Handbook of Corporate Communication and Public ... - Blogs Unpad

Handbook of Corporate Communication and Public ... - Blogs Unpad Handbook of Corporate Communication and Public ... - Blogs Unpad

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nurses and pharmacists, and include coaches, hairstylists, mothers-in-law, travel agents, and so on. In addition, consumer advocacy groups have grown in number as well as influence, and building relationships with these opinion leaders now is as important as forging alliances with physician thought leaders’. Study of 100 companies A major benchmarking survey, conducted in 1997 by Edelman Public Relations Worldwide, the Medill School of Journalism and Opinion Research Corporation, sheds some light on how companies organize themselves to handle corporate communication. One hundred international companies participated. Here are some of the more interesting findings about reporting lines and infrastructure. These findings are broadly confirmed by late studies involving global corporations. Of the top communication officials 60 per cent are at the vice president/vice chair level. Nearly 2 in 10 hold the title of director, and 1 in 10 are senior vice presidents. The remaining 13 per cent hold the following titles: manager (8 per cent), corporate vice president (3 per cent) and executive vice president (2 per cent). The senior-most communicators report directly to the CEO at 54 per cent of the companies surveyed. For those communicators who do not report directly to the CEO, 30 per cent report to the vice president, senior vice president or vice chair level of the organization. Regardless of direct lines of reporting, 93 per cent, nearly two-thirds of the most senior communicators, counsel with the CEO at least weekly and 15 per cent counsel with the CEO on a daily basis. Although survey respondents reported a variety of functional communication areas for which senior-most communicators are primarily responsible, the core public relations functions are much better represented at this senior level than are other areas such as advertising or marketing. Nearly one-third of these senior-most communicators have corporate communication as their primary functional responsibility, followed by public relations (16 per cent) and public affairs (12 per cent). The range of specific functions which fall under the corporate communication umbrella is becoming more diverse. More than 4 in 10 report that corporate communication maintains final oversight for advertising, marketing and promotional activities. Surprisingly, more than 10 per cent are also directly responsible for customer service at their respective organizations. Nearly 9 in 10 respondents indicate the use of external communication agencies at corporate headquarters, with more than 7 in 10 also using external agencies at the discretion of each business unit. Further, more than 5 in 10 also employ external communication agencies within their various geographic regions. Only 5 per cent do not use outside communication agencies. Overall, the annual operation budget (excluding salaries) for corporate communication activities was reported as follows: Corporate communication responsibilities • Media relations: 99 per cent • Crisis/issues management: 93 per cent • Employee communication: 88 per cent • Corporate identity/image: 83 per cent • Financial communication/investor relations: 75 per cent • Research and measurement: 75 per cent • Community relations/corporate philanthropy: 74 per cent © 2004 Sandra Oliver for editorial matter and selection; individual chapters, the contributors

• Advertising, marketing and promotions: 43 per cent • Government affairs: 35 per cent • Customer service: 11 per cent Global corporate communication budget (US$ equivalent): • Less than $1 million: 25 per cent • Greater than $1 million, but less than $5 million: 39 per cent • Greater than $5 million, but less than $10 million: 11 per cent • Greater than $11 million, but less than $15 million: 4 per cent • Greater than $20 million: 15 per cent It is customary for most companies to draw a clear line between communication in the ‘home country’ of operations and in international operations, with one person assigned to be responsible for management of communication in non-domestic markets. There are good practical reasons why the separate role of the international PR manager within corporations continues to exist: most companies have a long history in their own communities and know their way around the local and national media, the influential groups important for the business, their political representatives and their customers. They are less certain of themselves in their overseas markets, which vary widely in almost every respect. An international PR manager who makes it his business to be knowledgeable about these markets and can manage a network of widely dispersed PR representatives is worth his weight in gold. In a more recent survey among corporations in the United States, Europe, Asia and Latin America, conducted for Edelman by Professor Rob Wakefield, the PR activities and procedures of respondents were measured against a list of criteria. These criteria were chosen to determine the degree of sophistication, or development, of the firm’s public relations. The results showed that it was not the very largest firms that were ‘best in class’. This honour went to medium-to-large organizations with a headquarters in Europe. The Wakefield evolution model • Early evolution: Few resources, little interaction between HQ and local units. • Moderate evolution: Growing resources, incomplete local staff, little or no HQ authority. • Advanced evolution: Almost complete resources, better trained PR personnel, incomplete HQ – local units co-ordination. • Complete evolution: Full staff, trained PR officers in every unit; interaction for mutual goals (Figure 26.4). The qualifications of the international PR manager might be quite different from those of an executive who needs only to operate in the home market. Some of these qualities are described in Chapter 1. Briefly, he will need to be culturally aware, patient, open-minded and inquisitive about alien customs and government procedures, with the ability to work with people from a variety of nations. At the same time, the international executive must never become detached from the ‘mother company’ and totally concentrate on the non-domestic operations. One vital role is to act as a bridge to the PR staff overseas who need and rely on him to be their link to headquarters, the conduit of policies and news. Never underestimate how most employees who work a © 2004 Sandra Oliver for editorial matter and selection; individual chapters, the contributors

• Advertising, marketing <strong>and</strong> promotions:<br />

43 per cent<br />

• Government affairs: 35 per cent<br />

• Customer service: 11 per cent<br />

Global corporate communication<br />

budget (US$ equivalent):<br />

• Less than $1 million: 25 per cent<br />

• Greater than $1 million, but less than $5<br />

million: 39 per cent<br />

• Greater than $5 million, but less than $10<br />

million: 11 per cent<br />

• Greater than $11 million, but less than<br />

$15 million: 4 per cent<br />

• Greater than $20 million: 15 per cent<br />

It is customary for most companies to draw a<br />

clear line between communication in the<br />

‘home country’ <strong>of</strong> operations <strong>and</strong> in international<br />

operations, with one person assigned<br />

to be responsible for management <strong>of</strong> communication<br />

in non-domestic markets.<br />

There are good practical reasons why the<br />

separate role <strong>of</strong> the international PR manager<br />

within corporations continues to exist: most<br />

companies have a long history in their own<br />

communities <strong>and</strong> know their way around the<br />

local <strong>and</strong> national media, the influential<br />

groups important for the business, their political<br />

representatives <strong>and</strong> their customers. They<br />

are less certain <strong>of</strong> themselves in their overseas<br />

markets, which vary widely in almost every<br />

respect. An international PR manager who<br />

makes it his business to be knowledgeable<br />

about these markets <strong>and</strong> can manage a network<br />

<strong>of</strong> widely dispersed PR representatives is<br />

worth his weight in gold.<br />

In a more recent survey among corporations<br />

in the United States, Europe, Asia <strong>and</strong><br />

Latin America, conducted for Edelman by<br />

Pr<strong>of</strong>essor Rob Wakefield, the PR activities <strong>and</strong><br />

procedures <strong>of</strong> respondents were measured<br />

against a list <strong>of</strong> criteria. These criteria were<br />

chosen to determine the degree <strong>of</strong> sophistication,<br />

or development, <strong>of</strong> the firm’s public<br />

relations. The results showed that it was not<br />

the very largest firms that were ‘best in class’.<br />

This honour went to medium-to-large organizations<br />

with a headquarters in Europe.<br />

The Wakefield evolution model<br />

• Early evolution: Few resources, little interaction<br />

between HQ <strong>and</strong> local units.<br />

• Moderate evolution: Growing resources,<br />

incomplete local staff, little or no HQ<br />

authority.<br />

• Advanced evolution: Almost complete<br />

resources, better trained PR personnel,<br />

incomplete HQ – local units co-ordination.<br />

• Complete evolution: Full staff, trained PR<br />

<strong>of</strong>ficers in every unit; interaction for<br />

mutual goals (Figure 26.4).<br />

The qualifications <strong>of</strong> the international PR<br />

manager might be quite different from those<br />

<strong>of</strong> an executive who needs only to operate in<br />

the home market. Some <strong>of</strong> these qualities are<br />

described in Chapter 1.<br />

Briefly, he will need to be culturally aware,<br />

patient, open-minded <strong>and</strong> inquisitive about<br />

alien customs <strong>and</strong> government procedures,<br />

with the ability to work with people from a<br />

variety <strong>of</strong> nations. At the same time, the international<br />

executive must never become detached<br />

from the ‘mother company’ <strong>and</strong><br />

totally concentrate on the non-domestic operations.<br />

One vital role is to act as a bridge<br />

to the PR staff overseas who need <strong>and</strong> rely<br />

on him to be their link to headquarters, the<br />

conduit <strong>of</strong> policies <strong>and</strong> news. Never underestimate<br />

how most employees who work a<br />

© 2004 S<strong>and</strong>ra Oliver for editorial matter <strong>and</strong> selection;<br />

individual chapters, the contributors

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