CorpComms Magazine

For many people working in communications, life is good when the corporate engine is ticking over nicely and everything is synchronised. The ride is smooth, horizons are clear, and the dashboard is uncluttered. Even the threat of a clunky gear change, an increase in speed, or a reduction in idle time fails to dampen the spirits. However, when the perennial question of measurement and value rears its ugly head, usually at the least opportune moments, communications professionals often end up on the back foot having to justify what, why, where and how corporate communication adds value to the bottom line.

It is in crisis situations the true value of a communications professional is realised. Often, those who work in communications or public relations are portrayed as 'spin doctors' when in fact they are simply seeking to mitigate risk and damage to reputation by presenting the necessary facts as clearly and concisely as possible without causing mass hysteria.

Consider the Northern Rock fiasco, which resulted in the nationalisation of the high street bank following the first 'run' on a financial institution in more than a century. Aside from the obvious management incompetence, this was a classic example of how a story was blown up by the media before the business concerned could get a handle on the situation. This meant that when the facts eventually came out the damage was done, rumour was rife and trust was lost forever. 

The global credit crisis is impacting businesses of different sizes, with different audiences and responsibilities. Take, for example, the large bank that decided to buy another large bank just as the credit crunch hit. Before shareholders could understand (or even say) 'unravelling coiled-spring sub-prime mortgage markets', their stock plummeted on news that perhaps the price was too high and exposure to overseas debts could end up being a liability. 

One of the joys of being a public limited company (plc) is that there is an obligation to keep shareholders and markets informed of any impending change, risk or liability which may affect the value of the stock. Therefore, when a global correction occurs, a bank is probably the one place that you would choose to avoid either as a shareholder or employee. 

So, there is a case for saying that corporate communications in a plc are provided, more than anything, as a public convenience.  Whether to flush out the facts, lift the lid on malpractice, show a clean sheet, or for the board to metaphorically take the 'p' out of the plc by virtue of a 'drains up review', it is clear that for some people the role of the corporate communicator is best described as a dirty job clearing up the mess made by others, whilst convincing those who follow everything is rosy in the garden. A high price to pay, yet offering immeasurable value to the business.

Contrast this scenario with that of the private partnership, where there are no plc responsibilities. There is no need to feed the media or to make public statements. In fact, the lack of external accountability means that some might consider the need for in-house communications expertise to be, quite literally, a private joke. After all, a partnership environment is the epitome of democracy in its finest form, with consensus decision-making and discussion. And therein lies the rub - it is the democratic approach that potentially slows down the communication process, due to the time-consuming nature of the decision-making process.

The difference between public, private and partnership corporate communications is significant.  Often, the plc communications professional is on a reactive, fire-fighting footing, dealing with internal and external issues, but with less strategic influence and more of a mandate to make things happen. The private communications role encompasses a more proactive and strategic scope, with an awareness and appreciation of the idiosyncrasies of the democratic partnership. This in turn restricts the level of influence to that of 'one amongst equals', and therefore such a role requires greater levels of relationship management and patience.  

One unifying factor that underlines the value of corporate communications could be termed the currency of communications. In an uncertain world where financial markets are in a trough, economies are wobbling, and inflation threatens to spiral disproportionately to business turnover or household income, the communications professional has a unique value which, at times, can not be quantified or measured. Balancing budgets by tightening belts is all well and good if your role is merely to crunch numbers and delete digits until the figure sits comfortably on the boardroom table. Quite often though, corporate communicators are sitting in the eye of the storm, remaining calm, while economic torrents and financial turbulence rumble around them. Their currency is valued by what they say and do, as well as how they react to what is happening around them.  Given the current economic climate, and to preserve and enhance the profession as a whole, there has never been a greater need to raise interest levels across the board to try to avoid the credibility crunch. 

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