CHAPTER 4

The Management Function of Public Relations

Public relations is a unique management function that uses communication to build trust and relationships with key publics and stakeholders. This chapter expounds on that management function, explaining why organizations need public relations in strategic management, how the management of the public relations function operates, and the management process.

Functions of Management

Public relations’ unique function is to help the organization develop and maintain relationships with all its key publics and stakeholders by effectively communicating with these groups. Public relations is the only management function that offers an across-the-organization, internal and external, view to the executive team.

As described earlier, public relations provides the greatest value to an organization when it is used strategically. But what does this really mean? Using it strategically means to move toward a common purpose, based on research and planning. In an effective organization, all the management functions are linked together by a common strategy. That strategy ties to a vision of the future and an underlying set of values. When all the elements are moving toward the same goal in sync, the company lowers costs and grows in a steady, profitable manner.

Public Relations Practitioners and Professionals

Public relations practitioners generally begin their careers as communication technicians using the technical skill of written tactics (news releases, newsletters, position papers, website content, social media posts, and so on).¹ Practitioners in this role commonly start a career in a public relations agency or firm before moving to a corporate or government public relations unit. Technicians often have a university degree in public relations; if not, it is usually in business management, marketing, journalism, or political science. They must be—at a bare minimum—adept communicators, excellent writers, broadly educated, and critical thinkers.

Although university public relations majors differ, especially internationally,² there are six recommended core courses to create competency in public relations:

1. principles of public relations, a theory class;
2. research methods;
3. writing;
4. campaigns or case studies;
5. a supervised work experience or internship;
6. public relations ethics.³

Also recommended = a management class⁴

Top public relations programs almost always require a course in public relations management. This book is often used in such management classes or can augment other courses to “create” management competency, if your program does not have a distinct public relations management course. Elements of global business and diversity, such as a study abroad experience, and courses in changing communication technologies are also recommended.

After gaining experience as a technician, some public relations professionals move into the role of a public relations manager. Managers are professionals who examine research to assist in creating strategy, delegate tactics to technicians, and coordinate team efforts. Two factors predict how fast someone will be promoted in public relations: (1) knowledge of research and research methods; (2) knowledge of business management.

Managers can take on different roles,⁵ for example—communication liaison by negotiating conflict; expert analyst of specific problems; problem solver of the issues management variety; or cultural interpreter in a global environment. Whatever roles and responsibilities she or he fills, the management of people, information, research, communications, problems, and ethics is always present.

The communication manager thinks critically, analytically, and strategically; she will be focused on the efforts of the organization that contribute to the key relationships that help achieve bottom-line goals. These efforts are not limited to communication strategies, but include problem solving, monitoring an organization’s external environment, scanning for issues that might impact the organization, helping an organization adapt to the needs of its stakeholders, creating public policy, and symmetrical conflict resolution.

In order to function strategically, the public relations function must be headed by a manager rather than a technician.⁶ The use of statistical research and management knowledge are essential for public relations to interact as part of strategic management. These vital elements are the most important:

In order for communication to function strategically, the executive in charge of the function must have a recurring seat at the executive decision-making table, use original research, use symmetrical collaboration, and bring critical advice to bear on management strategy.

Executive Management: The C-Suite

Virtually all organizations are run by a leadership team that is responsible for setting strategy and carrying out the organization’s vision. Although publicly traded companies, as well as nonprofit organizations, may be governed ultimately by a board of directors, this board looks to the CEO and her executive management team to operate the enterprise on a day-to-day basis. Each department or function in an organization generally has a leader who is on the executive management team, though inclusion in that group can vary with the situation.

Key functions in an organization typically include:

• The production or manufacturing function, headed by a chief operations officer (COO);
• Finance, headed by a chief financial officer (CFO);
• Legal, headed by the General Counsel;
• Research and development (R&D);
• Human resources, led by a chief personnel or human resources officer (HR);
• Information services and technology, reporting to the chief information officer (CIO);
• Marketing and sales, led by a chief marketing officer (CMO);
• Public relations or communication, led by the chief communications officer (CCO)⁷;
• Executive level (heads of each organizational function) led by the CEO.

The CEO is operationally the head of the organization and is, in essence, responsible for every action and decision undertaken throughout the entire company. This group of executive leaders, headed by the CEO, is often referred to as the dominant coalition. The dominant coalition is comprised of the most important decision-makers and influencers in an organization.

Although organizational structures may vary, these basic functional areas are usually present in the dominant coalition or executive team. In the best situation, the CCO works hand in hand with the CEO.⁸ In some cases, the communication function is subordinated to another area, such as marketing, legal, or human resources. When this is the case, the communication leader is constrained; it becomes more difficult to play a meaningful role in the strategic decision-making process of the organization. Therefore, it is useful to understand what inclusion in the dominant coalition involves.

Dominant Coalition Inclusion and Membership

As the key decision-makers in an organization, the dominant coalition creates strategy. It is imperative for the communication function to be included in the dominant coalition, reporting directly to the CEO. In that manner, public relations can contribute to the overall organizational effectiveness and strategy. The CEO should seek and respect the information and input offered by the public relations counsel. Being an active participant in creating organizational strategy and engaging in problem solving is a more complicated task than simply having access to the CEO. Likewise, being an influential advisor is a far different role than simply being present at meetings.⁸ A majority of modern CCOs report to the CEO; a smaller fraction report a significant level of influence over strategy; some report sporadic influence or access; and, a concerning 35 percent reported little or no access to the CEO.⁹

All functional areas of an organization want to be included in executive management and be noted for their contribution by the CEO; yet, public relations offers far more compelling arguments for inclusion than most. The communication function brings a different perspective to the dominant coalition (also known as the C-suite) than that of any other areas or departments in the organization. The legal function is focused primarily on compliance with the law; marketing is focused primarily on the company’s competitive position with the customer, and so on. Public relations is the only function with eyes on all the publics inside and outside of the organization, and it truly must be included in strategic decision making.

Communication sees the organization as an entire system and maintains relationships with stakeholders and publics both inside and outside the system. By maintaining relationships with various groups, friends, foes, competitors, regulators, or activist groups, the communication function acts as an early detection system for problems, such as lawsuits, union strikes, or boycotts. Information provided from all parts of the system and environment by the communication function can avert issues, problems, and crises, quite literally saving the organization itself or saving it millions of dollars. Being able to discuss policy-level concerns with the CEO on a regular basis is an invaluable way in which the communication function helps the organization and adapts to a changing environment, new demands, and differing expectations arising from the dispersed groups in the system. This is a systems theory rationale for communication reporting to the CEO; this holistic view allows CCOs to offer unique value and perspective gained from multiple sources in counseling executive management.

How to Gain Dominant Coalition Access/Membership

Research that examined the problem of how chief public relations officers had gained access to, and sometimes membership in, their dominant coalitions examined the process from numerous data collection approaches.¹⁰ After examining much data, five routes to the dominant coalition were identified, roughly in the order of the frequency in which they occurred:

1. Crisis;
2. Ethical Dilemma;
3. Credibility Demonstrated by Correct Analyses over Time;
4. Issue High on Media Agenda;
5. Leadership.¹¹

Many CCOs are members of the dominant coalition, and work with the CEO on a routine basis, advising on organizational policy in addition to directing communications. Yet, some public relations professionals are not routinely included in strategic management; others earn their place over time. It is vital to remember that dominant coalition access is not synonymous with inclusion and membership. Inclusion it may be temporary, situational, or episodic, such as in the event of a crisis. Once the crisis is resolved, a CCO may no longer a part of executive team meetings. So, CCOs have to work on earning and retaining a spot in the dominant coalition every day, through astute knowledge of strategic management in addition to having excellent command of public relations.¹²

Role of Strategic Counsel and Communication

Good decisions. Executive officers of any organization must have the ability to make good decisions: those which positively contribute to the goals of the organization. To make good decisions, managers need accurate information to help reduce uncertainty. This information is provided as data regarding various functions, such as product testing, market research, legal precedents, and financial statements. Since public relations’ role is to help the organization develop and maintain good relationships, it must provide data or information about how the organization can achieve this goal.

Good advice. The communication function looks at all the stakeholders in (internal) and around the organization (external) and uses a variety of means to enhance relationships with these publics. The communication function uses research to keep a finger on the pulse of internal and external perceptions of the organization. Both internal and external research can be formal—based on social-scientific methods such as polling—or informal, based on conversations and comments. And most importantly, that research provides the basis for strategic counsel to the organization’s leaders to help them make better decisions. Advising the CEO and other executive leaders is a key part of public relations.

Managing Values. Scholars identified a role of the communication inside the organization as a “values manager”—helping create, refine, instill, and enliven core values throughout the culture of an organization.¹³

Enacting Ethics. Many scholars endorse the idea that the communication function should serve as the corporate conscience. Public relations knows and understands its internal and external stakeholder publics, as well as their views and priorities on any number of issues. Communication leaders have a uniquely objective perspective that allows them to weigh the conflicting needs of different publics and to help the organization make more balanced decisions. As the conscience of the organization, the highest moral obligation they hold is to do the right thing, and to help determine where that responsibility lies. Although the corporate conscience may be centered in communication, that duty is shared by all, including the CEO, the board, the executive management team, and employees.

Stakeholder Views. As the top communication professional, the CCO has an important responsibility to ensure that all key stakeholders are given due consideration when critical decisions are made. In that regard, the CCO acts as the voice for many who are not in the room when choices are made. He must keep in mind the minority shareholders, overlooked employee segments, nongovernmental organizations, special interest groups, elected officials, community leaders, and others who may be affected by the decision and who have influential roles in their respective areas.

Future Proofing. By providing a research based, multiple-­perspective counseling function the CCO does far more than deliver tactical communication products. She is actively guarding the future of the organization, protecting its relationships, as well as safeguarding its reputation and profitability. This strategic counsel is what CEOs and other leaders are increasingly seeking in all members of the executive team. By delivering strategic counsel, the CCO enhances the value of the function and ensures ongoing participation in charting the future course for the company.

Strategy and Profit Motivation

Too often those in the public relations profession are portrayed in the media and in popular culture as a group of empty-headed party planners or deceptive flacks willing to say anything to get publicity for their clients. Films and popular TV shows often focus on press agentry and rarely if ever depict strategic public relations based on research and data-driven analyses. Some students even enter the field of study without understanding that research and ethics are key components.¹⁴

The stereotype of the flack is simply not supported by the facts. Public relations is an integral part of overall strategy, using research, statistics, problem solving, ethics, listening, and relationship strategies. Communication programs are developed based on extensive research to address specific business objectives with stated outcomes, target publics/stakeholders/audiences, and key messages. The results of these efforts can be measured, both qualitatively and quantitatively.

When an organization develops a strategic plan, it usually does so with a relatively small number of key executives. These leaders look at data and assess the company’s strengths, organization, challenging issues, and the potential problems that could arise. They consider the organization’s financial position, its growth prospects, its position and strategic advantages, and the changing competitive and regulatory landscape in which it operates.

They map out a strategy that will build on the company’s current strengths, minimize its relative areas of weakness, seize opportunities, and prepare for potential threats. They may decide, for example, to be the low-cost provider in their industry segment. Or they may decide to take advantage of their expertise in new product development, or to exploit their superior distribution network, or a highly engaged labor force.

Then the strategy must be executed by a much larger, geographically dispersed network of employees. This is where the communication about the strategy is crucial to its successful implementation. An important role of the communication function team is to help balance the needs of varied publics—employees, investors, customers, regulators, and communities—as the organization makes key decisions.

Balancing the needs of publics is just one facet of the impact public ­relations can have on achieving organizational goals. Effective communication programs help drive strategy from conception to delivery. Successful internal communication programs can improve the ability of supervisors to engage and motivate employees, heightening retention and building pride in the organization.¹⁵ Creative external communication programs can improve customer relationships, build brand recognition, encourage investor interest in a publicly traded company, and increase the effectiveness of traditional advertising and marketing efforts. Community outreach programs can help local residents appreciate the impact of a company on the surrounding area in which it operates. The impact of well-conceived strategic communication programs can be profound. The CCO of today and tomorrow must assert leadership in the following areas:

• Defining and instilling company values;
• Building and managing multi-stakeholder relationships;
• Building and managing trust.¹⁶

The public relations function can and should take the lead role in ensuring that these responsibilities are fulfilled by the organization.

Finally, in the day-to-day environment, much of the time and attention of the CCO is focused on managing the public relations staff. ­Recruiting and developing the best talent, as in all corporate functions, is fundamental to building credibility within the organization and being positioned to offer the most useful counsel. CCOs are constantly seeking employees who can think critically, write articulately, present well, and develop excellent relationships with internal and external publics. They can help their colleagues become better leaders by enhancing their skills in listening empathetically to employees and increasing their focus on workgroup communication.

The overriding mission of the CCO is to enhance the relationships that an organization has with its publics by helping the organization make better, more informed decisions that take into account the impact and likely reaction to those decisions. The CCO uses all the tools available to accomplish this goal. CCOs who understand this mission within a business context can deliver results and are highly valued by the organizations they serve.

Business Acumen

If you were planning an extended trip to Italy, you may want to learn a few Italian phrases, such as “please” and “thank you.” You could probably get by without speaking any Italian, but you would give yourself an advantage if you made an attempt to speak a phrase or two of the local language.

It is no different at the management table. There the participants are speaking the language of business. Business or finance degrees are common. Managers discuss strategy, supply chain logistics, earnings or profit and loss statements (P&L), growth projections, operations, market share, dividends, industry regulation, and competitive position. If you are not conversant with this terminology and the thinking behind it, you are at a distinct disadvantage as a team member. You also need detailed knowledge of the industry in which you are working.

In order to advise management on strategy, the CCO must intimately know the business, industry, and the organization’s strategic objectives. She must also understand the context in which the organization is pursuing the objectives—both the business context and the external forces at play. Communication professionals who have a thorough understanding of their industry, strategic goals of the organization, government regulation, public policy, and community issues, as well as the desires of their CEO, are valuable contributors to the overall mission of the company.

One CEO, for example, explained,

I’ve had communications people who don’t seem to even understand our business model. If you don’t know how this company makes money, if you can’t explain to me where our profit comes from, you don’t need to be in this room.¹⁷

CCOs are responsible for all communication subfunctions or departments in the organization, including issues management, government and public affairs, internal relations, community relations, investor relations, media relations, labor relations, and so on. He must maintain ties across the entire organization and be an expert in its business. One can learn a great deal by listening, attending trade conferences, monitoring business and financial media, reading annual reports, and following the competition within an industry. Conversations with colleagues can provide incredible educational opportunities. The ability to listen, to ask insightful questions and to learn from others enables the communication professional to gain ample knowledge of the workings of business in general and a single company or organization more specifically.¹⁸

This knowledge, combined with an understanding of the industry and the ability to utilize communication expertise, provides a valuable combination of specialized abilities that can be used to benefit the entire organization. Public relations understands the views, desires, and priorities of unique and even adversarial publics. No other organizational function has as holistic or uniquely insightful a view as does the public relations management function.

The Management Process

Business management is a process that is typically organized into four steps. These four steps or phases of the management process generally hold across any industry or type of pursuit:

1. Research and planning;
2. Organizing;
3. Leading; and
4. Controlling.

Although there may be some overlap in these steps, they generally offer a sequence of steps or phases that can help direct management activities. Research and planning means collecting data of various types, analyzing it, creating strategic options, prioritizing options, and planning their implementation. Organizing means to direct a flow of responsibilities, roles, and activities throughout the organization. Leading means to direct or spearhead teams and initiatives with the specified goal or end state in mind. And finally, controlling indicates routine control procedures, assessments, performance evaluations, and evaluations of the efficacy of initiatives based on research and data collection. This four-phased approach to management can be applied across all functions and facets of business, as well as applied to the communication function itself.

Mission, vision, and values. Mission, vision, and values are also key drivers of management strategy and of organizational culture. Mission is what an organization exists to accomplish, its core purpose and unique abilities. Vision is where the organization would like to be in a number of years—an aspirational goal. Whereas mission is something an organization exists to accomplish every day, vision is a future aspiration. Values or core values are the ethical beliefs that give an organization its character, sense of duty or responsibility, and moral purpose.¹⁹

Chapter Summary

Research on best practices of public relations sponsored by the International Association of Business Communicators suggests that excellent public relations occurs when the senior communication officer reports directly to the CEO. Membership in the dominant coalition must be earned, and the opportunity usually arises through a crisis, an ethical dilemma, and issue high on media agenda; credibility evidenced through correct analyses over time; and leadership or influence in the organization. Public relations professionals should work to enhance their business acumen to contribute as a part of the strategic management team. When public relations acts as a strategic advisor, these core benefits and outcomes can be seen: good decisions, good advice, managing values, enacting ethics, incorporating stakeholder views, and future proofing.

The public relations function maintains relationships with numerous internal and external stakeholders and publics, making it uniquely situated to advise strategic management. The process of business management can be summarized in four steps: research and planning; organizing; leading; and controlling. Mission, vision, and core values are key determinant of organizational culture and management strategy.