The IABC Excellence StudyThe IABC Excellence Study

October 2006October 2006TaipeiTaipei

Larissa A. GrunigLarissa A. GrunigProfessor EmeritaProfessor Emerita

Department of CommunicationDepartment of CommunicationUniversity of Maryland University of Maryland

. .

About the Excellence StudyAbout the Excellence Study

• 310 organizations, of mixed size and 310 organizations, of mixed size and effectivenesseffectiveness

• Communication heads; CEOs; 3,400 Communication heads; CEOs; 3,400 employees.employees.

• Canada, UK, and USCanada, UK, and US

• 1,700 questions from each organization1,700 questions from each organization

• 25 qualitative cases25 qualitative cases

• Three books publishedThree books published

Research Question 1Research Question 1The Effectiveness The Effectiveness QuestionQuestion

How, why, and to what extent does How, why, and to what extent does communication affect the communication affect the achievement of organizational achievement of organizational objectives?objectives?

Organizational Organizational EffectivenessEffectiveness What makes an organization

effective?

To show that public relations has value to the organization, we must be able to show that effective communication programs and functions contribute to organizational effectiveness.

Value of Public RelationsValue of Public Relationsto an to an OrganizationOrganization

1. Helps reconcile the organization's goals with the expectations of its strategic publics.

2. Builds quality, long-term relationships with strategic publics.

These contributions have monetary value to the organization.

Value of Public Value of Public RelationsRelations to to SocietySociety

Organizations have an impact beyond their own bottom line. They also affect other individuals, publics, and organizations in society. As a result, organizations cannot be said to be effective unless they also are socially responsible; and public relations can be said to have value when it contributes to the social responsibility of organizations.

Using Compensating Variation Using Compensating Variation to Measure the Value of the to Measure the Value of the Public Relations FunctionPublic Relations Function

• CEOs report CEOs report 186%186% return on return on investment in communication investment in communication function for all organizationsfunction for all organizations

• CEOs with excellent CEOs with excellent communication programs report communication programs report 225%225% return on investment in return on investment in public relationspublic relations

Problems in Putting a Monetary Problems in Putting a Monetary Value on RelationshipsValue on Relationships

• Returns are long-term.Returns are long-term.

• Returns are lumpy.Returns are lumpy.

• Value occurs when something does Value occurs when something does not happen.not happen.

Effects of Excellent Effects of Excellent CommunicationCommunication • Meets communication objectivesMeets communication objectives

• Establishes good, long-term Establishes good, long-term relationships with publicsrelationships with publics

• Manages conflict to reduces costs of Manages conflict to reduces costs of regulation, legislation, litigation, regulation, legislation, litigation, pressure, and negative publicitypressure, and negative publicity

• Contributes to employeeContributes to employee satisfaction satisfaction

Research Question 2Research Question 2The Excellence QuestionThe Excellence Question

What characteristics of a public relations/ communication department increase the likelihood that it will contribute to organizational effectiveness?

Empowerment of Public Empowerment of Public RelationsRelations

In effective organizations, the In effective organizations, the senior public relations officer is senior public relations officer is part of or has access to the group part of or has access to the group of senior managers who make of senior managers who make decisions in the organization.decisions in the organization.

Integrated Public Relations Integrated Public Relations FunctionFunction

All public relations functions are All public relations functions are integrated into a single department integrated into a single department or have a mechanism to coordinate or have a mechanism to coordinate the departments. In an integrated the departments. In an integrated system, public relations can system, public relations can develop new communication develop new communication programs for changing strategic programs for changing strategic publicspublics..

Public Relations a Management Public Relations a Management Function Separate From Other Function Separate From Other FunctionsFunctions

Many organizations splinter the public Many organizations splinter the public relations function by making it a supporting relations function by making it a supporting tool for other departments such as tool for other departments such as marketing, human resources, law, or marketing, human resources, law, or finance. When the public relations function finance. When the public relations function is sublimated to other functions, it cannot is sublimated to other functions, it cannot be managed strategically because it cannot be managed strategically because it cannot move communication resources from one move communication resources from one strategic public to another—as an strategic public to another—as an integrated public relations function can.integrated public relations function can.

Summary of Excellence Summary of Excellence Results Related to Results Related to Organization of FunctionOrganization of Function

• It makes little difference whether public relations It makes little difference whether public relations and marketing are housed in separate and marketing are housed in separate departments or one department. What matters is departments or one department. What matters is the understanding of the public relations function.the understanding of the public relations function.

• The relative size of the budgets also makes little The relative size of the budgets also makes little difference.difference.

• However, when marketing communication However, when marketing communication dominates how senior managers think about dominates how senior managers think about public relations, excellence in public relations public relations, excellence in public relations declines.declines.

Overall Excellence by Overall Excellence by Support for Public Relations Support for Public Relations

-0.25

-0.2

-0.15

-0.1

-0.05

0

0.05

0.1

0.15

MarketingGreater

PR Greater Equal

Z-Score

Public Relations Unit Headed by Public Relations Unit Headed by a Manager Rather Than a a Manager Rather Than a TechnicianTechnician   Technicians are essential to carry Technicians are essential to carry

out day-to-day communication out day-to-day communication activities. Yet, excellent public activities. Yet, excellent public relations units have at least one relations units have at least one senior manager who directs senior manager who directs public relations programs or this public relations programs or this direction is supplied by other direction is supplied by other members of the dominant members of the dominant coalition who have no knowledge coalition who have no knowledge of public relations.of public relations.

Involvement of Public Involvement of Public Relations in Strategic Relations in Strategic ManagementManagement

An organization that practices An organization that practices public relations strategically public relations strategically develops programs to communicate develops programs to communicate with the strategic publics, both with the strategic publics, both external and internal, that provide external and internal, that provide the greatest threats to and the greatest threats to and opportunities for the organization.opportunities for the organization.

Public Relations Contributes to Public Relations Contributes to Strategic Management by:Strategic Management by:

1.1. Participating in management decision-Participating in management decision-making to identify consequences on making to identify consequences on publics.publics.

2.2. Segmenting stakeholders and publics.Segmenting stakeholders and publics.

3.3. Using communication to cultivate Using communication to cultivate relationships with strategic publics.relationships with strategic publics.

4.4. Influencing management behavior.Influencing management behavior.

5.5. Measuring the quality of relationships.Measuring the quality of relationships.

Two-Way Symmetrical Model Two-Way Symmetrical Model of Public Relationsof Public Relations

• Based on researchBased on research• Dialogical and balancedDialogical and balanced• Can be either interpersonal or Can be either interpersonal or

mediatedmediated• Is ethicalIs ethical• Uses communication to manage Uses communication to manage

conflict and improve understanding conflict and improve understanding with strategic publicswith strategic publics

Knowledge for Managerial Role Knowledge for Managerial Role and Symmetrical Public and Symmetrical Public RelationsRelations

Excellent programs are staffed by Excellent programs are staffed by professionals—people who are professionals—people who are educated in the body of educated in the body of knowledge, are active in knowledge, are active in professional associations, and professional associations, and read professional literature.read professional literature.

Symmetry in Internal Symmetry in Internal CommunicationCommunication• Decentralized management structures Decentralized management structures

give autonomy to employees, allowing give autonomy to employees, allowing them to participate in decision-making. them to participate in decision-making.

• They also have participative, symmetrical They also have participative, symmetrical systems of internal communication. systems of internal communication.

• Symmetrical communication increases Symmetrical communication increases satisfaction with the organization satisfaction with the organization because employee goals are because employee goals are incorporated into the organizational incorporated into the organizational mission.mission.

Organizational ContextOrganizational Context

• Participative rather than authoritarian Participative rather than authoritarian cultureculture

• Organic rather than mechanical Organic rather than mechanical structurestructure

• Activist pressure from the Activist pressure from the environmentenvironment

• Programs to reduce discrimination Programs to reduce discrimination and to enhance the careers of womenand to enhance the careers of women

DiversityDiversity

Requisite variety: Effective Requisite variety: Effective organizations have as much organizations have as much diversity inside the organization as diversity inside the organization as in the environment. in the environment.

Excellent public relations includes Excellent public relations includes both men and women in all roles, both men and women in all roles, as well as practitioners of different as well as practitioners of different racial, ethnic, and cultural racial, ethnic, and cultural backgrounds.backgrounds.

Results Related to Women in Results Related to Women in Public RelationsPublic Relations

• Communication is equally likely to be Communication is equally likely to be excellent when the top excellent when the top communicator is a man or woman.communicator is a man or woman.

• Gender makes little difference in the Gender makes little difference in the role enacted by top communicators, role enacted by top communicators, in the role expectations of CEOs, and in the role expectations of CEOs, and in the expertise of the public in the expertise of the public relations department relations department

More Results Related to More Results Related to Women in Public RelationsWomen in Public Relations

• Female PR heads are more likely to play Female PR heads are more likely to play dual manager-technician roles than are dual manager-technician roles than are men—even in organizations with men—even in organizations with excellent public relations departments.excellent public relations departments.

• Women may have less opportunity than Women may have less opportunity than men to gain strategic expertise because men to gain strategic expertise because of the time they must spend doing of the time they must spend doing technical tasks. technical tasks.

Globalization of Public Globalization of Public RelationsRelations• Generic principles:Generic principles:

The characteristics of excellent public The characteristics of excellent public relationsrelations

• Specific applications needed for:Specific applications needed for:

CultureCulture

Political systemPolitical system

Economic systemEconomic system

Extent of activismExtent of activism

Level of developmentLevel of development

Media systemMedia system

Complete Results ofComplete Results ofThe Excellence StudyThe Excellence Study

• Larissa A. Grunig, James E. Grunig, & Larissa A. Grunig, James E. Grunig, & David M. Dozier (2002). David M. Dozier (2002). Excellent Excellent Public Relations and Effective Public Relations and Effective Organizations: A Study of Organizations: A Study of Communication Management in Three Communication Management in Three Countries. Countries. Lawrence Erlbaum Lawrence Erlbaum Associates. Available online at Associates. Available online at http//:www.erlbaum.com.http//:www.erlbaum.com.

Other Books in the Excellence Other Books in the Excellence SeriesSeries

• James E. Grunig (ed.). (1992). James E. Grunig (ed.). (1992). Excellence in Public Relations and Excellence in Public Relations and Communication Management. Communication Management. Lawrence Erlbaum Associates.Lawrence Erlbaum Associates.

• David M. Dozier with Larissa A. David M. Dozier with Larissa A. Grunig & James E. Grunig (1995). Grunig & James E. Grunig (1995). Manager’s Guide to Excellence in Manager’s Guide to Excellence in Public Relations and Public Relations and Communication Management. Communication Management. Lawrence Erlbaum Associates.Lawrence Erlbaum Associates.

Women in Public RelationsWomen in Public Relations

• Larissa A. Grunig, Elizabeth Lance Larissa A. Grunig, Elizabeth Lance Toth, & Linda Childers Hon (2001). Toth, & Linda Childers Hon (2001). Women in Public Relations: How Women in Public Relations: How Gender Influences Practice.Gender Influences Practice. Guilford Guilford Publications.Publications.