionals believe diversity in recruiting efforts have been paying off. The respondents were asked: "Would
you agree the corporate communications side of the PR industry is keeping pace with the need to reflect an increasingly diverse population base?" The feedback came with 68%
believing the efforts were successful, 31% disagreeing, and 1% not having an opinion.
Diversity Drive, Digital Doings
For Cody, the thumb up on this issue doesn't seem to correspond with his own observations of the industry as a whole. "I hope that 68% is right," he says. "I believe that we
as an industry are still not doing what needs to be done to reflect the diverse population base. I would say those 68% are being overly optimistic."
From his own company's perspective, Cody made diversity in hiring a priority - to the point of proactively establishing relationships with the nation's historically black
colleges to identify potential Peppercom employees. "We're doing everything possible," he says. "This is not just a nice thing to do - it's a smart business development."
The survey also touched on high-tech issues. When asked if emerging technologies were placing more strains on a PR professional's ability "to keep pace," 89% agreed. When
asked if PR professionals must adapt to the quickly evolving new media vehicles (including blogging, wikis, podcasts, and even rogue Web sites), 95% affirmed that thought.
Cody acknowledges that not everyone is riding the new Net wave. "There are some people still resisting the whole digital initiative - at their own peril," he observes. Cody
notes that he is already moving further into this territory: His blog RepMan (http://www.repmanblog.com) is now home to the weekly RepChatter podcast, in which Cody and Ted Birkhahn, managing director at Peppercom,
discuss the issues of the day. But even here, RepChatter expands the concept of podcasting with an extra-added element.
"We do this with a live studio audience at Peppercom, where people ask us questions," says Cody. "And we've gotten very positive feedback."
Contact: Steven Cody, [email protected].
Counselors Academy Survey
1. Would you agree that new marketplace dynamics such as emerging technologies and changing demographics are placing more strains on you to keep pace?
- Yes: 89%
- No: 10%
- No Response: 1%
2. Would you agree the corporate communications side of the PR industry is keeping pace with the need to reflect an increasingly diverse population base?
- Yes: 68%
- No: 31%
- No Response: 1%
3. Would you agree that Corporate America's focus on short-term results to please the "Street" is placing increasing pressure on PR executives to produce results within a
shorter space of time and within tighter budget restraints?
- Yes: 90%
- No: 8%
- No Response: 2%
4. Would you agree that, with the rise of new and alternative sources/forms of media such as blogging, wikis, podcasts, rogue Web sites, etc., we as public relations
practitioners must adapt the way in which we "go to market" to keep pace?
- Yes: 95%
- No: 4%
- No Response: 1%
5. Would you agree that as Corporate America continues to find ways to cut costs to please the Street, internal corporate communications divisions will be shut down and their
work will be outsourced to PR agencies or outside PR representatives?
- Yes: 65%
- No: 34%
- No Response: 1%
6. Do you believe that the powers-that-be in Corporate America understand and truly appreciate the work coming from PR departments?
- Yes: 77%
- No: 22%
- No Response: 1%
Source: PR News and the Counselors Academy of the PRSA
*580 total respondents