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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 by
                    signifying a more strategic approach to PR.

         Thus, strategic practitioners use terms such as reputation and
    relationship management, stakeholder communications, and corporate
          communication to dissociate themselves from spin doctors.


         ….there is such a clear correlation between Grunig‟s concept of
       „excellent‟ PR and the concept of corporate communication that the
                       terms could be used interchangeably.



                                                                                                   2
“Exploring Public Relations” – Ralph Tench & Liz Yeoman, 2nd ed., FT Prentice Hall, Harlow, 2009
PRESS                                PUBLIC             TWO-WAY       TWO-WAY
     AGENTRY/                              INFORM-              ASYM-          SYM-
     PUBLICITY                              ATION              METRICAL      METRICAL
                                                                             Use research
                                        Journalists-in-                      and dialogue
                                                                Conduct
         Seek                              residence                            to bring
                                                                scientific
     attention for                            who                                about
                                                               research to
         their                           disseminate                           symbiotic
                                                               determine       changes in
    organizations                        accurate, but
                                                                 how to      ideas, attitud
    in almost any                        usually only
                                                                persuade         es and
    possible way                          favorable,
                                                                 publics      behaviors of
                                         information
                                                                              both parties

                                                                                              3
“Managing Public Relations” - James Grunig & Todd Hunt, 1984
Dominant
 Coalition‟s                                              Win-Win Zone                                                        Public‟s
 Position                                                                                                                     Position
                            1                                                                                       2

                            3                                                                                       3
       Organization‟s Position                           Mixed Motive                                  Public‟s Position
       Dominates (Asymmetric)                            (Symmetric)                             Dominates (Asymmetric)



                                                          Communication used to dominate public,
  1                                                       accept dominant coalition‟s position
                                                          Communication used to convince dominant
  2                                                       coalition to cave in to public‟s position
  3                                                       Communication used to move public, dominant co-
                                                          alition‟s position, or both to acceptable „win-win
                                                          zone
“Manager’s Guide to Excellence in Public Relations and Communication Management” - David M. Dozier, Larissa Grunig, James E. Grunig, 1995   4
• In a democracy the two-way
  communication model is
  dominant
• In authoritarian societies there
  is less need for engagement,
  consequently communication
  tends to be one way



                                     5
Origin              Mediation/Amplification                                                Organization          Resolution

                 Opportunity to influence                                                              Difficult to influence
                                                                                                                  Formal
                                                                                                                  constraints
                             Period of increasing
                             awareness


                                                                             Media
                                                                             Coverage
Pressure




                             Issue Management
                             Early issue identification


           Potential             Emerging                                                            Current Crisis           Dormant
                                                                Development
“Risk Issues and Crisis Management in Public Relations: A Casebook of Best Practice” – Michael Regester & Judy Larkin, 2008                6
7
Media Relations                                       100.0%*            Community Relations                    61.5%
    Public Relations                                        98.4%*           Mission Statement                       56.9%
    Communication Strategy                                  96.9%*           Corporate Citizenship                   50.8%
    Crisis Communication                                    93.8%*           Brand Strategy                          50.8%
    Communication Policy                                    92.3%            Marketing Communication                 41.5%
    Executive Communication                                 87.7%*           Advertising                             41.5%
    Reputation Management                                   84.6%*           Corporate Culture                       40.0%
    Employee Communication                                  81.5%*           Investor Relations                      32.3%
    Social Media                                            78.0%            Government Relations                    15.4%
    Internet Communication                                  76.9%            Technical Communication                 13.8%
    Intranet Communication                                  76.6%            Ethics                                   9.2%
    Annual Report                                           75.4%            Training & Development                   7.7%
    Corporate Identity                                      69.2%            Labor Relations                          4.6%
    Issues Management                                       67.7%
     * Almost ubiquitous

                                                                                                                             8
“Corporate Communication – Strategic Adaptation for Global Practice” – Michael B. Goodman & Peter B. Hirsch, 2010
9
“Reputation Management – The Key to Successful Public relations and Corporate communication” – John Doorley & Felio Fred Garcia, 2nd ed., 2011
“Strategic Management - A Stakeholder Approach” – R. Edward Freeman, 1984   10
“Two-Way Symmetrical Public Relations” - James E. Grunig in “Handbook of Public Relations” – Robert L. Heath (ed.), 2001   11
PUBLIC RELATIONS is the management
                         of mutually influential relationships
                           within a web of stakeholder and
                             organizational relationships
                                              By better understanding stakeholders,
                                             managers can decide who deserves their
                                                        attention and time.

                                              Stakeholders can shape organizational
                                            practices through their giving or retracting
                                                        of stakes (support)

                                             Public relations should be deliberate and
                                              goal-oriented – it is based on strategy

                                                                                           12
“PR Strategy and Application: Managing Influence” – Coombs, W.T. & Holladay, S.J., 2010
Stakeholder                                                                                          Stakeholder
     Identification                                                                                        Engagement


                                                                                                                     What corporate
              Who are our                                       What are their                                           social
                                                                                                                   responsibilities do
             stakeholders?                                        stakes?                                            we have to our
                                                                                                                     stakeholders?



                                                                                                                   What strategies,
                                                                What opportunities                                    actions, or
                                                                and challenges are                                 decisions should
                                                                 presented by our                                 we take to best deal
                                                                  stakeholders                                         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
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 organization‟s 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?
                                                                                                                    14
Adapted from “ISO 26000: Guidance on social responsibility,” International Organization for Standardization, 2010
1. Map stakeholder relationships


                                          2. Map stakeholder coalitions


                         3. Assess nature of each stakeholder’s interest


                      4. Assess the nature of each stakeholder’s power


              5. Construct a matrix of stakeholder moral responsibilities


                              6. Develop specific strategies and tactics


                                           7. Monitor shifting coalitions

“Business Ethics: A Stakeholder and Issues Management Approach,” Joseph W. Weiss, 4th edition , 2006   15
Score
                  Stakeholder                      Category       Power   Legitimacy   Urgency   Proximity    (/20)



        Bupati/Regent                                 pr             5        5          5          5         20


        Regional Planning Bureau                      pr             4        5          5          5         19


        Land Administration Agency                    pr             4        5          5          5         19


        Regional EPA                                  pr             3        5          5          5         18


        Pinang Village                                de             2        4          5          3         14


        Sura (Informal Leader)                        de             5        5          2          3         15

        Clan Organization (Jakarta-
                                                       la            1        1          1          2          5
        based)

        Village Youth Organization                    de             4        5          1          5         15

Excerpt from Stakeholder Analysis Conducted by Kiroyan Partners in 2009                                               16
6                      1
                                                   WHY                    WHAT
                                                does this
                                              threaten the                is the
                                             organization‟s             problem?
                                             ability to fulfill
                              5               its mission?

                             WHO                                                            2
                                                                                          WHERE
                       is the target,                                                   is this
                         for whom                                                 problem occurring?
                           is it a
                         problem?                      4                   3
                                                      HOW                 WHEN
                                                    did 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
Excerpt from Stakeholder Analysis and Perception Study Conducted by Kiroyan Partners in 2011   18
STAKEHOLDER
MANAGEMENT


  Stakeholder   COMMUNICATION
   Analysis        POLICY


  Stakeholder     Communication
  Engagement         Strategy


                  Communication
                     Tactics

                                  19
STAKEHOLDER
ENGAGEMENT

              COMMUNICATION
                STRATEGY




                              20
CORPORATE          Top                       STRATEGIC
      POLICY           Management
                                         Senior Management
    STAKEHOLDER            STAKEHOLDER            COMMUNICATION
    MANAGEMENT             ENGAGEMENT               STRATEGY

                              PUBLIC              COMMUNICATION
 TACTICAL                    RELATIONS              FUNCTIONS
     Middle Management

  INVESTOR     EMPLOYEE      COMMUNITY        MEDIA        PUBLIC
  RELATIONS    RELATIONS     RELATIONS      RELATIONS      AFFAIRS


                     Event Management/Press Conference/Press
 COMMUNICATION TOOLS Release /Media Monitoring/Interview/FGD, etc.
Junior Management and implementing staff         TECHNICAL           21
STAKE-
     HOLDER
     EFFECTS                  Awareness                       Understanding                Involvement            Commitment



     TACTICS                  Newsletters                     Discussions     Consultation                       Early
                              Reports                         Meetings        Debate                             incorporation
                              Memos                           Advertising and                                    Collective
                              Free publicity                  educational                                        problem-
                                                              campaigns                                          solving

     TYPE OF                  Informational                   Informational/
     STRATEGY                 strategy                        persuasive                               Dialogue strategy
                                                              strategy


“Corporate Communication: A Guide to Theory and Practice,” Cornelissen, J., 2nd edition, reprinted, 2009                         22
The precise, research-based Stakeholder Approach (=“Sniper
Approach” - every bullet counts) to communication allows more
effective and efficient use of resources.




                                                                23
Corporate                 Two-way
   Communication is          communication is
     identical with          the most effective
   Grunig’s Excellent        form of Corporate
    Public Relations          Communication/
                              Public Relations


   Two-way                 Stakeholder
communication           engagement is the
    implies             most effective way
                         to gauge social
 engagement              forces affecting
                        one’s organization
                                                  24
Menara Karya, 10th Floor Suite H
Jl. HR Rasuna Said Blok X-5 Kav. 1-2
         Jakarta 12950 – INDONESIA
                  T: +6221 5794 4694
                  F: +6221 5794 4696
         info@kiroyan-partners.com
         www.kiroyan-partners.com

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PRSI Int PR Conf 2011 - Day 2 - The future of corporate communication managemenet by Noke Kiroyan

  • 1.
  • 2. 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 by signifying a more strategic approach to PR. Thus, strategic practitioners use terms such as reputation and relationship management, stakeholder communications, and corporate communication to dissociate themselves from spin doctors. ….there is such a clear correlation between Grunig‟s concept of „excellent‟ PR and the concept of corporate communication that the terms could be used interchangeably. 2 “Exploring Public Relations” – Ralph Tench & Liz Yeoman, 2nd ed., FT Prentice Hall, Harlow, 2009
  • 3. PRESS PUBLIC TWO-WAY TWO-WAY AGENTRY/ INFORM- ASYM- SYM- PUBLICITY ATION METRICAL METRICAL Use research Journalists-in- and dialogue Conduct Seek residence to bring scientific attention for who about research to their disseminate symbiotic determine changes in organizations accurate, but how to ideas, attitud in almost any usually only persuade es and possible way favorable, publics behaviors of information both parties 3 “Managing Public Relations” - James Grunig & Todd Hunt, 1984
  • 4. Dominant Coalition‟s Win-Win Zone Public‟s Position Position 1 2 3 3 Organization‟s Position Mixed Motive Public‟s Position Dominates (Asymmetric) (Symmetric) Dominates (Asymmetric) Communication used to dominate public, 1 accept dominant coalition‟s position Communication used to convince dominant 2 coalition to cave in to public‟s position 3 Communication used to move public, dominant co- alition‟s position, or both to acceptable „win-win zone “Manager’s Guide to Excellence in Public Relations and Communication Management” - David M. Dozier, Larissa Grunig, James E. Grunig, 1995 4
  • 5. • In a democracy the two-way communication model is dominant • In authoritarian societies there is less need for engagement, consequently communication tends to be one way 5
  • 6. Origin Mediation/Amplification Organization Resolution Opportunity to influence Difficult to influence Formal constraints Period of increasing awareness Media Coverage Pressure Issue Management Early issue identification Potential Emerging Current Crisis Dormant Development “Risk Issues and Crisis Management in Public Relations: A Casebook of Best Practice” – Michael Regester & Judy Larkin, 2008 6
  • 7. 7
  • 8. Media Relations 100.0%* Community Relations 61.5% Public Relations 98.4%* Mission Statement 56.9% Communication Strategy 96.9%* Corporate Citizenship 50.8% Crisis Communication 93.8%* Brand Strategy 50.8% Communication Policy 92.3% Marketing Communication 41.5% Executive Communication 87.7%* Advertising 41.5% Reputation Management 84.6%* Corporate Culture 40.0% Employee Communication 81.5%* Investor Relations 32.3% Social Media 78.0% Government Relations 15.4% Internet Communication 76.9% Technical Communication 13.8% Intranet Communication 76.6% Ethics 9.2% Annual Report 75.4% Training & Development 7.7% Corporate Identity 69.2% Labor Relations 4.6% Issues Management 67.7% * Almost ubiquitous 8 “Corporate Communication – Strategic Adaptation for Global Practice” – Michael B. Goodman & Peter B. Hirsch, 2010
  • 9. 9 “Reputation Management – The Key to Successful Public relations and Corporate communication” – John Doorley & Felio Fred Garcia, 2nd ed., 2011
  • 10. “Strategic Management - A Stakeholder Approach” – R. Edward Freeman, 1984 10
  • 11. “Two-Way Symmetrical Public Relations” - James E. Grunig in “Handbook of Public Relations” – Robert L. Heath (ed.), 2001 11
  • 12. PUBLIC RELATIONS is the management of mutually influential relationships within a web of stakeholder and organizational relationships By better understanding stakeholders, managers can decide who deserves their attention and time. Stakeholders can shape organizational practices through their giving or retracting of stakes (support) Public relations should be deliberate and goal-oriented – it is based on strategy 12 “PR Strategy and Application: Managing Influence” – Coombs, W.T. & Holladay, S.J., 2010
  • 13. Stakeholder Stakeholder Identification Engagement What corporate Who are our What are their social responsibilities do stakeholders? stakes? we have to our stakeholders? What strategies, What opportunities actions, or and challenges are decisions should presented by our we take to best deal stakeholders 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
  • 14. 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 organization‟s 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? 14 Adapted from “ISO 26000: Guidance on social responsibility,” International Organization for Standardization, 2010
  • 15. 1. Map stakeholder relationships 2. Map stakeholder coalitions 3. Assess nature of each stakeholder’s interest 4. Assess the nature of each stakeholder’s power 5. Construct a matrix of stakeholder moral responsibilities 6. Develop specific strategies and tactics 7. Monitor shifting coalitions “Business Ethics: A Stakeholder and Issues Management Approach,” Joseph W. Weiss, 4th edition , 2006 15
  • 16. Score Stakeholder Category Power Legitimacy Urgency Proximity (/20) Bupati/Regent pr 5 5 5 5 20 Regional Planning Bureau pr 4 5 5 5 19 Land Administration Agency pr 4 5 5 5 19 Regional EPA pr 3 5 5 5 18 Pinang Village de 2 4 5 3 14 Sura (Informal Leader) de 5 5 2 3 15 Clan Organization (Jakarta- la 1 1 1 2 5 based) Village Youth Organization de 4 5 1 5 15 Excerpt from Stakeholder Analysis Conducted by Kiroyan Partners in 2009 16
  • 17. 6 1 WHY WHAT does this threaten the is the organization‟s problem? ability to fulfill 5 its mission? WHO 2 WHERE is the target, is this for whom problem occurring? is it a problem? 4 3 HOW WHEN did 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
  • 18. Excerpt from Stakeholder Analysis and Perception Study Conducted by Kiroyan Partners in 2011 18
  • 19. STAKEHOLDER MANAGEMENT Stakeholder COMMUNICATION Analysis POLICY Stakeholder Communication Engagement Strategy Communication Tactics 19
  • 20. STAKEHOLDER ENGAGEMENT COMMUNICATION STRATEGY 20
  • 21. CORPORATE Top STRATEGIC POLICY Management Senior Management STAKEHOLDER STAKEHOLDER COMMUNICATION MANAGEMENT ENGAGEMENT STRATEGY PUBLIC COMMUNICATION TACTICAL RELATIONS FUNCTIONS Middle Management INVESTOR EMPLOYEE COMMUNITY MEDIA PUBLIC RELATIONS RELATIONS RELATIONS RELATIONS AFFAIRS Event Management/Press Conference/Press COMMUNICATION TOOLS Release /Media Monitoring/Interview/FGD, etc. Junior Management and implementing staff TECHNICAL 21
  • 22. STAKE- HOLDER EFFECTS Awareness Understanding Involvement Commitment TACTICS Newsletters Discussions Consultation Early Reports Meetings Debate incorporation Memos Advertising and Collective Free publicity educational problem- campaigns solving TYPE OF Informational Informational/ STRATEGY strategy persuasive Dialogue strategy strategy “Corporate Communication: A Guide to Theory and Practice,” Cornelissen, J., 2nd edition, reprinted, 2009 22
  • 23. The precise, research-based Stakeholder Approach (=“Sniper Approach” - every bullet counts) to communication allows more effective and efficient use of resources. 23
  • 24. Corporate Two-way Communication is communication is identical with the most effective Grunig’s Excellent form of Corporate Public Relations Communication/ Public Relations Two-way Stakeholder communication engagement is the implies most effective way to gauge social engagement forces affecting one’s organization 24
  • 25. Menara Karya, 10th Floor Suite H Jl. HR Rasuna Said Blok X-5 Kav. 1-2 Jakarta 12950 – INDONESIA T: +6221 5794 4694 F: +6221 5794 4696 info@kiroyan-partners.com www.kiroyan-partners.com