Sunday, 23 March 2008
Andrew Marr - the British context
Friday, 29 February 2008
Competing for the Investment Dollar !!!
Some of you might assume that, by writing in this manner, I am sucking up to my tutors. How wrong and how pathetic !
Anyway, let's get down to business. Today I learned that one of the main objectives of Investor Relations (IR) is helping reduce stock price volatility. Typically, cost of debt capital is lower for companies with the stable stock price. Thus, IR managers can help that price stay stable by
'optimizing the company's shareholder structure to include primarily long-termSo, the geniuses of financial PR should be expected to devise an effective communication strategy targeted at their company's shareholders and, when necessary, prevent them from running off by the power of word;)
owners of the stock.'
Do not spend time communicating with uninterested investors.Just like in marketing, our audience (investors) should be divided into smaller segments: by style (growth seekers vs. value seekers, index, income, etc.) or by turnover (high, moderate, low). They need to be approached differently. However, sometimes segments merge. For example, in order to minimize risks and diversify the portfolio, some investors have more than one style: they might buy both the value stocks and the promising growth stocks, etc.
A lot of attention has been paid lately, at least in the USA, to the conflict of interest in the job of a sell-side analyst working for an investment bank. In the past, some reputable american analysts were encouraging public to buy certain stocks, while, in narrower circles of their employer-investment banks, calling the same stocks "junk". This lucrative co-op came to an end with several loud scandals and a new set of regulation, prohibiting tight links between analysts and investment banks.
Corporate Communications departments still report independently of the Investor RelationsHow come they do not see the connection?
Thursday, 21 February 2008
David Hill: "The one thing you should never do is lie to media "
By saying "us" I am referring to about 40 students and faculty of the University of Westminster who, I hope, enjoyed the event as much as I did.
The lecture was well-structured and interesting (specifically, during the whole speech I never felt my usual urge to grab a coffee, walk around the hallway for a little, check my text messages or take a trip to the closest mirror).
According to Mr.Hill, political communication is all about two things: 1) strategy and 2) delivery of your message. "Sense of direction" is vital. And government's relationship with media is the key priority.
Describing his challenges of working with national media, Hill mentioned the tendency of not giving enough coverage to good news, not reflecting improvement, but mostly focusing on drawbacks instead. While the word he used to describe the relationship between Downing Street and journalists was "combative", Hill still believes the change is to come.
Among the effective ways to deliver the government's communication strategy, Hill named a series of consistent themed speeches to the Lobby "to serve as catalyst for public debate", as well as wide use of e-petitions.
Besides, much change in the society has taken place, and segmentation is a part of it. Hill noted that in the old days 90% of population could be reached via 12 strong media outlets. Today, in contrast, thousands of various media channels would be required.
Personally, I completely agree with David Hill on his belief that public interest in good news is just as strong as it is in bad news.
A nice dose of genuine good news always makes a day look brighter, don't you think?
Thursday, 7 February 2008
Choose your PR ethics!
Yesterday in class we had our ethics debate.
A recommended ethical framework for us to use was Cultural Relativism: "moral truths are subjective, dynamic, changing, constructed by society." This philosophy claims there is no universal right or wrong, no such thing as ultimate truth. So, basically, our PR actions depend on social customs, own moral beliefs, and stakeholders' virtues.
This approach is extremely popular in all aspects of today's society, and I admit, I do find it reasonable as well. But only to some extent.
Cultural Relativism does not give clear answers or guidelines (are goodie bags ethical? is paying for access ok?) Everybody will have their own, very subjective truth.
By the way, talking about goodie bags and other treats for journalists, there is a very interesting article I found in PR Week, it's called Freebies and the Moral Maze.
(here is the link: http://www.prweek.com/uk/search/article/541218// )
However, one can adapt the values of Cultural Relativism so that they actually work well for everybody. Anne Gregory suggests: when making your decision, look at the folowing aspects that "will lead towards sound results and peaceful nights":
1) The individual (does it feel right or wrong to you?)
2) The external guides (the law, professional codes of practice)
3) Decision making models
for ex. Parsons decision-making model quoted by Anne Gregory. Ask yourself:
1) Is there harm involved?
2) Is there a missed opportunity to do smth. good?
3) Could anyone be misled?
4) Will anyone's privacy be invaded?
5) Is it unfair to anyone?
Easy. Don't you think?
References:
1) http://www.gotquestions.org/cultural-relativism.html (ok, a really pro-Christian view, but the authors make excellent points calling on our conscience, especially in examples with fascism movement and "Aryan superiority" values in Hitler Germany
2) http://www.allaboutphilosophy.org/cultural-relativism.htm to me, personally, this sounds merely extreme (according to the authors, the Darwin theory of evolution also stems from Cultural Relativism)
3) Gregory, A., (2006). The Truth and the Whole Truth? In: Hopsbaum, J. (editor) Where the Truth Lies. Trust and Morality in PR and Journalism. London: Atlantic Books, pp.98-109.
Monday, 28 January 2008
Crisis Management
The book is divided into 2 parts, Risk Issues Management and Crisis Management. The first 6 chapters are all about precaution – how to identify the potential risk areas, how to deal with popular public perceptions, what to do with activists and “advocacy groups”.
Wednesday, 9 January 2008
Grunig and diversity. Read Harvard Business Review!
Tuesday, 8 January 2008
Grunig & PR departments. Learn to delegate!
In their Excellence in Public Relations and Communication Management the famous academic couple of James and Larissa Grunig investigate how excellent Public Relations determine overall “excellence” of organization. What is the real value of PR to an organization?
Key elements of their theory are grouped into five parts:
Part 1: Excellent PR departments (14 characteristics)
Part 2: Excellent communication programs (planning, implementation, evaluation)
Part 3: Excellent organization and management of a PR department
Part 4: Excellent PR = excellent organization? (how PR helps reach big targets)
Part 5: PR value (monetary!) – how to measure?
Now, looking at the title of my blog you might be wondering how our glamorous PR women fit into the Grunig theory of excellence.
Let’s start with the departmental level:
As it was discovered by the authors, “women in public relations represent a bargain for an organization that employs them”. Specifically, women fulfill dual roles of “staff support” and a “technician”. One top communicator at an economic development agency, quoted by the authors, said that “Females are expected not only to write press releases but type the envelopes and get the stamps, when we could be spending our time doing managerial work”[1].
In fact, we don’t mind stamping envelopes. As long as the male colleagues are busy making cappuccinos.
However, the authors claim there is a clear tendency of shifting female roles in Public Relations towards “manager” rather than “technician”.
Numerous surveys, carried out over the last 25 years and described in the book, show that in public relations men are performing managerial work “(e.g., expert prescriber, problem-solving process facilitator, and communication facilitator)” more frequently.”Men were especially active with regard to strategic planning and policy decision-making.”[2]
Further surveys suggest this state of affairs has very little to do with years of professional experience (against the common stereotype that “there are more managers among men as they tend to have more experience than women”).
According to L. Grunig (2001), an interesting argument was made by focus group participants. It was suggested that women end up combining technical work with managerial task only because they fail to delegate as often and as effectively as men.
I tend to agree with this idea.
The authors’ key conclusion here is the following: “Women may have less opportunity than men to gain strategic expertise because of the time they must spend doing technical tasks.”
That’s some food for thought. We all know delegating is a useful skill, but now it plays a simply tremendous role. Our resolution to start delegating and to stop nurturing others may boost our career in PR (in a long run).
P.S. “Women must tread the line of being very confident and express their views, but avoid the “bitch” label”, says a top communicator in the state arts organization[3].
[1] Grunig J., Grunig L.,, Dozier. Excellent Public Relations and Effective Organizations. 2002. p.187
[2] A survey of 44 PR practitioners working for the 91 school districts in South Carolina (1997). Quoted by Grunig J., Grunig L.,, Dozier. Excellent Public Relations and Effective Organizations. 2002.
[3] Ibid. p.188
Tuesday, 1 January 2008
Be a man. Join Public Relations forces.
Bill Sledzik, an associate professor in the School of Journalism & Mass Communication at Kent State University (Kent, Ohio), suggested founding a new scholarship for male applicants wishing to enter Public Relations programs[1].
Now, initially, it may sound ridiculous (it certainly did to me). Nevertheless, the logic behind Bill’s speculations is transparent: 1) men are underrepresented in PR (it’s common knowledge now); 2) there is strong need to balance-out the F/M ratio in the field in order to provide clients with different approaches and techniques; 3) so, why not encourage men to go into Public Relations by giving them a scholarship? There are scholarships for minorities at almost every school, so the concept is already established in our society. Taking such a step might seem like a reasonable idea.
Professor, let me disagree with you here. Firstly, men are not a minority. They just don’t feel like joining the club. There are no barriers preventing them from working in Public Relations.
Just because men are literally outnumbered by women in PR they are considered a minority. Yes, by head-count there are more girls than boys. And, yes, I know that 70 to 90% of PR students are ladies. However, the best jobs in PR are taken by men, they climb their career ladders in PR faster, and that’s a fact[2].
Besides, what is the ratio of men who achieved significant financial results in PR vs. all men who entered the field? And what is the same ratio for women?
Men are treasured and spoilt in this industry. By creating such a scholarship we once again make life harder for ourselves (we shall struggle with our school fees, while the gentlemen would enjoy living-off the above-mentioned scholarships – not because they are smarter, simply because they are men). Additionally, with this move we are making sure that women will stay at their entry-level positions for good, adding to the existing gap in salaries between male and female PR practitioners.
Moreover, by offering scholarships as an incentive for men to enter PR programs we’ll attract only those men who wouldn’t have considered such a degree otherwise and thus wouldn’t be the best candidates for the profession. Do we really need them?
Instead, we need to focus on encouraging men become PR practitioners rather than paying them for it. Thus, I agree, a PR campaign to attract men to the industry would be a great solution. As well as starting recruiting programs tailored especially for guys. With the bespoken eloquence, charm, and cold temper men are an asset to the field, and we know it.
However, there is one final argument that made me your ally, professor. It was one made by Elizabeth Toth, and quoted in your blog. She is right when she explains women’s massive success with PR by the fact that all the men simply have left – no matter how sorry I am, I have to agree.
It is not fun to win when the strongest contestants have never entered the game. Bringing more guys to the business will make it tougher for women to succeed. But it will also bring new insights into the field, and improve our problem-solving level dramatically. So, come on, we can take it!
[1] http://toughsledding.wordpress.com/2006/11/13/diversity-in-public-relations-could-use-a-fresh-perspective-from-men/
[2]
A Comparison of Roles Played by Men and Women in Public Relations.
http://www.eric.ed.gov/ERICWebPortal/custom/portlets/recordDetails/detailmini.jsp?_nfpb=true&_&ERICExtSearch_SearchValue_0=ED188217&ERICExtSearch_SearchType_0=no&accno=ED188217