Managing PR: Considerations in outsourcing your public relations

published 2006

These days it’s rare for an organisation of any reasonable substance not to need a PR function. Many organisations choose a fully-equipped internal PR department. Others choose to only have a PR Manager (with or without minimal internal support).

For those organisations that already have bought into PR as a necessary function, and have some kind of internal capability, reasons to still outsource PR to an agency/consultancy include:

Specialist Skills/Expertise

Often when staffing internally it’s not possible to cover every specialist area so an external agency/consultancy can be used to ‘fill in the gaps’. In this way it is no different to bringing in specialist legal or accounting services.

External Perspective

When an organisation faces stakeholder issues an external agency/consultancy with experience in the relevant area can be invaluable in helping devise strategies that can be sold to senior management and/or the Board.

Additional Resources

Some organisations with a ‘PR Manager’ structure will use an agency/consultancy for most implementation work. In this role PR is treated much like advertising has been for many years, with the PR agency/consultancy charged with running an annual program or campaign in the same way as advertising agencies do (and subject to periodic scrutiny as ad agencies are!).

For organisations that are more fully resourced internally, they may still use an external agency/consultancy for special projects or times when the internal resources can’t cope.

Where an organisation has identified a need to outsource there are some points to bear in mind:

1. If PR is treated like advertising, and an agency is required on an ongoing basis, then the appointment needs to be permanent. Best practice suggests that:
   
   
   • The PR agency/consultancy needs to be hired on an annual contract basis. A three-month trial simply will not work
   • The agreement has to be exclusive; i.e. the agency/consultancy is unable to work for any competing company or product
   • The arrangement should be reviewed from time-to-time even to the extent of putting the business up for competitive review.
     
     
2. If PR needs are going to be project driven - either regular or spasmodic - it’s preferable that the organisation be proactive in identifying agencies/consultancies well in advance rather than on a case-by-case basis.

• Organisations that use PR agencies on a case-by-case basis often get a restricted choice of agencies/consultancies. That’s because they often find the best firms are already working for competitors - possibly on a retainer basis.  It also takes a lot of management time to go through choosing an agency every time there is a new project.
• One way around this is to choose one in advance, or create a roster if the needs are diverse, of ‘preferred’ agencies/consultancies that meet the organisation’s needs. If they don’t already work for a competitor, and there is a real prospect of project work in the course of a year, you have the chance to secure them. Do this in a quiet time and you have the added advantage of being able to make a considered selection. 
   

Here are two points to bear in mind about dealing with agencies/consultancies:

1. They prefer ongoing relationships to ad hoc projects as this gives them more certainty in selling the time of their staff. So the more continuous the work an organisation can give them, the more bargaining power the organisation has regarding hourly rates. In short, ad hoc project work normally costs an organisation more than ongoing work.
2. They hate the constant time-consuming and emotional effort of competitive pitching for work. So, if an organisation is likely to make them a preferred supplier or put them on a roster, and they are guaranteed of getting some work as a result, many would turn down competitive opportunities. This enables a smart organisation to virtually have an agency/consultancy ‘on tap’ without cost.

Footnote:

Grant Common, the Editor of PR Influences, specialises in helping organisations manage PR agency relations and selection processes.

You may have an interest in, or obtain value from, these articles:

1) How stronger management is the key to better PR agency relationships

2) How better briefs and RFP's contribute to improved PR outcomes

3) How Australian PR agency selection processes are changing