Global Perspectives Help Shape Industry’s Future
Is your firm thinking of going global? Is it already there? More and more US firms are opening up offices around the world, and the trend should only intensify next year. Nearly a quarter of Council members have offices overseas, while several others belong to international networks that provide clients with global reach and local expertise.
To round out 2010, we spent some time reflecting on what it takes these days to succeed in global markets. Three chief executives and leaders in our industry, Burson-Marsteller’s Mark Penn, Hill & Knowlton’s Paul Taaffe, and Waggener Edstrom Worldwide’s Melissa Waggener Zorkin, sat down with us to discuss what has worked for their firms in developing markets across the world, what the big challenges are, and what firms should do going forward as they expand into developing countries.
When asked about local differences in public relations practice, our CEOs related that US firms tended to help clients in emerging markets enter Western markets and develop more strategic communications. As Taaffe remarked, “We’re partially in the position of educators. Many local clients don’t understand the different kinds of PR specialties. To their great credit, they’re trying to learn, and they’re trying to figure out what it takes to tap developed markets.” Penn agreed, noting that like many US or European companies early in their histories, firms in developing countries are expanding first, and only putting in a communications infrastructure along the way. “In many countries, there’s a tradition of not talking to the public or to media, and so their notion of what PR is becomes pretty slim. We need to help them understand that public relations isn’t about just media communications, but about a broader strategy.”
If US public relations firms have much to contribute, each of the CEOs we spoke with counsels against ramming down a single, centralized approach or way of doing things. Waggener Zorkin emphasized the importance to taking a “multi-local’ approach, “respecting what works best in the local environment, since what works in one part of the world isn’t necessarily the right approach for every region. For instance, we have 17 global offices, and we also have built a Global Alliance program to reach out to 80 local markets. The only way to really enter an emerging market is to become part of it. That way you can know what value proposition really applies in that market.” Taaffe stressed the importance of taking a light touch with local clients. “These markets recoil if Americans come in and suggest they have superior skills. We need to not merely know our local clients in emerging markets, but respect them in ways that they find meaningful.”
Another big point that emerged in the course of our discussions was the importance of developing effective global talent. Indeed, the industry leaders we interviewed regarded talent as a crucial factor in a public relations firm’s ability to enter a developing market. As Penn remarked, “You need talent that has a global perspective and that can carry a global campaign and be a hub for these efforts. You also need boots on the ground. Clients appreciate proximity and your ability to be with them frequently. They want your full attention, and they want results.” As all three of our CEOs pointed out, global experience is increasingly becoming vital for anyone seeking to lead a US-based public relations firm. “It’s absolutely critical,” Waggener Zorkin said. “Technology and innovation continue to break down global borders, so each of us has to have a global view as our world gets smaller. In PR, this circles back to relationships. What’s most important is ignoring borders to determine the right influencers and how to reach them, no matter where they live. She went on: “Global experience can be defined in many ways, whether it be an executive relocating to lead a global office, an expert who builds worldwide product launches or a cultural anthropologist who advises account teams on how to approach markets. I am a big believer in learning the local language too.”
The business of global public relations is a huge topic; this blog has only touched on a few of the points made in the course of our conversations. In the year to come, the Council will continue to monitor what firms are doing to succeed in developed markets and will continue as well to highlight the thoughts of industry leaders. As our three interviewees agreed, it’s becoming increasingly important for US firms to go global. While Taaffe cautions against mindless, willy-nilly expansion, Waggener Zorkin captures the general sentiment: “Increasingly our clients’ business problems are on a global scale. Just as we are evolving our craft to embrace digital and social media, we simultaneously need to evolve our presence to always be responsive geographically and in terms of our general mindset.”
I am pleased to see this discussion and hope the Council will continue it. FYI, I lead the worldwide comms function for a large law firm that has been global since its founding in 1949. Readers might be interested to know that we have always operated in a multilateral and global manner, with no bias in our firm culture, firm governance and operating standards/policies toward any particular nationality. Our current Chairman is from Brazil, and prior Chairmen have been from France, Germany and Hong Kong. Our revenues are quite evenly distributed across all regions, and more than half of our fees come from client work in three or more countries. In addition to work for US- and Europe-based MNCs, today we represent a growing number of Asian and Latin American MNCs as they work to globalize their businesses. While our global business model may not fit other professional service firms, it works quite well for us. Thanks again.
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New markets provide opportunity to the US PR Firms to absorb the socio-cultural ethos of the developing countries. Opportunities are endless; there is abundance of professional skill in the PR Agencies of developing countries. Open-mindedness and a spirit of equality will help in developing alliances between American PR Agencies and PR professionals of the new markets.
Having a good view of what other culture have to offer is a great starting point for any International PR to work. That more and more American MNC’s are targeting developing countries is a wonderful opportunity for a clear idea share. There is a need for US PR firms to partner with local firms in this countries to get local knowledge a therefore quick buy in. Locals will feel a sense of ownership and the PR firms and MNC’s will get their bottom line. Its clear enough American business are expanding around the world but this will work well with local interest in communication and planning.