Why company needs PR agency in crisis times?

Posted by Peter Ivanov on June 1, 2009 under Articles/Cases/Analytics/Advices | Read the First Comment

Yet, more than 8 months people all over the world are talking about crisis. Ukrainians make no difference. Although, everyone knows exactly what we cut: costs, regional networks, salaries, personnel, budget etc. Speaking about reducing the staff, PR specialists in CIS countries became one of the most groups suffered. According to the survey results by W-City community Research Company during the first months of 2009 in Moscow their jobs lost up to 50% of PR specialists. A year ago market suffered from a deficit of professionals in public relations. I don’t know exactly about indicators of PR staff reducing in Ukraine, but I’m pretty sure that it’s no better than in Russia.
Most of fired PR specialists worked for companies, not agencies. We have lots of business that went bankrupt and fired all of their staff. In the empty offices are now sitting only 3 persons – corporate lawyer, accountant and security – finishing the last deals and closing business. Everything is quite clear with bankrupt companies.
Naked swords!
According to the psychologists and other social scientists crisis itself has a few stages that are felt differently by people. We respond to crisis the same way we respond to every irritator. Recently, the results of Ukrainian research “Crisis pulse” were published. So, “if in October 2008 only 0,8% of respondents characterized economic changes as “better”, in May 2009 number of such answers raised to 10,7%. The number of people who characterized the situation as “stable” has raised from 9,1% in October 2008 to 22,4% in May 2009. The number of respondents who think the situation “became worth” declined for 25% (from 87,1% in October 2008 to 63,1% in May 2009) (The results of this survey were published in Observer, 22nd of May). Such numbers demonstrate that panic is over.
One may think that lots of companies reduced staff panicking in order to reduce costs immediately to calm down themselves and their shareholders. That’s why first of all fired marketing, advertising and PR specialists were.
What is next?
When panic is over, we have an opportunity to do clear situation valuation. There is no matter what goals sets business to itself: to survive or to growth. Anywhere, there is a need to launch all the systems and start all business mechanics – I don’t think that general manager will write press release if needed. I am sure, that PR can be organized only by professional or journalist (not everyone by the way).
You can’t either creep or fly simultaneously!
Nowadays, it is easier for company can hire PR specialist with small salary claims than it was a year ago, before the crisis. Good decision at first glance! The problem is that PR is a key for creating the middle- and long-term reputation. Although at crisis times business needs the result immediately – “HERE AND KNOW”. Some weeks ago I’ve met a PR specialist who tried to develop a communication strategy for a bank himself being worked for that bank only 3 weeks. He couldn’t even tell what the goals of bank management are. As a result of that strategy implementation some prepaid articles appeared. They looked like direct advertorials and no more!
A single PR specialist is good; two will already make an agency!
To my mind, the most adequate alternative for a live company today is hiring a communication agency.
Why:
- an agency should poses enough intellectual resources for fast adaptation to the new tough market conditions;
- an agency usually works with different companies (segment, specialization); that helps to use different and innovative practices in unusual cases (for example, testing programs for bank services, as in IT media relations);
- an agency is not a part of corporate vertical structure; that helps to work with company TOP management more efficient.

At the same time, all that positive aspects mentioned can be fully used if a PR agency is highly professional. It’s a pity, but in Ukraine more or less professional is that agency that doesn’t roll aside with its clients.