Defining Public Relations as a Strategic Management Function

1. Defining Public Relations as a Strategic Management Function ISSUES AND TRENDS IN PUBLIC RELATIONS, ISSUES MANAGEMENT AND CHANGE MANAGEMENT Learning Unit 1.5 10 March 2011

2. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Homework feedback Feedback on Project Legacy - action Response email to Lead SA - action Important words of 2010 Feedback on the use of the Internet in environmental scanning

3. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Outcomes Issues and trends in Public Relations Issues management Organisational change and the role of Public Relations Change management

4. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Issues and trends in Public Relations • Edward Bernaysadvocated licensing for PRPs as the only way to gain and maintain credibility • Grunigasserts that Public Relations must achieve professional status before its social role and advice as a PR counsellor will be accepted • Technology has created a global village • In addition, SA’s Public Relations profession must be aware of what the markets need in its unique business environment • Important to identify current issues and trends

5. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Shift in Public Relations • The function of Public Relations is often now called Communication • It denotes communication on behalf of the organisation • Communication activities: • Are aimed at increasing organisational effectiveness through stakeholder relationships (Argenti, 2009) • Include all communication from management, is aimed at all staff and reflects the organisation as a whole such as website, annual report, CI, corporate advertising and investor relations • Excludes department, brand or subsidiary communication

6. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Shortcomings in the traditional role of Public Relations According to Puth (2002): • Not a decision-making role • Implements policy, not shaper of policy • No understanding of business, social, political problems or top industry issues • Unable to see big picture • Fails to address strategic issues • Is reactive, not proactive • Does not do research • Lacks business, management and planning skills • Measures outputs rather than outcomes • Does not integrate strategic information obtained into the strategies of the larger organisation • Does not integrate the function into its larger organisational domain • Awaits decisions to act

7. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Need for strategist role • Shortcomings of technician role led to perception that Public Relations is not a strategic management function • PRP needs to also manage the function by means of a long-term plan and vision for communication in the organisation • The solution is strategy and a strategic approach • PRP should be able to identify issues and trends in communication and assess its impact on the organisation • PRP should know how to use that knowledge to advise top management and communicate to stakeholders

8. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Communication of issues and trends • Issues management is a management process to deal with public policy foresight and planning in private sector organisations • Does not manage the public policy process itself • It is the management of resources and participation in successfully resolving issues in public policy process that could affect the future of the organisation and its stakeholders • Helps organisations to integrate public policy planning and strategic planning – it helped strategic planning mature from budgeting to long-term planning • It is done jointly by the organisation’s Planning and Public Relations functions

9. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Issues management functions Effective issues management involves (Manual p 46): • Integrating public policy process/planning into strategic planning • Monitoring performance to identify public opinion • Implementing ethical codes of social accountability • Assisting management in decision-making and adjusting goals • Identifying issues of greatest impact on the organisation • Creating response plans from the issue-change options • Establishing grassroots contact with co-operators • Communicating about important issues to establish an agenda, gain support and mitigate undesired effects • Evaluating theimpact of efforts, direct ongoing improvements and make further recommendations to management

10. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Organisational change Significant organisational change: • Begins slowly • Should be incrementally implemented • Is subject to change as information is gathered and feedback given about the effectiveness of the process • Incremental implementation is supported or put forward by those that have extensive experience in planned organisational change • Change processes may initially be non-inclusive when only a small fraction of the work-force is involved

11. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Change in organisations • Change is a complex issue because behaviour will always be affected by it • Change can be internal or external, planned or unplanned • Managers need to familiarise themselves with reasons for change and people’s reaction to the change • Organisational change implies a structured approach to transitioning individuals, teams and the organisation itself from a current state to a desired future state • Organisational change includes change management processes and individual change management models to manage the people side of change

12. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Change management issues • Issues include technology, globalisation, accelerated change, environmental problems, need for co-operation, globalisation • Managing change will fail if: • Change communication and strategic corporate thinking are not connected • There is a lack of Public Relations strategy and policy • There is a lack of implementing strategic management plans to address change • There is a lack of aligning communication strategy with the organisation’s strategic corporate plan

13. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Change management 1 Change management is: • The process of continually renewing an organisation’s direction, structure and capabilities to serve the ever-changing needs of external and internal audiences • It is not a discipline, but acknowledges the reality of organisations that are operating in dynamic, changing environments • It is the process that drives transformation in and for organisations • It cannot be ignored

14. DPR3-Public Relations -Learning Unit 1.5 Change management 2 Two distinct forms of change which depend on the turbulence of the environments in which they operate Continuous change • Gradual shifts in the economy, government legislation and consumer demand • Incremental change, evolutionary or convergent • Small-scale, individualised and localised change • Can strategise and plan for it in a pro-active manner Discontinuous change • More dramatic, can alter industries and economies beyond recognition • Requires innovative response • Profound change, also called radical, comprehensive, fundamental, revolutionary • Takes place on a large-scale • At foundation of organisations 2/3/2010

15. LU1.5- Issues & Trends, Issues Management, Change Management 10/3/2011 Change management strategies 1 • Education and communication - accurate information for people to understand the reasons or purpose for change • Participation and involvement – involving people in designing the change process to reduce their resistance to change • Facilitation and support – additional training sessions to ease people’s fears and anxieties • Negotiation and agreement - to reach consensus about change

16. LU1.5 - Issues & Trends, Issues Management, Change Management 10/3/2011 Change management strategies 2 • Manipulating and co-opting – some managers revert to covert methods to influence people which may have temporary effect but not long-term compliance • Establishing trust - makes it easier to implement change • Plan the change in stages – implement the change strategically and in steps so that people can adapt Organisations - as open social systems - are constantly in interaction with broader society, which result in change over time to the purpose, form and function of organisations

17. LU1.5 - Issues & Trends, Issues Management, Change Management 10/3/2011 Initiation of change Internal and external factors initiate change • External factors: new technology, changes in the market place, changing customer expectations, competitor activities, quality and standards, government legislation and prevailing political values and economic cycles • Internal factors: Management philosophy, organisational structure, organisational culture and internal systems of power and control • Change is the process that drives transformation in and for organisations

18. LU1.5 - Issues & Trends, Issues Management, Change Management 10/3/2011 Communication change paradigms Communication’s role in the new paradigm of change management significantly differs from previous paradigms (manual, p 55): • Used for positive and negative feedback • Two way symmetrical communication, mutual consultation and free flow of all-directions dialogue • Used to manage change: explain, coach, sensitise • Viewed as central to change and used to promote participation – broad and interactive communication • Creates a supportive climate which facilitates learning and makes training more effective • Used to challenge the status quo and by leaders to discuss and involve other in change process

19. Homework Project Legacy action plan