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Measurement & Evaluation in PR: 2007 to 2014

Measurement & Evaluation in PR: 2007 to 2014. Professor Tom Watson, Bournemouth University. Agenda. F rom 2 nd to 3 rd edition (2007 to 2014) P rinciples Research priorities Barcelona Principles ROI debate Communication Performance Management. Evaluating Public Relations, 3 rd edition.

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Measurement & Evaluation in PR: 2007 to 2014

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  1. Measurement & Evaluation in PR:2007 to 2014 Professor Tom Watson, Bournemouth University

  2. Agenda • From 2nd to 3rd edition (2007 to 2014) • Principles • Research priorities • Barcelona Principles • ROI debate • Communication Performance Management

  3. Evaluating Public Relations, 3rd edition Published in June; Available in Australia in August London: Kogan Page ISBN: 9780749468897

  4. Aircraft instruments

  5. Defining evaluation • “…any and all research designed to determine the relative effectiveness of a public relations program, strategy, or activity, by measuring the outputs and/or outcomes of that PR program against a predetermined set of objectives” (Lindenmann) • Management-by-Objectives (MBO) framework

  6. Measurement concepts • Input: expenditures on communication-related services; use of financial and human resources • Output: Presentation and dissemination • Out-take: Awareness; processing of messages • Outcome: The desired result • Arise from Lindenmann’s typology; Widely applied

  7. Outflow -1 • Outflow is the economic impact that results from influence on stakeholders exerted by corporate/organizational communications • “It becomes visible what communications have actually contributed to achieving the financial and strategic goals of the organization” (DPRG 2011:14)

  8. Outflow -2 • Corporate communication can add value by supporting service provision processes of other corporate functions or by creating intangible assets • Both contributions depend on specific organisational goals and strategy • Performance indicators include business-related metrics such as sales, innovations, productivity, etc. or intangible capital such as monetary brand value or reputational capital

  9. ‘Value’ as a PR research priority: Delphi study (Watson (2008) • PR’s role in contributing to strategic decision-making, strategy development and realization and organizational functioning • The value that PR creates for organizations through building social capital; managing key relationships and realizing organizational advantage • The measurement and evaluation of public relations both offline and online

  10. Barcelona Principles • Seven principles of measurement • Set by AMEC – adopted worldwide by PR professional bodies • Changed thinking away from AVE

  11. Barcelona Principles

  12. ROI – misapplied language • PR sought to use business language • Return on Investment widely expressed, inappropriately • Related to value created over time by investment in capital equipment • Not to immediate results of a PR activity • Many PR actions can’t express a financial result (Gov’t; NfP) • “loose and fuzzy” (Watson & Zerfass, 2011, 2012)

  13. Jim Grunig speaks “I talk more about the value of public relations than about ROI. As I said, you can explain the value of relationships; but you really can’t measure a financial return to compare with the money invested in it. I tend to use the term ROI because PR people want to hear it used. I will now cease and desist from using it” (Likely & Watson, 2013: 153)

  14. ‘Communication Controlling’ • Controlling = auditing, performance management • Central European approach to link corporate objectives with communication objectives • Each level can be monitored: Input > Output (2 stages) > Outcome (2 stages) > Outflow • Matrix of measurements, appropriate to each level • Used by BASF, Siemens, Henkel, Commerzbank, etc

  15. Levels of Impact and Evaluation of Communications Outflow Outflow Outcome Value Creation Impact onStrategic and/or Financial Targets(Value Chain) Impact onTangible and/orIntangible Assets(Capital Accumulation) SalesNo. of Project AgreementsCost Reduction Reputation Capital Brand ValueEmployee Performance… Direct Outcome PerceptionUtilization Knowledge AwarenessUnique Visitors Session LengthReader per IssueRecallRecognition… Indirect Outcome OpinionAttitudesEmotion Behavioral DispositionBehavior Reputation IndexBrand ImageStrategic Awareness of Employees Purchase IntentionLeadsInnovative IdeasProject Participation… Levels of Impact Output Internal OutputProcess Efficiency Quality of Works Product Budget ComplianceThroughput TimesNo. of Shortcomings Readability/Fogg-IndexSatisfaction of Internal Clients … External OutputMedia CoverageContent Clippings VisitsDownloadsImpact RatioShare of Voice… Input Ressources Employee AssignmentFinancial Expenses Personnel CostsOutsourcing Costs… Measure-ment Range Indica-tors(e.g.) MEA-SURED OBJECT ORGANISATION STAKEHOLDERS ORGANISATION MEDIA/CHANNELS Initiation of Communication Processes Communication Processes Results ofCommunication Processes Low Impact on Value CreationStrong Influence of Communications Management High Impact on Value CreationWeakInfluence of Communications Management

  16. Implementation • Communication Controlling has four phases • Analysis • Conception • Operationalization • Steering / Reporting

  17. Implementation steps of Communication Controlling Analysis Conception Operationalization Steering/Reporting 1 2 3 4 5 6 Analysis Steering and Reporting Communi-cationObjectives Data Collection CorporateGoals Metrics & Indicators Key Questions Key Questions Key Questions Key Questions Key Questions Key Questions • What do communications need to contribute in terms of stakeholder impact and economic outflow? • Which communications objectives are aimed at which stakeholder groups? • Which new potential assets need to be developed to address these objectives? • What do we have to do for that and what kind of resources will we have to invest? • Which data already exist in the company? • Which data can be obtained with reasonable cost and time expenditures? • What is the current status of corporate communications? • Which are the goals of the company for the current planning period? • Are these goals clearly defined and prioritized? • What are the strategic goals and what can the company do to achieve those? • The achievement of which of these goals requires the support of the communications function? • How shall the success of communications be measured? • Which indicators and KPIs can be defined for these metrics? • Which data will be collected at which point in time? • Which evaluation methods and instruments are to be applied? • Who is to be informed at which point in time or event? • In which form and way are the findings to be reported? • What kind of recommendations are expected to support decision-making?

  18. Making it work • Has organization defined its corporate objectives? • Are “scorecards” used? • Is measurement and evaluation part of corporate culture? • How is the communications function organized? • “Strong and visible” top management commitment is needed • Close cooperation with management accountants

  19. Summary • Multiple measurement needed for evaluation • Value can’t always be measured but can be evaluated • Communication Performance Management links PR with objectives • Read all about it!

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