Chapter 8
Contribution of Public Relations to Organizational Strategy Formulation
Benita Steyn
Cape Peninsula University of Technology
A RESEARCH PROGRAM IN STRATEGIC PUBLIC RELATIONS MANAGEMENT IN SOUTH AFRICA
A research program in strategic public relations (PR) management was conducted at the Department of Marketing and Communication Management at the University of Pretoria (UP) between 1997 and 2003. Its first project was intended to replicate the IABC Excellence Study (Dozier, Grunig, & Grunig, 1995), an idea obtained during a presentation by Professor Larissa Grunig on the occasion of her visit to South Africa (SA) in 1996. However, after initial discussions, it was decided to rather build on the Excellence Study findings by using it as a theoretical base for the conceptualization of research aimed at investigating and finding solutions to practical PR problems in the local context. Empirical research on the knowledge base of South African PR managers and their shared expectations with top management was practically nonexistent.
Phase 1 of the UP research program investigated the knowledge base of the PR manager. Groenewald (1998) conducted a national study on the skills that PR managers deemed important in their managerial positions. Significant findings were that PR managers in South African organizations perceived management skills, strategic communication skills, and management communication skills to be significantly more important than technical communication skills. However, the effectiveness of their training in these skills was significantly lower than in technical communication skills. Based on her findings, Groenewald (1998) suggested further research on a strategic role for the PR manager, investigating the nature and activities of such a role.
Steyn (2000a, 2000d) addressed the lack of strategic communication skills among PR managers by conceptualizing public relations strategy. In a longitudinal action research project, she developed a model for the formulation of PR strategy.
Phase 2 of the UP research program, also consisting of two separate studies, focused on the shared expectations between top management and the PR manager. In the first, De Beer (2001) investigated PR managersâ perceptions of senior managementâs expectations with regard to excellent communication in South African organizations. Findings with regards to top communicator perceptions were the following: Senior management expects top communicators to make a strategic contribution to organizational decision making; reporting lines to the chief executive officer (CEO) or another senior manager are not a good indicator of top communicatorsâ strategic contribution to decision making; and, they can make a bigger strategic contribution in large PR departments where technical tasks can be delegated.
The second study in Phase 2 was conducted by Steyn (2000a, 2000b, 2000c, 2000d). This research touched on both prerequisites of excellent communication (Dozier et al, 1995). First, it explored the practitionerâs knowledge base in conceptualizing the role of the PR strategist and redefining the historic roles of PR manager and PR technician (Steyn, 2000a). Second, by means of a quantitative study, it addressed shared expectations by measuring and empirically verifying these three PR roles according to CEO normative role expectations for a practitioner heading the PR function (Steyn, 2000a, 2000b, 2000c), as well as CEO perceptions of the role performance of the organizationâs most senior PR practitioner. Determining whether top management (role sender) perceives the same role for the PR practitioner as the practitioner does (role receiver) is an essential but neglected perspective in the study of PR roles (Johnson, 1989).
Together with Excellence in Public Relations and Communication Management (Grunig, 1992), the findings of these studies have recently guided teaching at UPâs Department of Marketing and Communication Management. In particular, the author âs research on the PR strategist role and public relations strategy formed the core of the subject Strategic Communication Management taught to senior public relations students.
The PR strategist role, the conceptualization of PR strategy, and a model for the development thereof form the major topics of discussion in this chapter. The author acknowledges the major influence that the Excellence Study, and particularly the work of Jim and Lauri Grunig, has had on her research in South Africa.
DEFINITION OF TERMS
Strategic Public Relations Management
Differing from the Encyclopedia of Public Relations (Heath, 2005), the author does not equate communication management to strategic communication. Strategic public relations management (strategic communication management) assumes public relations to be a strategic management function with a mandate to function at the strategic (macro or societal) level of an organization. Grunig, Grunig, and Dozier (2002) called this the full-participation approach to strategic public relations, in which the PR function is empowered (i.e., involved before strategic decisions are made). This approach is based on Knightâs postmodern view (cited in Grunig et al., p. 143) of strategic management as âa subjective process in which the participants from different management disciplines ⌠assert their disciplinary identities.â The author agrees with the European scholars Verçic, Van Ruler, BĂźtschi, and Flodin (2001), who stated that the unique contribution of public relations to an organizationâs strategic decision-making process is to provide a societal viewâshowing concern for broader societal issues, approaching any problem with a concern for the implications of organizational behavior toward and in the public sphere. âIt is first of all a strategic process of viewing an organisation from an âoutsideâ perspectiveâ (p. 382).
In its strategic role, public relations thus assists an organization (or institution) to adapt to its societal and stakeholder environment by feeding into the organizationâs strategy formulation process intelligence with regards to strategic stakeholders (and their concerns or expectations), societal issues, and the publics that emerge around the issues. Public relations influences organizational leaders to address the reputation risks and other strategic issues identified in this process by aligning organizational goals and strategies to societal/stakeholder values and normsâserving both the organizational and the public interest. By acting socially responsible and building mutually beneficial relationships with the organizationâs stakeholders and other interest groups in society on whom it depends to meet its goals, an organization obtains legitimacy, garners trust, and builds a good reputation. Public relations also influences organizational leaders to state the organizationâs position on, and practice two-way communication with, external and internal stakeholders about issues of strategic importance. This process constitutes public relationsâ contribution to strategic decision making and especially to the formulation of an organizationâs enterprise strategy (i.e., a contribution to the organizationâs triple bottom line, focused on its âpeopleâ and âplanetâ rather than âprofitâ components).
Public Relations Management (Communication Management)
This term is defined as the management of communication between an organization (or institution) and its internal and external stakeholders/other societal interest groups. It is performed at the functional level of an organization. In the PR management process (in addition to its role at the top management level), a PR function empowered with a strategic mandate manages all the activities as set out in points 1 and 2 in the list that follows. A PR function without a strategic mandate has no role in strategic decision making at the top management level, does not formulate PR strategy, and manages only the activities outlined under point 2.
- The functional responsibilities of PR as a function with a strategic mandate includes:
- Developing PR strategy that addresses the organizationâs key strategic goals and positions, culminating in public relations goals and themes that are aligned to organizational goals and positions. This does not refer to ad hoc communication planning where public relations communicates when requested to do so by others in the organization, but a concerted effort to study organizational strategies and goals, identifying strategic goals and positions that need to be communicated and advising organizational leaders accordingly. PR strategy in this instance could be classified as deliberate or prescriptive strategy, a well-known concept in the strategic management literature (Lynch, 1997). PR goals developed to implement deliberate PR strategy are referred to as deliberate PR goals by Digital Management (n.d.).
- Developing PR strategy that addresses constantly emerging societal and stakeholder issues that are identified in the organizationâs issues and stakeholder management processes. PR strategy in this instance could be classified as emergent strategy, a concept developed in the strategic management domain by Mintzberg (1987, 1990). PR goals developed to implement emergent PR strategy are referred to as emergent PR goals by Digital Management (n.d.).
- Formulating a strategic PR plan to achieve PR goals.
- Developing, implementing, and evaluating communication plans in support of the PR functionâs deliberate and emergent strategies.
- Counseling organizational leaders/managers/supervisors on their communication responsibility toward their employees (how to be a communicating leader).
- Managing the activities of a support function, as outlined next.
- The functional responsibilities of PR as a support function includes:
- Developing, implementing and evaluating communication plans in support of strategies developed at different organizational levels (e.g., enterprise/corporate/business unit).
- Developing, implementing, and evaluating communication plans in support of the strategies of other organizational functions (e.g., marketing, human resources).
- Developing, implementing, and evaluating communication plans in support of the top management/organizational leadershipâs communication to employees (so-called management/ leadership communication) or other stakeholders.
Public Relations (Corporate Communication) Strategist
A practitioner in the role of the PR strategist functions at the top management level of an organization and has the responsibility for strategic PR management, as outlined previously. By means of environmental scanning, the PR strategist gathers information regarding stakeholder concerns and expectations, identifies societal issues and the publics that arise around the issues, interprets the information with respect to consequences for organizational strategies (pointing out reputation risks and other strategic issues), and feeds this intelligence into the enterprise and/or other organizational strategies.
The PR strategist thus also advises other top-level managers on strategic goals and positions that need to be communicated and on reputation risks inherent in the business intelligence they obtain through their own functions/business units. It is a strategic decision taken at the top management level as to which risks/issues are managed through the strategies of the public relations function, and which ones through the strategies of other functions/business units. (The PR function might, however, be requested at the communication planning stage to develop communication plans in support of the strategies of other functions/ units in order to achieve functional integration and the alignment of organizational messages.)
(Redefined) Public Relations Manager
A practitioner in the (redefined) manager role performs the duties normally associated with any middle management positionânamely, planning, organizing, leading, controlling, staffing, budgeting, and so on. Specific functional responsibilities of public relations/communication managers are first the formulation of deliberate and emergent PR strategy; second, the development of the strategic PR plan in conjunction with section heads responsible for developing, implementing, and evaluating ongoing communication programs or time-limited communication campaigns; third, to counsel organizational leaders/managers/supervisors on their communication responsibility toward their employees; and fourth, to oversee the support provided by the PR function to other organizational functions/strategies/units.
Enterprise Strategy
The enterprise strategy focuses on the achievement of an organizationâs nonfinancial goals, such as obtaining legitimacy, garnering trust, earning a good reputation, being a good corporate citizen, and building sound relationships and partnerships with stakeholders. It portrays the organizationâs societal role, its stakeholder and communication approach, and its values and standards for socially responsible behavior /ethical conduct (Steyn, 2003b), and its principles for corporate governance.
Public Relations (Corporate Communication) Strategy
PR strategy provides the focus and direction for an organizationâs communication with its stakeholders and other interest groups in society. Deliberate PR strategy outlines the communication needed to assist in achieving strategic organizational goals, to express organizational positions, to influence organizational managers to become communicating leaders and change agents, to assist them to obtain the loyalty and support of employees for organizational strategies and positions, and to act socially responsibly. Emergent PR strategy outlines the communication needed to address constantly emerging societal and stakeholder issues, and crisis situations. The development of PR strategy makes the PR function relevant in the organizationâs strategic management process and implies a strategic contribution to decision making.
Strategy Communication
The strategic management literature often portrays the role of PR as merely facilitating the strategy process. Grunig et al. (2002) called this the âmessage-onlyâ approach to strategic PR, by which practitioners have little involvement in strategic decision making but align messages with organizational goals. Moss & Warnaby (1998) ter...