KEVIN RAMUNDO - VP, corporate communications, Goodrich
Charlotte, NC
This question often prompts a listing of techniques used to measure the
value of corporate communications quantitatively. While measurement
techniques are worthwhile, what matters most is that management at all
levels understands how the function contributes strategically and
operationally to the company's success. Here's a checklist that will
help keep the function intact in good and bad times: Have a meaningful
strategic plan that ties persuasively into the company's goals and
objectives; be sure that senior management recognizes how all
communication resources are used in the strategy; use external
benchmarks to validate cost-effectiveness and efficiency; have advocates
across the organization who point to the great job communications is
doing; and be lean, because that is required in all corporate functions
today.
ROSS GOLDBERG - President, Kevin/Ross Public Relations
Westlake Village, CA
Everything from environmental monitoring and communications audits to
employee surveys or management by objectives can be used. However, it is
misguided to ask PR to calibrate their ROI and matrix out their
projects, performance, and contribution to EBIT with the same
regimentation demanded of finance or information systems. Under such
constraints, the subtleties, nuances, and beauty of PR are replaced by a
compulsion to apply quantitative results to a qualitative industry. The
very notion that measurement equals value is laughable. Human emotion
can't be measured, yet few would debate the value of a child's smile. So
too, what value does one place on strong name recognition, on earning
the trust of customers, or on building an internal culture where people
want to work? PR can only fully succeed when an intrinsic belief in its
value exists. With such a belief, an organization has a pipeline to
customers, employees, donors, opinion leaders, businesses, vendors, the
media, and others that can be nurtured and harvested over time. Without
it, the same company is just a commodity ... adrift and vulnerable.
MICHAEL BRUENING - Corporate comms director, George S. May International
Company, Park Ridge, IL
The quick answer is "be valuable to management." Doing it, however, may
take time. The corporate communications department needs to work first
at understanding what management's priorities are; then promoting the
department's capabilities to assist in attaining those goals;
accomplishing what was promised; and finally showing results in terms
that management can understand and appreciate. It all starts with
knowing management's priorities. If you're not sure of those, whatever
you do is based on conjecture.
When you're working with individual departments or divisions, the same
steps hold true, but with a narrower focus. Generally, the more involved
your department can be in activities with high management interest, the
better. And the more you'll be included in the future - as long as you
produce.
BEN MERRITT - President, Merritt Group Public Relations
Vienna, VA
While many believe that ROI in public relations is intangible, there are
various methods to prove its case and make it a "must-have" for
achieving an organization's overall business objectives. Especially now,
in times of uncertainty, strong PR is crucial, not only in helping a
company communicate confidence, but also in helping to drive the bottom
line. The key to proving its value to a business is to develop a few
tools that will more closely tie PR to sales and awareness. One strategy
is to develop quarterly media analyses that measure impressions and
define readership. An article can prove to be more valuable - and
credible - if the correct messages get through. Also, track sales leads
that come from articles, or note when stock prices increase because of a
solid announcement. Measure how industry analysts position the company
in market studies. Sometimes, the best strategy is to develop an
internal communications plan to ensure that management sees the
tangibles and the company doesn't lose a beat, particularly in uncertain
times.
