1. Business Acumen – PR as a Strategic Business Function 18 August 2016 Thabisile Phumo, APR

2. The Business landscape

3. A changing business landscape 3 Dynamic operating environment (VUCA) Convergence of technology with business practices Relationships a competitive advantage for business Discerning internal and external stakeholders

4. Business environment World Community Business Country Integration of the different levels, the context and stakeholders

5. What a business needs to succeed 5 Good reputation Operating credibility Strong balance sheet Understanding of systems and processes Clarity of intention and outcome Relationships with stakeholders Influential leaders with motivated followers

6. What takes place around the boardroom table?

7. Boardroom talk…. Strategy Performance Return on investment Governance/Compliance Risk management Innovation People Operating environment

8. Role of PR in Boardroom talk…. Strategy ― Inform strategy (research) ― Influence delivery of strategy (information) Performance ― Facilitate the communication business deliverables ― Educate relevant stakeholders to drive performance Return on investment ― Stakeholder goodwill ― Good reputation

9. Role of PR in Boardroom talk…. Governance/Compliance ― Reporting (King III, annual reports, global reporting benchmarks) Risk management ― Issues tracking and management ― Stakeholder management Innovation ― Influence and drive innovation

10. Role of PR in Boardroom talk…. People ― Provide critical fit for purpose information ― Motivate people Operating environment ― Create understanding of operating environment ― Organisational culture

11. Elevating the image of the industry

12. Business needs PR….. What some CEOs say “ Developing excellent communication skills is absolutely essential to effective leadership. The leader must be able to share knowledge and ideas to transmit a sense of urgency and enthusiasm to others. If a leader cant get a message across clearly and motivate others to act on it, then having a message doesn’t even matter.” Gilbert Amelio, CEO, National Semiconductor Corporation “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you will do things differently.” Warren Buffet, CEO of Berkshire Hathaway “Like a human being, a company has to have an internal communication mechanism, a ‘nervous system’, to co-ordinate its actions.” Bill Gates, Founder, Microsoft

13. Value of PR Support delivery of strategy and business goals (business direction) Influence organisational culture (alignment and cohesion) Monitor operating environment (trends) Facilitate growth (brand equity – reputation) Build relationships with stakeholders Promote organisational performance and impact on its environment Identify and manage reputational risks 13

14. Value adding PR Score Card 14 Strategic level ― Integrated into the business – flows out of the scorecard of the Executive ― drives performance beyond the function - makes a difference to the business Operational level ― Systems and process that enable the business to use communication to achieve business results ― Measures impact and provides required information for the business to make informed decisions

15. Restoring image of industry 15 Go back to basics Add value as a function (deliver on the business KPIs) Demonstrate value add (ROI in business language) Demonstrate leadership and foresight Technical competence premised on a solid body of knowledge (PR is a science!) Innovative, relevant and progressive

16. Leverage your role as PR professional

17. Business needs credible PR professionals 17 Integrity (transparent and credible) Respect the ‘trade’ (technically competent) Operate at a strategic level (information is an asset) Responsive to business needs (pro-active and appropriately reactive) Return on investment (role/programmes deliver returns) Operate according to the same business principles (measurable outcomes)

18. Business needs credible PR professionals 18 Research (information is power) Understanding of business (integrate communication into the industry) Understanding of the business environment and inputs (provide the organisation with the view of its world regularly) A leading voice (influence is not positional) Facilitate communication (enable leaders to communicate) Presence (intellectually and emotionally)

19. Conclusion 19 PR has the potential to create and unlock meaning value for the business…and can, if the function supports the delivery of the business strategy, is integrated into business processes and its outcomes are tangible/measurable.