communication director by Quadriga Media Berlin GmbH

www.communication-director.eu

COMMUNICATION

DIRECTOR

Magazine for Corporate Communications and Public Relations

03/2012

A Working Relationship

Consultants, agencies and in-house communicators On the look out for couples therapy?

When things go wrong – and right – between agencies and their clients

Sounding out and striking the harmonious chord

How to pick the right public relations ﬁrm for your organisation

Beneﬁts of being on both sides of the equation

What consultancy experience can bring to your in-house role

EDITORIAL

ven the strongest relationships need some analysis and counselling from time to time: the partnership between in-house communicators and their counterparts in public relations agencies and consultancies are no exception to this rule, and that’s why it is the focus of this issue of Communication Director. Although intimately entwined on many levels and occasions, the two parties can experience mistrust, misunderstanding and frustration – we hope to f ind some answers that help to explain how and why things can go wrong. What makes this miscommunication so puzzling are the many examples of career movement between both sides and in both directions: this issue also asks what kind of knowledge and experience can be carried from one to another and how that exchange can strengthen the collaboration. Luulea Lääne shares her own experiences in the career path from consultant to in-house communications director, and Martine Konorski, who has also experienced both sides of the agency–in-house divide in her career, gives us some valuable tips in how to choose the right agency. Professor António Mendes, meanwhile, explores the growth of the European agency sector through the prism of the Portuguese example. We have also invited consultants to contribute their side of the story: Sandra Loftus sheds light on the world of the interim communications consultant as an increasingly popular career model; Dr Ingrid Vogl pleads for mutual respect in the pitching process; Julia Harrison explains what both teams can do to ensure a better partnership; and Greg Shove explains how cutting-edge agencies can deliver social media expertise for their clients. Hopefully, this issue will go some way towards establishing better cooperation between the two teams: teams who should, at least, be striving for the same goal. After all, a mutually-benef icial rapport is in everyone’s interest.

Marc-Oliver Voigt Publisher marc-oliver.voigt@communication-director.eu

Photo: Moritz Vennemann

03/2012

COMMUNICATION DIRECTOR

“This was the ﬁrst time the Azeri government had agreed to meet some of its harshest international critics on neutral ground.”

AGENDA SETTER Communication ideas in the eyes of experts

06 An eye on the media

Award-winning media measurement

LEADERS CEOs in the eyes of the media

10 CEO Stockwatch

“Did iconography or the messages of pictures really affect people and their lives?”

TEAM PLAYER How to improve personnel management and your career

34 How to toughen up your team

Internal communicators have a key role to play in empowering their workforce in times of crisis

Nancy Papalexandris

38 Promoting the PR proﬁle

A perspective on public relations education in Europe

by CARMA International

Nina Volles

STRATEGIC THINKER

THE STORY OF PR

The corporate and academic stand on communication

20 Under the spotlight

How the European Broadcasting Union’s communications was put to the test by Eurovision 2012

Michelle Roverelli

24 Time for a rethink?

What this year’s European Communication Monitor tells us about strategic communications today

Ansgar Zerfass and Ralph Tench

30 Positive content vs. negative tweets

Using social media tools in a business-to-business context carries with it risks and rewards

Imogen Lee

Looking back at landmark communications

42 Language beyond words

What the Old Masters can teach us about visual communication today

Maria Galen

46 Making an imperial reputation

Ancient Rome was a hotbed of public relations tricks and techniques

Christian Schnee

THE BIG INTERVIEW Key communicators under the spotlight

50 Jon Iwata

Senior Vice President, Marketing and Communications, IBM

03/2012

COMMUNICATION DIRECTOR

Photos: Thomas Hanses (EBU); Robert Campin

“Each company must decide what makes it unique. What does it distinctively do in the world? ”

STORY TELLER Looking at the important questions of communication

56 Agencies are from Mars, clients are from Venus

A look at the different strengths and weaknesses of in-house departments and their outside agencies

Dafydd Phillips

64 A delicate duet

It takes a lot of work to ﬁnd and work with the agency that’s right for your organisation

Martine Konorski

68 Couples counselling

What agencies look for in clients and what clients look for in agencies

Julia Harrison

72 Imperfect pitches

How the pitching process is unfairly skewed towards clients, and why that isn’t in anyone’s interest

Ingrid Vogl

74 Tales from the south

Portugal is a prism through which we can see the future of Europe’s communications consultancy industry

Photo: Alan S. Orling;

António Marques Mendes

“Great consulting should involve proactive thinking and suggestions that provide clients with food for thought.”

80 Key collaborators

How cutting-edge consultancies can help engage with those elusive online inﬂuencers

Interview with Gregory Shove

84 Opportunity knocks

Could interim positions be the future of communications employment in Europe?

Sandra Loftus

88 COMMUNICATIONS READER Book Reviews

90 ASSOCIATION

European Association of Communication Directors

98 QUESTIONS TO...

The personal side of Communication Directors

Petra Czugler Internal Communications Lead Europe, Celanese Corporation

78 Beneﬁts of experience

Having experienced consultancy work can strengthen your in-house effectiveness

Luulea Lääne

03/2012

COMMUNICATION DIRECTOR

AGENDA SETTER Communication ideas in the eyes of experts

AN EYE ON THE MEDIA Diageo and Kantar Media have won an award for their media measurement, a reminder of the importance of such work in communication management. By Dafydd Phillips

eeping track of how the media reports on your industry is a fulltime job. Tracking relationships with individual media outlets, monitoring mentions of your organisation, evaluating trends in media reporting and measuring the effectiveness of your public relations campaigns are round-the-clock responsibilities, so little wonder that many organisations prefer to delegate the burden to expert analysts. One such example is the UK-based drinks company Diageo and their agency of several years’ standing, Kantar Media, who were recently awarded Gold for Best Use of Communication Management: Business-to-Business at the AMEC Communication Effectiveness Awards 2012. Throughout 2010, Kantar Media carried out a ‘state of the nation’ audit of the alcohol debate in UK media, analysing over 10,000 pieces of coverage from print, television, radio and online sources. Kantar’s executive summaries answered specific questions from Diageo about opportunities, risks and key trends within the debate, including “What do advocates and detractors talk about?” and “How has the position of the drinks industry changed since 2009?”.

USEFUL COMPASS Philip Lynch, media evaluation director at Kantar Media, argues that, rather than keep this vital work in-house, it makes financial sense to engage outside help: the kind of constructive recommendations – not to mention the credibility – that can only be offered by an autonomous agent makes the whole process more efficient and saves the client money in the long term. “We also offer that most precious commodity, time,” he adds. “We focus on research so our clients can focus on communication. I once heard a quote from a global business leader that ‘we have more money than we have time’. 03/2012

COMMUNICATION DIRECTOR

That has stayed with me.” Rebecca Perry, senior corporate relations manager at Diageo also supports the outsourcing of this important task: “The Kantar Media research highlights the key trends in the debate, which allows us to focus on the important issues”, she says. “It means we save time and resources by not chasing every last thing that is being written about us”. Although a fractured media landscape might seem to make it

The research highlights the key trends in the debate, which allows us to focus on the important issues. more diﬃcult for organisations to get a concrete picture of where they stand in relation to the media, there is positive potential there, too: Lynch believes that “the potential for accurate measurement is improving as a result on new media. Digital media creates footprints we can track with a high level of accuracy, and we do not need to make assumptions about the audience – we can see them and understand their viewpoint.” Understanding what is and isn’t relevant to the business acts as a compass to navigate this bewildering landscape: as

AGENDA SETTER

Photo: Carolyne Locher

‘Pregnant’ women take part in a ﬂashmob to underline Diageo‘s message of responsible drinking

Perry says, “the key for Diageo is to have a clear sense of our direction and objectives, so we can focus on the areas with most impact for our business.” An important part of the ongoing project is Diageo’s need to check for any discrepancies between the drink industry’s communications and the media’s agenda. One of the major issues is the volume of media coverage achieved by health lobbyists: as Lynch puts it, “health groups have a two-to-one volume advantage over drinks companies in the UK media.” Lynch sees Kantar’s role as keeping their client abreast of the changes that have occurred in the media debate with each year of their analysis. Over the past four years, he identiﬁes these changes as moving from the health impact of alcohol and

calls for control on advertising and distribution to – in the past 18 months – the issue of minimum pricing. Ultimately, Kantar’s work also helps Diageo position themselves as leaders in their ﬁeld in terms of understanding the public debate on alcohol and society. It convened an industry round-table to review the report ﬁndings, which was attended by prominent drinks companies and industry bodies: “When we started the analysis project in 2007”, says Perry, “we quickly realised that the data would have implications for the wider industry. In each successive report we have expanded the focus of the analysis to be more industry led, with less emphasis on individual companies and brands.”

A CLOSE RELATIONSHIP? By sharing the report ﬁndings in this way, Kantar argues that the industry’s appreciation of communications measurement was increased. “Diageo’s decision to share ﬁndings with other companies and organisations was a very enlightened move which has helped establish a more consistent voice for the industry”, says Lynch. He describes Kantar’s role as providing an encompassing context for the individual industry players: 03/2012

COMMUNICATION DIRECTOR

EXPERT OPINION A commendable job Measuring communication and its impact is becoming more crucial by the day, with ever-more modes of communication making effective message delivery a challenge. Effective outreach is what separates the companies who have consumers at the core and build activities around them, from others who care less. For Diageo it matters how the consumer thinks and behaves, so much so that it becomes a part of objectives and motivates further courses of action; which is what this campaign is all about. What it has achieved is phenomenal in terms of keeping people on their side and mixing diplomatic tactics with insight. Thanks to Kantar’s prompt and effective media measurement, Diageo’s social responsibility credibility is one notch up. Together, Diageo and Kantar have done a commendable job in creating a media strategy niche, which has actually worked as an antidote for containing a viral infection. More path-breaking action can follow if they can experiment, keeping the dialogue alive and the stakeholders engaged, lest drudgery strikes! For Diageo, its SmartBrand system, accompanied with such media monitoring activities, is surely creating more success for an already successful brand while strengthening its core. Effective media measurement thus helps gain relevant insight into where the compass for further action points and whether market proﬁtability is being ascertained.

In the highly charged debate over alcohol in the UK, media monitoring has suppor ted Diageo by helping it to understand how the alcohol industry was positioned in the media debate, which channels to use and what issues resonated with the health lobby. This allowed Diageo to sharpen its media strategy and to a cer tain extent predict the reaction of their adversaries. Some stark truths also emerged for the alcohol industry. The health lobby has a two to one volume advantage over drinks companies, and in the whole coverage has not been in their favour. A conclusion could be made that a media campaign is perhaps not the most appropriate tactic and other approaches need to be considered. Like all media monitoring, the limits of examining only media coverage can be seen: it doesn’t indicate the level of inﬂuence of coverage on public opinions and policy decisions. Increasingly, companies need to go fur ther and assess this through methodologies such as contribution analysis and process tracing. The UK faces one of the worst problems globally in underage drinking. Drinks companies promote responsible drinking but at the same time want to limit government regulations and must sell more in order to reach sales targets. Media monitoring has helped them achieve these aims. Has the opposing side in the debate also beneﬁted from media analysis and insights? We can only hope so.

Shikha Singh

Glenn O’Neil

Silverspoon Enterprises

International University, Geneva

Shikha Singh is a marketing and communication consultant. She began her career as a sales executive for Volvo before managing public relations at the Italian Embassy in New Delhi. She now advises companies looking to expand into Asia on research-based market entry. strategies.

03/2012

Two sides of the debate?

COMMUNICATION DIRECTOR

Glenn O’Neil teaches research and communications at the International University in Geneva. He leads evaluation projects for international organisations, NGOs and companies. Previously, he managed communications ﬁeld programmes for the International Red Cross in Africa, Asia and Eastern Europe.

“When we sit down with the roundtable partners, I know everyone knows what their own boat looks like, but they don’t know the ocean. Which is where we come in.” A powerful position, but how closely does it bring agencies like Kantar to the decision-making process of their client companies? Lynch believes that their working relationship “gets us close, because we know our results are being used to decide future communication strategies rather than being treated as a simple audit of past achievement.” Parry emphasises the value of a thorough foundation in the decision-making process. “Any decision we take when dealing with social issues involves a large number of stakeholders”, she says, “and the Kantar research helps us to understand the wider media implications before we act. The data helps us to plan our media strategy and to refine our tactics once a campaign is underway.” In June last year, Diageo was able to act on information compiled by Kantar’s long-term analysis programme and announced a new funding agreement with the National Organisation for Foetal Alcohol Syndrome (NOFAS) to train 10,000 midwives in supporting families affected by the syndrome. The involvement of industry players with independent charities and foundations always generates controversy, so Kantar was able to offer Diageo a map of the media sources most likely to criticise its involvement in neo-natal care. Within 48 hours of the launch, fierce criticism from the health lobby caused concern within Diageo, but briefing from Kantar empowered the company’s communications team and the board was satisfied that this opposition was manageable.

Photos: Private

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EUROPEAN

COMMUNICAT ION SUMMIT2012

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WWW.COMMU N I C AT I O N - S U M M I T. E U

LEADERS CEOs in the eyes of the media

CEO STOCKWATCH Watching the people who run the commercial world. By CARMA International

Fear and uncertainty continued to stalk global stock markets in the second quarter of 2012, the period covered by CARMA International’s latest survey of media reporting of business leaders. The continuing Eurozone crisis, fragile US recovery and slowing growth in emerging markets such as China and India weighed on investor conﬁdence. In Britain, the economy lurched back into recession, though the Queen’s Diamond Jubilee and the approaching London 2012 Olympics gave people some reasons to be cheerful. On both sides of the Atlantic, fury over lavish pay awards and bonuses for top executives galvanized shareholders to challenge boards and business leaders. Media reporting of this widespread shareholder dissent – nicknamed the “shareholder spring” – was mirrored in the CARMA survey. Unsurprisingly, bankers were among those CEOs that reaped negative reporting because of their generous pay, but anger erupted among shareholders of other companies

too, propelling Andrew Moss of Aviva into 18th place in global media. Amongst the bankers, Vikram Pandit of Citigroup rose one place to seventh in the global listing. Pandit’s pay award was voted down by more than half of the bank’s shareholders. Nevertheless, 42 per cent of his reporting was favourable and only seven per cent was downright negative. Bob Diamond too attracted more reporting this quarter, rising ten places to sixth, though only four per cent of his mentions were negative and 38 per cent proved positive. This is perhaps a surprising outcome for the Barclays CEO, considering the events that unfolded. Under pressure from shareholders, Diamond volunteered to forgo half his 2.7 million pounds sterling bonus for 2011 until Barclays had improved proﬁtability. This was ahead of Barclays’ annual meeting in April, at which almost a third of shareholders refused to back the boardroom pay report. In May, it emerged that the government had retrospectively outlawed

Top 20 CEOs worldwide | Top CEOs by volume in Q2

Top 20 CEOs in Europe | Volume of coverage in Q2 News Corp./Murdoch Berkshire Hathaway/Buffett J.P. Morgan Chase & Co./Dimon Barclays/Diamond Goldman Sachs Group/Blankfein Citigroup/Pandit Tesco/Clarke Gazprom/Miller Nokia/Elop Deutsche Bank/Ackermann Rosenft Oil/Sechin Research In Motion/Heins Apple/Cook Aviva/Moss Xstrata/Davis, M Astrazeneca/Brennan Google/Page BP/Dudley RBS/Hester Morgan Stanley/Gorman

News Corp./Murdoch J.P. Morgan Chase & Co./Dimon Berkshire Hathaway/Buffett Goldman Sachs Group/Blankfein Apple/Cook Barclays/Diamond Citigroup/Pandit Research In Motion/Heins Google/Page Nokia/Elop BHP Billiton/Kloppers Xstrata/Davis Morgan Stanley/Gorman General Motors/Akerson Sony/Hirai Bank Of America Corp./Moynihan Australia and New Zealand Banking/Smith Aviva/Moss Westpac Bankin/Kelly Deutsche Bank/Ackermann

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03/2012

COMMUNICATION DIRECTOR

0 20 40 60 80 100 120 150 170

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Quality of CEO coverage | Percentage of favourable, neutral and unfavourable coverage favourable

neutral

unfavourable

Murdoch Dimon Buffett Blankfein Cook Diamond Pandit Heins Page Elop Kloppers Davis, M Gorman Akerson Hirai Moynihan Smith, M Moss Kelly Ackermann

60%

70%

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cancer fuelling speculation over the identity of his chosen successor. The highest riser proved to be Jamie Dimon of JP Morgan, though it was not his generous remuneration that was the chief focus but a hefty trading loss that called into question his control over risk operations. The ﬁasco bounced Dimon into second place from 13th. Thorsten Heins, who has been CEO of Research in Motion since Themes most beneﬁcial for CEOs | Favourability of topics % neutral

% favourable

% unfavourable

100% 80% 60% 40%

20%

03/2012

Environment

Society

Labour

Governance

0% Other

a tax-avoidance scheme at Barclays. But the biggest bomb shell exploded on June 27, with Barclays’ admission that some of its traders were involved in attempts to manipulate Libor, the London Interbank Offered Rate, and that it had been fined 290 million pounds sterling. Diamond said he and three other directors would give up their bonuses for 2012. As June ended, Barclays’ reputation suffered a further blow when Sir Mervyn King named it as one of four big UK banks – the others were HSBC, Lloyds and Royal Bank of Scotland – that had mis-sold inappropriate and highly risky interest rate swaps to small businesses (Evening Standard, June 29). Other banks too were reportedly under investigation in the Libor-fixing scandal and will likely attract negative publicity in the coming months. But Bob Diamond looked set to be cast as the chief bogeyman in the affair, with this view likely to be reflected by his media mentions captured by the next CARMA survey. Rupert Murdoch retained first position, with News Corporation continuing to be battered in the aftermath of the phone-hacking scandal. An even smaller proportion of the wily media mogul’s reporting was favourable than last quarter – just six per cent, down from 11 per cent – and three per cent was negative. Warren Buffett slipped from second to third place, with his admission that he was suffering from

50%

Commercial

40%

Products

30%

Legal

20%

Management

10%

Finance

COMMUNICATION DIRECTOR

LEADERS

The best and worst presented CEOs | Top performers vs bottom performers: differences in topic

Other

100%

Society Labour

% of volume

80%

Environment Legal

60%

Products & Services Management

40%

Commercial Finance

20% 0%

Pandit

Heins

Apotheker

Elop

Proglio

Worst performers on favourability

Best performers on favourability

late January, was the highest-ranked newcomer to the 20 most-reported CEOs, appearing eighth, reflecting media reporting of his efforts to address the downward spiral at the embattled Blackberry maker. Close to half of his mentions were favourable, though three per cent were negative. Two European company CEOs were the next highest climbers: Stephen Elop of Nokia at 10th and Marius Kloppers of BHP Billiton at 11th. The efforts of Philip Clarke to win back shoppers for British grocer Tesco pushed him into seventh place in European media, though he ranked 21st in the global listing. The new CEO of Sony, Kazuo Hirai, who took over from Howard Stringer in April, ranked 15th,

one place lower than his predecessor did in CARMA’s last survey. James Gorman of Morgan Stanley reappeared among the 20 most-reported names at 13th position, as did two Australian bankers, Mike Smith of Australia & New Zealand Banking Group (17th) and Gail Kelly of Westpac Banking Corporation (19th). Finance remained the dominant reporting theme, accounting for 45 per cent of overall volume, a two point rise. Management/leadership remained the runner-up, though its share of reporting was three points lower, at 27 per cent. Legal/regulatory issues accounted for 10 per cent of overall volume, three points higher than last survey. On the other

Top CEOs | Geographic spread of coverage

Themes most associated with CEOs | Share of coverage of issues monitored in media

APAC

LATAM

EMEA

NAM

Society(1%) Products (6%)

100%

Commercial (6%)

Other (3%)

80%

Management (27%)

60%

Finance (45%)

40% 20% Legal (10%)

0% Pandit

03/2012

Heins

Elop

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Apotheker

Proglio

Labour (1%)

Governance (1%)

LEADERS

JAMIE DIMON OF JP MORGAN CHASE Jamie Dimon, CEO of JP Morgan Chase, won widespread admiration for having steered JP Morgan safely through the ﬁnancial crisis. However, news late on May 10 that the bank had lost 2 billion dollars in trading credit derivatives dented Dimon’s reputation. Dimon blamed the loss on “errors, sloppiness and bad judgment” and warned it “could get worse”, reported the Financial Times (“JP Morgan blames ‘bad judgment’

for 2 billion US dollars hit”, May 11). The Wall Street Journal US commented: “A massive trading bet boomeranged on J.P. Morgan Chase & Co., leaving the bank with at least 2 billion US dollars in trading losses and its chief executive, James Dimon, with a rare black eye following a long run as what some called the ‘King of Wall Street’” (“Bank Admits Losses on Monday on Massive Trading Bet Gone Wrong: Dimon’s Mea Culpa”, May 11). Dimon called it an ‘egregious’ mistake (WSJ US, May 14), a striking word that was bandied about by the media. Frankfurter Allgemeine Zeitung was impressed by Dimon’s “honest and sharp reaction” by which he tried “to limit the damage done to the bank’s reputation and his own position on Wall Street”, noting that he was “one of the few top bankers who is still in business after the financial crisis and is respected” (FAZ, May 12). Many commentators, however, mused on Jamie Dimon’s fall from his pedestal. Dimon was “the man who used to be the Obama administration’s favourite banker (and a tip for Treasury secretary)” (FT, May 12) and Wall Street’s “last star CEO” (“JP Morgan’s fiasco exposes the myth of an imperial CEO”, FT, May 17). The Australia Financial Review took up this theme: “It is one of the most spectacular own goals in global banking since the financial crisis itself. Three years ago, JP Morgan Chase chief executive Jamie Dimon was hailed as the ‘last man standing’. Maintaining a cool command in the storm, he’d emerged as head of the largest bank on Wall Street. With this came the mantle of industry leader in the fight back against new regulations such as the Volcker rule, which aims to stop deposit-taking banks betting their capital”. (“Banking’s last man standing buckles under JP Morgan loss”, AFR, May 14). The AFR quoted a surprised Mike Smith, ANZ Banking Group CEO: “For a Treasury unit of

Dimon | Coverage by region

Dimon | Fall from the pedestal

Regional favourability / LATAM, NAM, EMEA, APAC favourable

neutral

unfavourable

LATAM NAM APAC EMEA

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hand, product, services and solutions attracted less reporting, at six per cent, two points lower than last survey. This suggests CEOs have made little progress in diverting attention away from issues less likely to be positively reported, such as ﬁnance issues, towards their companies’ products and services, which are more likely to secure favourable reporting. Labour issues represented one per cent of overall volume. Governance, society and environment/sustainability remained Cinderella themes, ineﬀectively exploited by CEOs and sidelined by the media. Each had less than one per cent of overall volume.

APAC (25%)

“Three to Exit J.P. Morgan - Drew, Others to Depart in Wake of Loss, Which Could Total More Than $4 Billion” WSJ US, May 14

NAM (37%)

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EMEA (34%)

03.04.2012

LATAM (4%)

29.03.2012

“JPMorgan blames ‘bad judgment’ for $2bn hit” FT, May 11

34 32 30

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COMMUNICATION DIRECTOR

LEADERS

a bank to be taking major proprietary risk is rather extraordinary”. Still, it added, Smith “expressed support” for Jamie Dimon (May 17). The media noted the damage to Dimon in his fight against over-regulation. The FT quoted Michel Barnier, the European Union Financial Services Commissioner, “acidly” noting Jamie Dimon “once ‘gave lessons’ on the dangers of ‘excessive rules’” (May 16). The loss tarnished Dimon’s reputation “as a hawk-eyed risk manager prepared to confront regulators” (“Back to the Wall”, FT, May 19). The Wall Street Journal US highlighted the opportunity Dimon had presented regulators: “Employees at J.P. Morgan may think that CEO Jamie Dimon’s primary rule is to minimize risk. But Washington politicians now have their own Dimon Principle: Use mistakes at a bank run by an admired CEO to expand government control over financial markets” (May 14). Dimon was “showing that large banks are far too big to manage” (“J.P. Morgan’s Big Loss: Lessons From a Fiasco”, WSJ US, May 15). But shareholders gave Dimon an easy time at the bank’s annual meeting, asking “just a handful of angry questions”, though the percentage voting to take away his powers as chairman hit “at least a seven-year high” (WSJ, US, May 16). The paper reported on the difficulty of unwinding the huge bets and that the losses were continuing to build (May 18, May 19). The fiasco was “the most expensive blunder of his [Dimon’s] 30-year career” (May 18). Jamie Dimon was the most reported CEO in Valor Economico, though largely negatively. The Brazilian paper quoted James Bullard, president of the Federal Reserve Bank of St Louis, that banks classified as “too big to break” should be divided, citing JP Morgan (May 18). Vedomosti of Russia noted a failure of Dimon’s management had been caused by his close personal relationship with Ina Drew, the head of the investment division as he would not even question the activities of her division: “In weekly meetings of the operational committee Dimon meticulously quizzed his subordinates on their divisions’ activities – all, but Drew” (May 28). The fiasco shows how the position and influence of even the most admired and seemingly untouchable CEO can be damaged by a lapse of judgment. The Wall Street Journal US sums it up well: “The blowup at the nation’s largest bank by assets has raised questions among shareholders about the strength of risk controls and the level of oversight at the board, and tarnished the risk-management reputation of Chairman and Chief Executive James Dimon” (May 26).

VIKRAM PANDIT OF CITIGROUP More than any oth03/2012

COMMUNICATION DIRECTOR

Pandit | Coverage by region APAC (27%)

NAM (31%)

LATAM (2%)

EMEA (40%)

er, the event that ensured Vikram Pandit of Citigroup remained in the limelight in the second quarter was the rejection by the bank’s shareholders of his 15 million US dollars pay award. The episode delighted newspapers and spawned headlines and comments. “Shareholders have rebuked Citigroup’s board, voting against a pay plan that promised tens of millions of dollars for Vikram Pandit, chief executive, and his fellow directors”, reported the FT on April 18. Around 55 per cent of shareholders either opposed the plan or abstained at Citigroup’s meeting in Dallas on April 17. The article observed that Citigroup was “the first big US bank to suffer majority dissent in a ‘say-on-pay’ vote and only the 12th S&P 500 company to lose such a ballot”. Shareholders had “handed the bank a scathing rebuke” commented The Wall Street Journal US (April 18). The Washington Post said the rejection of the bank’s executive pay plan had come “amid criticism it lets chief executive Vikram Pandit collect rewards too easily” (April 18). The Los Angeles Times observed, “The vote is advisory and won’t force the bank to change its pay practices, but it sent a powerful message of discontent to Citi’s leadership” (April 18). The previous day Pandit had warned that Citigroup might not increase its payout to shareholders at all this year (“Pandit plays down higher Citi payout hopes”, FT, April 17). The Federal Reserve had blocked its planned payout on the grounds that it would deplete capital too much. Vikram Pandit’s dressing down by shareholders sparked a number of articles pondering its meaning, particularly in the FT. Congress made “say-on-pay” part of the 2010 Dodd-Frank financial reform law. “The legislation is beginning to have an effect. It may be too soon to declare that

LEADERS

Pandit | Feeling the heat 38

“Global banks feel more heat over executive pay” South China Morning Post, April 23

36 34 32

“Investors rebuke Citi board over pay” FT, April 18

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these votes will radically alter attitudes on executive pay in a country where investor rights are weak” (“Citi under fire”, FT, April 20). However, other FT articles were more forthright, particularly in view of protests by Barclays’ shareholders against Bob Diamond’s generous rewards. “Call it ‘The Citi Effect’”, said another FT article of April 20. Barclays had appeased Standard Life, the highest profile objector to Bob Diamond’s hefty pay, just two days after Citigroup’s “humiliating shareholder vote”. “A turning point may have been reached in the campaign for bankers’ pay to reflect returns to owners rather than the cost of a high-maintenance lifestyle” (“Bob’s semi-apology must presage broader climbdown”, FT, April 20). Diamond and his finance director Chris Lucas had volunteered to apply additional performance conditions to their bonus payouts. “Do these unexpected events presage the start of a capitalist revolution – a shareholder assault on further pillaging of banks by executives whose mediocre performance has customarily been rewarded with huge bonuses and equity-related incentives?” philosophized one FT writer. He found it “amazing” that it had taken so long for the “worms of the institutional investment world to turn”, though he observed “significant protest votes” had been cast in the UK against bank bonuses since 2009. “Yet the fact remains that bankers’ pay is one of history’s great heists – a gigantic reward for failure”. (“Battle is joined on bonuses – at long last”, FT, April 20). Shareholders in the UK may have started deploying their firepower earlier, but recent events suggest their American counterparts are mustering their forces too. Bank bosses would do well to pay attention.

mobile phone maker to a man on a burning platform in a leaked memo in early 2011. After a successful smartphone US launch in early 2012, Nokia’s fortunes appeared to be improving for the first time since Elop’s decision to team up with Microsoft to build phones based on its Windows Phone software in 2011. “The optimism proved shortlived”, said the FT of June 14. It summed up the course of events succinctly: a profit warning in April was followed by a heavy first-quarter loss, a junking of its credit rating and an increase in the cost of insuring against default of its debt. The FT noted a “growing feeling among analysts and bankers that the company is living on borrowed time unless strong action is taken…” (FT.com, June 14). This strong action included slashing of jobs. Vedomosti of Russia reported Nokia’s planned lay-offs of 10,000 workers by 2013 were not the first: “Since the appointment of Stephen Elop (end of 2010) as a CEO, Nokia has decided to lay-off 40 000 employees” (June 15). Despite the company’s deepening crisis, Elop’s coverage over the second quarter proved 40 per cent favourable and only three per cent negative. Some commentators argued that Elop should be given some slack. “Nokia deserves more time before investors hang up” said a FT headline of April 27. “Neither Nokia nor the euro is all washed up – far from it”, argued the article. “But whereas considerations of global financial stability provide a motive for non-European countries to prevent the collapse of Europe’s monetary union, there is no discernible incentive for Apple, Samsung Electronics or other competitors to ride to Nokia’s rescue. In other words, the world is a lonelier place for Stephen Elop, Nokia’s Canadian-born chief executive, than for Angela Merkel, Germany’s chancellor. How much patience investors will show Mr Elop is uncertain”. Elop | Coverage by region APAC (35%)

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STEPHEN ELOP OF NOKIA Stephen Elop of Nokia, who became the ﬁrst non-Finnish CEO of Nokia in September 2010, famously likened the beleaguered Finnish

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LEADERS

Elop | Narrowing options “Nokia hit by profit warning” FT, April 12

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“Nokia Crisis Deepens, Shares Plunge” WSJ US, April 12

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Elop’s options appear to be narrowing in the ﬁght to save the world’s former mobile phone leader. With no obvious life rafts in sight, his challenge is to come up with solutions fast.

ANDREW MOSS OF AVIVA AND PHILIP CLARKE OF TESCO: VICTIMS OF SHAREHOLDER SPRING Andrew

Moss, CEO of Aviva, was thrust into the spotlight in early May as shareholders vented their fury at the UK insurer’s annual meeting, with a majority voting against the board’s pay policy. The defeat came in an “exceptionally stormy” annual meeting and prompted calls for Andrew Moss to resign (“Investor anger boils over”, FT, May 4). Another article noted: “The dry comment of one investor…that a rolling stone gathers no Moss. The bounding boulder of shareholder activism has skittled the credibility of Andrew Moss, chief executive of the struggling insurer”. It judged Moss | Coverage by region

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Moss had little choice but to follow the example of Sly Bailey of Trinity Mirror, “another underperforming boss” and step down. The “shareholder spring” had “gained impressive momentum”; it had started in earnest only the week before, when David Brennan, CEO of AstraZeneca, was forced into retirement. “The aim of a loosely co-ordinated group of investment heads at big Anglo-Saxon fund managers is to send a strong signal to boards about unmerited executive pay”, (“Shareholder’s spring offensive set to flatten other bosses”, FT, May 4). Within days Moss had quit, with his 1.75 million pounds sterling severance package criticised as “obscene” (“Investors in attack on payoff for Aviva chief ”, FT, May 9). The Lex Column observed: “Investors on both sides of the Atlantic are exercising their advisory vote against pay at shareholder meetings. Barclays and William Hill in the UK, UBS in Switzerland and Citigroup in the US have all felt the heat”, (Lex, FT, May 9). But not all media commentators were happy to liken the shareholders’ protests to a “shareholder spring”. One FT blogger wrote: “Spare me the ‘shareholder spring’ allusions”, arguing they devalued the sacrifice of those who took part in the Arab Spring revolts and misrepresented the nature of the shareholder rebellions. “What really did it for Mr Moss (apart from his habit of letting himself be photographed looking out over the City, like a jut-jawed lord of all he surveyed), was his performance, not his pay”. The blogger cited Aviva’s shares had more than halved in value since his arrival and rose after news of his departure. “The real question”, insisted the FT blogger, was “whether shareholders will maintain the pressure to reform executive incentives so they underpin corporate performance, rather than undermine it” (“Performance not pay doomed Aviva’s Moss”, FT.com, May 8).

PHILIP CLARKE OF TESCO Philip Clarke took over as CEO of Tesco in March 2011, after the 14-year tenure of Sir Terry Leahy. Clarke’s ﬁght to revive the British grocer kept him in the media glare, though slightly more than 60 per cent of his mentions proved favourable. “Crunch time for Tesco as it seeks to win back shoppers” said a FT headline on April 14, the week before Clarke was due to unveil his UK strategy. Clarke needed to convince investors that he had “a viable plan to revive the retailer’s UK business”, opined the article. “If not, his future could be in doubt – some shareholders have suggested that he has between a year and 18 months to turn the business round”. The WSJ Europe ran a story ahead

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of Clarke’s “keenly awaited strategy presentation”, noting that the CEO was “taking personal responsibility for its sputtering U.K. operations” (“Tesco Chief Seeks to Halt U. K. Slide”, April 16). Clarke’s strategy included a one billion US dollars investment plan for the UK business, mainly to be funded from cash flow, and a decision to scale back its aggressive supermarket openings. However, a “bungled dividend announcement in its full-year results and news of a fresh setback for the retailer’s lossmaking US business” clouded the move, said the FT. It quoted Clarke: “I want to tackle the misconception that Tesco is struggling…We are not. We are as strong [as before] and we are a successful business” (“Tesco ends era of expansion”, FT, April 19). In May, as Tesco published its annual report, it emerged that Clarke had foregone his bonus for 2012. This came after the retailer’s first profit warning in 20 years in January, recalled the FT. It quoted Clarke: “’I wasn’t satisfied with the performance in the UK and I won’t take the bonus. I’m confident we’re tackling the right issues and building a better Tesco for customers, colleagues, shareholders’” (May 23). Valor Economico of Brazil observed Clarke’s refusal of his bonus had halved his salary from the 3.6 million US dollars he received for the 12 months to February 2011 (May 23). With shareholders increasingly protesting about undeserved executive pay, this was a smart and timely move by the CEO.

SO WHAT DO WE LEARN? Jamie Dimon has provided a familiar morality tale for business leaders: the reputation of even the most respected, the most successful and admired bank boss can suﬀer damage if they fail to prevent a massive hit to proﬁts from an event that should have been preventable. The press love a story of hubris, and Dimon 03/2012

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presented it to them on a platter. The trading fiasco called into question the effectiveness of Dimon’s management oversight and control of risky operations and it undermined his credibility in his self-appointed role as fighter against over-regulation. Dimon’s self-confidence and skill in communicating with politicians, regulators and shareholders could not deflect the bullets. Moreover, the consequences may reach further than Dimon’s own reputation: if even the King of Wall Street cannot be relied upon to manage a big American bank, then who can? This is grist to the mill of American politicians and regulators who believe banks such as JP Morgan are too big, complex and risky to remain in their current form and should be broken up. For Vikram Pandit, the humiliation by shareholders suggests a serious misjudgement of the mood of shareholders by the Citigroup CEO and a failure to listen, and respond, to their concerns. With American shareholders starting to flex their muscles, CEO bank chiefs should take notice that the era of willingness to reward mediocrity may be nearing its end. Vikram Pandit has retained his job and has the chance to improve his relations with shareholders and show he is worth his generous pay package. No such chance for the hapless Andrew Moss, who felt shareholders’ ire too late in the day to make amends. For Aviva’s shareholders, the perception of rapaciousness combined with incompetence proved intolerable. This sends out a strong message to CEOs and boards. In France, the government policy is that CEO salaries should be limited to twenty times that of the lowest paid employee at state-owned or part state-owned companies (which many of them are). Consequently, many CEOs are likely to be forced to take massive pay cuts. Business leaders in America and Britain, even banks such as RBS and Lloyds that still have big government stakes, are less answerable to their governments. However, they can no longer afford to ignore the views of shareholders. The challenge for shareholders on both sides of the Atlantic is to protest shrewdly and effectively, to ensure rewards for business leaders are linked to performance. Of Stephen Elop and Philip Clarke, two CEOs whose efforts to turn around their struggling companies kept them in the media spotlight, Clarke proved the more successful at winning sympathetic reporting. His mentions convey a sense of hard graft to revamp Tesco’s UK operations. He effectively communicated to the media that he was taking responsibility for the group’s lagging UK operations. He underlined this perception by voluntarily giving up his bonus, while expressing confidence he was tackling the right issues. Elop appears to have fewer ideas and less time to bring Nokia back from the brink.

Convince our jury. Florence Ranson Head of Communications, European Banking Federation

Marc-Oliver Voigt Publisher, Communication Director

Markus Beeko Director Campaigns & Communications, Amnesty International

Pascal Beucler Senior Vice President & Chief Strategy Officer, MSL Group

Robin Boon Director Communications, PostNL

Rose de la Pascua Executive Vice President Europe, Weber Shandwick

Salvador da Cunha CEO & Managing Director, Lift Consulting

Kristina Ebenius Managing Director Europe, Schwartz Communications

Jeremy Galbraith CEO EMEA, Burson-Marsteller

Clarissa Haller Chief Communications Officer, ABB

Herbert Heitmann President, European Association of Communication Directors

Hana Hejsková Director of Communications, Czech Airlines

Hans Koeleman Director of Corporate Communications, KPN Royal Dutch Telecom

Chris Lewis CEO, Lewis PR

Ulrich Lissek Communications Director, Nord Stream AG

Charlotte Lindsey-Curtet Director, Communication & Information Management, International Committee of the Red Cross

Stefano Lucchini Senior Executive Vice President, Public Affairs & Communication, Eni Italia

Simon Matthews Chief Executive, Fishburn Hedges Group

Richard Millar President and CEO, UK & Europe, H+K Strategies

Michael Murphy CEO, Grayling

Patricia O’Hayer Vice President Global Employee Engagement, Unilever

Elisabeth Schick Senior Vice President of Communications & Government Relations, BASF SE

Robert Phillips President & CEO, EMEA, Edelman

Peggy Simcic Bronn Associate Professor, Communications, Norwegian School of Management, Oslo

Catalina Stan President and CEO, BDR Associates Romania

Brad Staples CEO EMEA, APCO Worldwide

Chris Talago Executive Vice President & General Manager EMEA, Waggener Edstrom

Nuria Vilanova President, Grupo Inforpress

Sigrid de Vries Head of Communications and External Relations, IVECO

Sally Ward Senior Partner EMEA, Managing Director UK, Porter Novelli

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STRATEGIC THINKER The corporate and academic stand on communication

UNDER THE SPOTLIGHT The Eurovision Song Contest is no stranger to controversy, but this year’s event in Azerbaijan was by far the most controversial in its 57-year lifetime.

he Eurovision Song Contest is a pan-European annual spectacle that pits nation against nation in a friendly but competitive festival of music. It is also the ﬂagship coproduction of the European Broadcasting Union (EBU). Broadcast annually since its inception in 1956, it is one of the longest-running television entertainment programmes in history. It is also one of the most watched non-sporting events in the world, with international audiences rarely below 100 million. Over nearly six decades, the Song Contest has evolved in step with the human evolution of the continent and its many millions of citizens. As post-war European history was being written, Eurovision was always there in 03/2012

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the thick of it. Many countries regard participation alone as de facto entry into an exclusive club of European peers. But for them, winning is both a source of immense national pride and a golden opportunity to parade their country’s virtues before a vast global audience. The Song Contest ﬁxes the world’s gaze on its host, warts and all. Governments are well aware of this, and those with more to prove can go to enormous lengths to project an attractive, successful and quintessentially European picture.

Photo: Thomas Hanses (EBU)

By Michelle Roverelli

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cut to an ad break while Israel was performing in Paris; when they resumed transmission to find him sailing to victory, the show was taken off air. And when Israeli television staged the 1979 Contest in Jerusalem, the North African and Middle Eastern nations put so much pressure on Turkey that they withdrew. Eurovision has a sizeable gay following, so when Moscow hosted in 2009, fears about Russian homophobia overshadowed the build-up to the Contest. An attempt to stage a gay rights parade in Moscow on the day of the final was forcefully put down by security agents. The same year, Georgia was banned for proposing the song We Don’t Wanna Put In, a thinly veiled jibe at Russian Premier Vladimir Putin in the wake of the 2008 war of South Ossetia. Controversy and polemic have always shadowed the Eurovision Song Contest in its staging, its voting and the socio-political context in which it takes place. And 2012 was no exception.

COMMUNICATING THROUGH CONTROVERSY POP & PROTEST But these gov-

ernments are not alone in seeking to put the attention to greater use; every year campaigners and protesters tap in to the Contest’s publicity to make their message heard while the world is listening. The ﬁrst overtly political move came in 1964, in Copenhagen: after the Swiss act had ﬁnished, a man clambered on stage brandishing a banner that read “Boycott Franco and Salazar”.

The Song Contest ﬁxes the world’s gaze on its host, warts and all. His protest, directed at the Iberian dictators, grabbed a few seconds of precious publicity. The same issue was revisited in Madrid, in 1969: Spain had won by one point the previous year in a contest said to have been hijacked by Franco, and, in the ﬁrst ever national boycott, Austrian TV ORF refused to send an act to Spain. In 1978, Jordanian television

Practically speaking, a combination of audience televoting and professional music industry jurors chooses the outright winner. And with victory comes – besides national adoration and the promise of music industry success – the right to host the Contest the following year. As soon as Azerbaijan’s Ell & Nikki triumphed in Dusseldorf in 2011, it was clear that the EBU had a communications challenge on its hands. Among the many areas in which the EBU is a proponent, media freedom and independence are the most visible. We provide our members, the public service media organisations of Europe and beyond, with technical support, training and advocacy at national and EU level; we also speak out regularly about the importance of media freedom. We knew about the autocratic regime in Azerbaijan run by strongman president Ilham Aliyev. We were aware of the state’s heavy-handed treatment of free-thinking journalists. And we knew from experience that the media would simplistically report these facts in terms of a moral dilemma that, without proper preparation, could be damaging for the EBU. Inquiries began to arrive in the months following the 2011 Contest, questioning the wisdom and probity of hosting the Contest in Azerbaijan. Early approaches were made by international and Azeri human rights groups, non-governmental organisations and press freedom campaigns. Inevitably, our conversations with these groups began to ﬁlter into the media, bringing newspaper reporters, radio journalists, documentary makers and 03/2012

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bloggers knocking at the door on a daily basis. There was no question about what the big issues were, since all the questions centred on human rights: the misconstruction being that the EBU was endorsing the Azeri regime by entrusting it with the Contest.

KEY MESSAGES Our ﬁrst response was to establish key messages around the issues raised. The fundamentals were that the Eurovision Song Contest is an apolitical entertainment show and a force for good. These messages were simple, honest and memorable. We also prepared strong arguments to underpin our conversations with the media, namely: the Song Contest is in Baku because Europe voted for the Azeri entry last year; the EBU’s partner is the Azeri broadcaster, Ictimai TV, and not the government; the Azeri government has given written guarantees that, within the context of the Song Contest, the European Convention on Human Rights will be respected. Then we set up media training for select personnel who were authorised to speak publicly on the subject. Wherever possible, EBU interviewees were to state that the Song Contest “puts a spotlight” on its hosts, and that “it is only because of Eurovision that we are talking about human rights in Azerbaijan”. We had a solid basis to build on, and sold these key messages to the media for as much positive coverage as possible. Then the contentious issue of house demolitions in downtown Baku rose its head, and things got trickier. The mayoralty of the Azeri capital had been upgrading the city’s infrastructure over several years, under an ambitious long-term project to spruce up the city. This scheme now included the construction of a gigantic exhibition centre, called the Crystal Hall. Immediately after victory in Dusseldorf, Baku accelerated the building work to guarantee a sparkling new arena for the Contest in May 2012. In reality, any link between the demolitions and the Song Contest was at best tenuous, but it nonetheless triggered headlines such as ‘Evicted to make way for Eurovision’ (BBC) and ‘Azerbaijan evictions mar Eurovision contest – rights group’ (Reuters). In response, we abundantly disseminated these messages: the EBU did not request a new venue; the Crystal Hall is a multi-purpose, public facility and will remain so long into the future; the Azeri authorities have stated publicly that the demolitions are unrelated to the Eurovision Song Contest. But some critics were becoming increasingly vitriolic, misreporting the EBU’s detachment from the political debate as wilful disregard of Azeri state-sponsored abuses. In reality, the EBU was refusing to politicise the Song Contest. 03/2012

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EXECUTIVE SUMMARY Singing a song for Europe? The EBU serves 74 Members in 56 countries in and around Europe The venue for the 2012 Eurovision Song Contest – Baku, Azerbaijan – was controversial due to alleged human rights violations In response, the EBU communicated key messages, stressing the apolitcal nature of the Contest and the spotlight effect of its presence on the country’s problems As a result, positive media coverage and Azerbaijan’s opposition party echoed the ‘spotlight’ theme

CONFRONTING THE CRITICS We decided to demonstrate a broader commitment to media freedom and its relevance to Azerbaijan in particular. Three weeks before the Contest finals, the EBU hosted a workshop on media freedom in Azerbaijan at its headquarters in Geneva. Baku sent a senior government minister, Ali Hasanov, as its representative, which gave the occasion credibility and meaning. Also present were senior figures from an array of other relevant bodies, including the Council of Europe, human rights and media freedom groups and the EBU’s Azeri member, Ictimai TV. This was the first time the Azeri government had agreed to meet some of its harshest international critics on neutral ground. Although visibly on his guard, Mr Hasanov remained open to dialogue and heard out the many detractors who had come to vent their frustration. We had created a potentially seminal moment in terms of both EBU action on media freedom and

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our ability to communicate that action with conﬁdence. Participants agreed to an EBU-led roadmap to turn Ictimai TV into a true public service entity, the implementation of a modern, industry regulated code of professional conduct for journalists in Azerbaijan, and intensive EBU training of Ictimai TV staﬀ on strategic, editorial and management matters. The workshop ended with a press conference which generated some very positive coverage. There was also some dismissive language such as ‘window dressing’, as is usual whenever high level talks do not bring immediate results. Crucially, the day gave us a chance to remind

Awareness of the human rights proﬁle of Azerbaijan is at an all-time high.

Photo: Private

our critics that the EBU’s ﬁrst duty is to its members. This often means we need to open channels of dialogue with governments because, rightly or wrongly, their decisions have a direct impact on our members’ ability to function. We used this moment to cast some perspective on the 2012 Contest’s very singular context: an ex-Soviet, majority-Muslim country that has only been open to the idea of democracy for 20 years.

MEDIA PENDULUM It was clear that the non-governmental organisations in particular were putting the onus on the EBU to lead calls for change in Azerbaijan. This was our chance to explain why this was a disingenuous strategy, with messages such as: the EBU supports its members on the issue of media freedom, but it is not there to deliver it; that is the job of lawmakers, state institutions and non-governmental organi-

sations; while the EBU subscribes to the principles fought for by campaign groups like Amnesty International and Human Rights Watch, we said, it has a different purpose and approach; the EBU treads a path of soft diplomacy, dialogue and inclusivity, it is not in the business of issuing demands and ultimatums or calling for boycotts and protests. This is why we held the workshop. And we reiterated the EBU’s rejection of the Eurovision Song Contest’s use to exert pressure on governments. It is what it is: a massively popular, apolitical television spectacle whose power is its ability to unite millions over borders. As the day of the final approached, the media pendulum began to swing the other way. Such is the passion about the Song Contest that the controversy was pushed aside by the event itself. The UK’s Telegraph published a thoughtful piece called ‘Eurovision Song Contest is the real union of Europe’, which explained how Eurovision “does more to bring people together than the EU will ever do”. In the same vein, the Spectator magazine published a feature called ‘Let’s show Eurovision some respect’. Crucially, however, our ‘spotlight’ message was getting through. Innumerable websites and publications, including CNN, Reuters, the Economist the New York Times, the Guardian and the Huffington Post, repeatedly used the metaphor of the Song Contest shining a spotlight on Azerbaijan’s faults. Others chose to build headlines around it, including AP, AFP, Al Jazeera, BBC, Deutsche Welle, Euronews and France 24. The leader of Azerbaijan’s opposition People’s Popular Front party told reporters: “In the last months, very influential European mass media outlets have paid attention to Azerbaijan’s problems. And we are pleased with this.” On balance, the EBU emerged relatively unMichelle Roverelli harmed from the episode, Head of Communications, yet international awareEBU ness of the human rights Michelle Roverelli manages profile of Azerbaijan is at the corporate communicaan all-time high. Given the tions unit of the European Broadcasting Union/Eurovistakes, I would call that a sion. Before joining the media success, albeit one I would industry in 2007, she worked prefer not to repeat. I could for two leading communicanot hide my relief when tions agencies in Belgium and Switzerland. Sweden won in Baku. 03/2012

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STRATEGIC THINKER

TIME FOR A RETHINK? An increasing number of touchpoints with their publics force many organisations to rethink their strategic communications. The European Communication Monitor 2012 identiﬁes key challenges and reﬂects on future directions. By Ansgar Zerfass and Ralph Tench

ccording to this year’s edition of the European Communication Monitor, the practice of professional communication is currently marked by contradictions and impositions. Shaping the same and consistent image for all stakeholders, a core idea of integrated communications, is nowadays 03/2012

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less popular than the concept of polyphony, meaning a simultaneous and sequential stimulation of several perceptions to address diﬀerent stakeholders. Mobile applications on the social web are seen as important tools, but there are large gaps between their perceived importance

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and real implementation in most European organisations. Ethical challenges are more prevalent than ever in the field, but current codes of ethics are seldom used and rated as outdated by many professionals. And there is still a large gap between the skills and knowledge which need to be developed and the training offered by employers. What does this mean for communication executives? Based on a deep analysis of the data, we have identified five key insights that might stimulate the ongoing debate about strategies to advance communication’s influence and power in organisations.

BACKGROUND OF THE STUDY The annual European Communication Monitor was held for the sixth time in a row this year. It is the most comprehensive empirical survey of communication management worldwide with 2,185 participating professionals from 42 countries in 2012. The research is conducted by a group of professors from 11 universities across Europe within the framework of the European Public Relations Education and Research Association (EUPRERA). Partners include the European Association of Communication Directors (EACD) and this magazine, as well as Ketchum Pleon, a leading European public relations agency who are sponsoring the project from this year onwards. The questionnaire used for the survey covered 19 sections and 30 questions, based on a research model which has been revised and expanded from the previous editions. The English language survey was online in March 2012 for four weeks. 4,107 respondents started the survey. In order to fulfil the highest empirical standards, only 2,185 fully completed replies by participants who were clearly identified as part of the profession were evaluated and analysed using SPSS and a variety of statistical tests like Pearson’s chi-quare, Spearman’s and Kendall’s rank correlation, ANOVA/Scheffé post-hoc and T-tests. A look at the demographics shows that 71.7 per cent of the respondents work on the first or second level of the communication hierarchy as heads of communication, unit leaders or agency CEOs. The average age is 41.5 years and nearly 68 per cent have worked in communications for more than 10 years. Based on this, it can be claimed that the results are founded on statements of those who take responsibility for the profession today and who will shape its future in Europe. The distribution of gender (57.6 per cent female, 42.4 per cent male) and the regions (29.6 per cent Northern Europe, 30.5 per cent Western Europe, 10.7 per cent Eastern Europe, 29.2 per cent Southern Europe) reflects the diversity of the profession. Once again, the survey shows that several countries and types of organisations follow different paths of development. While this article reports on the overall trends, detailed analyses for various groups can be found in the full report available at www.communicationmonitor.eu. MULTIPLE IMAGES The complexity of communication is increasing. Organisations are interacting with more stakeholders through more media in more directions. 82 per cent of the respondents say that, compared to five years ago, their organisation has more ‘touchpoints’ with its publics. According to comparative data from the 03/2012

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STRATEGIC THINKER

Figure I Importance and implementation of social media tools Very important (5)

Online communities (3.54 | 4.08) Mobile applications (2.68 | 3.77)

Importance for communication (3) management

Weblogs (2.62 | 3.29)

Online video (3.32 | 3.82) Microblogs (3.02 | 3.55) Photo sharing (2.84 | 3.18)

Location-based services Slide sharing (2.24 | 2.93) (2.49 | 2.99) Social bookmarks Wikis Online audio (2.13 | 2.73) (2.06 | 2.67) (2.16 | 2.73) Mash-ups (1.69 | 2.35) Virtual worlds (1.59 | 2.06)

Not important (1) (1)

Not used at all

(3) Implementation in Organisations

n = 1,925 communication professionals

GAP VII study, conducted by the Annenberg School of Communication, the situation is even more extreme in the United States: the figure there is almost 93 per cent. Three out of four European communication professionals agree that the corporate or organisational voice is created by all organisational members interacting with stakeholders. So it is not surprising that the idea of shaping a consistent image for all stakeholders is supported by fewer respondents than the alternative concept of polyphony, meaning that several perceptions are stimulated simultaneously and sequentially in different stakeholder relationships. This approach challenges traditional concepts of integrated communications. It asks for new strategies to create flexible identities with a common core and overlapping, ambiguous domains. Clearly, today’s methods of reputation measurement, which champion solid images and can seldom deal with shades of reality construction, are not equipped to cope with this development. The tools need to be redesigned to fit the new paradigm of liquid realities.

PROVING VALUE Data from diﬀerent sections of the

monitor can be combined to identify the key challenges for communication professionals in Europe in these times of turbulence. It is all about understanding business needs, 03/2012

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(5) Used signiﬁcantly

implementing strategic orientation and proving efficiency and effectiveness of communication activities. On the level of organisations and their attitude towards communication, a lack of understanding of communication practice within the top management (reported by 84 per cent of respondents) and difficulties of the profession itself to prove the impact of communication activities on organisational goals (75 per cent) are the main barriers for further professionalisation. On the functional level, i.e. within the realm of communication departments, linkages between business strategy and communication as well as a better support of top-management decision making are identified as major issues that have not been resolved until now. On the individual level, practitioners report that their competencies in need of further development are mainly management skills and management knowledge (46 and 42 per cent, respectively) as well as business knowledge and business skills (39 and 33 per cent). Combining these insights, a clear picture emerges: communication professionals should strive to make communication a business partner, helping others in the organisation and top management to reach their goals. This requires more competencies in

Clearly today’s methods of reputation measurement are not equipped to cope with this development. ﬁelds which are – as other results of the survey show – seldom part of the training oﬀered by organisations nowadays. While there is a plethora of training in communication skills (more than actually needed, accord-

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Figure II How communication managers spend their productive time at work Aligning communication, the organisation/client and its stakeholders (studying business and social research reports, identifying organisational goals, monitoring public issues and stakeholder expectations, debating visions and business strategies with top management and other departments, developing scenarios, building legitimacy) Coaching, training and educating members of the organisation or clients (on the vision, mission and other communication related issues as well as upgrading their communicative competence, preparing them for communicating with the media, stakeholders, etc.)

Operational communication (talking to colleagues and journalists, writing press releases and print/online texts, producing communication media, monitoring results of our activities, organising events, etc.)

19.3% 37% 14.7%

29%

Managing communication activities and co-workers (planning, organising, leading staff, budgeting, evaluating processes and strategies, justifying communication spending, preparing for crises)

n = 2,185 communication professionals; ﬁgures display median for each item

ing to the respondents), a large gap between needs and oﬀerings exists in the areas of developing management knowledge (current aﬀairs, societal and political trends, legal, ethical) as well as in business knowledge

Only every second respondent thinks that training is useful. (markets, products, competitors) and management skills (decision making, planning, leading etc.).

GOING MOBILE The monitor reveals a large gap between the perceived importance of social media tools for communication and the actual rate of implementation in European organisations. Most obviously, mobile applications have entered the top three ranks of important social media platforms, but at the same time the backlog of implementation is higher than in any other ﬁeld. Online communities or social networks are considered by far the most

important social media tool available. With more than 75 per cent support by respondents, they are leading the list of important social media tools, followed by online videos (67 per cent), mobile applications like apps and mobile webs (65 per cent), micro blogs like Twitter (56 per cent) and weblogs (45 per cent). However, less than 56 per cent of the communication departments actually use online communities in their communication. A gap of more than 20 per cent compared to the importance this tool is given by practitioners. The biggest diﬀerence between importance (65 per cent) and implementation (31 per cent) is found for mobile applications, a gap of almost 35 points. A cross-matrix analysis shows that mobile applications, weblogs and photo sharing are considered the most important opportunities in social media communication (see ﬁgure 1). All communication managers report rather moderate skills for using digital technologies for internal and external communication, regardless of their gender. Despite this, only every second respondent thinks that training is useful. Informal approaches to enhance those skills are clearly favoured. Eight out of ten European professionals think that the best way to learn about online tools is to use them as part of the regular work as well as privately. Although social media has been much discussed in the profession for many years, by now only two channels (online communities and online videos) are rated as very important or at least as important by a majority of the respondents. This shows that there is still a long way to go. Evaluating the potential of social media and investing in 03/2012

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Figure III Ethical challenges experienced within the last 12 months

EXECUTIVE SUMMARY

100%

30.6%

90% 80%

47.8%

43.2%

70% 60%

22.3%

50% 40%

22.4%

20.4%

22.1%

36.4%

34.7%

Northern Europe

Southern Europe

30%

47.2%

20% 10%

29.9%

Western Europe

No ethical challenges One ethical challenge Several ethical challenges

Eastern Europe

MORE REFLECTION Changes in the environment are requiring communication professionals in Europe to reconceptualise and reorganise what they do. Although the majority of productive time still goes to operational communication (talking to colleagues and media, writing texts, monitoring, organising events, etc.), this does not account for more than 37 per cent of a typical week (see figure 2). Managing activities related to planning, organising, leading staff, evaluating strategies, justifying spending and preparing for crises takes 29 per cent of the time. Reflective communication management, aligning communication, the organisation/client and its stakeholders, takes 19.3 per cent and coaching, training and educating members of the organisation or a client takes 14.7 per cent. As expected, there are significant correlations with the position of a communicator in the organisational hierarchy, with the influence of the communication function (having more influence on top management correlates with more reflection and less operations) and with sectors – all businesses (private companies, joint stock companies and consultancies) allow for more reflective management than non-profit and governmental organisations. Media relations professionals perform the 03/2012

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Ethical challenges are more prevalent than ever in communication management. While today’s codes of conduct are obviously not viable any more, most practitioners are striving for new guidelines which help to do business in an effective and acceptable way. Professional development and training needs more attention. There are large gaps between current development needs of communication professionals and training opportunities offered by organisations.

n = 2,137 PR professionals.

platforms and digital competencies stay at the top of the agenda for communication professionals.

Traditional approaches to integrated communications are challenged by the concept of polyphony, which recognises that communication can not be controlled and every member of the organisation contributes to shaping communicative identities.

A new vision for the communication function emerges. Instead of thinking of themselves as professional communicators, i.e. those who publish and explain what others have decided, communicators may try to fulﬁl the roles of enablers and consultants, i.e. those who are experts in public opinion, understanding media channels and content production while working in a communicative organisation where everybody is a spokesperson and shapes the image of an organisation.

largest portion of operational work, while practitioners engaged in governmental relations, public affairs and lobbying spend more time on reflective activities. Results from the European Communication Monitor 2012 prove for the first time what has been elaborated in theory before: communication managers should not only communicate on their own, but strive to enable others in the organisation to communicate and build an architecture of listening which will contribute to the alignment of an organisation’s mission and the ex-

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E U R O P E A N C O M M U N I C AT I O N M O N I T O R 2 0 1 2

FULL RESULTS EUROPEAN C O M M U N I C AT I O N MONITOR 2012 CHALLENGES AND COMPETENCIES FOR STRATEGIC COMMUNICATION R E S U LT S O F A N E M P I R I C A L S U R V E Y I N 4 2 C O U N T R I E S

PARTNERS:

SPONSOR:

A web video with key results and the detailed report with numerous charts (PDF, 124 pp.) is available online at www.communicationmonitor.eu: Zerfass, A., Vercic, D., Verhoeven, P., Moreno, A., Tench, R. (2012). European Communication Monitor 2012. Challenges and Competencies for Strategic Communication. Results of an Empirical Survey in 42 Countries. Brussels: EACD/ EUPRERA. ISBN 987-3-942263-15-3

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pectations of stakeholders. In a nutshell, this means that communicators should increasingly look to stop communicating themselves and start enabling others to do so.

ETHICAL CHALLENGES Six out of 10 communication professionals in Europe report that they have encountered ethical challenges within the last twelve months, i.e. situations in which activities might be legally acceptable, but problematic from a moral point of view. One third of the respondents have actually experienced several of those challenges. Professionals working in governmental relations, lobbying, public aﬀairs and in online communication and social media are more exposed than colleagues working in other areas. The survey shows that ethical issues are much more relevant than ﬁve years ago, driven by compliance and transparency rules, the increase in social media and – to a lesser extent – by the international character of communication today. Despite

these challenges, the majority of European communication practitioners have never used a professional code of ethics like the Code of Athens to solve moral problems. Only a minority of 29 per cent has ever applied such a code. While 32 per cent of the respondents think that current codes of ethics are outdated, an overwhelming majority (93 per cent) ﬁnd that the communication profession needs such rules. According to the monitor, professional associations on the national or international level are most eligible to provide such a code. This can be interpreted as a call for action to provide up-todate guidelines made to ﬁt the digital age in Europe. Obviously, this is not only a question of moral reasoning and norms, but also of institutions and processes that have to be installed to make such codes vivid and sustainable. Ansgar Zerfass University of Leipzig

PERSPECTIVES In times of economic uncertainty and ever more fragmented publics, communication professionals face hard times. Growing demands from partners within the organisation and external stakeholders have to be dealt with. However resources are limited and new options do not mean that established ones are not needed any more. In order to deal with these issues, traditional modes of benchmarking and gradual adjustment might not be sufﬁcient any more. New rules of the game ask for new structures, strategies and tactics as well as for courage to guide change. This can be a risk, but it is also the path to a more advanced vision for the profession and those who lead it. 03/2012

Ansgar Zerfass is a professor of communication management at the University of Leipzig, Germany, and lead researcher of the European Communication Monitor survey series. He is also executive director of the European Public Relations Education and Research Association (EUPRERA).

Ralph Tench Leeds Metropolitan University Ralph Tench is a professor for communication at Leeds Metroplitan University, UK, where he also serves as director of Ph. D. programmes and director of research for the Faculty of Business and Law.

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POSITIVE CONTENT VS. NEGATIVE TWEETS When it comes to making sense of the good and bad of social media communications, the business-to-business sector leads the way.

n the train into work this morning I took out my iPad and updated my status on Facebook, then checked my Twitter feed (@imogenrlee) and retweeted a couple of interesting tweets about topical business and legal issues before checking our ﬁrm account (@eversheds). I remembered to check YouTube to see how many views our latest Eversheds video had before 03/2012

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posting a link to it from my LinkedIn account. In the space of ﬁve minutes I had connected with, and marketed my ﬁrm to, thousands of people, the vast majority of whom I do not know. Welcome to the new world of social media. The past 10 years have seen the emergence of social media into our

Photo: Seemitch/ dreamstime.com

By Imogen Lee

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day-to-day lives. Initially viewed by most of us in Generation X outside the technology industries as the preserve of schoolchildren and students, this is a phenomenon that is now permeating our lives on every level, including, increasingly, at a business level. Like it or not, it is impossible to ignore.

SOCIAL MEDIA IN B2B So what is social media? It is nothing more or less than another form of communication with key audiences. The relevant social media for these purposes tend to be: • Collaborative content generation sites (YouTube) • Blogs (including Twitter) • Social networking sites (Facebook, LinkedIn, MySpace etc) • Virtual social worlds (Second Life etc)

all felt that was a struggle! But the use of websites is now so widespread that we don’t question it. And it will be the same with the use of social media in five years time. But is this just another fad of Generation Y? Will they move on once they are bored of social media, or will they revert to traditional methods of communication? My view is that while the current tools are a bit of a fad, there’s no denying that social media has changed the way in which we communicate and engage. It is not for everyone and it won’t actually replace the more familiar communication channels; it’s more likely to have a place in addition to traditional means, rather than instead of. Social media is here to stay and should be treated as a significant and potentially highly effective tool to add to your communications mix. At a recent conference on the use of social media in business-to-business communications, a distinguished and highly technologically-literate audience presented case studies on their own use of social media and debated the issues surrounding its use. I have attempted to summarise the key findings of the panel and what they considered to be the most relevant steps that businesses have to take when embarking on a social media adventure.

STEP 1: FEEL THE FEAR AND DO IT ANYWAY! Traditionally, in business-to-business marketing, communication with potential purchasers or clients has been indirect. It has always been the case that businesses in this sector must use different methods to influence their buyer, and that this influencing curve is longer and slower than in business-to-consumer marketing. Currently, the use of social media is directing and focusing business communications right into the handheld device or into the computer of the client/purchaser. On a level of engagement, this method is far more effective than traditional channels. It is simply more personal, more direct and more accessible. And this means that content requires a fresh approach and a radical overhaul. We all had to adjust our content when we started using websites to market our organisations, and I’m sure we

Many businesses view social media with fear and scepticism. There is a sense of panic about the need to generate yet more content and the additional resource that will be required. This is not the time to fear a threat, but the time to embrace an opportunity. Yes it will require a little education and a bit of a leap into the unknown for some, and there are some risks attached to such a very direct and immediate form of communication. But the rewards certainly outweigh the risks: in fact the greatest risk would be to get left behind.

STEP 2: DEVELOPING A STRATEGY So you have come to the conclusion that this is a fad that should not be ignored. Some of your target audience will certainly now view Twitter, for example, as their key source of information about the world, about business, and about their buying choices. Once you have decided to use social media in your business-to-business marketing communications, it is essential to formulate and agree a strategy as a matter of urgency. Of course the ease of access of these channels means that anyone in your business, or even outside it, can access and use them to communicate about your business without authorisation. It is crucial to set up boundaries and acceptable behaviours when it comes to the use of so03/2012

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cial media by your employees. Yes, you want to engage and empower your people; yes you want immediacy and freshness. But you don’t want to lose control of what is being communicated and your priority at all times as a communications director is to protect your brand.

STEP 3: ENSURE YOUR SOCIAL MEDIA STRATEGY IS FULLY INTEGRATED INTO YOUR MARKETING STRATEGY But any social media strategy will only work if it is in-

tegrated into your existing marketing mix and aligned with the work of your marketing team. It must be utterly consistent with your brand values and it should always complement your other activities. Although you must vary your content depending on which channel you are using, you must not vary your messaging or the overall brand. You don’t want to end up with corporate schizophrenia.

STEP 4: FRESH AND ENGAGING CONTENT You can’t get away with just duplicating existing content and broadcasting it through different channels. Many companies do, but it will not be effective and it will not maintain interest levels. Social media content can and should be more flexible and intuitive, incorporating video, podcasts, live webcasts etc. But it always has to be appropriate. STEP 5: DON’T FORGET TO MEASURE YOUR OUTPUTS As with all communications methods, you can’t just

breathe a sigh of relief that your blog is up and running or you have posted your video on YouTube. You still have work to do. The use and impact of social media channels will now require constant monitoring and measurement. It is no good sending content into the ether without any concept of how it is being read, by whom, and how, if at all, this is then being converted into business for your company. In conclusion, we have now entered a whole new world of consumer information that gives the consumer/buyer far more choice and access than ever before. It is vital that all businesses, whether they are business-to-business or otherwise, test out the various forms of social media. Everyone will make mistakes, that’s inevitable. But it’s a steep learning curve and the sooner you’re on it, the better! And what’s the best thing about the social media world? It is entirely accessible and universally available. Do you want to check out what your competitors are doing? You just have to go online and Google them.

CASE STUDY 1: ENGAGE AND EMPOWER YOUNGER EMPLOYEES Eversheds is an international law ﬁrm. There are many stakeholder groups within and outside the 03/2012

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firm; internally, we have legal and non-legal staff, different practice and sector groups, different offices in different jurisdictions, qualified and unqualified legal staff, partners and non-partners. Some of these stakeholder groups have traditionally had little opportunity to be heard outside or even inside the firm, yet they may have something important to say. Legal trainees arrive at the firm fresh from law school and spend two years training on the job before they become qualified lawyers. They are the future of the firm. Training them is a costly and resource-heavy exercise, and the firm aims to keep as many of them on after qualification as possible. It is hoped that many of them will eventually become partners and the future managers of the

Some of these stakeholder groups have traditionally had little opportunity to be heard by the firm. firm. Attracting the right calibre of applicants for training positions is key to future talent generation and succession planning. And representing the firm as a workplace that will appeal to the next generation, which is far more technology-savvy than its predecessors, is a challenge. Enter @LegalTrainee. This is an example of how an integrated social media campaign can work best when it is carefully targeted. At the end of 2010 one of our trainees asked if they could set up a Twitter account to speak to other potential trainees, and with their colleagues. As far as we are aware, this has never been done before at a major law firm. Of course there was some nervousness within the firm around letting a trainee loose in

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EXECUTIVE SUMMARY Better business with social media Evershed’s @LegalTrainee Twitter account gives insight into the life of a trainee at the legal ﬁrm and provides networking opportunities via channels typically used by students and graduates Eversheds encourages its different product groups to engage with social media in their own way However, setting up boundaries and acceptable behaviours is vital! Twitter is also useful to keep track of and react decisively to negative responses to your organisation Skilful use of social media ensures that your truth is heard by all

the ﬁrm’s name. But the trainee involved was known to be enthusiastic and entirely reliable, so we thought we’d give it a go. @LegalTrainee oﬀers an interactive insight into a trainee’s life and allows for online networking with Eversheds through social media channels that are commonly used by law students and graduates. Their motto is, ‘This is a conversation not a brochure’. It is a Twitter feed integrated with Facebook and Brave New World. It is a realtime interactive platform. @LegalTrainee currently has 1,705 followers.

Photo: Private

CASE STUDY 2: THE SALES BLOG A law ﬁrm is a business sell-

ing primarily (but not exclusively) legal services to a range of clients across a range of product areas (traditionally called practice areas). Whilst it is crucial to ensure that all communications push the ﬁrm’s brand, it is equally important for the

diﬀerent product groups to generate their own proﬁle and brand. We are encouraging our product groups to engage with social media of all types (subject to strict guidelines and supervision of course). The Eversheds clean energy blog (http://cleanenergyblog.eversheds.com) is a strong example of a cutting-edge product at the vanguard of developments in a growth industry. It is totally appropriate for such a pioneering grouping to appeal to their natural client-base through the social media. The blog was the brainchild of the marketing teams head of operations, Gareth Pezzack. It is hosted on the Eversheds website, with a Twitter feed and a LinkedIn Group. It is a hub featuring videos and presentations prepared by the team, comment on topical issues, and guidance for clients.

CASE STUDY 3: THE NEGATIVE TWEETER Recently, a negative tweet about the firm’s service was picked up through our constant monitoring of Twitter. My quickthinking public relations manager tweeted a reply asking for more information. The tweeter turned out to be a client of one of our overseas offices, who had received a poor service and had immediately informed the entire Twittersphere. My public relations manager asked for further details of what had happened, and if there was any way in which she could assist. The tweeter then publicly acknowledged his appreciation for her speedy response and that “at least 1 big Company [is] prepared to listen to the little guys”. So within hours of the negative tweet going live, our public relations funcImogen Lee tion had recognised it, Head of Corporate responded to it and conCommunications, Eversheds LLP verted it into a positive endorsement of the firm. Imogen Lee has extensive exThis was a masterclass in perience of the professional social media handling and services sector and worked in an indication of both the marketing and business development management roles risks and the rewards inbefore heading up the corpoherent in this particular rate communications team at form of communication. international law firm EverThe truth is out there – we sheds, a role she took on in May 2009. Her team leads on just have to make sure we developing and protecting the remain in the driving seat Eversheds brand around the at all times to ensure that globe, and she can be followed at @imogenrlee. it’s our truth! 03/2012

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How to improve personnel management and your career

HOW TO TOUGHEN UP YOUR TEAM Internal communicators have a key role to play in empowering their workforce in times of crisis. By Nancy Papalexandris

n our present world, countries, organisations and individuals can experience various types of crises, the most important being our current economic and ﬁnancial crisis. Facing crisis within organisations, whether its source is due to the external or the internal environment of the company, requires serious eﬀorts on the part of top management to gather available resourc03/2012

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es, mobilise people and design the necessary steps to help the organisation survive. Undoubtedly the most severely aﬀected victims of organisational crisis are employees. One common side eﬀect of crisis is downsizing which means that some people lose their job with scarce

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possibilities to ﬁnd employment, especially after a certain age. The remaining employees suﬀer from work overload and from the sense of loss which results from being separated from colleagues with whom they had spent years working together.

THE STRENGTH TO SURVIVE Some other common consequences of organisational crisis include cuts in salaries, beneﬁts and training. Employees witness job insecurity (which often leads to increased employee turnover, especially for more talented employees), loss of work motivation and lack of job satisfaction. Here we must mention the so-called ‘survivor syndrome’ which is much discussed in management literature. It refers to the low morale that hits employees who have survived downsizing and who feel that their company is unfair and that their own turn is soon to come. In order for a company to face all the above and manage an exit from crisis it needs all the support it can get from its employees. Nothing can be achieved without the following:

Photo:

A. Improved job performance, which means effectiveness in meeting organisational goals B. Employee engagement, which involves willingness to exert high levels of effort C. Organisational commitment, which entails a strong desire to remain a member of the organisation and to support its values and goals All this needs the coordinated eﬀorts of human resource management, internal communications and top management, who must take responsibility for guiding the organisation and its people through crisis.

FACE ADVERSITY TOGETHER One very valuable tool in mobilising employees is empowerment. Although management theory and practice gives us several examples of its beneﬁts, managers often feel that by empowering employees they give away part of their power to lead and control the organisation. This is far from true. Empowerment has many deﬁnitions. In general it is accepted as the process of enabling employees to think, behave, act, react and control their work in more autonomous ways, allowing them to practice their capabilities to make decisions, take action and supervise their work.

Although management theory and practice gives us several examples of its benefits, managers often feel that by empowering employees they give away part of their power to lead and control the organisation. This strengthens their willingness to take initiative, assume responsibility and find meaning in their job. The importance of employee empowerment is even more evident in times of crisis. It is especially during crisis that an organisation needs the expertise, abilities and potential of its staff in order to join forces and firmly stand against competition, loss of market share, lack of finance, negative market conditions, customer requests and quality improvements. In view of the above, I would like to look at the following questions:

A. Which are the necessary steps an organisation must take in order to achieve employee empowerment? B. What is the role of human resource management in implementing the necessary policies which will empower its employees? C. What is the role of internal communication in enhancing empowerment and facing a crisis?

HOW TO ACHIEVE EMPLOYEE EMPOWERMENT The ﬁrst element in empowerment is job design. Jobs must be designed in a way that allows employees to assume responsibilities and take decisions by making full use of their expertise, thus improving the performance of their organisation. For this to take place, the organisation must have a culture where relations with employees are based on mutual trust, where managers are ready to delegate power and where the organisational structure is ﬂexible, with an horizontal rather than hierarchical form. 03/2012

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Empowered employees feel ownership of their work and responsibility for its consequences, show willingness to take initiatives and insist on performing the tasks that lead to good results. Empowered employees are motivated and find meaning in their work while their creativity and self confidence are constantly improving. The way the organisation sets goals by inviting employees’ ideas and contributions, the way feedback is provided by the supervisor, and the praise and recognition which follows good performance are all vital elements of empowerment. Furthermore an important tool is the support provided through training, guidance and appropriate coaching. The role of leadership cannot be emphasised enough. It is leadership which provides resources, delegates powers, rewards personnel for their creative initiatives and establishes a culture that supports confidence between employee and the organisation. In fact, companies seeking to empower their employees must possess strong leadership and accountability, starting with the executive leadership and going through all managerial levels including front-line supervisors.

EXECUTIVE SUMMARY The people have the power Empowering is not the same as giving away power: enabling employees to act autonomously reinforces their willingness to work Crises in particular demand that a workforce maximise their potential A ﬂexible organisational structure allows for jobs designed to let employees take responsibility Management must see employees as a main competitive advantage and not just cost Communication of information and management messages is key Communication skills of management members should be developed, and room should be made for employee feedback

FINDING SUPPORT WITHIN THE COMPANY Human resource managers can provide valuable support in empowering employees. To start with, attention should be given to recruitment and selection, which should aim at new entrants who show potential for further development and are willing to assume responsibility. An important next step lies in training, which is regarded as one of the most important requirements of empowerment, especially if it aims at improving employee performance. Training can also serve to implant and sustain values and behaviours of collaboration and teamwork, while also improving qualities of decision-making and self-

The idea that people are a mere cost has to give way to the idea of people being the main competitive advantage and the driving force behind success. 36

conﬁdence among employees. Performance-related pay and other performance incentives can be designed by human resources to strengthen motivation and encourage initiatives linked to empowerment. Human resources can also help in redesigning work so that it can be done collectively. Self-managed empowered work teams have shown improved produc03/2012

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tivity, lower costs and increased problem solving. Last but not least, human resources must convince top management to look at employees as human capital and at training as investment. The idea that people are a mere cost, consisting of salaries, health services or beneﬁts, has to give way to the idea of people being the main competitive advantage and the driving force behind a company’s success.

EFFECTIVE COMMUNICATION Finally, the most important factor in employee empowerment is eﬀective communication. Management must be ready to communicate all aspects of organisational life to its employees. Information about the ﬁnancial situation, competition and market share should be provided together with the company’s strategic plans. Knowing the situation can help

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people accept it and ﬁght for improvements. Furthermore, employees feel they are trusted and valued by the company. Employee surveys and evaluations have shown that increased employee satisfaction and organisational performance depend on greater amounts of communication, especially in times of crisis. Communicating and sharing information in a simple but comprehensive way, as well as allowing for employee feedback, requires commitment from the management team and increased amounts of time devoted to communications. In close collaboration with top management and human resources, the corporate communications department, the public relations unit, or the person in charge of internal communications should design ways in which communications will be practiced. Managers should also receive

Effective everyday interpersonal communication with the supervisor will result in employee empowerment.

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extra training in ways of providing information and improving their communication skills in order to assign tasks, discuss results and provide feedback to employees on their performance. It should be clear to all that, apart from the overall information provided by the organisation, eﬀective everyday contact and interpersonal communication with the supervisor will result in actual employee empowerment and performance improvement.

DRAWING CONCLUSIONS In view of the above we can conclude the following:

I) During times of crisis organisations need empowered employees who can join forces with management to face diﬃculties. II) Empowered employees enjoy the independence of taking decisions, are willing to assume responsibilities and feel conﬁdent and motivated in their jobs. III) The organisation can empower its employees

through appropriate job design, team collaboration, effective leadership and coaching opportunities that encourage people to take initiatives and be creative.

IV) The role of human resources is very important in providing training that leads to improved skills, enhancing teamwork and creativity and offering incentives for improved performance. The formation of a culture with prevailing values of openness, trust and fairness is also very important together with the support given by top management. V) Internal communication – both in the form of information about company matters presented to employees and interpersonal contact between employees at all hierarchical levels (especially between employees and their supervisors) – is a key element in empowerment. Employees can mobilise their potential in resolving organisational crises and cope with difficulties caused by financial or other types of crisis if they are better informed Nancy Papalexandris University of Athens and enjoy the benefits that open and honest interperNancy Papalexandris is a prosonal job communication fessor of management in the can offer. department of marketing and We believe that the key communication as well as director of the MSc programme to facing crisis today in in human resource manageorganisational settings is ment at the Athens University the empowered employee of Economics and Business, and internal communicaGreece. She served as vicerector for academic affairs tions both at the interand personnel of her Univerpersonal and at the orsity (2001-2007) and has reganisational level can play presented the Greek Rectors’ an important role in that Conference at the European University Association. direction. 03/2012

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PROMOTING THE PR PROFILE How do you describe your job? The state of public relations education explains the current confusion. By Nina Volles

he article on the 2012 European Communication Monitor in this issue (see page 24) reminds me of one of the most interesting results of last year’s Monitor: the fact that communication professionals across Europe report negative connotations of ‘public relations’. As a consequence, most communication professionals favour alternative labels for the profession 03/2012

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– especially corporate communications, strategic communication and communication management (personally, my favorite expression). The terms ‘integrated communication’ and ‘organisational communication’, often used by academics, seem to be less popular in the professional ﬁeld.

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The designation is not the real issue here. You can put lipstick on a pig, but a big is still a pig! Changing the label of our profession might paint over the issues in the short term, but in the long-term it is doubtful that it will make a difference. Lipstick wears off. Compared to physics, for instance, public relations is a young discipline. Symptoms of its relative youth are the wide variety of approaches in the professional and academic worlds where there is little effort to build any consensus as to methods, theories or assumptions

The level of paradigm development that characterises a discipline has numerous consequences.

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and, in consequence, the curriculum as well. We can say that public relations does not yet have a well-developed paradigm. In The Structure of Scientific Revolutions (1962), the American historian and philosopher Thomas Kuhn defines a scientific paradigm as “universally recognised scientific achievements that, for a time, provide model problems and solutions for a community of researchers”, i.e.:

- What is studied and researched - The kind of questions that are supposed to be asked and probed for answers in relation to this subject - How these questions are to be structured - How the results of scientiﬁc investigations should be interpreted The level of paradigm development (i.e. the consensus) that characterises a ﬁeld of study or discipline has numerous consequences. These conse-

quences rage from the ability to obtain resources to attracting talent, journal rejection rates and the ease of working collaboratively on research rather than alone. It also means that there is less agreement among academics over the curriculum (course content) and degree requirements than in physical sciences, for example. The two questions that remain open (and I do not have the answer to either of them) are: (1) Is the divergence in public relations productive or do we need consensus about methods, theories and assumptions? (2) Can a paradigm in public relations be developed or does the nature of public relations prevent such paradigmatic consensus?

GROWTH OF PR PROGRAMMES In considering these questions, it is helpful to look at degree programmes. In contrast to the United States, little is known about communication degree programmes across Europe. This is rather astonishing, as the European landscape – with its numerous national systems, cultures and languages – is a fascinating field of study. That is why we at the Università della Svizzera Italiana started a project at the beginning of this year to identify the bachelor and master programmes in 35 European countries. We are now looking at their specific characteristics and have identified a total of 230 programmes. What becomes clear is that there has been an immense growth in the educational offering. There has been an enormous push to widen participation in higher education across the board, but the field of public relations and media studies has experienced growth twice as fast as in other disciplines. This is very much in line with what we have seen happening in the United States, where the number of public relations graduate programmes (that is, the master level) has almost tripled in the last 10 years, going from 26 to 75. One factor that struck us in particular was the large variety of degree titles ranging from bachelor or master degrees in journalism and public relations, strategic communication or international communication to public relations and marketing and media studies and communication. So we have growth and we have a wide variety of degrees. WHERE DOES PR BELONG? The next question we

looked at was where the degree programmes were located in the diﬀerent universities. Public relations is an interdisciplinary social science that draws on the diﬀerent social sciences disciplines, among them political science, economics, sociology, anthropology, psychology and media studies just to name a few. The fact that public relations is 03/2012

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a discipline that has been struggling to build its paradigm of widely-recognised theories and a body of knowledge with relevant case histories is reflected in the question of its location within the educational field. The majority of programmes are located in the media and journalism department, others are based in the school of management, and others again in the languages or some other seemingly unrelated department. Why is that? Public relations traditionally defined itself as very practical and applied communication – so it seemed logical to place it in the context of mass communication, of which journalism is a subset. Tactical communication skills, such as writing, have been the central focus, and so has the use of mass media as a primary channel for communicating with publics. In the past decade we have witnessed that public relations has changed dramatically into a strategic organisational function. Writing a press release and managing the media is just a small part of a wide variety of skills and knowledge that a communication manager must master. With communication and the role of the communicators changing, we need to challenge the curriculum. First results of our analysis of European degree programmes seem to confirm that the curricula have not gone much beyond ‘just’ communication themes. Yet, in a world that is increasingly complex and interconnected, future communicators cannot just learn about public relations. Students must develop an integrated understanding of the organisation, as well as the economic, political and societal setting they operate in. So themes such as macroeconomics, politics, strategic planning and financial management should be a must, at least at master level. Of course, the hands-on skills must be mastered, too. One could actually argue that public relations might as well be based in the school of management as it is a management discipline. And here in Europe, we have actually

Here in Europe, we have actually seen a trend: business schools are setting up public relations degrees. 40

seen a trend: business schools are setting up public relations degrees. Out of the 230 programmes we looked at, 35, or 15 per cent, are based in the school of management or economics – and I believe that we will see an increase. So why are economics, politics and management topics taught so little in most public relations programmes? So far, there seems to be little research on this matter. We car03/2012

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EXECUTIVE SUMMARY The deﬁnition of PR is confused Under-developed paradigm Wide variety of curricula, approaches and degrees Fast growth of degree programmes Scarcity of qualiﬁed faculty Narrow perspective/silo thinking Growing confusion of students and employers

ried out some interviews with faculty in charge of curriculum design. The preliminary results show three tendencies: - Many academics have become so out of touch with what is really happening in the corporate communication world - Most academics are little or not involved with professional public relations bodies but only with academic associations, and then often more in public relations or journalism rather than management. The pressure to publish is also not necessary helping - Silos in higher education have been, and in some cases still are, impenetrable. It takes risk-taking deans and provosts to suggest curriculum changes and to move a programme from one academic unit to another, or even that two academic units partner on a joint programme.

PR IN THE MBA CURRICULUM In order to round up this tour de horizon of public relation education, we should also take a look if public relations, as a fairly young manage-

Photo: Private

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ment discipline, is part of the Master of Business Administration (MBA) curriculum. Ultimately, the presence of the discipline in business schools will influence whether managers we work with will have an understanding of communication management. As it has become clear that the intangible assets, such as reputation, brand, organisational identity and the relationships with internal and external stakeholder, have a price tag attached to them, the question is becoming more pressing. The USI looked at the 54 schools that offer triple accredited MBA programs (AACSB, AMBA, EQUIS – in other words, the crème de la crème). Only slightly more than a handful have communication management in their curriculum. None of the three top accreditation agencies requires the subject to be covered. The same applies for the top MBA rankings (BusinessWeek, Financial Times, Forbes, and The Economist) – there you will only see “communication skill”, which focuses mostly on interpersonal communication and presentation skills. It has been an increasing concern for professional public relation bodies (such as the Arthur Page Society and the Public Relations Society of America) that business schools have been so slow to turn their attention to the field of public relation. For several years, the Arthur W. Page Society tried to draw up a “template” curriculum in the United States that could be delivered to business students, but without much success. To date, there has not been any study on why communication management is not part of the MBA curriculum. I interviewed Professor Judy V. Turk, from the Virginia Commonwealth University, who has focused some of her research on pub-

lic relations curricula, and what she said stuck with me: “In my opinion, it’s because there’s no ‘critical mass’ of top executives who understand the value of public relations or corporate communications. They think some of the most central public relations functions such as CSR, brand, reputation management should be assigned to other organisational units such as marketing. Business schools want their MBA graduates to get jobs, of course, so they ‘teach to the potential boss’. If they ask top executives who are among their alumni, few say MBA students need to study and understand public relations functions and their importance to organisational success. The result is that business deans and faculty won’t include the study of public relations in the curriculum.”

CONCLUSION Let me summarise the issues and trends we have seen here: - Under-developed paradigm - Fast growth of degree programmes - Wide variety of curricula, approaches and degrees - Scarcity of qualiﬁed faculty - Narrow perspective/silo thinking - Growing confusion of students and employers The result is a risk of diminishing the value of a degree in public relations. These issues and trends suggest that it is worthwhile to question whether we do the best to advocate for our profession. It is important to address the educational roots of public relations, and this goes far beyond the national borders as academia today is a truly global market. We need to engage in a conversation that goes beyond our individual groups. Academia, practice and professional bodies need to all pull together in the same direction so we can all make sure that the public relations professionals that we will hire in the next 20 years have the right proﬁle. 03/2012

Nina Volles USI Nina Volles has been managing director of the Executive Master of Science in Communications Management (EMScom) Programme at the Università della Svizzera italiana (USI) in Lugano, Switzerland, since 2004. Before joining the University, she worked in corporate communications for over 10 years. As of 2008, she has also been Secretary General of the Global Alliance for PR and Communciation Management, which is hosted at USI.

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THE STORY OF PR

LANGUAGE BEYOND WORDS Visual communication relies on images that carry symbolic meaning. Old Master paintings are rich in these clues and can tell us much about the past. By Maria Galen

V 42

isual communication is not a new phenomenon of our age: people have always communicated through pictures. However, every age had its own particular style. Western civilisation has always been characterised by images and symbols, and these means of visual communication have given us clues or references to stories. In order to understand these, however, people required a certain background knowledge which they received through their social environment and education. We also have to bear in mind that our understanding of pictures and symbols differs from place to place and depends on our cultural background. A symbol in western civilisation can mean something strikingly different from what it might mean for example in the Arabian world. A good example for this is the shoe. Perhaps you remember the news from Iraq: a reporter threw his shoe at former US president George W. Bush as a symbol of sovereign contempt. The meaning of this gesture had to be explained to most westerners because it does not bear the same connotation in western culture. Only a few months later this symbolic action was adapted when shoes were thrown at the former president of Germany, Christian Wulff. If we look back on 500 years we must imagine a society that was full of images. Pictures were everywhere and they were part of everyday life. In churches you could see paintings, sculptures and silverware; in the streets there were sculptures, painted house facades and architectural symbols; in private homes there were paintings, silverware, porcelain and drapery with pictures. All these items told a particular story. Symbols or pictures were not added 03/2012

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simply for home decoration but to spread particular messages. People communicated through pictures like we do today but the meaning, purpose and messages of visual communication were diﬀerent. But how could people in the past ‘read’ pictures or decode the symbols which nowadays are not easy to understand? There was a complex system behind the content of a picture, the depicted symbols and their manifold interpretation which is called ‘Iconography’ (Greek for ‘the writing of the image’). Naturally it changed in the course of time and the complexity of the depiction and the message varied due to the intended audience. Nevertheless most people could easily understand these messages from their knowledge of history, mythology and (of utmost importance in the pre-modern western society) religion. Changes in society in the nineteenth and twentieth centuries, such as the Enlightment and the spread of atheism, diminished the inﬂuence of the Church, and religious knowledge decreased. The understanding of paintings is a key to the understanding of society in the past, but in many cases we have forgotten how to decode images and symbols in a painting.

READING THE IMAGE We can get an idea of how complex it is to decipher paintings when we look at Robert Campin’s Mérode Triptych. The central panel shows the Annunciation or, to be precise, the moment just before Mary is told by the Archangel Gabriel that she will give birth to Jesus Christ. A tiny ﬁgure of Christ, holding a cross, ﬂies towards Mary, representing the conception. This scene is full of symbols: Mary’s red robe symbol-

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Canvas: Robert Campin

Robert Campin, Mérode Triptych, 1425, oil on panel, 64 x 90 cm, New York, The Cloisters

ises blood and the Passion of Christ. The scroll and the book in front of her refer to the Old and the New Testaments. The lilies in the vase on the table represent Mary’s virginity. She sits on the ﬂoor, indicating her humility, and the folds of her dress and the way the light plays on them create a star, alluding to theological comparisons of Mary to a star. This complex iconography can also be found on the right panel. Here we see Saint Joseph at work as a carpenter. He fashions wine-making equipment, which refers to the Eucharistic wine and the Passion of Christ. We also see a mousetrap which stands for Christ defeating the devil. On the left panel we see the donor, Peter Engelbrecht, and his wife in a courtyard. How do we know the donor’s name? It is given by his coat-of-arms in the window of the central panel. Interestingly, his name refers to the central scene, the Annunciation: ‘Engelbrecht’ means ‘the angel brought it’ and it is meant to express his desire to have chil-

dren. We also learn about the donor’s private life: he was married three times, ﬁrst to a lady called Schrinemecher (meaning ‘carpenter’, and can thus be paraphrased by the occupation of Joseph), then to Heylwich Bille, whose

The understanding of paintings is a key to the understanding of society in the past, but in many cases we have forgotten how to decode images and symbols. coats of arms are the female ones on the central panel, and ﬁnally to Margareta De Kempenere, whom we can see kneeling behind him.

MEMENTO MORI But there are also other ways of reading a picture. The Garland of Flowers, attributed to Jan Philips van Thielen, shows no figures and there is no obvious story depicted. We see a garland with a strawflower, tulips, narcissus and cyclamen. It is a very decorative painting and has a very modern or abstract effect. But this is just what we see today: people in the past deciphered the painting. They recognised the different species, sometimes even knew their Latin names, and were informed about their religious signification: the Strawflower is also called Immortelle and this obviously refers to immortality. Tulip means love, Narcissus stands for sorrow, Cyclamen refers to Mary’s pain and the corn03/2012

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flower is the symbol for Christ. The colours can be read as well: red means passion, white purity and blue hope. So the garland displays different Christian messages: Saint Mary’s purity, the Passion of Christ and his mother’s sorrows in the moment of crucifixion but also the hope for a life after death due to Christ resurrection. There is also another message: the weathered flowers allude to the transience of life, they remind the viewer of his or her mortality, the so-called Memento Mori (Latin for ‘that you are mortal’) – a topic which was very popular in the past. All these different meanings can be combined: the garland is at the same time a symbol of life and the vitality of nature and of Memento Mori. However, it also refers to the resurrection and thus concludes the Christian idea of life and death. Obviously, this painting was intended for an educated audience. The viewer was expected to know the iconographic meanings of the flowers, combine them and put them in the context of Christian belief.

SYMBOLIC SIGNIFICANCE Let me now turn to a spe-

cial kind of symbol in the ﬁne arts: the attribute. These are objects or symbols that are closely connected in a certain way with a person or personiﬁcation. They may belong not 03/2012

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History shows us that ﬁne arts and especially paintings had an enormous inﬂuence. They were media of belief. exception because our knowledge of iconography or old symbols has decreased. But we have to keep in mind that even in the past paintings were not understood by everyone in the same

Canvas: Jan Philips van Thielen

Attributed to Jan Philips van Thielen, Wreath of ﬂowers, c. 1640, oil on canvas, 73 x 57 cm, Galen Gallery

only to personifications but also to saints, mythological figures and even historical personalities. Attributes serve a double purpose: they enable viewers to identify a person and they convey something about the figure itself by referring to biographical episode, to the rank or to certain qualities. Saints, for example, are often accompanied by attributes from their martyrdom and we thereby learn about their lives. Another example: the apple is the attribute of the goddess Venus and it symbolises love. It is a symbol or attribute that appears in various contexts: the King, for example, has an imperial orb as a symbol of governmental power. And the apple is also refers to Adam and Eve and the fall of mankind. In this context it is the forbidden fruit from the tree of knowledge, whereas in other situations it might stand for power, love and fertility. The meaning of this symbol has changed today: what do you think when you hear the word ‘apple’? Most of us now associate it with the consumer electronics brand and its products. Somehow it is nevertheless related to the former context: the Apple brand takes a bite of the fruit of knowledge. In this case the meaning or message of a very old symbol is transformed in our modern world. This is an

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EXECUTIVE SUMMARY In the eye of the beholder Fine art was a means of visual communication Images were loaded with symbols that carried speciﬁc meanings to the viewer Historical and cultural changes have clouded the impact of these clues Symbols have taken on different meanings in the modern day

Photo: Stephan Kube

Learning how to read these symbols can help us understand the past

way. There were different audiences with different degrees of education, which led to different levels of interpretation. In most cases the key message was obvious, so that even the uneducated could access the image from their general knowledge of religion. Iconography was an inherent part of everyday life. There was no question that there were messages in pictures, and they were not hidden to people in the past. One question remains however: did iconography or the messages of pictures really affect people and their lives? How can we prove that? What we can ascertain is that there was a long tradition of religious iconography, that the Church played an important role in past society and that people lived more or less religious lives. History shows us that fine arts and especially paintings had an enormous influence. They were media of belief. On the one hand radical reformers of the sixteenth century destroyed pictures because they were against the use of images in religious worship (iconoclasm). On the other hand the Catholic Church

allowed and supported the use of images for educational purposes. It was a medium of the Counterreformation. Important messages were conveyed and Catholic traditions were glorified. One can state that pictures in general had enormous influence on society. Regarding Old Master paintings or art in general, another aspect needs to be considered: the way in which the content was conveyed, that is the specific style and composition which often constituted or established the artist’s fame – in the past and today. There was wide knowledge and scholarship of how people looked at pictures and what guided the eye of the viewer – without any computer programs or scientific research.

MODERN IMAGES Finally: what are the diﬀerences in

visual communication in the past and today? Today, visual communication addresses the general public, works within a different iconographical system and refers to different premises of knowledge. Also, religious iconography is less prominent. It has been partly replaced by a new world of brands, advertising and entertainment with its own iconography. In politics or in the Catholic Church, the old rituals and symbols have somehow endured, but in general the pre-modern system of communication through pictures has changed. Today the world is also full of images but they refer to different spheres or they are used for decoration and style. Yet we have to bear in mind that iconography and visual communication are constantly changing, and a person Maria Galen from the middle ages would Galen Gallery not understand our symbols or stories. However, some rules Dr Maria Galen runs the of visual communication in Galen Galerie (www.galenthe past, still apply today: we galerie.com), which specialises in Old Master paintcommunicate through picings. Previously, she worked tures, and messages through in Amsterdam at Christie’s, pictures are as important as the fine arts auction house. Dr Galen studied art history, ever. Why? Because they are medieval history and early different. We can easily unmodern history at Münster derstand these messages; they University in Germany. In are easier to read than texts. 2010 she finished her PhD thesis, a survey of the comImagery refers to the senses plete works of the painter or feelings whereas script reJohann Boeckhorst, which fers to the brain and remains was awarded the Fürstin von abstract. Gallitzin-Preis. 03/2012

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THE STORY OF PR

MAKING AN IMPERIAL REPUTATION Reputation management, along with a score of other public relations practices, is nothing new: its roots can be traced to Ancient Rome. By Christian Schnee

he function of history in public relations can be a profoundly practical one, as it draws attention to past cases and situations that may inform responses in a present-day context. Public relations educators rely on case studies that constitute a point of reference for students, academics and professionals alike. It is an irony that the quality of these cases is deﬁned by how current they 03/2012

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are, which narrows down the breadth of expertise that can be drawn on. In other words, historical precedence ignored is experience lost. There is evidence to suggest that a lack of historical awareness hinders and slows down the discipline’s evolvement. Implicitly, phenomena which we are only too familiar with in current

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public relations practice originate from antecedents that date back centuries: crisis communications was frantically engaged in 1720 when the British South Sea Company collapsed, dragging countless middle class investors into ruin. Issues management found its precursor in the precautions taken when a monarch’s life came to an end: fearful subjects had to be calmed, the army kept in place, rival pretenders to the throne held at arm’s length and adversary powers appeased to ensure a smooth transition to a new ruler. Stakeholder mapping and management could hardly have been more demanding and a modern senior external relations manager might revel in a chat among equals with a regent in charge of overseeing a royal succession.

THE ROOTS OF PR What is nowadays referred to as corporate social responsibility also has a long tradition in philanthropic endeavours, spanning all the way from 16th century social housing projects initiated and ﬁnanced by the immensely rich banker Jakob Fugger in his ancestral city of Augsburg to the 19th century model village of Saltaire in north England, commissioned by the Victorian industrialist Sir Titus Salt so that his workers would have decent living standards and a public library. Another strand of public relations is personal impression management, which has been implicit in the ceremonial arrangements of monarchs throughout history: it found an early apex at the French royal court of Louis XIV, who likened himself to the ancient sun god Apollo and thus cunningly put himself out of the reach of critics who in other political system might have found the courage to chide their

head of state. Only a century prior to the communicative apotheosis of the French Roi-Soleil, techniques of persuasive communication had been revolutionised in the course of cataclysmic confrontations when the Catholic and Protestant faithful crossed swords not only on the battleﬁeld. Ignatius de Loyola, the founder of the Society of Jesus, who had been tasked by Pope Paul III to retrieve Rome’s lost souls, taught his Jesuit followers to win over people’s hearts and minds. In a similar endeavour a century later, Pope Gregory XV entrusted the tools of persuasive communication to a newly assembled task force he aptly called Congregation of Propaganda Fide, thereby creating a name tag public relations managers have found hard to distance themselves from throughout the modern age.

ALL ROADS LEAD TO... But for now, let us travel in time back to the largest and longest-running political entity in Europe, the Roman Empire, whose constitutional arrangements for centuries denied the man at the top an outright claim to absolute power. Nor could consecutive emperors expect the army to prop up their position at the apex of what was essentially a civil society, where it was the custom to bring out political concerns into the public sphere to be debated in the public arena. Therefore, all emperors from Augustus right into the early fourth cen-

After he threatened to alter the political constitution by brute force, Julius Caesar learnt what it meant to upset major stakeholders. tury needed to organise and orchestrate public support, lest their grip on power might loosen. After he threatened to alter the political constitution by brute force, Caius Julius Caesar (100 BC– 44 BC) learnt the cost of upsetting major stakeholders when he fell victim to a bloody plot, stabbed 23 times. His successor Augustus (63 BC – 14 AD), albeit formally the ﬁrst emperor, understood early on the necessity of accommodating the interests of the common people, as well as those entertained by the aristocracy and the army leadership, by refraining from the direct imposition of his will. Instead, through his political allies, friends, public speakers and artists, he gently steered public opinion to a point where the people of Rome solicited him to assume the role of pater patriae (father of the fatherland) and steer the ship of state as primus inter pares (ﬁrst among equals). 03/2012

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THE STORY OF PR

FROM BRICKS TO MARBLE If there had been a textbook about exemplary public relations cases in history, Augustus could well have been awarded a prominent chapter, not least for his strategy to communicate his agenda in brick and mortar. Not unlike a modern day Emir of an oil-rich country, Augustus sought to radically transform his capital city. Building programmes restored the ancient temples, and the Augustus Forum added to the existing government district and served a showcase for statues of Rome’s founding fathers and military heroes. The intentions were unmistakable: while Augustus would not claim to be above his fellow citizens, he expected his architectural achievements to speak for themselves. Peace and the restoration of basic values, such as trust, honesty, private property and respect for the gods, were messages that were mirrored in the imperial building programme. Thus, Augustus constructed his reputation as the guarantor of order, which after years of civil war was just what his publics had hoped for. This very order cemented Augustus’ position at the top of the political structure and thus reﬂected a policy that reconciled Augustus’ objectives with his publics’ interests. A public relations manager would be thrilled to learn that the statues that portrayed the emperor as a man of wisdom and serenity in cities around

Bookmakers certainly would not have given Rome’s new emperor, Claudius, an outside chance of surviving the first months in office. the Mediterranean had for the most part not even been commissioned by the imperial court. Instead they had been instigated by municipal councils and were known to be tokens of popular affection and loyalty. It was this low unobtrusive profile that allowed the common Romans as well as the members of the aristocratic families to accept Augustus’ position at the centre of Roman politics. They rightly felt it was a dialogue the Emperor engaged them in, rather than relegating them to recipients of an agenda in which they had no say.

EMPEROR AND GOD When reviewing this strategy from a public relations perspective we recognise essential features that amount to a surprisingly contemporary recipe for eﬀective communications: an emphasis on relationship management, the futility of top down communications as well as the need to interact with and understand stakeholders’ demands. 03/2012

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EXECUTIVE SUMMARY The hidden history of PR Roman emperors recognised the need for effective reputation management Augustus transformed Rome from a city of brick to a city of marble, in part to cement his reputation Claudius ordered the successful invasion of Britannia, negating his poor public image Quintus Tullius Cicero advocated an early form of opposition research to undermine enemies such as his rival Catiline

Ultimately, ancient leaders recognised the centrality of a meaningful and robust reputation that served to legitimise one’s position at the apex of a hierarchy. In other words, it justifies why an individual is in a position to take decisions everyone else is expected to accept. Today’s executive managers know that they need to deliver a tangible success early on in their tenure lest they see their competence and leadership credentials questioned, which ultimately may undermine their ability to operate effectively. Scoring a timely success is a strategy widely practiced and was taken to its extreme by a man whose stammering, slobbering and confused speech made him the target of private and public ridicule throughout his life. Bookmakers certainly would not have given Rome’s new emperor, Claudius (10 BC – AD 54), an outside chance of surviving the first months in office. Mere tricks of persuasive communications may not have persuaded the relevant publics at the imperial court of Claudius’ aptitude for the job, but a masterstroke in reputa-

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tion building arguably saved him the post. He ordered a feat even the great Julius Caesar was known to have dreaded: an all-out invasion of Britannia, a windswept island shrouded in mist whose notorious druids and dark forests made the most seasoned legionaries shudder. Claudius’ gamble paid oﬀ and within months his reputation had surged: in the eyes of his subjects the sad man at the helm of the empire had been transformed into a hero worthy of a triumphal march through the Forum.

WISE WORDS Political public relations campaigners and consultant are astonished to ﬁnd that some of their state-of-the-art advice bears striking similarity to counsel Roman politicians received 2,000 years ago. Upon reading Quintus Tullius Cicero’s (102 BC – 43 BC) tips to his elder brother, the politician Marcus (106 BC – 43 BC), James Carville, a veteran campaign manager who orchestrated Bill Clinton’s 1992 presidential bid, could not hide his surprise: “I thought that the advice I was giving my clients was special. Little did I realise that pretty much everything I’ve said was old news 2,000 years ago.” Earlier this year, Princeton University Press published a new

Photo: Private

Quintus details what amounts to a stakeholder map that covers aristocratic and popular pillars of Roman society. translation by Philip Freeman of Quintus’ letters to his brother, who found himself ﬁghting a campaign for the consulate, the highest oﬃce in the Roman republic. These texts reveal not only how communica-

tion tools and rhetorical patterns had their antecedents in ancient politics: thanks to Quintus’ letters, we also know that strategic considerations hinged on concepts no modern communications campaign can do without. With great care Quintus details what amounts in all but name to a stakeholder map that covers aristocratic and popular pillars of Roman society as well as more marginal special interest groups. He suggests to segment publics, to tailor messages and communication style to specific audiences, and to concentrate efforts on the young, whose confidence and enthusiasm is more easily won. He also suggested that his brother should dig into his political adversaries’ private lives and peruse their court papers to find ammunition that could be deployed when needed. What is referred to by today’s political communicators as opposition research has a long tradition and finds its origins in cases such as Marcus Tullius Cicero’s controversy with his rival Catiline (108 BC – 62 BC), whose debauchery and licentious lifestyle he investigated for later use in the political arena.

LESSONS FROM HISTORY These cursory examples suggest that the neglect of a historical dimension in the study of public relations needs to be challenged if we intend to learn from the best who over time have practiced strategic communications and accumulated a wealth of expertise. Many scholars still subscribe to the tenet that reciprocal exchange of messages and a mutual relationship with publics is the final point in a progression towards excellence in public reChristian Schnee lations. This notion is demonWorcester Business School, strably erroneous and testifies University of Worcester to a lack of historical awareness: a broader perspective of history Dr Christan Schnee began his career as a spoksperson may put current achievements for the Christian Democratic and the latest innovations into Union in Hamburg and later context and refute the myth of Hesse. Between 2001 and 2004 he served as direcsteady improvements in practor of government commutice. It would also allow pracnications in the city state titioners to tap into a discourse of Hamburg, and between of best practice and thus an2005 and 2006 he was head of international media swer once and for all a question relations for the 2006 FIFA both students and practitioners Football World Cup Office in public relations keep asking: in Hamburg. He took up his “Why study history?” current position in 2008. 03/2012

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THE BIG INTERVIEW Key communicators under the spotlight

JON IWATA Senior Vice President, Marketing and Communications, IBM Corporation Interview: Dafydd Phillips 03/2012

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THE BIG INTERVIEW

IBM is regularly cited as one of the world’s most valuable brands. Communicating on behalf of such a prestigious brand must be a considerable responsibility, and yet it is something you train your employees to do themselves. Could you expand on this – how does IBM go about achieving this? We learned several years ago that the biggest inﬂuence on a person’s perception about our company is their personal interaction with IBMers. Today, ‘interaction’ is not limited to face-to-face contact and the IBMers with whom they interact can be anywhere in the world. In the transparent world we live in, how we act as IBMers, no matter our role, is on display for the world to see. Because of this, our role as a marketing, communications and citizenship function changes quite dramatically. It is insuﬃcient to merely communicate to employees. Our role is to help IBMers live our values. This requires creating and supporting a culture where employees are encouraged, empowered and recognised for manifesting the unique character of our company. This is why what we used to call ‘internal communications’ is called Workforce Enablement at my company.

Photo: Alan S. Orling

What makes a great company? A great company is not only a successful company, it is a unique company. What it decides to do, it does better than any company in the world. It is authentic. How it behaves and acts is entirely consistent with its character and what it stands for. It is still relatively unusual to ﬁnd one person in charge of both communications and marketing. Could you tell us about how these two functions compliment each other at IBM? Communicators instinctively think

of multiple stakeholders simultaneously – the media, employees, retirees, governments, analysts, customers, neighbors and others. This is of increasing importance in this world of instant communications and near-total transparency. Communicators also understand the art of inﬂuence, of relationships and mutuality. Again, this is a vital skill in the world of social networks, which works on the basis of inﬂuence and relationships. The strength of marketers is their rigour and how they see their ultimate goal. They go beyond the message, beyond changing opinion and perception. Their job is not done until the audience takes an action – typically, that means a purchase decision. Marketing holds itself accountable for action, for outcomes. At IBM, we’ve found great advantages in having all of these skills and capabilities on one global team. It doesn’t mean we’ve homogenised professions. It means we can align and deploy what we need – and, most importantly, build new kinds of capabilities. From your vantage point as leader of IBM’s Smarter Planet strategy, how do you foresee the role of the corporate communicator being affected by increased transparency and readily available information? Smarter Planet is a way of describing what some are now calling the era of Big Data – and that includes, but is not

Communicators understand the art of influence, of relationships and mutuality. This is a vital skill in the world of social networks. limited to, all of the information people generate through mobile devices and social networks. The implications of this for those of us in communications, public affairs and marketing are profound. We will have to learn how to capture and make sense of all of this data. I’m not talking about measurement. This is about truly understanding and engaging individuals – customers, employees, citizens – rather than broad segments or audiences. It is now possible to engage at the highly personalised, individual level, but really no one has figured this out, at least not at scale. How do you quell the fears of your chief financial officer, or the general counsel, or human resources, about ‘leakage’ via employees’ use of social media? There are legitimate concerns – disclosure of financial information, intellectual property leakage, information 03/2012

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THE BIG INTERVIEW

Jon Iwata speaking at this year’s European Communications Summit in Brussels

technology security risks, even recruitment of top talent. I’ve enjoyed a strong collaboration with IBM’s chief financial officer, general counsel, chief information officer, our head of human resources and our chief privacy officer. We haven’t always seen eye-to-eye on every issue, but we are in total agreement that social media is inevitable, so we have committed ourselves to figuring out how to use it to IBM’s advantage. As social networking has evolved, we have evolved with it. Years ago we established a progressive blogging policy that actually encouraged IBMers to blog, and to do so responsibly. We learned a lot from

For more than 100 years IBMers have represented IBM. The very fact that we are known as IBMers rather than ‘IBM employees’ is testament to this strategy. that, foremost that employees are responsible and worthy of trust. Of course, you read and hear things that are critical of management sometimes. But, of course, employees have always said such things. At least now we know what they think and can act upon it. We have continued 03/2012

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to emphasise both risk mitigation – through education and training of employees – and the use of social media to create business value. We are a company of experts, so we see social media as simply a new way for professionals to participate in and contribute to their ﬁelds. It is a way for them to enhance their expertise and, through that, to enhance IBM’s reputation and brand. By encouraging employees to take ownership of communicating the brand, doesn’t that take responsibility or power away from the professional communicator? For more than 100 years IBMers have represented IBM. The very fact that we are known as IBMers rather than ‘IBM employees’ is testament to this strategy. Obviously, we have not – and could and would not – at-

THE BIG INTERVIEW

tempted to control what IBMers say and do in meetings, at conferences, at the oﬃce and the lab. Now technology has given them, and everyone, a

We are moving from knowing how to marshal mass communications to empowering masses of communicators.

Photos: www.baumannstepphan.com; Alan S. Orling

printing press and a broadcast studio. We cannot think about this in terms of control or power. It’s about how any entity, whether a business, a country, a community or an individual, operates in this new world. As professionals I would say that we are moving from knowing how to marshal mass communications to empowering masses of communicators. Our job increasingly is to help IBMers be expert communicators. IBM is heavily involved in redeﬁning the corporation as a social citizen. Where would you pin-point the beginning of this kind of thinking, and could you describe your own role and involvement in IBM’s approach to corporate citizenship? For the past 100 years, our core values have compelled IBM to take on a broad responsibility in the societies in which we operate. However, over the last dozen years or more, our approach to demonstrating or realising that commitment has become closer to the core of what we do as a company. Today, we apply the expertise of our people and our technology to some of the world’s most pressing societal problems. For example, our Corporate Service Corps sends groups of IBM experts from across the company to emerging markets, to work on local business or societal challenges on a volunteer basis. This is hugely motivating for IBMers who wish to make a diﬀerence in the world.

In your position at the Arthur W. Page society, you’ve spoken about the authentic organisation, those companies that stand out as having a unique identity that determines how they work on every level of the organisation. Could you expand on this for our readers – how does this kind of alignment of operations and cultures work? The notion of the ‘authentic enterprise’ is that how we are as a company is who we are. Because of the transparent world we now live in, the actual behaviour of our employees and executives has a far more powerful effect on our brand and reputation than any formal communication or campaign. Each company must decide what makes it unique. What does it distinctively do in the world? What value does it alone create? This is the beginning of authenticity – what we call the ‘corporate character’. Of course, defining character is only the first step. It is a never-ending process to activate that character throughout the enterprise. This means instilling the company’s values and purpose in every employee. It also means examining gaps in our operations and performance and then systematically closing them. Of course, no communications function can Jon C. Iwata do this alone. This is why colSenior Vice President, laboration across functions and Marketing and Communioperations is required. Some cations, IBM Corporation of my peers have even said Jon Iwata leads IBM’s marketthat in the future the ‘CCO’ ing, communications and citititle may come to mean ‘chief zenship organisation. This glocollaboration officer’. I don’t bal team is responsible for the think they mean this literally, marketing of IBM’s portfolio of products and services, market but the point is well taken. Finally, we’ve spoken a lot about changes in the corporate and communications landscape; what are the things that don’t change? The best CCOs will always take a holistic view of the enterprise – customers, employees, investors, neighbours. They will always be critical thinkers and clear writers. They will be trusted counselors. They will always be people of integrity. 03/2012

development and insights, communications and corporate affairs, and stewardship of the IBM brand, recognised as one of the most valuable in the world. He is chairman of the IBM Strategy Team, which focuses on long-term strategic issues and opportunities, and is a member of the IBM Operating Team, responsible for day-today marketplace execution. In addition, he is chairman of the Arthur W. Page Society, a professional association dedicated to strengthening the management policy role of chief communications ofﬁcers.

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STORY TELLER Looking at the important questions of communication

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STORY TELLER

A WORKING RELATIONSHIP Consultants, agencies and in-house communicators “Agencies are from Mars, clients are from Venus” by Dafydd Phillips page 56 – 63

“A delicate duet” by Martine Konorski page 64 – 67

“Couples counselling” by Julia Harrison page 68 – 71

“Imperfect pitches” by Ingrid Vogl page 72 – 73

“Tales from the south” by António Marques Mendes page 74 – 77

“Beneﬁts of experience” by Luulea Lääne page 78 – 81

“Key collaborators” Interview with Gregory Shove page 82 – 83

“Opportunity knocks” by Sandra Loftus page 84 – 87 55

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AGENCIES ARE FROM MARS, CLIENTS ARE FROM VENUS Understanding the differences between agencies and in-house departments can help resolve some – if not all – of their relationship problems.

By Dafydd Phillips

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nverschämt is a wonderful word, one of those uniquely German words that sounds exactly like their meaning: outrageous, impudent, brazen. In April this year, ‘unverschämt’ burnt a hole in Germany’s public relations media, when Thomas Strerath, chief executive officer of public relations firm Ogilvy & Mather in Germany, used the adjective to describe a proposal by Deichmann, the German shoe retail chain and the largest monger of shoes and sportswear in Europe. Deichmann’s crime? To invite 20 agencies to pitch ideas for the chain’s 100-year golden anniversary, all for an honorarium, the paltry size of which prompted the unleashing of ‘unverschämt’. After Strerath called for an agency boycott of Deichmann, the chain hurriedly withdrew their offer. This kind of bruising encounter between agencies and their client companies is far from being unique: this issue’s Storyteller section explores the dynamic between the two sides.

ANTAGONISTIC

ATTITUDES

Vanya Babanin heads corporate communications at Balkan Star, a leading automotive distributor in Bulgaria. A hard-working but generally easy-going colleague, her patience was severely tested recently by an agency hired to help her company prepare for a major event. Errors and misunderstandings both major and minor – from the scale of remuneration to the timing of a photography appointment – built up steam until, after one particularly vexing run-in, she found herself muttering under her breath that they ought to be thankful she was not their boss.

Such frustrations are part and parcel of the working relationship between an in-house communicator and outside ‘help’. And for the sake of fairness, it should be noted that it cuts both ways: agencies have their own very valid complaints to make about their treatment at the hands of clueless corporates. One person with a healthy perspective on this is Martin Barlebo, director of group communications at ALK Abelló, a global research-driven pharmaceutical company based in Copenhagen. Before his current in-house role, he was a partner at Danish agency Holm Communication and he can cite several bad experiences which he traces back to an antagonistic attitude on behalf of the in-house communicator, “either because the in-house communicator is insecure or because he or she wants to buy a very narrow service and not involve the agency as partner with full information on the whole project.” Denying consultants the necessary level of information – whether because of insecurituy, arrogance or whatever – is clearly the wrong ﬁrst step.

HOW AND WHEN TO CALL IN OUTSIDE HELP What kind of projects are consultancies generally asked to carry out? In executive search ﬁrm Korn/Ferry’s survey of Fortune 500 companies, The Chief Communications Oﬃcer 2012, 96 per cent of all respondents indicated

According to The Chief Communications Officer 2012, 96 per cent of all respondents indicated that they use external agencies for speciality expertise, strategic counsel, or execution support. that they use external agencies for speciality expertise, strategic counsel or execution support. Balkan Star, for example, typically engages agencies for launches of new models or corporate events as well as integrated marketing campaigns. For its twentieth anniversary this year, different agencies were hired for every phase of the celebrations. Martin Barlebo identifies three areas where an outside communications firm can be useful: “One, simple tasks that you don’t have the time and resources for internally, for example, text production and media follow up to the less important media. Ot two, larger development projects where you need expertise or inspiration or time that you don’t have, for example for developing a new strategy for a specific area. And three, media training, 03/2012

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where it is better to have an external trainer who can listen to the key messages and interviews from the outside and who can better challenge the managers being trained without being seen as being too personal.” So the dirty work gets delegated: no wonder there are resentments festering under the surface of this relationship! The strengths and weaknesses of working with agencies are two sides of the same coin. While Vanya Babanin is quick to praise “the professional support based on a different and usually larger degree of experience, the preestablished teams that can focus on current projects in a set period of time, and the outside perspective which provides refreshment and a reality check,” she also notes “the constant fluctuation of teams and your agencies working on other customers projects during your events”. Martin Barlebo says that agencies are good for “getting things done, bringing in inspiration from other clients and projects and not being limited by a company tradition of idiosyncrasies.” But he also mentions that “the agency will always lack information that flows around in the organisation. Information that gives the context for communication activities, for example what is on top of the agenda of the top management and which internal stakeholders should be on board for a new project.”

WARNING SIGNS! 6 clues that your agency is a dud There’s a lot of activity, but not a lot of results (so you have to reign them in and prepare a plan) Public relations tactics don’t relate to your business goals (so use your plan to clarify your business objectives) You met some senior managers in the initial pitch, but you haven’t seen them since You’re receiving invoices, but you don’t know what you’re getting for my money (ask your agency to provide a short summary of their staff time for the invoicing period) It’s hard to get their attention (so lay down some parameters on the level of customer service you expect) Your public relations ﬁrm isn’t active on social media (and so likely do not understand today’s communication landscape)

SOME HELPFUL HINTS TO ENSURE HARMONY The Firm Voice: Outstanding Practices for Public Relations Firms (2009), a compendium developed by the Council of PR Firms outlines what all parties in the client/agency relationship want as well as the best practices that have evolved from very successful partnerships (with thanks to Martine Konorski for this material). What clients want: • Chemistry, results and great ideas • Anticipation of future events, media attention. A client may not realise it at the time, but proactive measures really pay off • Blending of business and collegiality • Challenge established assumptions and bring new facts to the forefront

What agencies look for in their clients: • Collaboration • Openness • Accessibility • Set goals in mind • Management of billing at the outset of the relationship and mutual understanding that things may change • Constant communication 03/2012

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The compendium also helpfully suggest how to create long-term relationships: • Pick up the phone every so often and merely ask, “How are we doing?” • Understand the client’s culture • Be proactive as opposed to reactive

SPICING UP RELATIONSHIPS A major difficulty in the ongoing partnership between agency and in-house is finding the balance between the security of a long-term working relationship with a particular agency on the one hand, and the need for fresh input and new perspectives found by changing partners on the other. Choosing the same agency for different projects has its clear advantage – the com-

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THE IN-HOUSE VIEW Named in last year’s Inﬂuence 100, The Holmes Report’s list of “the 100 most important in-house communicators in the world”, Luca Virginio directs group communications and external relations for the Barilla Group, the food company founded in 1877 in Parma, Italy, by Pietro Barilla. Today, the group controls such trademarks as Barilla (a multinational pasta maker, and the world’s leading pasta maker with 40-45 per cent of the Italian market and 25 per cent of the US market), Mulino Bianco, Pavesi, Voiello, Alixir and Academia Barilla in Italy;Wasabröd in Sweden (the world‘s leading producer of ﬂatbread); Misko in Greece; Filiz in Turkey; and Yemina and Vesta in Mexico.

Do you prefer to work with a small handful of large agencies or do you work with several different smaller agencies? In theory everyone prefers to have fewer but outstanding agencies – the fewer the better. And that’s very much in the interest of both parties. Because it simplifies the processes; it makes everything more efficient; it creates scale, hence you can leverage the investments for the best; and finally it makes the work of integrating the different communication capabilities and efforts easier. Still, the main reason for choosing either a few or many agencies is and always will be the performance of the agency and the added value that the consultant is able to bring to our company. We qualify and work with agencies that have a track record of outstanding performance sustained over time. Do you generally pay a retaining fee or labour-based fee? First of all we pay on a performance-based scale. That’s a basic rule that we apply at Barilla.The more added value you bring to the company and its brands, the more you are rewarded. Then, depending obviously on the project and kind of relationship we have with the agencies, we apply different rules of engagement. When faced with a new campaign, how do you choose which agency to work with? Each brand has its own equity to grow and nourish. And that’s true for the Barilla corporate brand as well as our other brands. So when we have to choose a new agency, we judge how close the world they live and work in is from the world of our company and our brands, and we evaluate what the agency has delivered in the past. Finally, but most importantly, we want to know the people and experts who are behind the agency name. Small or big, reputable or young, at the end the work is done by people, and people always make the real difference. What kind of qualities do you appreciate in a public relations firm? First of all the capacity and ability to really understand our company and our brands, their equity, their stories and their needs. Hence we greatly value the capability to listen and to dive into who we are and what we stand for. We also value the capability to translate the benefit of our company and our brands in a story which is compelling and engaging for our target consumers. To succeed in all this requires experience, dedication, passion but first of all a close understanding of who we are and what are the consumer expectations. Only when the agency succeeds in doing this can they propose and produce something which adds value to everybody Has Barillas’ relationship with its consultants changed over the years? The kind of relationships is unchanged, but the level of contributions and expectations from our side has. That’s a reflection of changes in society and the more important role that communication and external relations play in the success or failure of a company. Agencies today have to prove that they are able to understand and engage a consumer who has changed a lot. A consumer today is very different from the one we were used to just a few years ago. I don’t need to remind you how today’s consumer is interconnected, the role of social media, the ease for everyone to access what they want when they want and the changed role of traditional media. Hence, while the relationship between Barilla and their agencies has not changed, the way we carry out the work has profoundly changed. And we obviously expect that our partners are able to understand, interpret and answer the new consumer needs and behaviours with appropriate campaigns.

Photo: Barilla

Are the agencies integrated into the in-house communications function or are there strict silos dividing the two? We work hand in hand with our agencies. While we are very demanding when we qualify an agency, once we ﬁnd the right people and the right capabilities we don’t make any distinction between in-house communicators and consultants.They are all part of the same team with the same objective and mission to deliver: engaging the target consumer and making our stories relevant and compelling. In this tough economic climate, has Barilla’s agency spend remained consistent or are you pressurised to get more out of your agencies for the same price? A very basic – and true – rule especially in the fast-moving consumer goods business is that especially in the crisis moments you have to invest even more. Because every dollar you invest then will bring a much more important added value to the company and its brands in terms of equity building and share of markets. So even though times are challenging for everybody, being brand leaders in the different categories that we operate in means making our best to keep the return on investmentent high. At the same time we must remind ourselves and our agencies that today the ROI of every dollar invested has to be higher than in the past.

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THE AGENCY VIEW The world’s largest public relations firm, Edelman was founded in Chicago in 1952. Originally a team of three in the postwar boom, today the company has global revenues of 615 million US dollars and employs 4,200 people with its global headquarters in New York City. Robert Phillips is the firm’s president and chief executive officer for the EMEA region. He launched his first business while at university and, in 1987, co-founded Jackie Cooper Public Relations at the age of 23, which grew into the leading consumer brand public relations firm in the UK.

Have you seen changes in the kind of work asked or expected of Edelman by your clients? The ‘integrated idyll’ that many of us championed dating back over 20 years has become a client reality. Convergence is now permanent and smart clients know that they can buy communications solutions from a single source. Social digital DNA is no longer a ‘nice to have’ : it is a strategic imperative. Edelman is famously independent, standing out against the industry-wide trend towards consolidation. Does this mean that the firm is secure in the range and breadth of its competencies, and therefore doesn’t need to acquire other specialist or vertical service providers? Richard Edelman has spoken before about an Edelman family of brands, which is quite distinct from the usual holding company strategy deployed by all of our competitors. We will continue to innovate and build new practice areas and businesses in order to best satisfy client needs. Our aim will always be to stay ahead of the curve in terms of innovation and our independence allows us to be more nimble, smarter, and to make investments that are driven by client-centricity, not a slavish obedience to Wall Street or The City. What kind of attributes does the ideal candidate for a job at Edelman possess? Hungry. Challenging. Entrepreneurial. Thoughtful. There is absolutely no room or tolerance for complacency or arrogance at Edelman. Personally, I have always adopted a ‘No Assholes’ policy. Who do you rank as the top three clients and agencies? No simple answer to this question – but the clients that cut-through are those who develop platforms rather than push products; and those who embrace communities rather than talk down to ‘audiences’. Admired agencies are those who do as well as say and who are led by values, first and foremost, and not just the dollar or the bottom-line. Is there a client that you haven’t yet worked with but would like to in the future? On a personal level, I love to work at the centre of the big issues of our times. Helping restore the credibility, reputation and trust of the banking sector would be a terrific challenge. To what extent are you integrated into your client organisations? Do you sit in on board meetings, is there a strong link between your team and the in-house department? It of course varies from client-to-client. But no communication strategy should ever be divorced from an acute understanding of business strategy. Great communicators need to be able to grasp both policy and content; business and communications. And, yes, proper consultancies deserve a seat at the boardroom table – as long as the chief communication officer is sitting there also. And whose responsibility is it to foster this link between agency and client? Responsibility is always mutual How would you describe the relationship between you and the client organisation’s head of communications? Trusting. Open. Honest. Transparent. Prepared to challenge. Backed by an intellectual rigour and an instinct for ‘what is right’

There has been an exponential growth in public relations: new boutique agencies, growing numbers of ex-journalists and corporate heads joining the ranks, new university course, and so on.What’s your opinion on this plethora of PR, and do you believe that this growth can and will continue? The challenge has always been that public relations is too ill-deﬁned and too many people can ‘jump in’. I am sure this growth will continue but it may not be good growth. There will most likely emerge a clearer division between publicists and consultants; those supported by measurable, outcomes-based systems and those still focused only on media. This is a dangerous focus, in my view. In a world of shared values and shared interests, inﬂuence and authority have dispersed and media is not the only route to success.

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Photo: Private

How would you diagnose the state of the public relations consultancy sector? I think it is in an important state of change. Competition can – and will – come from anywhere: from ad agencies, management consultancies, digital and research ﬁrms. Public relations skills need to evolve rapidly to meet real client needs. At Edelman, we talk about the shift from public relations to public engagement. Agencies that fail to understand the stakeholder universe and the deep behavioural change driven by social business are less likely to survive

STORY TELLER

pany and its working methods don’t need to be introduced each time, and the thorny subjects of trust and price should be implicitly understood. But this can lead to stagnation and inertia (ignoring the fact that long-standing partner agencies can also undergo several personnel changes). According to Babanin, “The best agencies combine the beneﬁts of long-term relations with the freshness of newcomers – they build their teams from long-term contactors with the customer and fresh new minds.” However, “In reality you usually get the same ideas from new persons after long days of education and training and you lose the feeling of being sure how your partner will react in a rapidly-developing situation.”

BRIEF ENCOUNTER A cast-iron brief is vital Make sure that the task of preparing a brief is given to an expert (if necessary, an outside consultant) Survey key people in your organisation to ﬁnd out what they want the agency to achieve Agree a budget and be sure you can guarantee it for at least 12 months Be speciﬁc about your goals Explain how you envision your working relationship Tell the agency about your market/ competitors, to give them a rounded picture Final short list should be a maximum of three Work out in advance a system for assessing shortlisted presentations Get feedback from the losing agencies

A SENSE OF INVOLVEMENT A further problem can be the lack of accountability or sense of responsibility, which is directly related to the degree of involvement in the project. As Luulea Läänne explains in her article on page 78, people – whether consultants or in-house – need to be personally identified with the organisation, else there is an inevitable distancing effect and lack of empathy. As Babanin says, “Many people tend to lose concentration when not personally concerned and involved. And since the company core business is not always of top interest for some people, they need time to get used to the daily tasks and the established ways of dealing with issues.” ESTABLISHING RULES FOR YOUR RELATIONSHIP So we have identified a few of the major difficulties; what is the best way to fix the problems or prevent them from arising in the first place? For Udo Becker, managing director at Hill + Knowlton Strategies, the most important thing is trust-based cooperation. “Don’t be afraid of weak points in your teams,” he advises, “and assemble the best team with resources from both the in-house and the agency teams.” Martin Barlebo agrees, arguing that “an even closer relationship between agency and company would make the advice and assistance from agencies event more valuable. From my experience, the best agencies are very willing to invest time in a client and want to get to know the client as well as possible.” Again, the insecurity of the in-house team on the question of just how much access to give their agencies is the obstacle here: according to Barlebo, “In-house communicators are insecure in terms of whether or not the agency is interested in information that isn’t immediately relevant, does the agency want to spend time on getting to know the company, which information can you share with the agency, will the agency charge for the time spend to get to know the company and so on.” Vanya Babanin also recognises that sometimes it is the client’s own fault if they don’t know what they truly want or expect, but in such cases she has some firm recommendations. “The details should be clarified to a level where the agency could be allowed to do its job,” she states. “It will also be useful if every company could prepare as many internal manuals, descriptions, guidelines, and corporate culture highlights as possible.” Balkan Star produced a 15-page manual for all divisions within the automotive group as well as for the agency partners. “This is a quick and very effective instrument not only for agencies but very often for all internal target audi03/2012

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ences and quite underestimated one in my point of view.” Other suggestions include constant on-going feedback and a set of corporate best and worst-cases.

AN INCH DEEP BY A MILE WIDE (AND VICE VERSA) Another potential remedy to the disharmony between agency and their clients is the flow of personnel between the two camps. The different demands of the two sectors are pretty self-evident. In a blog post on the website of Boston University’s College of Communication in the US, Stephen Quigley, associate professor of public relations, is quoted as using the metaphor of an “inch deep by a mile wide” to describe working at an agency. In other words, you must spread yourself over a wide variety of topics, sectors and specialities in order to respond to a variety of clients. In contrast, the metaphor is inverted for in-house communicators: “a mile deep, and inch wide”. You are expected to go in-depth and immerse yourself in the company’s image and brand by working hard at understanding the organisation’s history and business. Before taking up her current role as communication director for the Norwegian Defence Research Establishment (FFI), Anne-Lise Hammer had 15 years’ experience as a self-employed communications adviser in the public and private sector (she misses the “freedom and money” but doesn’t miss the “hard work of finding

You show more respect for each other because you know how it is on the other side of the table. Having worked in an agency you know the processes and thus can explain what you need when working in-house.

new clients”). As she tells it, she was headhunted and joined the in-house world, motivated by a combination of ﬂattery and relishing a challenge. When asked how her years a s a consultant prepared her for her current inhouse role, she describes it as an “excellent preparation”. Likewise, Martin Barlebo credits his consultancy years for giving him “a huge amount of experience from many diﬀerent industries, companies and communication challenges and projects. Experience it would have taken many more years to build as in-house communicator.” For this reason, he believes that a corporate communicator who has had experience as a consultant is a stronger communicator (though he adds “that is not to say consultants don’t need to learn how to be an in-house 03/2012

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communicator”). Udo Becker “absolutely” agrees for specific reasons: “You naturally show more respect for each other because you know how it is on the other side of the table. Having worked in an agency you know the processes and thus can explain more precisely what you need when working in-house. Having worked in-house, you learned how important it is to understand business goals and how to orchestrate sales, marketing and communications to reach them. This helps to reduce the communications ‘blah blah’ in presentations, to ask the right questions and concentrate on developing activities which really help the client and can be implemented realistically.” Having worked on both sides of the fence, does he find that, on the whole, communication directors really know how to handle outside help? “A definite no, although some of them still try to keep us counsellors away from their CEO. To all laggards out there: we don’t want your job. We want to support you in delivering the best possible results.” Those that have crossed the divide, in whatever direction, are rewarded with fresh insight into the agencyclient dynamic: Barlebo has found that “as an agency normally you are only involved in a small part of the communications directors agenda”, while Hammer has come to realise that “internal communications and foundation of top-down core decisions takes time.” Most relationships survive and evolve through compromises and mutual understanding: taking note of some of the potential problems and suggested solutions listed here may help you enter your next relationship with a public relations agency with eyes wide open.

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THE AGENCY JOB MARKET: “A MORE HOLISTIC OUTREACH” As part of his role as managing director of executive search ﬁrm VMA International, Oskar Yasar’s work is intertwined with the in-house and agency market. VMA advises agencies and in-house professionals on such issues as strategic hiring, remuneration and career trajectories. Since joining VMA Group in 2003, Oskar has handled assignments for major international in-house and agency clients including HSBC, UBS, Legal & General, Givaudan, Brunswick and Merck.

Is hiring for agency positions the same as hiring for in-house positions? The trend in agencies now is very much following the in-house marketplace, where I am mandated to find a senior communications director through a market executive search. That same search process is now deployed within the agency marketplace, and that’s an interesting development. Because of our position in the market place, we know how agencies operate, we know the growth demands of these agencies, and ultimately we know what in-house communications directors are now demand ing of agencies. How does the public relations agency compare to five or 10 years ago? I think the agency marketplace in the last five or 10 years has become more holistic in its outreach. By that I mean it now has to offer a broad corporate reputation management service, rather than the historic vertical sectors such as financial public relations, investor relations, corporate public or marketing communications. For example, some of the largest global agencies have now realised that they can no longer be seen as a financial public relations agency that just offers that vertical service, because communication directors and CEOs now use agencies differently – they no longer hire agencies to do vertical public relations, they hire agencies to offer strategic corporate reputation management advice. We’ve also noticed those agencies that are only offering individual vertical services are seeing a significant reduction in fees as well. The interesting dynamic with in-house corporate communication directors is that a high proportion of them have come out of agencies, therefore they can maximise the output of agencies because they know how they operate. They can say to their agencies, ‘I want to reduce my fee significantly if you’re just offering that vertical’, and so agencies need to broaden out their offering. So senior management’s changing conception of the role of communication determines their attitude to the agencies? Absolutely, and I’m at an exciting junction because I can see that evolution taking place. But I very much see a transition and evolution in the role of corporate communications and public relations agencies.The other thing we’ve noticed is a real growth in agencies in the past 10 years.There are now more people working in public relations agencies than there have ever been, there are more agencies than there have ever been, and more and more small agencies are being created out of much larger entities. So I think the world of agencies is growing and becoming a more sophisticated and strategic service than it’s ever been. But they’re still playing catch-up to the sophistication and the growth of in-house communication.

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For those about to embark upon a career in communications but are unsure of which path to take, how would you advise them on choosing agency or in-house? It really depends on where the candidate wants to take their careers within five to 10 years time. I find that working for an agency gives you a much broader experience of the channels of corporate communication, and sometimes the danger of going in-house through a junior level is that in some – not all – cases, the role is somewhat parochial and too narrow for you to then grow into a different role in a different sector. So it really depends on what the in-house role is offering – if it is broad and gives you an overall experience of corporate communications, media relations, internal communications, public affairs, marketing communications and corporate social responsibility then that is a great opportunity. But if it is a narrow role then my advice is to spend two or three years in an agency, which will open significantly more doors for your future career trajectory. Having that broad experience of an agency is a fantastic way into senior corporate communications role. But the flip side to that is that a high proportion of in-house communications clients don’t like having people with no in-house communication experience as they don’t have the experience of operating within a hierarchy and dealing with the machinations of in-house corporate communications. But it is our job to persuade and convince our clients, which we do consistently. However every case and every opportunity is different but because of the direction of agencies in terms of their growth and sophistication and how cerebral some of their operators are then I think this path should not be discounted by communicators at whatever level of experience or seniority. Why would they want to leave agencies to become in-house? I think it’s quite simple. In in-house you have one role, which is to communicate the messaging of your corporate brand, whereas agencies by definition are agents for their clients, so you’re working on several different clients, invariably from different sectors, so you usually don’t get under the skin of a company or a particular sector. Also, although senior consultants love the chase of business-building and pitching, many of them reach a stage in their careers where they are frustrated with all of that. And it works vice-versa: you have a lot of in-house communications directors who want to go agency side because they find it somewhat more vibrant and dynamic. There are notable examples of senior communicators moving agency side, and that’s never really happened before. In addition, in these difficult markets there is not much senior in-house movement at the top – which I call the musical chairs scenario. A number of senior in-house communicators are now looking at agencies as a viable alternative and this due in most part to the sophistication and strategic offering of certain agencies – and where they sit in relation to the chief executive officer.

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A DELICATE DUET How to ﬁnd, hire and collaborate with the public relations ﬁrm that’s right for your organisation. By Martine Konorski

s an in-house communications director who also happens to have a love of music – singing and playing the piano – I have realised that selecting and collaborating with a public relations ﬁrm bears striking similarities with singing an harmonious duet with a music partner. Here, I want to explore some of these similarities. 03/2012

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As with most relationships in life, choosing the right agency to be your partner is more art than science. There is no single recipe. Certainly, there is the process of developing and issuing requests for proposals, qualifications or information. There is research and due diligence that can be done to find firms with

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the right expertise to address your company’s speciﬁc communications challenges. But oftentimes, it is the intangibles – those things that cannot be proven in a proposal or a case study – that determine the best choice. The qualities of trust, loyalty, dedication and commitment are the criteria upon which communicators judge whether or not a particular agency is the right one for their organisation. How responsive an agency is and, of course, budget, are also signiﬁcant factors in helping to make a decision. Taking the time to get to know the individuals on a prospective agency team is an investment in your own long-term success. These are people that, ideally, you will be working with for a long time to come; people who will

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Is it beneficial to go with a large, wellknown, established firm? Or better to be a big fish in a small pond? (or certainly should) come to know the inner workings of your organisation well. That is why the agency’s stability and retention rate are so important. When trusted advisors leave your agency of record, they take with them a great deal of institutional knowledge, and getting a replacement up to speed can be extremely time-consuming for the communications director. Though the communications world has a reputation for high turnover, there are agencies that are effective at retaining their staff. Taking the time to evaluate whether or not the agency pitching your business is one of them can eliminate some pain down the line. Beyond the criteria listed above,

there are some essentials that must be considered when selecting agencies.

BIG OR SMALL? One frequent consideration relates

to size and breadth. Is it beneficial to go with a large, well-known, established firm? Or better to be a big fish in a small pond? I would suggest that firms organise their agency relationships to mirror their internal structure. In other words, if you have a large, complex communications infrastructure, it may make sense to have a large agency that can provide teams aligned with different vertical segments. In companies with smaller communications departments and with limited resources, it can be unwieldy to try and manage a vast network of agency staff. Partnering with a smaller-sized agency that will really become an extension of your own communications structure may prove to be more effective and efficient. Higher returns on investment may be expected in terms of commitment, flexibility and reactivity.

GLOBAL OR LOCAL? The issue of global reach is another that comes up frequently as organisations evaluate agencies. In years past, global communications needs were thought to be best served by an established international agency; today, it is not necessarily a guarantee. It is far more important to ensure that the subtleties of a given market are addressed. It may be more beneficial to engage an agency on the ground in a particular geography that understands the global strategies while being capable of executing locally; in other words, an agency that knows how to be glocal. A LITTLE COMPETITION CAN’T HURT Conducting a formal agency search takes time. However, evaluating responses from multiple firms gives you a higher probability of finding the right partner. When agencies in turn know that there is stiff competition for your business, an interesting dynamic takes place. Although it should not necessarily matter whether the bid is competitive or not – agencies should always provide the best recommendations and the right team for your business – a little competition is always healthy and can lead to more creative ideas. A COMMUNICATIONS CHECK LIST When conducting an agency search, it is important to utilise a thoughtful approach: 1) Identify the right candidates. This is a case where more is not necessarily better. Quite frankly, too many options 03/2012

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make the process unnecessarily complex. In all likelihood, you need no more than three to five firms for the first round of vetting. These can be identified through a combination of simple online research and referrals. 2) Craft an effective Request for Proposals. Having been on both the client and agency side, I have the benefit of having both written and responded to RFPs. In my experience, this initial request too often veers far afield from what the ultimate scope of work will be. It will save you time in the long run to carefully consider what you will need the agency to do and be clear in how you ask for it. 3) Use the right criteria to evaluate the responses. Plan out in advance a scoring system for the RFPs. Rely on more than just the communications team to do the scoring: by inviting key management team members, you will better ensure their buy in down the line that the right choice was made. 4) Conduct an in-person meeting. The second round of vetting should take place via face-to-face meetings. Enough time should be given to each candidate for a thorough presentation as well as a question and answer period. To that end, I typically only have my top two choices come in for this final step as it can be a time consuming process. Again, having key executives in the room can ensure that the chemistry between agency and client is right amongst the entire team. 5) Follow up. Once you have made a final decision, ensure you let all of your candidates know. Telling them that you will keep them in mind for future projects should not be mere lip service; use this vetting process as a way to always have qualified agencies at the ready.

SETTING THE TEMPO How can you ensure you get the right level of attention from a public relations ﬁrm? A helpful hint: the amount of time you spend with your agency is directly proportional to the time the agency spends on your account.

A common challenge for internal communications is determining what activities are best done in-house and what is the best use of agency time (and budget). Although having an agency does, ultimately, make the in-house communicator’s life easier, it does require effort to get to that point. For instance, simply throwing something out there and expecting the agency to move the ball forward is not likely to be eﬀective. Just like your 03/2012

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EXECUTIVE SUMMARY Some questions to ask during the brief What is the need this project seeks to meet? Do tools already exist to meet this need? Who is the audience for this project? What key messages do we want to articulate? What is the time frame for this effort? Is this part of a larger initiative or a oneoff project? How does this programme help to drive the organisation’s overall strategic objectives?

in-house team, agencies require management, oversight and feedback to be successful. Conversely, the agency is beholden to provide a robust level of feedback, status and follow up to their clients. Let’s use the old fashioned press conference as an example. Simply executing the event is not good enough: your agency should follow up at regular intervals post-event to provide status on results and any ongoing action. Tasks that need attention may be coming down the pike for weeks and months to come. If your agency isn’t on top of that, opportunities may drop through the cracks.

KEEPING THE BEAT A com-

mon challenge for internal communicators is determining what activities are best done in-house and what is the best use of agency time (and budget). Using an agency as arms and legs can be a very alluring trap into which a company can fall, particularly in an age of limited

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organisational resources. It is important to remember that agency time is money. It is important to continually challenge yourself as to where your dollars and euros are best spent. Agencies are well positioned to continually evaluate what may be coming down the pike from an industry perspective. In conjunction with regular status updates, they can and should be conducting ongoing monitoring and analysis to spot trends and identify communications opportunities. This goes to the core value of an agency: serving as both an implementer and a guide for projects and plans from start to finish. The continuum of services that outside communications firms can provide begins with anticipating issues, working with clients to develop plans to address those issues, seamless execution of that plan and measuring all of these activities for efficacy. And then the continuum can begin again.

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UNIFYING THE PERFORMERS In-house communicators must manage both agency partners and internal clients at the same time. It can be an extremely delicate performance. A signiﬁcant upside of working with an agency is the opportunity to have other communications professionals with whom to collaborate. In-house communications directors are sometimes a team of one or, at most a very few. We work with internal clients who are experts in a variety of areas but for whom communications is not necessarily a core competency. And, of course, each one believes their respective communications request should be the highest priority. Managing those priorities, pushing back as necessary and providing the appropriate strategic communications education requires quite a

dose of diplomacy. Having outside resources that simply ‘get it’ and have been in similar situations is extremely reassuring. It can also be very helpful having a third party (namely, an agency) to provide extra ammunition for a particular decision. Sometimes, the arguments of a consultant that is being paid out-of-pocket carries a little more weight than the rationale of a full-time employee, even if the messages they are trying to convey are the same. This is one of those frustrating but true facts of working on the in-house side of the communications equation. The Council of Public Relations Firms provides a helpful rule of the road to remember as you divvy assignments up between in-house and agency teams: remember that the two are never in competition. Collaboration is key, with the communications director acting as the primary facilitator to ensure best outcomes.

THE FINALE Many outside of our profession think communications is simple; that ensuring alignment within our organisation, among all of our audiences and with our agencies follows a routine pattern. We, of course, see it quite differently. The role of a communications director requires a significant level of coordination with the Martine Konorski purpose of building and proDirector Corporate Comtecting the brand and reputamunications, Sorin Group tion of a company. It is never Martine Konorski is currently easy or simple – and that is director global corporate comprecisely what drives indimunications for Sorin Group, viduals like you and me. The a leading medical device company specialising in the idea of being challenged with treatment of cardiovascular something new every day is diseases. In addition to her what drew us to this profesroles on the client side, she sion in the first place. has also served as a senior counselor at leading internaIdentifying the right outside tional public relations agencies partner (or partners) can be an Fleishman-Hillard and Hill & enormous help, especially if the Knowlton. She has developed a wide range of experience in relationship forged gives rise to the public and private sectors, the agency’s being part of your from governmental activities team. When driven by a comat the French Prime Minister mon desire to tell the same Information Office and the Cabinet of the Minister of story, and perform the same Research and Technology to harmonious music, agencies leading chemical and pharmaand in-house communicators ceutical companies, working in France and the in US. can create the perfect duet. 03/2012

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COUPLES COUNSELLING

s you would expect of a consultant, I feel compelled to start out by managing expectations. There is, of course, no such thing in our consultancy-trained minds as a bad client: after all, each and every client I have had the pleasure of working with has had the good sense to select myself and my team from a plethora of alternatives. Many that I’ve worked with over the years have become regular collaborators, sometimes good friends. It is a challenge, then, to be tasked with writing about things that consultancies want, expect or dread from their in-house employers. Over the years of working with communications, marketing, public relations, human resources, public aﬀairs and varied other professionals (sometimes even a CEO or two) from companies big and small, across a range of sectors, some patterns of behaviour do emerge, and I note them here strictly in the spirit of better client-consultant relationships. Please note that the situations and characters below are a ﬁctitious construct, and any similarities with people I have had the pleasure of working with are entirely coincidental...

ter is forced to sleep in by the Dursleys. Luckily for Harry, the power balance shifts when Hogwarts equips him to turn his unpleasant relatives into pigs, should he wish. The consultancy/client equivalent – of keeping the consultants in a box (often marked ‘tactical execution only’), sometimes in the dark (with respect to the amount of information provided), often out of sight (to all but our direct client contact) – is a familiar one. The central point here is not that your consultants should always be involved in strategy and the thinking and data that have shaped it, or in presentations to the big boss: we know our role and how the game works. The point is that this approach inherently limits the value your consultants can bring. To create really great tactics, you need to fully understand the strategy behind them. Delivery is always better if you have a full understanding of why you’re delivering it, never mind the motivation that comes from genuinely feeling part of the team. Great consulting should involve proactive thinking and suggestions that provide clients with food for thought. This can only be achieved when informed. Of course, we believe we can contribute signiﬁcantly to shaping strategy. While recognising that we are not as close to the organisation as you are, the broader perspective we bring from working contemporaneously with a number of organisations, often from diﬀerent sectors and markets but facing similar challenges, should provide a valuable sounding board.

1. THE BROOM CUPBOARD APPROACH Here I

2. THE OVER-OPTIMISTIC BRIEF New business development

For the sake of a more harmonious relationship, both sides of the client/consultant divide should learn from each other. By Julia Harrison

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is the lifeblood of an agency, second only to client service. It is un-

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derstandable, then, that we get very excited at the mere mention of a brief and put a lot of eﬀort into producing a considered response. Despite attempting to keep our feet on the ground and ask the right questions up front, these opportunities sometimes don’t materialise. So if it is speculative, or the budget has not been secured, or you see a potential block, please be open with your agency. Most likely they will plough ahead anyway, but at least they go in with their eyes open. Most importantly, only ask for a submission if you think there is a real need. Yes, it is part of our job to write proposals but please don’t think that means you need to keep us busy! There is nothing worse than investing brain power in writing a proposal that is no longer needed or that isn’t even read at the point of delivery. The ugly sister of the over-optimistic brief is the imaginary brief, where prospective clients pretend to run a pitch process to get ideas from agencies with little intention (or, being kinder, little feasibility) of going ahead. I am glad to say this is very, very rare, but it does happen, which is unfortunate. If you want ideas, you really just have to ask. Almost every consultant I know would gladly sit down and talk with you, in the belief that this will be time well invested in the long term.

we would all win if the list was limited to, say, three or four agencies. It would save a lot of your time as well as ours, and probably mean that the submissions you do get are of a higher quality.

4. THE FALSE DEADLINE ‘Drop everything’ moments are part and parcel of life as a professional communicator. But I have come across the idea propagated by some clients that short deadlines make for better work. Or maybe it’s a test of commitment. Moments exist when such deadlines are necessary, and are part and parcel of life as a communicator. Either way, it is quite frustrating to turn something around at short notice only to receive an out of oﬃce response, or not hear back for a further week. Again, it is not just a question of empathy, but a reasonable lead time should result in better ideas.

3. THE DREADED AGENCY LONG LIST Sticking to the new

business/pitch theme: is there ever really a need to ask eight or more consultancies to pitch for your business? I know there are often complicating factors (procurement rules, the fact that various people have relationships, wanting everyone to have a chance, etc.), but I still think

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EXECUTIVE SUMMARY How to take care of your consultant Talk top each other: share relevant information with them Present them with a realistic brief, and don’t pitch for ideas with no intention of going ahead with them Show some commitment: try not to ask more than three or four agencies to pitch for your business Make sure your deadlines are fair

5. THE PRESS RELEASE FACTORY Too often, public

relations gets subjugated to ‘PR’ and defined as ‘how to get stuff into the press’. If this is troubling for in-house communicators, it is doubly so for agency folk: after all, we are often the ones tasked with churning out the press releases. It is so refreshing when a client starts from a position of channel and tactical neutrality: ‘Here’s my problem; here’s what I want to achieve, what’s the solution that fits best?’ The solution may well be media, but not necessarily a press release. And even if it is, it is so much better starting from position of being convinced that it is the right thing to do. Outdated ways of evaluating the impact of communications activity – and particularly public relations – reinforce the ‘press release factory’ approach. It’s great to see how far the debate around evaluation of communication has come over the past few years, and how much potential there is in the digital age for this progress to continue towards meaningful metrics that get to the heart of the issue: the impact and outcomes of the communication, rather than simply the outputs. Advertising Value Equivalent (or some other

The broader perspective we bring should provide a valuable sounding board.

similar concept) is the poster child of the bad old days. The problem is that it misses the point: editorial coverage should not be equated with advertising spend, because it is intended to do something diﬀerent. I am conscious that this list has so far concentrated on things clients should think about when dealing with their consultants. For the sake of balance, I will ﬁnish by turning the spotlight around and looking at we could do better. 03/2012

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Variety is the key to spicing up your relationship: don’t expect them to churn out press release after press release.

1. ‘NOW LET ME INTRODUCE YOU TO THE REAL TEAM’ The

classic criticism of consultancies: you get the A Team at the pitch and the sub’s bench to do the work (though in reality it is rarely this clear cut). From a consultancy side you can see how it happens, but it is still unacceptable. The answer: make clear at pitch stage that you want to meet the people who will do the work, and ask for clearly deﬁned roles. Then hold whoever’s in the ‘lead’ box to account.

2. ‘OF COURSE WE CAN GET YOU ON THE FRONT PAGE!’ One

of the worst mistakes a consultant can make is to agree to deliver something that they know isn’t feasible. Over-optimism (and poor judgement) is disappointing but human, and therefore excusable. Ignoring the little voice inside that tells you it won’t work, however, is not. It can lead to time, eﬀort and money wasted by all parties, and places strain on relationships. Of course, it can be diﬃcult to voice these concerns

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as it is unlikely to be what your client wants to hear. Learning to express your reservations while providing achievable alternatives is a core skill. Clients can support this by being ready to listen to reservations and explore alternatives.

3. ONE SIZE DOESN’T FIT ALL

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Working as a consultant for a long period of time, you tend to get a broad range of experience working with a number of clients and delivering a wide array of tactics. A

particularly large trap, therefore, on being presented with a new client problem, is to automatically roll out a solution that you have delivered at some previous point. Worse, you often see consultants manipulating the problem to ﬁt the desired solution rather than the other way round. You most commonly see this with social media. The changes to professional communication brought about by a social media-enabled age of radical transparency are truly seismic, but (whisper it) that doesn’t mean social media activity is the solution to all communication challenges. Good consultants should start by listening very hard to understand what is really needed, then start from a blank piece of paper.

4. KNOW YOUR BUSINESS As mentioned earlier, one of the benefits of consultancy is the breadth of experience and using this as a counterpoint to our clients’ depth of experience about their specific company. But this can obviously go too far. We see it as a consultant’s job to learn about your business as deeply as possible. At the start of a relationship, this should to some extent be their investment. Then they should continue to actively follow your business in the news. Big or specialist consultancies might have an advantage here: you can form teams that include people who know a specific issue or sector inside out, thereby shortening the learning curve. 5. EXPECT THE UNEXPECTED In my experience, one thing that clients really appreciate from their consultants is proactivity. So it seems reasonable that, as a client, you should expect the unexpected. This doesn’t have to be earth shattering, ‘blue skies’ ideas (though the odd one would not go amiss). Incremental improvements count – “why don’t we do this instead, because maybe it would work better” – as do small ideas: “I was reading this, maybe we can apply it to our work like this.” Clients can support this passively, by being open to suggestions, or actively, say by allocating space to ideas and improvements on the agenda of regular review meetings. Underpinning all of these points is a good dose of common sense and behaviour you would hope that comes instinctively to people in our line of work. Both sides of the Julia Harrison client-consultant relationship Senior Managing Director would benefit from making and Partner, FTI Consulting an effort to understand the Based in Brussels, Julia Harother’s needs, pressures and rison is a political commuperspectives, and act sympanications specialist and was previously CEO Europe of an thetically on the basis of this international consultancy. She understanding, much like any has 26 years of public affairs other business relationship. experience and has been The more transparency, comwith FTI for nine years. She is a founding board member of munication and respect, the the Women’s Forum for the better and more rewarding the Economy and Society, and sits relationship will be and the on the European Public Affairs Consultancies Association better the results it achieves. management committee and As communications profesthe European Commission‘s sionals, we should be good at Network of Women in Decithis, shouldn’t we? sion-Making. 03/2012

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IMPERFECT PITCHES An important reminder for those in the position of hiring agencies: when it comes to pitches, the best things in life aren’t free. By Ingrid Vogl

s in many other countries, there is widespread dissatisfaction in Austria about the traditional pitch methods used to find a public relations or advertising agency. The main problem is the all-too-common ‘free pitch culture’ which frequently leads to heated discussions in the communication sector. People in our business are grumbling a lot about this: however, few of them are interested in finding an alternative way of selecting the optimal public relations or advertising agency. The search for a suitable communications firm is not dissimilar to the hunt for the right partner. Most people only have a vague idea of what would be ideal. The first impression does not always exactly match what would be most suitable for daily use: it is only by living and working together that it becomes clear whether a relationship is harmonious and the parties involved can cope with difficulties together. If a partnership comes to an end, the separation tends to be problematic. The somewhat antiquated-sounding proverb “marry in haste, repent at leisure” has a kernel of truth to it, and it applies equally well to our private lives as to the business world. That is why it is all the more astonishing how little importance is sometimes attached to finding a suitable communication provider, even though the plan is to work with the chosen agency for a longer period.

I CAN’T GET NO SATISFACTION Everybody – agencies and clients (whether they are a company, an association, an organisation or an individual person) – complains about traditional pitches. There is general dissatisfaction. This was brought to light by a 2010 Austrian survey conducted by the Austrian Gallup Institute, who asked 42 advertising and marketing managers as well as 62 agency CEOs about their experiences with pitches. Public rela03/2012

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tions specialists were not involved (maybe they would have answered similarly). Only 26 per cent of clients and eight per cent of agencies see pitching as a meaningful tool for finding the right agency. Both clients and agencies gave similar reasons as to why they are dissatisfied: the pitch presentation does not give the client a sufficient overview of the agency and is viewed as merely a ‘show’. Both sides speak about their opposite’s ‘deadly sins’ (i.e. biggest mistakes) at pitch presentations. In sum, the study clearly shows that traditional pitches leave all parties dissatisfied. Clients and agencies completely miss each other’s point.

THE PROBLEMATIC FREE PITCH (LACK OF) CULTURE However, clients continue to invite agencies to make traditional pitches. Agencies invest a huge amount of time in the preparation of a pitch and expect at least some remuneration for their work. It should go without saying that agencies get appropriate compensation for their operating expenses. However, as a rule, the all-in fee does not even cover 50 per cent of the costs of the pitch and its preparation. Therefore, preparing pitches is bad business for agencies. Several agencies are invited, but only one wins the contract.

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This is why it is so irritating when companies and organisations ask for free pitches again and again. All representatives of the communication sector should vehemently reject such approaches. It is a simple fact that some agencies will make presentations for free, perhaps due to growing competition in the field. But by doing so, they undermine the demands of the whole communication sector for the recognition of its services. Large agencies are able to absorb the costs of free pitches: for smaller agencies, it might be the first step towards financial ruin. Clients who take pitches seriously want high-quality work. Therefore, it should be clear that quality not only has its price but is also more important than quantity.

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It should be clear that quality is more important than quantity. Calling for free pitches is unfair if not indecent and goes against all the rules of economic fair-play. Ethics and corporate social responsibility, which are allegedly highly valued by many economic sectors, should be applied in the pitch procedure too. It is better to invite fewer agencies and to remunerate them adequately. Furthermore, free presentations devalue creativity for both clients and agencies: this is also the main reason why the true value of agency creativity is not fully realised by clients. Without creativity there can be no innovation. Without innovation you cannot survive on the market. In conclusion: the situation can only be improved through mutual respect for and appreciation of each other’s services.

IDENTIFYING THE ADDED-VALUE OF COMMUNICATION Unpaid or unprofessional pitches, low fees, the

trend towards lump-sum payments, no compensation for copyrights, mismanaged public procurements: Austrian communication service providers had their backs to the wall even before the crisis. Furthermore, many clients are unsettled and are finding it ever more difficult to orient themselves in the service provider landscape, which has become more complex due to the development of many new communication disciplines. The consequent loss of trust on both sides in Austria at the beginning of 2011 triggered an initiative which included the entire communication sector for the first time. The ‘Platform Kommunikationsinvestition’(communic ation investment platform) is a combination of 18 associations formed to foster a better understanding of the value of communication and to bring about better cooperation in the communication sector. Austria’s public relations association, the PRVA, is part of this umbrella organisation (see http://werbungwien.at/komminvest) The members of this platform demand more respect for creativity and a greater awareness of the important role of communication in corporate success. People tend not to realise that communication has become the key economic discipline of the 21st century and that it also contributes significantly to added value. In future, all members will use a new carefully chosen phrase to describe their services which itself implies their intrinsic value: a ‘communication investment’. This wording alone should make Ingrid Vogl clear that communication is President, PRVA not a pointless task but conDr Ingrid Vogl’s career has institutes a valuable investment cluded communications roles which should accordingly in the political, corporate and consultancy sectors. Currently, be handled in a professional she is president of PRVA (Pubmanner. lic Relations Verband Austria), As a consequence free an assistant lecturer at difpitches should be a thing of ferent educational institutions in Austria as well as an indethe past. Alternative ways of pendent consultant. Among selecting the right public reher previous positions are as lations or advertising-agency public relations manager for Austrian companies in the should be discussed: for exambanking and tobacco sectors ple, qualified screening-talks (P.S.K. and Austria Tabak) and with agencies, test projects or spokesperson for the Viennese common workshops. Social Democratic Party. 03/2012

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TALES FROM THE SOUTH The health of consultancy ﬁrms in Portugal acts as a weather vane for the state of the industry across Europe. By António Marques Mendes

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few years ago, I suggested in an article that the communication business in Portugal would undergo a significant change in the coming years. Today it is clear that change has come, but not exactly in the way I predicted. Five years ago the industry was living through an uncharacteristic stage of development. Suddenly there were new consulting companies in the market, clients were investing in new areas and functions, the new web revolution was just beginning, and the major consulting firms were hiring intensively; even clients, traditionally suspicious of investing in anything other than immediately-demonstrable resources, were increasing their budgets and internal head count. The perception of the industry’s value was good. The CEOs of the most important Portuguese consulting firms had a seat at their clients’ board meetings, advising continually on strategic issues and stakeholders and having a significant impact on their clients’ course of action. Apparently, everyone was benefitting from this unexpected and stimulating boom.

Economic pressure is tightening budgets, forcing consulting ﬁrms to re-think their operations.

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TIMES OF CHANGE Five years

have passed and a lot has changed. Not only did the industry evolve naturally, but structural and conjunctural changes took place leading the industry into a significantly different configuration. Firstly, the European Union is living through one of its more difficult moments as a consequence of the 2008

global financial crisis, particularly visible in Southern countries affected by the investor-led sovereign debt crisis. In Portugal, as a result of the joint IMF-EU bailout package, the government implemented noteworthy measures to advance the State’s financial situation, which has had major implications for the economy. As a consequence, companies have had to adapt fast. Secondly, societies are cyclically shaken by significant technological changes that alter the way companies do business and relate to their stakeholders, and how citizens relate to each other. We are living through one of those moments: the era of the new social web, where, as American industry analyst Brian Solis says, “communications is actually evolving back to its origins of communicating with people, not at them”. An age in which communication categories, traditionally separated into proudly autonomous countries, are fusing into a single nation, guided by the mission of engaging with stakeholders. As never before, people have the chance to effectively influence their own lives and their societies. It is a distinctive period of socialisation for companies, businesses and brands (even countries) in which the barriers that separated people from brands and companies are being broken down. These changes (economic and technological) are shaping the configuration of the communications industry.

DOUBLE BIND On one hand, the economic pressure is tightening budgets, forcing consulting firms to re-think their operations. With clients’ budgets flattening or reducing appreciably, several companies exiting the market, a significant increase in mergers and acquisitions, and an enormous reduction in headcount, consultants are seizing every opportunity to make gains in efficiency and productivity. Simultaneously and as result of this economic pressure, public relations services are becoming commoditised and clients’ procedures are changing accordingly, meaning that services are now being hired and contracts are being managed mostly by procurement departments (or with the support of agency assessment consulting firms) with negative effects on the desired strategic closeness between inhouse departments and consultancy staff. The commoditisation of public relations shows a depreciation of its perceived value and reveals its functional maturity. In Portugal, other reasons may explain this decrease, namely the reduced reputation of communications and public relations and the absence of continuous and professional work done by public relations associations, but in my opinion commoditisation is removing public relations consultancies from the core of companies’ strategic 03/2012

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decision-making processes and transforms their actions into merely operational ones with reduced added value. This shows a lack of understanding within middle and top management of public relations practice and its potentially advantageous consequences to organisations.

LACK OF PREPARATION On the other hand we know that media relations services were traditionally responsible for the biggest stake of assignments for consulting firms. This has changed ever since clients woke up to the wonderful world of social media. They recognise that they now have many more touchpoints (to quote the European Communication Monitor) with their stakeholders than ever before, but they don’t have the financial means to deal with it properly. Not having the internal resources to meet these new challenges, clients naturally turn to their traditional partners (advertising and public relations). Regrettably, only a few of the traditional consulting firms are capable of answering clients’ needs, making room for new digital communications companies to emerge (and which are growing significantly). Companies don’t fully understand where these changes are taking them but they do want to be present and active. According to Edelman’s David Armano, in the future business will have to be “connected, adaptive and intelligent” and companies will have to become social businesses. Presently everyone is crying out loud about doing something, anything ‘social’ on YouTube, Facebook, Twitter, g+, Pinterest and so on, but they will soon realise that this is only the tip of a much bigger iceberg about to hit them. Being a social company will require new processes, platforms and people. It is not only a matter of producing fancy, creative content; rather, it is a new philosophy of business which will evolve from closer, integrated relationships with stakeholders. Clients are not prepared for this and neither are consulting firms. Although we are seeing part of the budget being re-allocated from traditional public relations services into new areas related to social media and digital, in the very near future we will have new demands from clients for which consulting firms are not prepared.

CONFIGURATION OF THE RELATIONSHIP We are living in times of uncertainty and instability. This generates insecurity and tactical thinking for business. For the ﬁrst time in many years a lot of companies are not establishing longrange goals: there are too many variables out of control. This does not mean that they are sailing in sight; rather, managers can’t foresee what comes next as they could in the past. This has an immediately pernicious eﬀect: without a sense of direction, strategy processes will be overlooked. Until very recently consultancy managers followed their natural path 03/2012

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EXECUTIVE SUMMARY The Portuguese perspective The economic crisis convulsing the EU has implications for the state of play between consulting firms and their clients Tighter budgets, fewer companies and reduced headcounts mean firms have to be more effective and productive The social media revolution has also left more traditional firms behind, freeing up space for younger, more adaptable firms Consultants must reorganise their internal structures to adapt to changes

into the boardrooms, having a say in strategic matters and with relevant advisory influence. They were considered experts in stakeholder relationship management, having a significant role regarding its implications for business. The prevailing economic environment is changing things around. Every time there is a downturn in the economy, a survival mentality takes over business managers. They retreat into their natural comfort zone and take refuge in their core necessities, capacities, processes, creeds and beliefs. Either because communications cannot prove its impact on organisational processes and goals, providing immediate and verifiable return on investment figures, or because most chief executives and senior managers don’t have a background in business communications, public relations as a function is rapidly transforming into part of the problem rather than part of the solution. I believe that it is precisely in these moments that communications can prove its value by contributing effectively to stakeholder en-

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gagement processes which builds trust and generates reputation, which in turn leads to preferences and business leads. Unfortunately, however, we are seeing precisely the opposite. In-house communications departments and external consultants are diminishing their strategic inﬂuence, having limited control over strategy formulation processes and contents. The situation is getting – and will continue to get – worse for the least-prepared consultancy ﬁrms and public relations professionals.

ices offered and hiring and retaining policies. Consultancies’ structure will evolve from the traditional back office/front office model into new ones capable of answering to the new business environment. I was impressed by Waggener Edstrom’s internal reorganisation a year ago and I believe that in the near future the best consultancies’ internal structure will follow the spirit of such a reshuffle, with four professional roles: connectors, curators, creatives and controllers.

Changes in the economy are here to stay and will produce permanent modiﬁcations in the public relations industry.

IV) The age of collaboration: the challenges presented to in-house departments and consultancies are of such a magnitude that if they don’t work together to equally maximise their own assets both will lose seriously. In-house departments have knowledge, intimacy with strategy, holistic vision and judiciousness, while consultants have a unique perspective, proven methodologies, geographic reach, market and society insights, as well as extra arms and legs. Each one is essential to the relationship and only successful relationships will prove eﬀective in approaching markets and societies.

THE FUTURE OF THE INDUSTRY The changes in the economy are here to stay and will produce permanent modiﬁcations in the public relations industry. For most professionals, whether in-house or consultancy, this will mean signiﬁcant pain. But, as someone, somewhere once said, no pain, no gain:

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I) The industry will continue to consolidate, driven by compensation pressure which will determine most of the consultancies’ internal organisation and the industry’s structure. Firms unable to adapt to new client requirements (evaluation practices, compensation policies, new social environment challenges, stakeholders engagement knowhow, proving return on investment) will probably not succeed and will exit the market or will merge with more competitive ones. There will be room for new companies focused on the emerging social business paradigm, with innovative market approaches and services. II) Consultancies will reorganise according to changes imposed by markets and societies, namely in terms of serv-

III) Strong development in particular areas such as internal communications, crisis management, digital/social media (with an emphasis on social communities relationship management, corporate social responsibility), while others will stagnate or recede (traditional media relations).

V) Redefinition of public relations value. In What Is Strategy? (1996), Michael Porter writes that “competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value”. Those in our industry who don’t follow this axiom will probably not be around much longer to tell what went wrong. To have value is to be significant and to make a difference in the life of someone. Without differentiation there can be no significance and therefore no perception of value from the outside. Public relations firms and professionals will have to take this into consideration in order to remain meaningful. 03/2012

Antonio MarquesMendes Escola Superior de Educação Antonio Marques-Mendes is adjunct professor at the ESCS (Escola Superior de Educação) in Lisbon, where he teaches bachelor and master courses in public affairs and strategic public relations. He is also owner and managing director of Prosperity Strategy Consultants. Among previous positions, he was vice president of public affairs at the Portuguese Rugby Federation and an external consultant at Pleon.

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BENEFITS OF EXPERIENCE The biggest difference between working as a consultant or in-house relies on the individual ability to lead, share and associate with the organisation. By Luulea Lääne

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hen talking to my intern for this summer, I asked him what was his motivation for getting his first taste of our profession in an in-house department rather than with an agency. He was quite clear in his answer, pointing out his personal interest in the company itself and explaining that he would like his next internship to take place at a public organisation so that he could widen his understanding about how they function. His words caused me to reflect on my own career path and experience working for an agency and an in-house department. My personal choice for internship at the very beginning of my career in 2001 was with an agency. During the past 10 to 15 years the context that influences the choices we can make in regards to our profession has changed a lot. This, at least, is the case in newly-independent European countries like Estonia. In my country, the first public relations agencies were only established in 1995 and the majority of professionals did not have the possibility to study public relations in Estonian universities until 1997. Local companies and institutions were just beginning to acknowledge that there is more to discover behind the term ‘PR’. But as there were no specially-educated experts graduating from the universities yet, agencies were and still are an important pool of knowledge and experience. Today of course, local universities as well as increased cross-border possibilities have enriched all fields in public and private sector organisations as well helping to promote high professional excellence and know-how.

BIGGER PICTURE In my job, I ﬁnd it very important to

be interested in the organisation itself, in its business and activities. Communication oﬃcers and consultants alike must have a grasp of the general as well as the more specif03/2012

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ic know-how of the organisation(s) that they work for. Therefore, it was great to hear from my intern that today’s youth feel so confident about their potential employers’ ability to impart professional excellence in public relations, whether that’s an agency or in-house department. My intern can already focus on the bigger picture, for which the communication officers are in many ways responsible. I could not agree more with Jon Iwata, chairman of Arthur W. Page Society, who describes the chief communication officer as the “systems designer, publisher and developer, master of data analytics, student of behavioral science, curator of corporate character and collaboration officer”. And to be all of this you really have to know whom you work for.

INDIVIDUAL APPROACH Of course, personal associations and preferences will always play a role when it comes to choosing a job with an agency or in-house. One of the lecturers in my university held that more than 75 per cent of being a good communication oﬃcer originates in one’s personal attributes: the rest can be learned at university and during your career. Although I can relate to this to a certain extent, in my opinion the percentage which

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can be learnt especially through practice is much larger.

AGENCY EYE-OPENER I consider myself very lucky to have started my professional path in an agency, AS Corpore. It was absolutely my first choice to begin exploring how the world of public relations works and test my own skills and endurance. I remember when large international organisations who were seeking cooperative partners among Estonian agencies called on my then-work place. One of the most frequent questions they asked was, which areas did we specialise in? The answer was always the same: due to the market size we did not specialise; rather, we had all the expertise available. That meant that our knowledge pool was complete – from financial communication to crises or marketing communication and public affairs. One might think that an approach this universal raises

questions. Can you be good at everything at once? Well, certainly in agencies team work is essential. You can learn from each other and from peers just like yourself. My personal experience showed that the environment is free of competitiveness, which helps to nurture efficiency and self-development. In an in-house department the case might be different: although also working for the same cause, the hierarchy can hinder the flow of knowledge and experience. But this is not a difference I would like to stress when comparing working in an agency to working for an in-house department, because it is not necessarily true: it very much depends on the attitude and approach of the management. I feel this is something I have taken with me into my department at the company I work for today. Working for an agency has also definitely taught me to analyse a problem from several standpoints simultaneously, as well as how to manage many technical skills when necessary. 03/2012

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TASKS, PROJECTS AND PORTFOLIOS Apart from the wide range of different tasks, the diversity of Corpore’s portfolio was of great value. The possibility of getting to know the principles, aims and background of whole industries was very exciting. Among my long-term accounts at the agency were two maritime transportation companies – Saaremaa Shipping Company and my current employer Tallink Grupp. This inspired me to literally fall in love with the maritime industry. As a consultant for Tallink, I was also able to participate in an initial public offering and the acquisition of a large competitor, Silja Line. At the same time I consulted as the press officer for Estonian Equestrian Federation and Estonian Sailing Federation. Those two organisations taught me much about the sports world and the special marketing communication challenges involved therein but also about the many corporate links to sports. I feel very proud to have had the opportunity to launch and develop the media framework of the first ever indoor World Cup Competition for Horse Jumping in Estonia, as well as the four subsequent ones: it was a chance to build up everything from scratch into something quite impressive. Equally as important were clients such as Logitech and Electrolux, which enjoyed good cooperation with other agencies also representing those two strong brands. Medical service company Medicover (now rebranded as Qualitas) led my way into the complicated but fascinating world of medicine. Additionally, there were many projects as well as other long term accounts where I participated as a team member: in the financial and real estate sector, food industry and oil and gas industry. ACCESS TO INFORMATION An important factor

when comparing agency with in-house work is recognising the degree of direct personal responsibility, which is closely linked to the individual’s ability to associate her or himself with the organisation. For an agency, the responsibility towards the client is mostly associated with measurable results. In an in-house department, your responsibility is interlinked on a larger scale. Naturally, as a consultant, it is important to recognise the trust placed in you when asked for advice. Even so, you generally do not make the ﬁnal decisions and therefore it is also not possible to take full responsibility for the end-results, whether positive or negative. Another factor is the availability of information. In an agency, you can only rely on and work with the information given to you by the client. A lack of information here 03/2012

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EXECUTIVE SUMMARY The main differences Both in-house communicators and consultants should have a firm grasp of their company/client The in-house hierarchy can hinder the flow of knowledge and experience Consultancy work offers a wide range of tasks, portfolios, sectors and businesses In-house demands a greater degree of personal responsibility; consultants seldom take the final decisions Communication officers are privy to more information

can have a negative eﬀect on the outcome. In an in-house department, and as the chief communication oﬃcer, you should have access to all information: the trouble sometimes is that there is too much to work through and analyse. I see this as a big advantage compared to the position of an external adviser. Naturally, a good chief commu-

I remember thinking that there is probably so much more information and time available when working in-house for just one organisation. Wrong! nication oﬃcer can decide on the relevant information to be provided to the agency, but this isn’t always possible: for instance when looking at the communication rules of a listed company.

OTHER (SO-CALLED) DIFFERENCES We have all heard the expression that the grass is greener on the other side. I remember myself as

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a consultant thinking at some point while handling numerous accounts at the same time that there is probably so much more information and time for going into details available when working in-house for just one organisation. Wrong! In the agency you are given quite speciﬁc tasks and goals and much of the pre-work has been done already by the customer. These two can result in faster and clear task-oriented working proc-

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When agencies mostly work with one to two links to the organisation, the communication director has to find a way of connecting both teams. esses. In an in-house department the basis is the same but the number of tasks is times a hundred, not to mention the level of precision and time frames. You really feel that the more you know the more there is to learn. However, the previous experience of working for different industries definitely works for me as an advantage today. For example, in a cruising company such as Tallink, both business-to-business and business-to-customer branches are represented; catering, logistics, oil and gas, medicine, recruiting, entertainment and technical challenges are everyday topics. My experience in sports communications now has a solid place in our corporate social responsibilty activities when, for instance, supporting athletes like tennis player Kaia Kanepi. When the agencies mostly work with one to two links to the organisation, the communication director has to find a way of connecting both teams, internal as external, so that they can work together.

DIRECT SUPPORT OF FUNCTIONS Due to the good access to internal information, including the need of communication support for various functions within the organisation, in-house departments are able to apply a more integrated approach. The agencies have to act upon the tasks and goals given by the in-house specialists, which are a vital part of the strategy. But thorough integration can only be planned and carried out in-house. At the same time my experience as a consultant to many organisations has enriched me with the understanding of diﬀerent working cultures, business goals, tactics and ways of leadership. This deﬁnitely works in my favour in regards to almost any occupation. THANKFUL FOR OPPORTUNITIES My previous em-

ployer, Corpore, has a strong commitment towards the customer. We were supposed to be – and I am sure still are – there for the clients 24/7. A strong feeling of responsibility grew from the deep trust from the customers, which was earned with proactive work. That made you feel and act like a member of this organisation. It was natural to have your laptop around you even during weekends and on vacation: because the equestrian and sailing sport high season is during the summer, it was necessary for me to spend time on beaches Luulea Lääne only as long as I had a wireless Communication Director, internet connection (yes, this Tallink Group has been the norm in Estonia Luulea Lääne is the commu– or E-country as they call us nication director of shipping – for several years already). I company Tallink Group and had to be just as prepared as if I has been so since December 2006. She also has consultanwas literally an employee of the cy experience in all branches organisation. of public relations: issue manI would conclude by saying agement, event marketing, marketing communications, that the agency I used to work crises communication, media for taught me much about rerelations, etc. Before joining sponsibility within communiTallink, she worked at the cations as well as developeing Estonian public relations company Corpore where she hanmy professional, management dled long-term accounts and and teamwork skills. This preprojects of local and internapared me well for the work of tional companies and organisations. She started at Corpore an in-house communication as a public relations assistant oﬃcer. But somehow I think in 2001, then junior consultant it would not be so diﬀerent the in 2002 and consultant from 2003 to 2006. other way as well. 03/2012

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KEY COLLABORATORS Cutting-edge consultancies can help companies engage with highlyprised online inﬂuencers, as Greg Shove of SocialChorus explains. Interview: Dafydd Phillips

How important is it to get online influencers to add their own voices to a company’s brand public relations? As today’s consumers become savvier, they are more likely to value word of mouth over traditional marketing, and the more likely they are to sniff out advertising. Influencers provide a simple workaround to this problem by bringing authenticity and credibility to the table, helping to ensure that a brand’s story doesn’t fall on deaf or sceptical ears. The brand must accept the risk, however, that they cannot control the influencer or what they add to the story. With authenticity comes some risk. Marketers better get used to it since it’s worth the risk: influencers and consumers talking about a brand will beat out brands talking about themselves every time.

How important is it to create narratives when building online engagement, and how do you as a consultancy help your clients achieve this? It is very important. Social media is about telling stories and successful brands will participate in social media by telling their story and not just inserting their advertising. In order to do this successfully, we establish relationships with our influencers by engaging in conversations relevant to campaigns around topics that help us learn more about the influencer as a person. When we work with influencers on brand-specific campaigns we provide key messages and assets and encourage them to give their opinions in posts and host giveaways to entice their readers to participate. This guidance garners an editorial and personalised spin to brand messages, and these types of posts receive high readership and create consumer social actions. Do you find that more and more organisations or brands are looking to cut out the ‘middle man’ (i.e. journalists) and get people to form their own ideas and opinions about their brand? 03/2012

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Yes and no. While it’s true that social media has largely democratised the power of influence, some people hold more influence than others. Even so, marketers shouldn’t focus all their energies on influencer marketing, as traditional marketing and public relations should still be part of the equation. Additionally, it should be noted that these types of campaigns work best when they include varying elements that work cohesively. Over the course of more than 200 influencer activations, our company has found that it’s most powerful to target a carefully selected group of influencers who reside in what we call the ‘power middle’; they have the ability to amplify the message of an overall marketing and advertising campaign.

Could you deﬁne the power middle and why it is so important to get this segment onside? The power middle consists of brandrelevant niche market bloggers and social publishers with a relatively modest yet passionate and devoted following. While most marketers intuitively gravitate towards the inﬂuencers with the most fans and followers, the savviest marketers are prizing quality over quantity, and relevance over reach. As it stands, the power middle is one of the great

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untapped resources of the marketing communications world.

Online decision-makers often see themselves as part of a movement, whether they’re environmental activists, devoted brand customers, gamers, or technology early adopters. How important is it to recognise and harness this apparent need to belong to and play an active part in a social network or peer group? The desire to belong to a group that shares and reinforces similar values is one of the driving forces behind the entire social media phenomenon. For marketers who engage them authentically, online communities can serve as positive, constructive echo chambers that collectively amplify a brand‘s messaging and shape the conversation on the brand’s behalf.

The power middle is one of the great untapped resources of the marketing communications world.

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We work closely with brands to identify who is, or who could potentially be, influential for them, and create programmes specific to their interests. For example, mommy bloggers want to review products, and tech early adopters want to beta test new apps, so that is what we offer them.

Once you’ve succeeded in getting influencers to engage with a brand once, how do you transform that oneoff engagement into a continued relationship? Since influencer engagement is an ongoing process rather than a single event, communicators should engage in a continued effort to build and maintain authentic mutuallybeneficial relationships. We recom-

mend that they engage the influencer at least three times over 90 days, creating a pattern of engagement and reward for the influencer. Throughout the process, influencers should be treated as brand collaborators rather than marketing targets. Provide them with social currency (i.e. quality assets like exclusive content, discounts, and product samples) so they have something valuable to provide to their audience.

Could you describe the main differences between paid and earned advocacy? With earned media, the content is more authentic and organic. This is because the relationship with the brand is more authentic. They are not getting paid, they are part of a network and they volunteer to publish content. With paid media there is no growth to the relationship. There is a set minimum of social outcomes that the blogger must obtain for payment. Publishing content for the brand is usually a one-time event. The nature and essence of the content is more corporate and less organic. As a consumer, if we see that the content is sponsored, we can recognise the inauthenticity of the content. We can instinctively determine that the blogger does not have an authentic relationship with the content being published. Do you think these techniques could be applied inside the organisation – via the intranet or through other channels of internal communication – so that key influencers among the work force can also become advocates? Absolutely. In fact, with the help of our Influencer Relationship Marketing platform, many of our clients are already using their existing internal resources to help amplify their story across all major platforms. Car brands are connecting with their dealers and sales teams, and corporations are finding new and engaging ways to work with their best employees. 03/2012

Gregory Shove Founder and CEO, Social Chorus Gregory Shove is the founder and CEO of SocialChorus, a social influencer relationship marketing software and services company which helps brands find and connect to the people whose social influence matters most. Prior to SocialChorus, Gregory was an active investor in both private and public companies, with a focus on consumer segments. He also co-founded 2Market, a Silicon Valley start-up that pioneered the development of interactive shopping (acquired by America Online in 1995). Prior to that, Shove held positions at Digital Equipment Corp and Sun Microsystems.

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OPPORTUNITY KNOCKS Could interim communicators be the future of consultancy work? By Sandra Loftus

03/2012

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nterim management across Europe has been enjoying steady growth over the past 10 years and futurologists predict that it will become a more significant form of hiring management expertise over the next 20. Yet, with the exception of the UK and the Netherlands, the role of interim communicator does not seem to have quite the same profile across Europe as, say, supply chain or general management. Intrigued by the difference, I set out to explore the market, understand the drivers and examine what the future may hold for interim communication professionals and recruiters across Europe. What is the difference between interim communicators and classical consultants? With interim communicators both the strategy and the implementation are usually delivered by the same person. “Interims are typically over-qualified for the role, delivery focused and not distracted by other things going on in the business. From an objective viewpoint they provide an invaluable blend of thinking and doing,” explains Virginia Hicks, director of Comma Partners which places internal and change communication interims in the UK. Tanja Laube, who previously held senior corporate communication and marketing positions in Philips, Tchibo and VTG, and is now a successful European interim, agrees: “The most important hiring factors for my clients are experience, proof that in a short period of time I can manage new projects, understand new topics, challenges and the environment and make a difference; basically, that I can offer speed and structure!” Consultancy, on

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the other hand, covers a multitude of services from advice (usually at a senior level) to full-service communications support which could include measurement, values, strategy to delivery channels like events and news services. Traditionally, independent consultants are brought in to add strategic solutions which others then implement. In addition, consultancy fees are usually higher and additional costs will be passed on for oﬀ-site oﬃce services.

VALUE In terms of time, interims

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offer a flexibility that ranges anywhere from three months to two years and often work out of the client’s offices as part of their in-house team. In terms of cost, this offers a very attractive financial option for organisations who wish to save on their head-count and related employment costs. And in terms of value for money, interims are considered good value not just because they only charge project fees but, more attractively, because they are experienced, mature, get up to speed fast, provide strategic consulting and implementation – all in one person. However, there does not always need to be a line drawn between the two definitions. In Europe in particular, those who may offer interim solutions often call themselves independent consultants. Plus, some communications consultants will do part-time interim work alongside projects, training or coaching.

BUSINESS DRIVERS What are

the business drivers for interim recruitment per se? Let’s look ﬁrst at the wider market for interim management for all sectors and specialisations. Last year, online interim recruiters Executives Online published a Europe-wide survey which illustrated that the lion’s share of

interim roles throughout Europe fell under the heading of ‘change management and major transformation’, with 33 per cent of total respondents; ‘crisis management, major issues or company turnaround’ with 18 per cent of the vote; and thirdly ‘implementing a major initiative such as product launch or relocation’ with 15 per cent. Everything else below that falls under the heading of ﬁlling in a resource shortage. How does that compare to the market for communication interims? Although no ﬁgures on this market are available across Europe, the 2011 survey run by UK’s Comma Partners in conjunction with Melcrum, gives some insight:

“55 per cent of respondents called in interims to help deliver a project which was in addition to business as usual, usually a change related project; and 56 per cent of respondents used communication interims to cover resource shortages.” What this illustrates is that the business drivers for interim managers are the same as those for professional communicators, i.e., helping to deliver an organisational change of some sort.

PROFILE Despite the similar business drivers, there was a shared view among the communicators and recruiters interviewed for this article that interim communication does not have the same proﬁle in Europe as it

Interims are considered good value not just because they only charge project fees but because they are experienced, mature, and get up to speed fast. does in the UK. Is it simply a matter of awareness or are there other factors contributing to that view? One reason may be ease of access. In the UK and the Netherlands it is easy to find interim recruitment providers to help connect companies and candidates. However, the established interim recruitment providers in Europe do not seem to offer communication as part of their core skill areas, even though the majority of projects involve change. And those executive recruiters who specialise in communication do not seem to extend their offer to interims across Europe. Christian Metzner, general manager in Germany of global interim recruiter, Brainforce, notes: “The interim market across Europe is definitely growing and will continue to do so at a steady pace. However, we simply do not see many requests for communication 03/2012

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interims.” Grant Speed, managing director of Odgers Interim, explains: “Although our international search team specialises in corporate communications for permanent recruitment, the potential market for communications interims across Europe would be perceived as a very small part of our interim business. In addition, the labour laws within each market influence whether or not an interim recruitment firm would invest in that market.” Labour laws do of course have an essential impact. For example, one of the attractions of hiring an interim in the UK is that there are no traditional employment costs. Typically, the interim sets themselves up as a limited company and manages their own tax and insurance or they can operate through an umbrella company. In France, however, an interim provider has to ‘employ’ the temporary worker, making the proposition much less attractive for interim recruitment agencies. What about cultural differences? “Here in the UK we have a mature market with a rich pool of talent and a well established culture for interim assignments where clients value the diversity of experience and skill; and interims value the variety and flexibility,” explains Virginia Hicks. In Europe, Tanja Laube believes: “There is a cultural mindset which we first need to overcome. People tend to think ‘why bring somebody in from outside when I have a full team in-house?’ Or, they still see interims as ‘rescuing and restructuring’, rather than aiding growth and managing projects proactively. This is a significant factor in the traditional operating environment.”

SPECIALISM VS DIVERSITY How we recruit also af-

fects the interim market. Within Europe, greater value is placed on industry or sector experience. This holds true for permanent and interim recruitment. A candidate’s value is seen in their specialism in the automo-

There is a great opportunity now to educate organisations about the beneﬁts of hiring experienced, capable and value adding interims for their communication projects. 86

tive, pharmaceuticals or technology sectors, for example. However, for professional communicators, their skills are easily transferable from sector to sector. In the UK, the perspective is quite diﬀerent. “In our 2011 poll of clients, an overwhelming 84 per cent said that the ability to build relationships at all levels was the number one core skill they looked for in an interim,” said Virginia 03/2012

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GETTING STARTED For professional communicators who wish to enter the interim market or grow their interim offering, Jens Christophers, president of the DDIM, has this advice: “Write a business case! Look for how to ﬁnance the time between projects, interrogate your sales story, what’s your own story and what’s the focus of your own business. When it comes to interim management, companies don’t need someone who can do everything, they need people with a special know-how and special background.Therefore you have to write down your product, strategy, vision and how to get there. This is very important and a lot of people don’t do that. A useful place to start is the European Business School, (EBS), they offer a starter programme for interim managers. Sometimes it makes sense to join this programme, even if it is just to reassure yourself that you are doing it right.”

Hicks. “In fact, relevant business or sector-speciﬁc experience was seen as relatively unimportant.”

CHANGING TIMES Given the economic performance over the past few years, is it likely that the mindset for interim recruitment will change or is changing? Virginia Hicks says: “People who choose to become career interims do so mostly because they proactively desire greater ﬂexibility in their careers. And of course, redundancy can bring that choice or possibility into sharper focus. Certainly right now it is a buyer’s market.” Mike Dodds of Brooklands Executive notes: “With high employment costs and austerity conditions, continental Europe will become a growing market, oﬀ a small base.” FINDING TALENT Most communication consulting roles are sourced ‘under the radar’, so to speak, with

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the majority of the resourcing coming through personal networks. According to Executives Online’s 2011 report, over 70 per cent of interim assignments were sourced through personal contacts. Karin Stumpf, managing director of Acrasio, who consults across Europe, the UK and the US, agrees: “I have been an independent consultant for over 10 years and in that time only used a recruitment agency once, in the early days, before I established my own network. Clients would much rather hire someone they trust or a recommendation they trust, than use an unknown third party or anonymous consultant from a large consulting ﬁrm.” Operating through a trusted recommendation is great news for those who market themselves well, but not so good for those who wish to hire talent and don’t know where to ﬁnd it. And what about online resources? There are a variety of groups on LinkedIn and XING where communication

Photo: Private

Clients would much rather hire someone they trust, than use an unknown third party or anonymous consultant from a large consulting firm. professionals can be found. Certainly, it is now standard practice for human resources managers to search LinkedIn for both permanent and contract roles. “I have had a few requests from clients through online communities such as LinkedIn and XING,” says Tanja. “But in general, most of my work comes through my own network and sometimes through really good interim recruiters such as Bridge imp because they prioritise understanding their clients and candidates well.”

NEW OPPORTUNITIES Having spoken to several interims throughout Europe, the view was that, with the changing economic climate, more consultants are coming onto the market, increasing competition to a degree. However, there was also a belief that there is more opportunity to be had in the European market if we, the communication industry, could educate organisations more specifically about the benefits of interim communicators. Tanja Laube believes: “There is a great opportunity now to educate organisations throughout Europe about the benefits of hiring experienced, capable and value adding interims for their communication projects. For example, often hiring managers will say ‘you are over qualified for this role’. That’s exactly right! If you want someone to add value strategically and implement your project, you need to be asking questions like ‘where have you faced such challenges before and how did you overcome them?’” Virginia Hicks agrees: “The CV of an interim can benefit from emphasising their ability to hit the ground running, their ability to influence stakeholders at all levels, their understanding and expertise in change communications and their adaptability.” GETTING STARTED How should we mobilise this expertise to raise awareness of the specific benefits of hiring professional interims? Some great education programmes do already exist. For example, in Europe we could take a lead from Comma Partners, who host free seminars to help educate interims on a variety of relevant topics, from trends in social media to personal skills development like influencing and making an impact. The German association of interim managers, DDIM, also hosts informative educational seminars. A good start is getting more Sandra Loftus case studies out to promote Communications consultant the benefits and value for money of interims. ConferSandra Loftus is currently a communications consultant at ences could also be a useful DHL and owner of her own forum to raise the profile of consultancy, Sandra Loftus heavy hitting interim comAssociates. She also founded munication; and workshops Joy Projects in 2010. Before that, she was global director on how to hire the right infor internal communications terim, how to find them and at Bombardier Transportation what standards are considand group head of employee ered best practice. communications at BAA plc. 03/2012

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BOOKS Communications Reader

ports metaphors are a tried and trusted trope in business writing: these metaphors are usually trite and superficial as acknowledged in the preface to There is an I in Team (the title itself is a riff on one of the more egregious clichés). To find substance behind the cliché, Mark De Rond promises “real and substantial” lessons. De Rond zooms in on a paradox: while we look to the world of sports for examples of teamwork and models of cooperation, we speak of elite athletes and reward them with lavish lifestyles. Several of them (all men – the book – maybe even the approach – is heavy on the testosterone) are featured here: Michael Jordan, Zidane Zidane, Bobby Fischer. Another paradox: a team consist of individuals who have made a commitment to work with each other, all for their own different reasons. (coach David Whittaker). Running with the idea of the title, the book throws up these antilogical propositions (‘What makes them Good makes them difficult, too’ is one header). It’s a short book packed with ideas, but I wish he had spent more time on remuneration, surely a key motivating factor that receives rather short shrift here with yet another paradox: “team performance and individual career progression are intimately and inextricably tied together”.

PR’S PLACE IN THE WORLD An overdue evaluation of public relations as a cultural force, this richly rewarding compendium traces three broad lines of inquiry: public relations in the context of culture, public relations as a global culture in its own right, and the impact of public relations on the wider world (including indigenous cultures). Broadly locating public relations as a artefact of Western culture, the boom oﬀers an overview of the challenges to and mutations of what Ales Debeljak describes in his article as “a package of Western ideas and technologies”. In particular, the chapters on China and Mexico guard us against unquestioningly imposing Western social theory on other communication practices. The chapter on the cultural deafness of the petroleum industry in Nigeria challenges Western companies to engage with the local context and not “hide behind the excuse of culture as the reason why they are not able to engage in participative community relations approaches”. Echoing throughout the 15 chapters is globalisation, the new status quo that juxtaposes diverse cultures and ideals with each other, that treads on the toes of delicate cultural organisms, and that opens up un-thought of new dilemmas and opportunities. 03/2012

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THERE IS AN I IN TEAM MARK DE ROND HARVARD BUSINESS REVIEW JULY 2012

CULTURE AND PUBLIC RELATIONS KRISHNAMURTHY SRIRAMESH AND DEJAN VERCIC ROUTLEDGE, APRIL 2012

BOOKS

DISASTERS AND THE MEDIA MERVI PANTTI, KARIN WAHLJORGENSEN, SIMON COTTLE PETER LANG, APRIL 2012

THE ALIGNMENT FACTOR CEES B.M. VAN RIEL ROUTLEDGE MARCH 2012

THE SHIFTING MEANING OF DISASTER Another side-effect of globalisation: round the clock media coverage of disasters around the world. We’ve all received an education in witnessing, processing and commenting on unimaginable horrors; images of disasters, the platitudes and delivery make up a lingua franca that we’re all too familiar with. The strength of this book is that it considers how globalisation affects the significance and interpretations of disaster but also considers how that significance is interpreted through the filters of nations and their citizens. The first half of the book deals with the nuts and bolts of disaster reporting and how journalists’ witnessing of disasters evolves in response to new technologies, including social media. What’s particularly fascinating is the question of how the ideal of objectivity might be challenged by new, more emotional and more compassionate forms of story-telling premised on an injunction to care. Another theme is the shifting meaning of disaster: the earthquake in Haiti is convincingly presented as a landmark event to equal that of Lisbon, in terms of reshaping how we understand disasters. In reporting the tangled geo-political context in Haiti, critical discourses were aired in mainstream media such as the limits of neoliberalism and the damage caused by post-colonialism: “Rather than support the status quo of global power relations and economic practice, they challenge the presumptions underlying foreign aid and neoliberal regulatory regimes.” PUTTING ALIGNMENT INTO WORDS Last year’s winner of the Pathfinder Award, Professor Cees van Riel affirms his position as one of Europe’s leading thinkers on corporate communications with this handy guide to alignment – the art of getting everyone on board to realise the company’s goals. Implicit in this approach is the necessity of closely involving the corporate communicator in the top-level of business decisions: this book is a strong argument for underlining the corporate on ‘corporate communications’, with road maps, KPIs and best cases from heavy hitters such as la Caixa, Philips, FedEx, Eskom and more. “Words express beliefs and values and inspire actions”, the author comments, and in recognising this power to galvanise, the corporate communicator can substantially shape the company’s reputation. Van Riel ends his book on a note of caution for his peers in academia: the tale of the Emperor’s new clothes should remind us not to be awed by “corporations with trusted reputations”: nothing is certain, reputations are liable to rise and fall, and academics should not be cheerleaders for empty promises. 03/2012

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INTERNATIONAL INPUT: A LOOK BACK AT ECS 2012 The European Communication Summit 2012 featured an international line-up of speakers from Europe, Asia and the United States.

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Jörg Asmussen, Germany

he undisputed highlight of the many events organised this year by the European Association of Communication Directors was, as ever, the European Communication Summit. Held on July 5 and 6 once more at the Square in Brussels, this year’s event did inspire the audience with a great range of topics and a high quality of invited speakers. Jon Iwata, senior vice president marketing and communications from IBM joined us in his position as chairman of the Arthur W. Page Society to talk about his impassioned vision for the future of communications (see his interview on page 50 of this issue). Hu Shuli, (above left) editor-in-chief of the independent media group Caixin Media, joined the event all the way from China to enlighten the audience in regards to her country’s complex but fascinating media and communication landscape. From the European political landscape, Jörg Asmussen (above centre), chief economist at the European Central Bank, joined proceedings on stage to speak 03/2012

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Mark Katz, USA

about the direction taken by the most powerful European ﬁscal body so that it can adapt to the ever-changing economic environment. Comic relief was provided by US-based humorist and speechwriter, Mark Katz (above right), who entertained the crowd with a genuinely fresh take on the job of communicators and the overlooked though important role that humour can play in that job. Expanding on many of the themes raised in his interview in the previous issue of this magazine, Mark shared some painfully funny moments from his career as a speechwriter for the likes of Bill Clinton. The overarching theme of this year’s event was Communication Through Global Change, and the plethora of workshops, discussions and presentations ensured that multiple perspectives on this topic were heard in Brussels over the two days. More than ever, this year’s Summit gave participants the opportunity to reﬂect on and delve into the thorny subject of how to communicate in this ever changing world. The energy and excitement generated by the stimulating discussions can only serve to create enthusiasm for next year’s event.

Photos: www.baumannstephan.com

Hu Shuli, China

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A WORTHY WINNER: MARC BOLLAND OF M&S When Marc Bolland arrived to accept the European Communication Award in person, he wore his commitment to sustainability on his sleeve.

Marc Bolland, CEO, Marks & Spencer

his year’s European Communication Award was accepted in person by Mark Bolland, CEO of Marks & Spencer. Proving just why he was recognised for communications excellence in the past year, the Dutch CEO of the British retail giant spoke at length (and without notes) on his vision for business, sustainability and communications, offering an intelligent appraisal of today’s complicated and fractured market, distinguishing himself as a truly European boarder crosser. Throughout 2011, Mark Bolland remained a highly-visible ﬁgurehead of the quintessentially British institution, reaﬃrming the traditional values of excellence in service and high quality that had been the high-street store’s hallmark, while also leading the company into an exciting fu-

ture of growth and expansion. He spoke with passion and humour on his key issues: multi-channel development (Marks & Spencer stores will see a roll-out of in-store technology and mobile innovation), international growth (the company has a run rate of 100 store openings a year) and a commitment to sustainability (Marks & Spencer is the ﬁrst major retailer to become carbon neutral). An unexpected bonus was the rather elegant suit worn on stage by Mr Bolland: he proudly told moderator Karin Helmstaedt that it was the world’s ﬁrst 100 per cent sustainable suit! More proof that he walks the walk as well as talks the talk. The winner of this year’s award was voted for by EACD members from a shortlist compiled on the basis of the 2011 results of CARMA International’s CEO Stockwatch Index as published in this magazine. Last year’s award was given to Peter Löscher, CEO of Siemens. 03/2012

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GENERAL ASSEMBLY 2012

he sixth General Assembly of the EACD took place on July 6th, immediately following the European Communication Summit in Brussels. Current developments and future outlooks for the Association were discussed, as well as opportunities and new initiatives to further advance European communications and the standing of the profession. The Board presented their report on the current state of the EACD, including membership development and the variety of publications on offer. The attendees approved the Board report and the financial report for the fiscal year 2011. Regional and Working Groups reported their activities during the last year. A key focus of the Assembly was the election of

a new board that will serve until 2014. The new board – with both experienced board members and new colleagues joining the team – reﬂects the EACD’s diversity, representing its wide range of regions, industries and institutions. On behalf of the entire association we would like to thank outgoing board members Arja Suominen, Christian de barrin and Francisco Polo Martin for their outstanding commitment to the EACD.

EACD GENERAL ASSEMBLY Every year at the close of the European Communication Summit, the EACD board presents its reports to its members. Elections are held every two years, with the next scheduled for 2014.

President Dr. Herbert Heitmann, Executive Vice President, External Communications, Royal Dutch Shell

Managing Vice-President Florence Ranson, Head of Communications, European Banking Federation

Vice-President Anthony Gálvez Gooch, Director Public Affairs & Communications, OECD

Vice-President Elisabeth Schick, Senior Vice President Communications & Government Relations, BASF

Treasurer Mark Redgrove, Head of Communications, ORGALIME

Assessor Marianne Amssoms, Vice President Global Communications Anheuser-Busch InBev

Assessor Ingmar De Gooijer, Director of Communications, Eucomed

Assessor Yannis Freris, Director of Corporate Communications & Sustainable Development, Gefyra S.A.

Assessor Pierre Goad, Global CoHead of Communications, HSBC Holdings plc

Assessor Jan Hol, Senior Vice President, Corporate Communications, Océ

Assessor Natalia Kurop, Director of Communications & Marketing, Digital Europe

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Assessor Luulea Lääne, Communications Director, Tallink Group

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Assessor Atte Palomäki, Group Vice President Corporate Communications, Wärtsilä Corporation

Assessor Rudolf Ramsauer, Senior Vice President, Corporate Communications, Nestlé

Assessor Luca Virginio, Group Communications & External Relations, Director, Barilla

Assessor Helmut Weixler, Head of Press Ofﬁce,Group of the Greens/EFA in the European Parliament

Photos: Wolfram Scheible/SAP AG; lancephoto.com; Private Andreas Pohlmann; Private (4); Zebra Fotostudio‘s B.V.; Private; Tanel Murd; Private(3); Michel Gronemberger

The EACD hosted their annual General Assembly following the Summit in Brussels. The main focus was on electing a new board that will serve until 2014.

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REGIONAL FOCUS: PORTUGAL The Portuguese Regional Coordinator Rui Martins shares his view on the EACD’s activities in the region and the communication landscape in Portugal. Can you tell us about the format and topic of events that you have hosted so far and the feedback you have received? Since I assumed the position as Regional Coordinator for Portugal, we have organised nine successful Lisbon Regional Debates attended by 279 top executive communication professionals from different sectors and industries, from which we have gained about 40 new Portuguese EACD members. Trying to keep pace with the European and international communication trends and with the specific needs of the Portuguese market in mind, the topics have provided insightful, case-study based understanding and knowledge, presented by international and national speakers. The Lisbon Debates take place twice a year, in May and October, with four guest speakers and under the sponsor of partners such as the five-star Hotel Altis Lisboa. We have featured talks such as ‘Corporate Social Responsibility: a multi stake-

Regarding the tools, one crucial excitement is the rising trend of social media and mobile applications. holders’ approach to sustainability in times of turmoil’, ‘Financial Communications: rebuilding trust’ and ‘Territorial Reputation Management: leveraging the Portuguese Experience’. The next Regional Debate will take place on October 16, 2012, under the headline, ‘Going Global: managing eﬀective multicultural communications’.

Photo: Private

What seem to be the issues most affecting communicators in Portugal at present? Are there any developments or tools that Portuguese communicators seem especially excited about? Facing a bailout crisis, I would say managing a trustworthy reputation, ﬁnancial communications and multicultural communications are of top priorities to both big and SME companies. Of course, such concerns are

greatly related to internationalisation processes and the imperative need of growth and expansion in order to tackle the contraction of domestic demand. Regarding the tools, one crucial excitement is the rising trend of social media and mobile applications (Facebook and Twitter, iPad and iPhone applications, and social media monitoring and evaluation are being increasingly used), not only to reduce costs but moreover to increase business-to-customer and potential business-to-business engagement and thus leveraging sales leads.

Is there anything that you speciﬁcally characterises the Portuguese communication landscape? The integrated communications arena in Portugal is growing each year into what more mature markets such as the UK, Germany, France or Spain have already become. Yet there is still room for further improvement in order for Portugal to grab the overall attention of, say, Portuguese-speaking markets in Brazil, Angola, Mozambique and eastern countries such as Macau and China. A further trend is social media being used by more and more companies. Thus, understanding and managing eﬀective integrated online communications is a topic of great relevance. On the other hand, the rising of social media turns transparency into inevitability for all kind of organisations.

RUI MARTINS Rui Martins has been the head of communications at Dianova Portugal since 2003. Previously, he was: a strategic consultant (Tinkle Consultant Lisbon), introducing and leveraging easyJet’s positioning in the Portuguese market and media relations for Hotel Penha Longa & Golf Resort; associate director (Hill & Knowlton Portugal) and senior associate (Burson-Marsteller, Lisbon). He holds a master’s degree on Social Economy, ISCTE; post-graduate degree in management and multimedia communications, ISEG – Universidade Técnica Lisboa; and a degree in management and public administration, ISCSP – Universidade Técnica de Lisboa.

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There have been several recent developments in the EACD community, including new initiatives and role changes.

NEWS REGIONAL COORDINATORS The EACD is pleased to welcome four new regional coordinators. Irén Márta will be responsible for the new Regional Group in Hungary: she has worked as chief of public aﬀairs and communications at Holcim Hungária since 2005. Vibeke Ajruli will coordinate EACD’s regional activities in Norway with the support of Kristian Hvilen, external communications manager Nordics at Kraft Foods Europe. Ms Ajruli has more than 10 years of experience in management and communications and is now heading communications for ECOHZ. Claus Grue is looking forward to being Regional Coordinator for Sweden; he is communication director of the diocese of Lund, Church of Sweden. Last but not least, Tomas Jensen is the new Regional Coordinator of Turkey. Tomas has been leading corporate communications for Microsoft in the Middle East and Africa since 2008.

Vibeke Ajruli, Norway

Claus Grue, Sweden

Tomas Jensen,Turkey

Irén Márta, Hungary

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The Anti-Counterfeiting Trade Agreement (ACTA) has been a hot and widely discussed topic in the last months, and so the Working Group European Institutions organised a debate which took place at the European Parliament in Brussels on 11th of July. The agenda of this meeting was to clarify and elaborate both sides of the argument and look for appropriate responses. More than 30 EACD members took part in the debate and stressed again how important and powerful the new online networks and social media are for communication of policies to relevant stakeholders.

Debate about ACTA in the European Parliament

NEW INITIATIVE: THE FUTURE OF MEDIA Many people are wondering where will classic forms of media ﬁ nd their place in the digital future. Oliver Herrgesell, who has worked for the past six years at RTL Group, suggests that traditional media is not doomed to be left behind; rather, they are evolving. With these transformations in mind, Oliver Herrgesell initiated a meeting at the European Communication Summit to confront and debate the challenges. As a follow up, the EACD oﬀers a platform on the EACDnet to continue the discussion and perhaps launch a new Working Group on this highly relevant topic.

Photos: ALDE ADLE Group; Private (4); dreamstime.com

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ACTA: A STUDY IN POLITICAL COMMUNICATION

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WELCOME!

Photo: Medienpark/Georgi

The following communicators have recently joined the EACD Umayma Abubakar , Head of Employee Engagement , Mubadala Development Company Kristine Ahrensbach, Public Relations Consultant, Christian Hansen A/S Sirje Ahvenlampi, Manager, Investor Relations, Basware Oyj Roxana Alexandrescu , Copywriter, OMV Petrom S.A. Nicki Allitt, Head of Communications - Global Production & Supply, Syngenta International AG Agnes Andok, Senior Public Affaris and Communications Manager, Coca Cola Hungary Coca-Cola HBC Magyarország Kft. Caroline Baldwin, Global Media Relations Director, KPMG N.V. Nicole Barraud-Estoppey, Associate Corporate Communications Director , Shire AG Natalie Bealing, Head of Communications, Science and Technology Facilities Council Cora Béghin, PR&Communication Director for Sage ERP X3, Sage France Laura Berneri, Director of Communications, Constellium Luca Biondolillo, Corporate Press Director , Benetton Group S.p.A. Bruce Blake, Manager of Communications and Philanthropic Enterprise, Internationales Presse Institut Tatiana Boïko, Head of External Communications, Union Bancaire Privée Mille Borchorst, HR & Communications Director, Novo Nordisk A/S Illya van den Borre, Director Public Affairs, Delhaize Belgium Stefania Bossiner, Senior Communications Manager, ABBOTT S.r.l. Sixtine Bouygues, Director, European Commission DG Communication Marie Brasseur, Communications Manager, European New Car Assessment Programme Susan Brunner, Sustainable Brands Marketing Manager, Mondi Uncoated Fine Paper Sales GmbH Nina Byvsheva, Head of corporate communications, Alcoa Russia Marko Cadez, Pressesprecher der Botschaft, Deutsche Botschaft Belgrad Suzy Chisholm, Head of Corporate Communications, Philips AG Schweiz Me Sophie Christensen, Head of Corporate Branding & Communication, Clipper Group A/S Natalia Christodoulou, Assistant to the General Manager, Head of Communication & Marketing wholesale banking , EFG Eurobank Ergasias SA Eamonn Cregan, Director of Corporate Affairs, University of Limerick Mariella Criscuolo, Head of Corporate Communications, Coesia S.p.A. Andrew Crone-Langkjær, Communications Manager, Danish Road Directorate Maie Crumpton, PR Manager, Central European Media Enterprises

Arnaud d‘Agostini, Communications Manager, International Biobank of Luxembourg Shravani Dang, Vice President & Group Head Corporate Communications, Avantha Group Ann de Crozals, Head of Product Communication, Airbus S.A.S Saskia Dejonghe, Global Communications Director Food Category, Unilever PLC Maria Del Peso, Vice President Communications, THALES Sophie Delaval, Brand Content and Production Director, Sodexo SA Anne-Catherine Derck, Director of Information Centre , French Banking Federation Thanh Hoa Desruelles, Communication and External Relations Ofﬁcer, Association for the Development of Education in Africa Oscar Di Montigny, Marketing and Communications Director , Banca Mediolanum S.p.A Carina Dietmann, Head of Corporate Communications, Rederi AB Transatlantic Ivan Dompé, Group Communications Director, Luxottica Group

Earlier this spring I attended an event of the Dutch chamber of EACD with a very interesting presentation on IPO communication. Apart from the valuable content, I enjoyed the chance to exchange ideas with other press ofﬁcers. Frans Middendorff, Press Ofﬁcer, ING Group

Katrinka Van Driel, Communications Manager , Aliaxis S.A./N.V. Aimée Dubrule, Communication Director, Bacardi-Martini B.V. Angela Dunn, Global Communications, SAP AG Toby Ellson, Manager Media Relations & PR., Eneco N.V. Mirela Enasel, Corporate Affairs and Communications Manager, JT International (Romania) S.R.L. Greg Farrett, Executive Director Communications, GE Europe NV Anne Fauconnier, Corporate & Internal Communications Director , Imerys Maria Fernandez, General Secretary, Ministry of Presidency, Sociological Research Center Federico Filippa, Corporate Communications Manager, Alcantara Sergey Filippov, Head of Media Relations, JSC RUSNANO Joanne Fisher, Communications Manager, Hitachi Europe Ltd Thomas Fluegge, Executive Secretary for Public Relations, adj. Press, Federation of Swiss Protestant Churches Niki Fraiss, Communication Project Leader, BECN Change Management Annette Gann, Head of Communications, Finning Uk Ltd Johanna Gavefalk, Marketing & Communications Director, EIT ICT Labs Roderick Gielis, Head of Department Communication Unit, Rijksinstituut voor Volksgezondheid en Milieu

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Fabiola Mascardi, Vice President Insitutional Relations, Ansaldo Energia

Robert Glick, Vice President Corporate Communications, American Express Wendy Gold, EMEA Communications Director, Consumer, Microsoft Magnus Thor Gylfason, Acting Director of Corporate Communications, Landsvirkjun Joe Hanley, Director, External Relations, IBM - Internat Business Machines Lucy Harper, Communications Manager, Society for Applied Microbiology Tine Kjær Hassager, Head of Communication, Technical University of Denmark Alexandre Heinrichs, Digital communications Manager, Pictet & Cie Banquiers Dr. Soﬁa Hitzbleck Hanne Radich Hoffman, Communications Manager, Novo Nordisk A/S Amr Huber, Director of Communication and Marketing, swissinfo Reija Hyvärinen, Director of Communications, Finnish Broadcasting Company (Yle) Heidi Ignatius, Manager of E-Business, Tiimari Oyj Abp Satu Ikäheimo, Communications Manager, Fazer Group Olga Ilyina , Senior PR manager (International Media), Uralkali Oania Iosip, Internal Communications Expert , OMV Petrom S.A. Kirsty James, Head Brand Strategy & Communication, Syngenta International AG Anthony Jay Olsson, Head of Media and Communications, Council of the Baltic Sea States Hilde Junius, Head of Press Relations, BNP Paribas Fortis Global Branding and Communications Thomasine Kamerling , Global Communicatons Director, Nuovo Pignone SpA Frida Keane, Nordic Health & Corporate Affairs Director, Danone Sweden AB Jo Kempen, Corporate Communications Specialist, Croatian Post Inc. Harald Kettenbach, Leiter Kommunikation, Mann + Hummel GmbH Gerdur Bjork Kjaernested, Project Manager, Corporate Communications, Landsvirkjun Fedor Klimkin, Communication Director, Russia Beyond the Headlines Jana Knazko, Head of Marketing and Communication, Canadian Heritage Kathi Kneussl, Global Communications Manager, Unilever PLC

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Nataliia Konovalova, Corporate Affairs Director, Ukrainian Vodka Company Nemiroff Heidi Kornholt, Head of communications and management secretariat, The National Food Institute Mag. Ingrid Krenn-Ditz, Spokeswoman, Raiffeisen Bank International AG Julia Kulikova , Head of PR department, The Fund of cultural communications\ ‚Alliance for support patronage initiatives\‘ Henning Küll, Leader Business Communications Europe, Ticona GmbH Pia Alina Lange, Head of PR & Communications, European Association for take back and recovering of photovoltaic modules Lena Lassmyr, Assistant Director/Information officer, Ernst & Young AB Gilda Lazar , Corporate Affairs Director, JT International (Romania) S.R.L. Patricia Leiva, Communications Director, ING Direct Annabel Lemétais, Global Communications and Public Relations Manager, Checkpoint Systems Piers Letcher, Speechwriter, ITU Murielle Letexier, HR Communications Director, ALSTOM Sofia Liljefors Edlund, Communications Direktör, Fazer Group Virginie Louis, Communications Officer, International Committee of the Red Cross Delegation to the EU ICRC Delegation to the European Union Annette Lüdeking, Senior Communications Manager, Ramboll Oil & Gas Marion Margot, Vice President Communications, Eramet France Silvia Martin, Copywriter, Toyota Material Handling Europe Brussels

By becoming a member of this Association, I receive a unique opportunity to stay in touch with current trends in communication. It also gives me a chance to exchange views and gain new knowledge for practical use in my daily work. Andrew Crone-Langkjær, Communications Manager, Danish Road Directorate

(TMHE Brussels) NV/SA Kristine Martinsone, External Communications Project Manager, A/S SEB banka Fabiola Mascardi, Vice President Insitutional Relations, Ansaldo Energia Sofia Masiello, Head of Communications, SIA-SSB S.p.A. Patricia McBrierty, Head of Group HR Communications, Zurich Insurance Company Ltd Frans Middendorff, Press Officer, Financial Communications, ING Group NV Head Office Artem Minaev, Head of PR Department, VimpelCom Pascale Minder, Head of external communication, Eramet France Edward Wynne Morris, Head of Communications, Huntsman Ad-

Photos: Private

I decided to join EACD because I am convinced that the today‘s minimal dimension is the European one, we cannot work without considering a wider dimension and without meeting and confronting our ideas with colleagues coming from different cultures.

ASSOCIATION

vanced Materials, Huntsman Corporation Joep Mourits, Communications Director, Rabobank Group Rainer Müller-Müffelmann, Director Corporate Communications Europe/Rest of World, Elster Group SE Viktoria Mykhno, Head of Public Relations, Platinum Bank Arne Näveke, Executive Director Communications and Public Affairs, Sanofi pasteur MSD Anton Nazarov, Director of Communications, Head of Information Policy Department, Inter RAO UES OJSC Andrew Nesterov , Head of Public Relations & Advertising Department, Federal authorized organization JSC Universal Electronic Card Thierry Nicolet, Senior Vice President Press Relations, Schneider Electric France Robin Noels, Corporate Internal Communication Senior Manager, STMicroelectronics SA Richard Northcote, ead of Communications and Public Affairs, Bayer MaterialScience AG Dagmar Novakova, Public Relations Manager, Ernst & Young, s.r.o. Asdis Olafsdottir, Project Manager, Corporate Communications, Landsvirkjun Sean O‘Neill, Head of Communications, National Roads Authority Dr. Thomas H. Osburg, Director Europe Corporate Affairs, Intel GmbH Yulia Ostroukhova, Media Relations Director, Eurasian Development Bank Irina Ostryakova, Communications Director, Eurasia, Sanofi-aventis Russia Christian Palme, Communications Director and Spokesperson, The International Civilian Office Matthew Paton, Head of Communications, EMERI, Christie‘s Angelique Paulussen, Senior Vice President Corporate Communications, Royal DSM N.V Jennie Persson, Internal Communication and Engagement Manager, Mölnlycke Health Care AB Gönna Petersen, Marketing Director, Swegon AB Sigita Petrikonyte - Jurkuniene, Press Officer, AB Lietuvos Dujos Francoise Poterre, Communication Director, Abbott Laboratories Europe Sanel Prelic, Corporate Communications & CSR Manager, Global Ispat Koksna Industrija d.o.o. Lukavac Isabelle Prosser-Joachim , Senior Communications Officer, European Mortgage Federation Susanne Reed, Head of Corporate Communication Service, Airbus S.A.S Barbara van der Rest-Roest, Spokesperson, The Netherlands Competition Authority Katharina Riedl, Head of Corporate PR, company spokesperson, Kapsch CarrierCom AG Yury Rovenskiy, Director of Public Relations, Sberbank of Russia Andreas Schaller, Director Group Communications , HeidelbergCement AG Maria Schleifer, Head of Group Internal Communications, Erste Group Bank AG Christian Schmelter, Chief Communications Officer, comparis.ch AG Dr. Sindy Schmiegel, Head of Communication UK , Schweizerische Bankiervereinigung Karin Schönhofer, Corparate Communications Manager, VTB Bank

(Austria) Chris Sciacca, Manager, Communications, IBM Research GmbH Zurich Research Laboratory Shikha Singh, Consultant - Marketing & Communications, SILVERSPOON ENTERPRISES Gabriele Sirtl, Director Public Affairs Europe Area, Kirche Jesu Christi der Heiligen der Letzten Tage Jamie Smith, Regional Communications Lead, Europe, AstraZeneca Europe Pirjetta Soikkeli, Vice President, Corporate Internal and Sustainability, Fortum Oyj Mireille Spapens, Director Brand, Communications & CSR, Deloitte Nederland Kirstin Steffen, Media Relations and Communications Manager , SES ASTRA S.A. Anke Sturtzel, Senior Manager Internal Communications , Cassidian Svea Talving, Marketing and Communication Manager, Ida-Tallina Keskhaigla East Tallinn Central Hospital Alice Taudor, Communication Manager, JT International (Romania) S.R.L. Nicola Taylor, Director of Communication, Host Broadcast Services AG Frank Tebbe, Head of Corporate Communications, Het Nederlandse Rode Kruis Mark Thompson, Managing Director, Royal Dutch Shell Shell Center Uta Ünal, Head of Corporate & Marketing Communications, Chemgineering Holding AG Esther van Zeggeren , Director Marketing & Communication, TNO Sarah Romy Vandenbergh-Edwards, Communication Manager, European Association of Metals Vizeva Vassilena, Communications Manager, GlaxoSmithKline Bulgaria Elcke Vercruysse, Media Relations Manager, Umicore (UM) Renee Verkuijlen, Spokesperson & PR advisor, Inholland University of Applied Sciences Ellen Vincken, Corporate Communications Manager, Benelux Ofﬁce for Intellectual Property Dr. Wolfram Vogel, Head of Public Affairs & Communication, EPEX Spot SE Vanessa Vyncke, nternal & Executive Communications, IBM Belgium/ Luxembourg Margaret Walker, Director of EU Public Affairs, European Association for the Study of the Liver Michèle Weber, Science Writer, International Biobank of Luxembourg Lisbeth L. Weimann, Communication Advisor, PKA A/S Erwin Wetzel, Regulatory Affairs Manager, European Vending Association Hans de Willigen, Global Director Communication & Investor Relations, Royal Vopak N.V. Sabina Yagizarova, Corporate Affairs Manager, Salym Petroleum Services B.V. Deger Yaycioglu Ozturk, Corporate Communication Manager, FORD Otosan Sule Yücebiyik, Corporate Communications Director, Borusan Holding A.S. Ognian Zlatev, Head of Communications Unit, European Commission DG Employment, Social Affairs and Inclusion

03/2012

COMMUNICATION DIRECTOR

QUESTIONS TO... The personal side of communication directors

PETRA CZUGLER Internal Communications Lead Europe, Celanese Corporation

How do you explain your job to your friends? I explain that the term ‘company’ denotes a paper-based existence in the world of legislation, and for that company to be able to ‘talk’ to whatever audience it has, you need a human being with a mouth and a willingness to speak on its behalf. Not a very sophisticated explanation, but it has worked pretty well so far. If corporate communications didn’t exist, what would your profession be? I would either do something really hands-on connected to health and wellness like being a Shiatsu masseuse or a reﬂexologist, or do something super-theoretical such as a social psychology research scientist. What personal object decorates your desk? My desk is littered with bits and pieces of personal objects, among which my favourites are the photo of my little goddaughter, a plastic snow dome of New York which was nearly conﬁscated at JFK Airport and a Chaplin-style hat that I wear whenever I need a bit of cheering up. What book do you have on your bedside-table?

I have a huge pile of books on my bedside-table because I tend to jump from one to another depending on my mood. Right now I have Howard Jacobson’s Redback which is hilariously funny. It’s a travelling book I picked up at a coﬀee house in the UK. Roald Dahl’s Collected Short Stories is also a big favourite of mine, I love the way he twists and turns even the simplest story into something really surprising.

What is your greatest weakness? I tend to over-organise, which can be a little tiring for some, and can get stressed easily if I don’t see a process from start to ﬁnish. I do think however that in this profession it’s always better to cover every angle than have to deal with the unexpected because of simple laziness. What do you dislike most? Dishonesty, false modesty and pretentiousness can drive me crazy. I very much dislike ignorance and not having a ‘can-do’ attitude in general also, but especially on the job.

Petra Czugler Internal Communications Lead Europe, Celanese Corporation Budapest-based Petra Czugler joined Celanese Corporation, a Dallas, Texas-based global technology and specialty materials company, in 2009. As internal communications lead for Europe she is responsible for the overall internal communication strategy of the company for the region. She also manages corporate social responsibility and crisis communications activities for Europe. Prior to joining Celanese, Petra held marketing and communications positions at Central EU Biofuels and the Hungarian Academy of Sciences.

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03/2012

COMMUNICATION DIRECTOR

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