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FUTURE OF CORPORATE COMMUNICATION MANAGEMENT Social Forces and Public Relations in the Global Spread of Democracy NOKE KIROYAN Enhancing Strategic Stakeholders Engagement to Safeguard Reputation in the Digital Era Jakarta, December 14, 2011

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Presentation to the Public Relations Society of Indonesia Annual Conference, December 2011

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  • 1. As the term Public Relations becomes synonymous with notions of spin, propaganda and corporate lying, some practitioners (and academics) dissociate themselves from the press agentry antics bysignifying a more strategic approach to PR. Thus, strategic practitioners use terms such as reputation andrelationship management, stakeholder communications, and corporatecommunication to dissociate themselves from spin doctors. .there is such a clear correlation between Grunigs concept of excellent PR and the concept of corporate communication that the terms could be used interchangeably. 2Exploring Public Relations Ralph Tench & Liz Yeoman, 2nd ed., FT Prentice Hall, Harlow, 2009

2. PRESSPUBLIC TWO-WAY TWO-WAY AGENTRY/INFORM-ASYM-SYM- PUBLICITYATIONMETRICALMETRICAL Use researchJournalists-in-and dialogueConduct Seekresidenceto bringscientific attention forwhoabout research to their disseminate symbiotic determinechanges inorganizationsaccurate, but how toideas,in almost anyusually onlypersuade attitudes andpossible wayfavorable, publics behaviors of information both parties 3Managing Public Relations - James Grunig & Todd Hunt, 1984 3. Dominant CoalitionsWin-Win ZonePublics Position Position1 23 3 Organizations Position Mixed MotivePublics Position Dominates (Asymmetric)(Symmetric) Dominates (Asymmetric)Communication used to dominate public,1 accept dominant coalitions positionCommunication used to convince dominant2 coalition to cave in to publics position3 Communication used to move public, dominant co-alitions position, or both to acceptable win-winzoneManagers Guide to Excellence in Public Relations and Communication Management - David M. Dozier, Larissa Grunig, James E. Grunig, 1995 4 4. In a democracy the two-waycommunication model isdominant In authoritarian societies thereis less need for engagement,consequently communicationtends to be one way 5 5. OriginMediation/AmplificationOrganizationResolution Opportunity to influenceDifficult to influenceFormalconstraints Period of increasing awareness Media CoveragePressure Issue Management Early issue identification Potential EmergingCurrent Crisis DormantDevelopmentRisk Issues and Crisis Management in Public Relations: A Casebook of Best Practice Michael Regester & Judy Larkin, 20086 6. 7 7. Media Relations 100.0%*Community Relations61.5%Public Relations98.4%* Mission Statement 56.9%Communication Strategy96.9%* Corporate Citizenship 50.8%Crisis Communication93.8%* Brand Strategy50.8%Communication Policy92.3%Marketing Communication 41.5%Executive Communication 87.7%* Advertising 41.5%Reputation Management 84.6%* Corporate Culture 40.0%Employee Communication81.5%* Investor Relations32.3%Social Media78.0%Government Relations15.4%Internet Communication76.9%Technical Communication 13.8%Intranet Communication76.6%Ethics 9.2%Annual Report 75.4%Training & Development 7.7%Corporate Identity69.2%Labor Relations4.6%Issues Management 67.7% * Almost ubiquitous 8Corporate Communication Strategic Adaptation for Global Practice Michael B. Goodman & Peter B. Hirsch, 2010 8. 9Reputation Management The Key to Successful Public relations and Corporate communication John Doorley & Felio Fred Garcia, 2nd ed., 2011 9. Strategic Management - A Stakeholder Approach R. Edward Freeman, 1984 10 10. Two-Way Symmetrical Public Relations - James E. Grunig in Handbook of Public Relations Robert L. Heath (ed.), 2001 11 11. PUBLIC RELATIONS is the management of mutually influential relationships within a web of stakeholder and organizational relationshipsBy better understanding stakeholders, managers can decide who deserves theirattention and time.Stakeholders can shape organizationalpractices through their giving or retractingof stakes (support) Public relations should be deliberate andgoal-oriented it is based on strategy 12PR Strategy and Application: Managing Influence Coombs, W.T. & Holladay, S.J., 2010 12. StakeholderStakeholder IdentificationEngagement What corporateWho are our What are their social responsibilities do stakeholders?stakes?we have to our stakeholders? What strategies,What opportunitiesactions, orand challenges are decisions should presented by our we take to best dealstakeholders with these responsibilities?The Pyramid of Corporate Social Responsibility Toward the Moral Management of Organizational Stakeholders, - Carroll, A. B.,Business Horizons No. 34, 1991 13 13. To whom does the organization have legal obligations?Who might be positively or negatively be affected by the organizations activities or decisions?Who manifested concern about the issues or impacts?Who has been involved in the past when similar concerns need to be addressed?Who can help the organization address specific impacts?Who can adversely affect the organizations ability to meet its important objectives?Who would be disadvantaged if they were excluded from the engagement?Who in the value chain is affected?Who may have an impact on the reputation of an organization?Who may influence the policy and regulatory environment in which the organization operates?Who may impact on the value of the organization?14Adapted from ISO 26000: Guidance on social responsibility, International Organization for Standardization, 2010 14. 1. Map stakeholder relationships2. Map stakeholder coalitions 3. Assess nature of each stakeholders interest4. Assess the nature of each stakeholders power5. Construct a matrix of stakeholder moral responsibilities6. Develop specific strategies and tactics 7. Monitor shifting coalitionsBusiness Ethics: A Stakeholder and Issues Management Approach, Joseph W. Weiss, 4th edition , 2006 15 15. ScoreStakeholderCategory Power Legitimacy Urgency Proximity(/20)Bupati/Regent pr 5555 20Regional Planning Bureaupr 4555 19Land Administration Agencypr 4555 19Regional EPApr 3555 18Pinang Villagede 2453 14Sura (Informal Leader)de 5523 15Clan Organization (Jakarta- la11125based)Village Youth Organizationde 4515 15Excerpt from Stakeholder Analysis Conducted by Kiroyan Partners in 2009 16 16. 61 WHYWHATdoes thisthreaten theis the organizations problem? ability to fulfill5 its mission? WHO2WHERE is the target, is this for whom problem occurring? is it a problem?4 3HOW WHENdid this did this become a become a problem? problem?Adapted from Strategic Public Relations Management: Planning and Managing Effective Communication Programs, Weintraub Austin, E. &Pinkleton, B.E., 2nd ed., 2006 17 17. Excerpt from Stakeholder Analysis and Perception Study Conducted by Kiroyan Partners in 2011 18 18. STAKEHOLDERMANAGEMENTStakeholder COMMUNICATION AnalysisPOLICYStakeholder CommunicationEngagement StrategyCommunication Tactics19 19. STAKEHOLDERENGAGEMENTCOMMUNICATIONSTRATEGY20 20. CORPORATETop STRATEGICPOLICY Management Senior ManagementSTAKEHOLDERSTAKEHOLDERCOMMUNICATIONMANAGEMENT ENGAGEMENT STRATEGYPUBLICCOMMUNICATION TACTICALRELATIONSFUNCTIONS Middle ManagementINVESTOR EMPLOYEECOMMUNITYMEDIAPUBLICRELATIONSRELATIONS RELATIONSRELATIONSAFFAIRS Event Management/Press Conference/Press COMMUNICATION TOOLS Release /Media Monitoring/Interview/FGD, etc.Junior Management and implementing staff TECHNICAL 21 21. STAKE- HOLDER EFFECTSAwareness UnderstandingInvolvementCommitment TACTICSNewsletters Discussions Consultation EarlyReports MeetingsDebate incorporationMemos Advertising andCollectiveFree publicityeducationalproblem-campaignssolving TYPE OFInformational Informational/ STRATEGY strategypersuasive Dialogue strategystrategyCorporate Communication: A Guide to Theory and Practice, Cornelissen, J., 2nd edition, reprinted, 2009 22 22. The precise, research-based Stakeholder Approach (=SniperApproach - every bullet counts) to communication allows moreeffective and efficient use of resources.23 23. Corporate Two-way Communication iscommunication is identical withthe most effective Grunigs Excellentform of CorporatePublic RelationsCommunication/Public Relations Two-way Stakeholdercommunication engagement is theimplies most effective way to gauge social engagementforces affectingones organization24 24. Menara Karya, 10th Floor Suite HJl. HR Rasuna Said Blok X-5 Kav. 1-2 Jakarta 12950 INDONESIAT: +6221 5794 4694F: +6221 5794 4696 [email protected] www.kiroyan-partners.com