Public Relations: MBAs Wanted

by Melinda Feliciano and Kathy Cripps

As today’s marketplace becomes increasingly complex, so too does managing the various relationships an organization depends on for its success. From employees to media to consumers to suppliers, an organization’s multiple constituents have different communications needs.

Possessing creativity and analytic expertise, public relations firms and professionals not only manage the communication function, they also manage important non-financial areas like reputation, public trust, employee commitment and brand loyalty. According to a study by Predictiv, a consulting firm that specializes in the valuation of intangible assets, these assets represent anywhere from 50% to 80% of a company’s market value. Leave it to Warren Buffet to put it into even simpler terms: “If you lose dollars for the firm by bad decisions, I will be understanding. If you lose reputation for the firm, I will be ruthless.” Because companies rely on their public relations professionals to manage such a vital part of an organization’s assets, the public relations profession is looking to hire MBAs with the requisite management and communication skills to meet these needs.

MBA research

In January 2006, the Council of Public Relations brought together representatives from some of the leading business schools in the country (Harvard, Dartmouth, New York University, University of Virginia, and University of North Carolina) to discuss the disconnect between what is being taught in business schools and what is being practiced in the business world. The participants admitted that MBA students have little understanding of public relations and its career opportunities because the academic program does not expose them to it. Only 34% of MBA program curriculums offer students the opportunity for public relations coursework according to a 2005 survey (up from 16% in 2001) conducted by Ketchum of 106 business school deans.

But the reality is that areas such as reputation, crisis management and branding resonate in the business world. During the Council’s meeting, one participant stated that public relations and communications are most important at the highest levels of business: “It’s the ultimate CEO skill.” It is no surprise that public relations is one of the fastest growing career fields. According to the US Department of Labor, “employment of public relations specialists is expected to increase faster than the average for all occupations through 2014, spurred by intense domestic and global competition in products and services offered to consumers.”

Internal Brand Ambassadors

Emerging evidence supports the correlation between effective employee communications and business performance. According to a Watson Wyatt study, “significant improvement in internal communication effectiveness is associated with a 29.5 percent increase in market value.” Working as a public relations practitioner, someone with an MBA can use organizational and internal relations skills to communicate clear and powerful messages that connect employees to a company brand. By keeping employees well-informed and engaged, companies benefit greatly from the positive impact made by their most influential brand ambassadors—their employees.

In a large-scale effort to engage its employees, IBM held a series of company-wide web sessions in 2003. More than 50,000 employees, including CEO Sam Palmisano, discussed IBM’s vision and values over a three-day “ValuesJam.” In a Harvard Business Review interview, Palmisano stated: “People rather than products become your brand. Just as our products have had to be consistent with the IBM brand promise, now more than ever, so do our people. One way to ensure that is to inform their behavior.” Gone are the days when companies looked at employee communications as simply announcing the new benefits package. Companies are enlisting public relations to build a community around their brand. Employees become a company’s most loyal base when it values their ideas and interests.

And while companies depend on public relations to manage their relationships, they also depend on public relations firms and professionals to be advocates. It takes conviction to be on the front lines on behalf of an organization. Whether it is shaping reputation, managing a crisis or building employee loyalty, public relations’ goal is to get stakeholders to be advocates.

Technology: Friend or Foe?

Due to the 24/7 nature of today’s news cycles and the speed in which information can span the globe, public relations professionals are constantly monitoring and identifying issues, making them increasingly invaluable within an organization. A blogger’s comments or a user-generated video posted on YouTube can create a firestorm that spreads quickly to the mainstream media. The public relations professional, therefore, must know how to navigate, with speed and precision, around the growing number of media channels and platforms in order to respond and take appropriate action. 

On the other hand, the multitude of new media platforms has given companies an unprecedented ability to engage directly with their constituents. Communications strategists also know the value of honest and consistent dialogue with key audiences. Transparent practices (online and offline) are critical for companies hoping to build and sustain a good reputation. For MBAs with a strong moral compass and the ability to think strategically and critically, a career in public relations offers the opportunity to advise organizations on how to protect and promote its reputation online (as well as offline).

From MBA to Public Relations

Savvy communications skill requires juggling multiple business functions and business relationships, while possessing a deep strategic understanding of an organization’s long-term goals. Working as a senior executive at a public relations agency or as the head of corporate communications provides many opportunities including advising top executives on strategy, engaging employees, or being an advocate in the marketplace for clients.

Alison Wille, who has an MBA from the Tuck School of Business at Dartmouth College and is now a Vice President at Communications Consulting Worldwide (a division of Fleishman-Hillard), believes that a career in public relations has much to offer MBAs. “You can be strategic and analytical, but also have opportunities to be creative,” said Wille. “The work is varied—advising multiple clients in unique situations, dealing with global challenges. And the environment is entrepreneurial—allowing me to pursue my personal interests and building on my prior business experience—all the while providing a much improved work/life balance.”

The GAP Study, conducted by the Strategic Public Relations Center at the University of Southern California’s Annenberg School, found that the number one reason organizations use a public relations firm is for its strategic/market insight. The most successful public relations practitioners combine skills of research analysis, written and oral communication, and evaluation in order to develop strategic communications plans that support an organization’s business goals.

Today’s competitive marketplace demands competitive professionals. Combining an MBA with leadership, critical thinking and strong communications skills can put you at the center of the dynamic and growing field of public relations.

Melinda Feliciano is the Member Services Coordinator of the Council of Public Relations Firms.

Kathy Cripps is the President of the Council of Public Relations Firms.

For more information about the Council of Public Relations Firms, call 1-877-PRFIRMS or visit our website at www.prfirms.org.