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A Public Relations Podcast: Smoke Signal – Measurement and evaluation = strategic communication

This month, in partnership with the Public Relations Institute of Australia, we mark Global PR Measurement Month by speaking with adjunct professor, lecturer, researcher, presenter – Fraser Likely – from his hometown in Ottawa Canada.

PR Measurement and Evaluation with Fraser Likely

Having an industry level discussion to highlight the importance of measurement has never been more critical. According to a recent study into continuing professional development conducted by the Public Relations Institute of Australia, measurement and evaluation is one of the top three priorities for Australia’s professional communicators.

While Fraser Likely is today synonymous with PR measurement and evaluation, for 30 years, while running his own communication management firm, Fraser never spoke about measurement and evaluation. It was simply performance management.

And while the tools, technology and techniques are now more sophisticated, at its heart measurement and evaluation is still all about performance – whether that be of a program, a campaign, a team or an organisation.

Fraser defines seven units of measurement: we can measure a specific communication activity and associated messages; a project or campaign;  programs such as internal comms or issues management; how PR helps the whole organisation achieve its business goals; how organisation do in regard its environment and society around it (CSR or reputation); the performance of individual practitioners; or the overall communication function and what value it has to an organisation.

With measurement and evaluation more sophisticated than ever, the greatest question today is what is the uptake among practitioners? For Fraser, engagement with measurement and evaluation goes hand in hand with the role communications plays in an organisation. Those professional communicators with a seat at the table and part of the strategic management process will look at measurement and evaluation in a much more sophisticated way.

Fraser references a  recent research piece involving 20 Chief Communication Officers, that showed senior practitioners never showed the management team traditional media metrics, social media measurements or web hits for the simple reason this was backward looking intel. What they did was analyse this data to help inform insights for their management – here’s what we’ve learnt, here’s what we know, here’s what we think is going to happen so here is how we should adjust our strategic plan. Using the data to turn it into strategic insight to feed into the management decision-making.

Fraser says in recent years there has also been a more overt distinction made between measurement (effectiveness) and evaluation (value).

Measurement is what we all do. We are using tools and technology to collect and analyse data. What this shows is the effectiveness of our communication efforts. Did we reach who we wanted to reach? What impact did it have? Did it change opinion or behaviour?

Evaluation is more the assessment of value or the merit or worth of the campaign / program / project. It answers questions such as was this valuable for us or not?

Where measurement is objective and quantitative and looks at effectiveness, evaluation is subjective and looks at value. This is how management tend to assess PR programs and departments.

Looking forward, Fraser cites Maturity Models such as the one by AMEC that allows  users to compare and contrast against what you have in place now and best practice to help practitioners improve and further the organisation’s  measurement and evaluation capabilities.

Be sure to checkout the other initiatives on the PRIA website marking Global PR Measurement Month, including a recent webinar: Measurement: Get Serious to be taken Seriously

A Public Relations Podcast: Smoke Signal Episode 14 – The Financial Soulmate

Numbers, budgeting and forecasting are not normally the natural domain for PR professionals. However, if you’ve ever worked in an agency there is one thing we certainly know well – timesheets. But is filling out timesheets and billing our services at an hourly rate devaluing the work we do as a profession?

In this episode I speak to Financial Soulmate for creative agencies, Kathryn Williams, about a different approach to pricing: Value Based Pricing.

Listen here, watch on YouTube or download on iTunes

Timesheets are not unique to public relations. They are used by lawyers, accountants and management consultants just to name a few. However, according to Kathryn where we fall down in MarComms is we are generally not left brain enough to record our hours properly and take them seriously. But if this is the way we sell ourselves then it IS very serious.

Kathryn wrote this recent blog on Value Based Pricing that piqued my interest. At its core Value Based Pricing looks at what is the ultimate value of a piece of work for a client. It is about looking at what I am giving not what I am going to do and how long it will take. Instead of tracking hours or widgets you are tracking deliverables.

Timesheets are not necessarily broken, she says, they just need to be managed with respect.

The reliance on timesheets also hides the facts there are many other modes of pricing: time, commission, mark up, and Value Based Pricing would be another.

Value Based Pricing should cover your costs as well as recognise the value you are delivering to the client. Kathryn outlines three steps to implementing a Value Based Pricing approach:

  1. Decide you are going to give Value Based Pricing a go;
  2. Identify the metrics or targets that are meaningful for the client;
  3. Assign a value (a price) to those metrics (this will be based on what will the market bear and your confidence).

Introducing Value Based Pricing has flow on effects across an agency. According to Kathryn a lot more agencies are now also hiring from the top down, staffing up based on demand. This fits with the uber-isation of the workforce where talent moves more often and more freely, particularly in our sector where freelancers are widely available. It becomes much more efficient to staff up from a strong pool of freelancers and that could be local or offshore resources.

Although it has been around for a long time this is very much a new space for many agencies. We are not going to see the end of timesheets, rather it should add and complement to the way we bill and ultimately make agencies more efficient and profitable.

Kathryn gives some great one-liners throughout the podcast, here’s a few of my favourites:

  • We are talking about how a firm manages its most important asset – its people.
  • We continue to give more away and not value ourselves.
  • It is about the ROI and the business outcome – not what we do; but rather what we achieve.
  • There are thousands of dollars a month left on the floor – look for ways to bill that properly or not spend not so long on the job if we have delivered what we promised.
  • Every member of staff should understand the impact of poor timesheets.

In the news this episode a brief discussion on the Public Relations Tech Ecosystem that I released earlier this month.

The technology underpinning the practice of public relations continues to change and evolve and this tool maps the technology ecosystem across 8 different areas of PR practice. It gives practitioners a starting point for what tech tools are out there and I hope it can be shared and added to as this is an area that will continue to evolve and change in coming years.

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