CIPR diploma 3 October 2009 Hi…. Getting to know each other….… The networking challenge How many boxes can you tick? The teaching team and the schedule What is good PR? Nothing is as practical as a good theory Academic and practitioner orientations to corporate communications Academic orientation Practitioner orientation 1. Objective Basic understanding Accomplishment 2. Criteria of excellence Validity Effectiveness 3. Application Abstract/general Concrete/specific 4. Relation to subject area Reflection Action and creation Cornelissen, J (2004) Theory and practice perspectives on corporate communications Communications theory Skills and tactics FIELD OF CORPORATE COMMUNICATIONS THEORY Management theory Cornelissen, J (2004) PRACTICE Management competencies Critical thinking “What I look for when I’m recruiting is: have they got critical abilities? Have they got a critical mind?” L’Etang (2008: 2) We encourage a critical approach on this course. This does not mean we criticise, it is more about testing assumptions or having a healthy scepticism. Most of all it requires being open-minded. We encourage debate and challenging theory – if it can be done by using arguments that can be supported with evidence and experience from the “real world”. Critical reading - Is the purpose clear? - What is the scope of the main and subsidiary questions (aim and objectives?) - What assumptions are made – are they implicit or explicit? - What sorts of arguments are used and how much evidence is presented with them? - Are alternative views presented or is a reason stated for their exclusion? L’Etang (2008: 5) Critical reasoning test marking criteria Structure Essay/report relevant to the topic, comprehensive coverage of key themes and concepts Approach Well structured and logical arguments, critical analysis of the subject, accurate presentation of the evidence Sources and use of literature Relevant sources adequately acknowledged, effective use of secondary data, thoughtful critique of the literature, correct citation of references Conclusions/recommendations/synthesis of argument Conclusions clearly linked to key themes, conclusions well reasoned, demonstrates original thinking Presentation and Style Well presented, good spelling and grammar, fluent writing, excellent use of word limit allowance Theoretical perspectives Perspective Theoretical frameworks Focus of enquiry Communication theory: rhetorical and critical perspectives Critical theory, social exchange, attitudinal change/persuasion theory, discourse theory, semiotic theory, co-orientation theory Rhetorical analyses of organisational speech in mass media accounts Effects of corporate communications on social systems Management theory: managerial and organisation perspectives Decision-making theory, stakeholder theory, resource dependency theory, systems theory, power-control theory, contingency theory, conflict theory, organisation theory Management of communication and relationships between organisation and stakeholders Organisation context of the corporate communications function Cornelissen, J (2004) Communicating about London 2012 How is it going? Break Why Public Relations is growing There are 48,000 people working in public relations in the UK, and the turnover of the profession is £6.5 billion. Public relations work is expected to continue to grow, for both in-house and out-of-house practitioners. Why do you think this is? How would you define public relations? Professionalism Public relations practitioners are not licensed as doctors or lawyers are The membership of CIPR represents less than 25 per cent of all eligible practitioners So, what do we mean by professionalism? Max Clifford – professional? Alistair Campbell – professional? Conditions for professionalism Specialised educational preparation to acquire knowledge and skills Provision of a unique and essential service that is recognised by the community An emphasis on public service and social responsibility Autonomy and personal responsibility of members A self-governing association of colleagues to enforce codes of ethics and standards of performance Cutlip et al (1985) Guiding principles for professionalism Mastery of a particular intellectual skill through education and training Acceptance of duties to broader society than merely one’s clients or employers Objectivity and high standards of conduct and performance The 2000 Global Alliance of PR Associations So, is public relations a profession? What are the required skills for public relations practitioners? Persuasion What about persuasion? It is not mentioned in many definitions. What about the effects of public relations on democracy and society? Moloney (2000) suggests that PR is about manipulation against democracy – because it is used to support government and commercial interests. PR is multifaceted Moloney (2000) offers the following perspectives on definitions of PR: Concept – communications between and organisation and its publics Practice – mostly dealing with the media Effects on society – persuasive communication done through the media or lobbying by groups to advance their material or ideological interests Suggested commendable practices Be honest at all times Convey a sense of business ethics based on your own standards and those of society Respect the integrity and position of your opponents and audiences Develop trust by emphasising substance over triviality Present all sides of an issue Strive for balance between loyalty to the organisation and duty to the public Don’t sacrifice long-term objectives for short term gains Wilcox et al (2005) Convey a sense of business ethics based on your own standards and those of society – loyalties and duties of practice Seib and Fitzpatrick (1995) Ethical decision making: the Potter Box Define situation Choose loyalties Identify values Select principles Tench and Yeomans (2006: 302) Lunch Evolution of PR - UK history Little written about the evolution of PR in the UK - origins in the public sector. Recent L’Etang text is the most authoritative work in this field. Post Office first to use mass communication when it distributed a million handbills to explain the Post Office Savings Bank in 1879 1914: concerted effort to develop an information policy using publicity as an aid to diplomacy throughout the British Empire Inter-war years: some government departments started press sections. Royal Household appointed a press secretary for the King. The 1940s saw the development of the Central Office of Information Private enterprise saw the potential of PR – particularly in combating Labour’s programme of nationalisation Institute of Public Relations established in 1948 and the International Public Relations Association in 1955 Stephen Tallents In the UK, Stephen Tallents learned about propaganda used in the two world wars. Between 1926 and 1933, Tallents' reputation as an imaginative and effective civil servant, led to his selection as Secretary of the Empire Marketing Board (EMB), where he specialised in promoting awareness of the British Empire through an innovative programme of press and poster campaigns, exhibitions, shops and radio broadcasts. With the demise of the EMB he was appointed Public Relations Officer for the GPO, where he devised a series of marketing and advertising campaigns that were groundbreaking and bold for their time. Tallents helped to form the IPR in 1948. Edward Bernays Bernays came to prominence through his work on war time propaganda in the US, and he started the first PR education course in 1922 in New York University. His uncle was Sigmund Freud and his approach encompasses some psychological theories. Torches of freedom On March 31, 1929, a woman by the name of Bertha Hunt stepped into the throng of pedestrians in their Sunday-best clothing marching down Fifth Avenue in what was known in New York as the Easter Parade, and created a sensation by lighting up a Lucky Strike cigarette. Her action would not have created the reaction it did had not the press already been alerted to what was going to happen in advance. Grunig and Hunt: historical framework Four historical stages Publicity/press agentry: one-way communication and is not entirely truthful Grunig and Hunt: historical framework Four historical stages Public information: which is one-sided but is truthful Grunig and Hunt: historical framework Four historical stages Asymmetrical public relations: seeks feedback but is motivated entirely by the client/organisation Grunig and Hunt: historical framework Four historical stages Symmetrical public relations which practices balanced two-way communication where the organisation seeks accommodation with those with which it communicates and may change its own attitudes as well as those of the target audience. Four models of public relations Press agentry/publicity Public information Two-way asymmetric Two-way symmetric propaganda dissemination of information scientific persuasion mutual understanding one-way two-way but imbalanced effects two-way and balanced one-way truth not essential little research used in product promotion and sponsorship Grung and Hunt (1984) truth important little research used in government and not for profit sector research of attitudes used in competitive business research of understanding used in regulated business Codes of practice and professionalism “True professionals possess a body of knowledge and have mastered communication techniques that are not known by the average citizen. They also have a set of values and a code of ethics that discourage the use of their knowledge and technical skills for antisocial purposes” Grunig and Hunt (1984) PR and marketing and overlaps Marketing Market assessment Customer segmentation Product development Pricing Distribution Servicing Sales force Sales promotion Product advertising Cornelissen (2004: 40) Marketing/PR Public relations Image assessment Customer satisfaction Corporate reputation Media strategy Corporate advertising Employee attitudes Publications Events Issues management Community relations Identity/corporate imagery Media Lobbying/public affairs Social investment/CSR Historical development of public relations and marketing PUBLIC RELATIONS SOCIO-ECONOMIC FORCES Press agentry Public information Two-way (a)symmetric (managerial) INTEGRATION Production Selling Corporate communications Market (managerial) MARKETING SOCIO-ECONOMIC FORCES 1800-1900 1900-1940 Cornelissen (2004: 36) 1980-1990 1990-present Break Developing a corporate strategy Environmental analysis Assessing stakeholder expectations Identifying options Evaluating options Selecting a strategy Resource and strategic capability Culture and Managing change Organisation structure Management processes Building a mission statement The Ashridge mission model Why the company exists Purpose The competitive position and distinctive competence Strategy Values Behaviour standards The policies and behaviour patterns that underpin the distinctive competence and the value system What the company believes in Mission statements and hackneyed cliches Toy manufacturer Klutz provides a succinct example: Create Wonderful Things Be Good Have Fun According to Bennett (1999), “too often the language of mission statements comprises hackneyed cliches assembled with little genuine concern for their relevance to the business in question”. The risk of strategic drift AMOUNT OF CHANGE Environmental change Strategic change 3 2 4 1 Phase 1 incremental change Johnson (1992) TIME Phase 2 flux Phase 3/4 transformational change or demise As the present now Will later be past The order is Rapidly fadin'. And the first one now Will later be last For the times they are a-changin'. Bob Dylan, 1963 Dynamic environments When the sea was calm All ships alike Showed mastership in floating Shakespeare, “Coriolanus”, quoted in Peters (1992:18) Dynamic environments Revolution in Information and Communications Technology Lowering of trade barriers, leading to world markets Accelerating rate of external change Balance of power is shifting from the supplier to the customer Marks and Spencer Marks and Spencer is one of the best known high street retailers in the UK. It has over 450 stores and employs over 65,000 people. It also operates overseas. In the face of more intense competition in the UK retailing sector, Marks and Spencer has had to develop a new strategy. This created a period of change for the retailer, involving a refocusing on core areas of quality, value and service along with innovation and trust. M & S Recovering from strategic drift Changing world, changing fashions; unpredictability In 1984 The Economist magazine asked people to forecast economic variables over a 10 year period. People included finance heads and dustmen. After 10 years the forecasts were compared with reality and no-one came close. The experts were no better than others. Following IBMs spectacular collapse into losses, the new management team examined events in detail to see how the company could have got it so wrong. They found that the evidence of shift in the market was there – IBM had seen the move towards open architecture, microprocessor networking and margin potential in software. But nothing was done about it: to respond would have precipitated turmoil and instability within the organisation, instead, senior leaders went behind closed doors and raised prices. Pascale (1999) Escaping the lobster pot If only the lobster realised that it could use the entrance as an exit. We the trapped tend to take our own state of mind for granted – which is partly why we are trapped. Vickers (1972) Structure In the 1990s Daimler Benz was fixed in a structure of rigid hierarchy and rules – the introduction of new models was rare. The decision to introduce the new C class took 7 years. Chaos At Ben and Jerry’s there were few rules. New product development was haphazard. It was innovative - however failed to spot the trend from fatfilled ice creams to non-fat sorbets and melted under the competition from Hagen-Dazs. It was also unable to manage costs as there were few controls and it was eventually acquired by Unilever in 2000. Edge of chaos The key to effective adaptation is to stay close to the edge of chaos. Think of traffic lights as an example. Without lights there would be chaos. Too many lights would cause gridlock. A moderate number of lights creates some structure but also allows drivers to change their routes in surprising ways to different traffic conditions. Brown and Eisenhardt (1998) Managing a ski slope Chaos often reigns on a crowded ski slope – while the activity looks random, skiers do not collide (at least not too many times!). A command and control approach would probably not work – the ski slope manager has to give up control in order to achieve control. The main issue is to know what to control and what to let go. To do this more openness is required for people to provide ideas from within. The flexible organisation Classical organisations Postmodern organisations Perspective Technical, rational, closed systems Natural, open/closed systems Characteristics Orderly, planned, stable relationships, formal information, predetermined goals Disjointed/fragmented Instinctive Reciprocal relationships, informal information, individual and group goals Structure/processes Mass production Deskilled jobs Formal employment relationships Flexible specialisation, multi-skilled jobs, networking and subcontracting Volberda (1998: 26-27) Change Why do organisations find it so hard to change? 1. Dominant logic that prevents information being received within an organisation (groupthink). 2. The need to go through a process of unlearning to escape dominant logic. 3. The greater the pressure to change, the more adaptive the organisation has to become Bettis and Prahalad (1995) Two ways of thinking about culture Corporate culture: something that can be shaped “values or practices that account for an organisation’s success and that can be managed to produce better business outcomes” (Eisenberg and Riley 2001: 209, in Tench and Yeomans 2009: 326.) Organisational culture: the organisation is a culture, made up of subcultures “the set of conscious and unconscious beliefs and values, and the patterns of behaviour (including language and symbol use) that provide identity and form a framework of meaning for a group of people” ( McCollom 1993 in Eisenberg and Riley 2001:306, in Tench and Yeomans 2009: 329) Organisational culture Culture is often thought of as: “the way we do things around here” How are things done where you work: How would you describe the culture? Is “the way we do things” an adequate descriptor? Cultural web Stories – Who and what the company chooses to immortalise Rituals and Routines – The daily behaviour and actions of people that signal acceptable behaviour Symbols – The visual representations of the company Organisational Structure – Including the unwritten lines of power and influence Control Systems – The ways that it is controlled • Power Structures – The pockets of real power within the organisation Paradigm – the accepted ideas about the organisation Google culture How does the culture of the organisation impact on the way that PR is practiced? Public relations drivers and traps The net generation A new generation of people are growing up online…..with this they bring a “new ethic of openness, participation, and interactivity to workplaces….” Tapscott and Williams (2007) Geek squad The Geek Squad began life 12 years ago in the US, with one college student, his bike, a laptop bag and $200. It has since grown to offer 24-hour technology support for homes all over the US. Basically, if it has anything to do with computers and it goes wrong, they'll do everything within their powers to put it right. The Geek Squad are experts in working out what's wrong with your computer or other devices - and putting things right. And the scary thing is that they actually enjoy it. Tapscott and Williams (2007) Geek squad Geek Squad employees use wikis, video games, and all kinds of unorthodox collaboration techniques to brainstorm new ideas, manage projects, swap service tips, and sociliaze with their peers. They instinctively started using online multiplayer games to stay in touch as the organisation grew from 60 to 12000 employees. Founder, Robert Stephens, says, “instead of trying to set an agenda, I’m now going to try and discover their agenda and serve it” Tapscott and Williams (2007) Net generation communication Mental model movers Edges of chaos are good places to be – we need to support managers and the organisation to get there Coaching, not controlling - become a coach, then coach managers how to coach and communicate Use scenario principles to develop communication strategies and tactics – plans on a page rather than boring spreadsheets Challenges (or opportunities) For organisations For public relations The challenge for organisations in today’s complex world is how to reconcile the need for rapid responsiveness and adaptability without losing order and control. The challenge for public relations is to move to genuinely transparent communication so as to establish authenticity. For internal communications The challenge for internal communications is how to enable organisations to develop communications systems and processes that enable people to communicate and collaborate more effectively at the edge of chaos. Bibliography Bennett, R (1999) Cheney, CG and LT Christensen (2001) Cornelissen, J (2004) Dozier and Broom (1995) Grant (2002) Gregory, A (2000) Grunig J E (1992) Grunig and Grunig (1992) Grunig, J.E and Hunt, T (1984) Kotler, P (2003) L’Etang, J (2004) L’Etang, J. (2008) Corporate Strategy, 2nd edition, London: Financial Times Management Organizational Identity: linkages between internal and external organizational communication, in The New Handbook of Organizational Communication Corporate Communications, Theory and Practice, Sage Evolution of the managerial role in public relations practice, Journal of Public Relations Research, 7 (2) Contemporary Strategic Analysis, Blackwell, Oxford Planning and Managing Public Relations Campaigns, 2nd edn, Kogan Page Excellence in Public Relations and Communication Management, Hillsdale, NJ Models of public relations and communities, in J E Grunig (ed) Excellence in Public Relations and Communications Management, Hillsdale Managing Public Relations, New York: Holt, Rinehart and Winston Marketing Management, 11the edition, Prentice Hall Public Relations in Britain: A History of Professional Practice in the 20th Century Public Relations Concepts, Practice and Critique, Sage Bibliography Johnson G (1992) Johnson G (2000) Johnson and Scholes (1993) Moloney, K (2000) Stewart, R (1994) Tench and Yeomans (2006) Seib, P and and Fitzpatrick K (1995) Tench, R and Yeomans, L (2006) Wilcox D.L, Cameron, G.T Ault, P.H, and Agee, W.K (2005) Managing strategic change – strategy, culture and action, Long Range Planning, Vol 25 Strategy through a cultural lens: learning from managers’ experience, Management Learning, 31 Exploring Corporate Strategy,3rd edn, Prentice Hall Rethinking Public Relations: The spin and the substance, London: Routledge Managing Today and Tomorrow, Macmillan Exploring Public Relations, FT Prentice Hall Public Relations Ethics, Forth Worth Texas Exploring Public Relations, FT Prentice Hall Public Relations, Strategies and Tactics, 7th edition, Pearson