The Contributions of Public Relations to the Attainment of Corporate Objective

PUBLIC RELATIONS AND CORPORATE OBJECTIVE

By Mobolaji OkusagaManaging Director, The Quadrant Company

What’s Your Company’s Objective? Corporate Objective articulates a Company’s manner of

doing business and the kind of relationships it need to create with its Stakeholders to deliver on its purpose

These objectives are encapsulated in the organisation’s mission, vision and culture and help set the tone for interactions with its Stakeholders

Corporate Objective asks the questions: What is the purpose of our organisation? What value do we intend to create? What kind of ideals bind our stakeholders together?

By answering these questions, Corporate objective helps an Organisation to differentiate, plan, execute and deliver exceptional performance

Identifying your Stakeholders

Anyone on the StreetAnyone on the Street

InfluencersInfluencers

Core TargetCore Target

Corporate Objectives and Stakeholder Theory

Stakeholder theory begins with the hypothesis that values are essentially and decidedly part of doing business

It address the Principle of Who or What Really Counts by establishing which groups are Stakeholders in a corporation

In traditional input-output models of the corporation, Organisations use the inputs of investors, employees, and suppliers and converts it to usable outputs

By this model, firms only address the needs and wishes of four parties: Investors, Employees, Suppliers and Customers

Contemporary Stakeholder theory however recognizes other parties such as governmental bodies, political groups, trade associations, trade unions, communities, associated corporations, etc as Stakeholders.

The theory recognizes that Stakeholders are constituencies that contribute, either voluntarily or involuntarily, to an Organisation’s wealth-creating capacity, and may be its beneficiaries and/or risk bearers

In fulfilling its Corporate Objective therefore, an Organisation must clearly identify its Stakeholders and strategically relate with them.

The Organisation and its Stakeholders

EMPLOYEESEMPLOYEESEMPLOYEESEMPLOYEES

MEDIAMEDIAMEDIAMEDIA

SUPPLIERSSUPPLIERSSUPPLIERSSUPPLIERS

COMPETITORSCOMPETITORSCOMPETITORSCOMPETITORS

SHAREHOLDERSSHAREHOLDERSSHAREHOLDERSSHAREHOLDERS

GOVERNMENTGOVERNMENTGOVERNMENTGOVERNMENT

GENERALGENERAL

PUBLICPUBLIC

GENERALGENERAL

PUBLICPUBLIC

CUSTOMERSCUSTOMERSCUSTOMERSCUSTOMERS

THE

ORGANISATION

THE

ORGANISATION

What are the Demands of Stakeholder Engagement? Every organisation relates with different publics -

from the Shareholders, Staff, Customers, Industrial Unions, Government and Regulatory Bodies, Counter-parties, the Press to the local community.

These stakeholders are different in terms of their interests and expectation from the organisation

The organisation therefore needs a deep-seated understanding of these interests and expectations to maintain a dialogue, enhance relationships and retain its goodwill among its stakeholders.

Outcomes of a Sound Corporate Objective

Products / Service Quality / Technology Leadership

Increased Sales Preference for Company’s Products / Service Customer Acquisition / Quality of Customers Growth in Market Share / Market Leadership Turn-over Operating Margin Gross Profit Market Capitalisation / Stock Price Attraction and Retention of Quality Employees

Public Relations in Organisation-Stakeholder Dialogue

Public Relations is the art and science of building relationships between an organization and its key publics .

Public Relations engenders purposeful communications between an organisation and its publics, it is proactive and future orientated, and has the goal of building and maintaining a positive perception of an organisation in the mind of its publics.

In the dialogue between Organisations and their stakeholders, the following branches of Public Relations suffice:

Employee / Labour Relations Customer Relations Investor Relations Media Relations Government Relations Community Relations Reputation Management Issues Management Crisis Management

Its Implication

Generally, Public Relations function as the conduit of the organisation to the world outside

Public Relations practitioners must therefore, be abreast with their organisation’s vision, mission, strategy, corporate concern and culture

They also need to understand their place in their company’s overall objective and to understand the market environment in which their organisation operates

The Public Relations Executive should read the competitive landscape and be able to predict the move of competition

He /She needs to be able to identify the organisation’s different stakeholders and the varying expectations that arise from operations and interaction with these stakeholders

Finally, the Public Relations Practitioner must be able to relate his activities with the drive at achieving the organisation’s objectives.

Creating the Link

Public Relations Executives need to think like a Business Managers by measuring their activities against their Organisations goals

They must develop PR metrics which correlate with their Organisations objective

PR Executives must initiate programmes which cover the entire competitive landscape with a view to seizing the higher ground for their Organisations

In relating with the media, they must think of them as a channel to the Organisations Stakeholders

POTENTIALPOTENTIAL EMPLOYEESEMPLOYEES

EMPLOYEESEMPLOYEES

DISTRIBUTION / CHANNEL DISTRIBUTION / CHANNEL PARTNERSPARTNERS

MAJOR MAJOR CUSTOMERSCUSTOMERS

REGULATORSREGULATORS

FINANCIAL ANALYST / BUSINESS PRESSFINANCIAL ANALYST / BUSINESS PRESS

BUSINESS LEADERSBUSINESS LEADERS

COMMUNITIESCOMMUNITIES

PORTFOLIO MANAGERS / INVESTORSPORTFOLIO MANAGERS / INVESTORS

CONSUMERSCONSUMERS

PATH

OF

REF

EREN

CE

PATH

OF

REF

EREN

CE

PA

TH O

F INFLU

EN

CE

PA

TH O

F INFLU

EN

CE

Stakeholder RelationshipsStakeholder Relationships

Source: Regis McKennaSource: Regis McKenna

Expectation from Relationships

EMPLOYEES / POTENTIAL EMPLOYEES

CUSTOMERS

DISTRIBUTION / CHANNEL PARTNERS

REGULATORS

COMMUNITIES

Career Opportunities,CompetitiveRemuneration, Good Management

Trustworthy, Good/SuccessfulProducts

Attract Customers, Make Sales

Ethical, Compliant

Philanthropy, Good CorporateCitizenship

Elements of a Good Message

Messages disseminated must be within the Stakeholders frame of Reference

Must be relevant and useful to the Stockholder's need

Should be distinctive and distinguishable from that of competition

Should be able to compel positive action Should deliver intended value

Developing PR Objectives

In developing objectives which are scientific, it is essential to include precise milestones that evaluate progress in the realization of set aspirations. This process may include the following:

1. Map desired communications outcome2. Spot target segment for desired outcome3. State expected level of success4. Identify timeframe for target outcome

Understanding Strategies and Tactics

Strategies are logical and systemic outlines for the attainment of desired goals.

It basically considers the big-picture rather than details.

Tactics are detailed plans designed for the actualization of strategies. Tactics identifies personnel, timelines, budget and the structure for the attainment of set objectives.

The Five Steps of Strategic PR Management

Craft aStrategy

to AchieveObjectives

SetObjectives

Develop aStrategic

Visionand

Mission

Implementand

ExecuteStrategy

Improve/Change

Revise asNeeded

Revise asNeeded

Improve/Change

Recycleas Needed

Step 1 Step 2 Step 3 Step 4 Step 5

Monitor,Evaluate,and Take

CorrectiveAction

Communication MatrixTARGET EXPECTATIO

NDESIRED ACTION

CORPORATE OBJECTIVE

MESSAGE COMM STRATEGY

METRIC

LABOUR UNIONS

Positive outcome of outstanding Staff issues

Information on Staff Welfare

understand Managements position

contentious Staff issues

Spread a positive buzz on career development and staff welfare

Reduce Staff Attrition

Create a harmonious organisation / labour relationship

Attract the best talents in the industry

Best place to work

Understands working smart

Develops industry’s best hands

Proactive response to Staff enquires

Build good internal communications &Information Flow

Establish Monthly

In-house Journal

Obtain 2x competitors commendation of in Labour Articles

Generate 2x competitors buzz

on good staff welfare and attract

best industry talents

CUSTOMERS Quality Products

Satisfaction of needs

Innovation

Trust

Buy and recommend company’s products

Increase market share

Widen Customer Base

Differentiate and engender preference for products above competitors offerings

Best Products

Leadership gives access to new markets

Easy to do business with

Where the customer is truly a king

Drive preference by providing and campaigning highest standards

Leverage constant two way communications by constantly requesting feedback

Develop internet site as business tool

2x number of competitors lead

100% increase in product preference against competitor’s

PRESS /PRESS /

FINANCIAL FINANCIAL

ANALYSTANALYST

News on News on

Developments Developments

within the within the

OrganisationOrganisation

Company Company

Financial ResultsFinancial Results

Positive Positive

Articles on Articles on

Company’s Company’s

Financials and Financials and

ActivitiesActivities

Recommend Recommend

Stock to investing Stock to investing

PublicPublic

Continuous Continuous

coveragecoverage

Increase share of Increase share of

industry voiceindustry voice

Generate stability Generate stability

Through good and Through good and

Consistently Consistently

improving Financial improving Financial

performanceperformance

Best product sBest product s

Customer Customer

friendlyfriendly

Company’s Company’s

Performance Performance

exceed exceed

industry industry

leadersleaders

SpeakingSpeaking

EngagementsEngagements

Opinion Opinion

ArticlesArticles

Upgrade IR Upgrade IR

WebsiteWebsite

Focus Road Focus Road

shows on shows on

prioritiespriorities

MEASURING PUBLIC RELATIONS OUTCOMES AGAINST CORPORATE OBJECTIVES

Why Measure?

Guts does not cut it anymore, you’ve got to be able to justify your activities.

If you aren’t measuring, you are not managing your budget effectively and deserve to be fired.

Without data, how do you know what’s working and when to intensify or discontinue a line of action.

Determining Measurement Technique

Always match measurement technique to available resources

PR measurement does not have to be expensive- soft sounding surveys are an economical way of knowing designated audiences perception of a particular media message on your organisation

Quantitative / message tracking can be done internally rather than through a media research firm in order to reduce cost, all that matters is for Management to be able to get the information on which action can be taken.

Creating a valid measurement parameter for you activity will help you to be able to justify your budget and prioritize your activities.

Measurement and Evaluation Methods

In-house: - quantitative / message tracking using Excel to plot graphs and charts.

PR agency research tools: - Quantitative Research

- Qualitative Research (article type, tone, ideological bent, latent issues)

Media Research:- Competitive tracking studies to measure quantitative and qualitative

indices.- Trend analysis to measure specific trends and influences

Research Firms: To measure the insight of the target audience beyond the media message

using Focus Group Discussions, Surveys and Observation and sampling methodologies

Examples of PR Reporting

Positioning of Company on Issues

Corporate GovernanceCorporate GovernanceCorporate GovernanceCorporate Governance

Industrial / Labour IssuesIndustrial / Labour IssuesIndustrial / Labour IssuesIndustrial / Labour Issues

Philanthropy / Corporate ResponsibilityPhilanthropy / Corporate ResponsibilityPhilanthropy / Corporate ResponsibilityPhilanthropy / Corporate Responsibility

00 2020 4040 6060 8080 100100 120120 140140 180180 200200

Number of times Company was favourably positioned on Number of times Company was favourably positioned on key issues in the mediakey issues in the media

Product QualityProduct Quality

Quantitative / Qualitative Performance Map

20020000

Brand A Brand A

Brand B Brand B

Brand C Brand C

Brand D Brand D

Quantitative (Number of Articles)Quantitative (Number of Articles)

Qu

alit

ati

ve

(tim

es p

osi

tio

ned

on

key

iss

ues

)Q

ual

ita

tiv

e (t

imes

po

siti

on

ed o

n k

ey i

ssu

es)

Mention of competing Brands in the media in a Mention of competing Brands in the media in a QuarterQuarter

Lotus Press Coverage Analysis

00 20 %20 % 40 %40 % 60 %60 % 80 %80 % 100 %100 %

COMPANY A COMPANY A

COMPANY B COMPANY B

COMPANY C COMPANY C

COMPANY D COMPANY D

Positive messagePositive message No messageNo message Negative MessageNegative MessageR. Paine and PartnersR. Paine and Partners

Percent of impressions containing messages by CompanyPercent of impressions containing messages by Company

Lotus Press Coverage Analysis

N0.00N0.00 N0.50N0.50 N1.00N1.00 N1.50N1.50 N2.00N2.00 N2.50N2.50

COMPANY A COMPANY A

COMPANY B COMPANY B

COMPANY C COMPANY C

COMPANY D COMPANY D

Cost per message communicatedCost per message communicated

Industry Best Practice

Competitive analysis is compulsory in measuring your success.

Analysis of messaging, positioning and issues identification are the norm.

Analyst and quote measurement are some of the latest trends.

Integrating media analysis with web activity and customer outcomes is starting to emerge as a pervasive trend in the developed world.

8 Steps for Effective Measurement

1. Define your mission2. Map your needs3. Identify what you are benchmarking against4. Select an appropriate and cost effective research

methodology5. Embark on research6. Analyze result and pick up insights7. Take appropriate action 8. And then measure again

Matching PR Objective and Spend

With the Outcomes of

PR Activities

Prioritize your PR Spend

There is a need to define your focus in alignment with the overall Corporate objective and then prioritize your spend on the following: Employees Customers Analysts Consumer media Business media Trade media Government officials NGO’s and Community Based Associations (CBO’s) Religious Institutions Labour Unions Opinion moulders

PR as Profit Centre Sometimes top management often wonder if they are getting

their money’s worth from PR programmes and often believe that PR activities are as ephemeral as the air.

To counter this notion, PR executives often points to “Ad Value Equivalency”, which equates PR hits against the value of an advertisement in the same news media that the article or programme appeared, as a measure of the value of PR in advancing the Corporate objective.

But that does not pass the sniff test, what is key to note is that PR sets a criteria for relating with profitable and influential stakeholders and helps prepare the ground for marketing in the sense that its activities go well beyond engendering an awareness for a Product / Company and most importantly, help to build a sustainable platform on which to carry out branding and marketing activities.

That platform is “GOODWILL”. GOODWILL can therefore be said to be the profit procurable

from PR activities.

Thank you.