Business Acumen – PR as a Strategic Business Function

18 August 2016

Thabisile Phumo, APR

The Business landscape

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A changing business landscape

Dynamic operating environment (VUCA)

Convergence of technology with business practices

Relationships a competitive advantage for business

Discerning internal and external stakeholders

Business environment

World

Community

Business

Country Integration of the different levels, the context and stakeholders

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What a business needs to succeed

Good reputation

Operating credibility

Strong balance sheet

Understanding of systems and processes

Clarity of intention and outcome

Relationships with stakeholders

Influential leaders with motivated followers

What takes place around the boardroom table?

Boardroom talk….

Strategy

Performance

Return on investment

Governance/Compliance

Risk management

Innovation

People

Operating environment

Role of PR in Boardroom talk….

Strategy ― Inform strategy (research) ― Influence delivery of strategy (information)

Performance―Facilitate the communication business deliverables―Educate relevant stakeholders to drive performance

Return on investment―Stakeholder goodwill ―Good reputation

Role of PR in Boardroom talk….

Governance/Compliance―Reporting (King III, annual reports, global reporting benchmarks)

Risk management ―Issues tracking and management―Stakeholder management

Innovation―Influence and drive innovation

Role of PR in Boardroom talk….

People ―Provide critical fit for purpose information―Motivate people

Operating environment ―Create understanding of operating environment―Organisational culture

Elevating the image of the industry

Business needs PR….. What some CEOs say

“Developing excellent communication skills is absolutely essential to effective leadership. The leader must be able to share knowledge and ideas to transmit a sense of urgency and enthusiasm to others. If a leader cant get a message across clearly and motivate others to act on it, then having a message doesn’t even matter.” Gilbert Amelio, CEO, National Semiconductor Corporation

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you will do things differently.” Warren Buffet, CEO of Berkshire Hathaway

“Like a human being, a company has to have an internal communication mechanism, a ‘nervous system’, to co-ordinate its actions.” Bill Gates, Founder, Microsoft

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Value of PR

Support delivery of strategy and business goals (business direction)Influence organisational culture (alignment and cohesion)Monitor operating environment (trends)Facilitate growth (brand equity – reputation) Build relationships with stakeholdersPromote organisational performance and impact on its environmentIdentify and manage reputational risks

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Value adding PR Score Card

Strategic level― Integrated into the business – flows out of the scorecard of the

Executive

― drives performance beyond the function - makes a difference to the

business

Operational level― Systems and process that enable the business to use communication

to achieve business results

― Measures impact and provides required information for the business to

make informed decisions

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Restoring image of industry

Go back to basics

Add value as a function (deliver on the business KPIs)

Demonstrate value add (ROI in business language)

Demonstrate leadership and foresight

Technical competence premised on a solid body of knowledge (PR is

a science!)

Innovative, relevant and progressive

Leverage your role as PR professional

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Business needs credible PR professionals

Integrity (transparent and credible)

Respect the ‘trade’ (technically competent)

Operate at a strategic level (information is an asset)

Responsive to business needs (pro-active and appropriately reactive)

Return on investment (role/programmes deliver returns)

Operate according to the same business principles (measurable

outcomes)

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Business needs credible PR professionals

Research (information is power)

Understanding of business (integrate communication into the industry)

Understanding of the business environment and inputs (provide the

organisation with the view of its world regularly)

A leading voice (influence is not positional)

Facilitate communication (enable leaders to communicate)

Presence (intellectually and emotionally)

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Conclusion

PR has the potential to create and unlock meaning value for the business…and can, if the function supports the delivery of the business strategy, is integrated into business processes and its outcomes are tangible/measurable.