|
International
Journal for Construction Marketing |
C.N. Preece, K. Moodley and C. Graham
Construction Management Group, School of Civil Engineering, University of Leeds, UK
Keywords
public relations,
corporate images, marketing, contracting
Contents
Abstract
Introduction
The role of public relations in Construction Contracting
PR
Activities as part of Marketing and Sales
Improving
communications to support Internal Marketing
Project
level public relations strategies
A holistic
model of public relations processes in construction contracting
Setting
clear and measurable PR objectives
Establishing
PR stratergies and processes
Analysing
PR environments
Making
choices of stratergy, tools and techniques
Implementing
PR strategies
Getting
feedback
Research
Objectives
Methodology
Key Findings
Construction Contractors – Organisation,
processes, tools and techniques
Organisation
and PR functions
Relative
importance of Public Relations objectives
Use
of research and information to support PR activities
PR
activities and techniques - External audiences
PR
internal techniques - Employee relations and communications
Client
Perceptions
Trade and
Business Journalists
Case Studies
Contractor
A
Contractor
B
Contractor
C
Contractor
D
Contractor
E
Summary
of Case Study Research
Analysis
The
Model Revisited
Conclusions and Recommedations
References
ABSTRACT
This paper will build a holistic model of public relations processes in UK contracting organisations through the use of a triangulation of methods and data sources. It will detail the key findings of survey and case study research into the management of public relations within major building and civil engineering contractors. The research investigated the processes and techniques being used by firms to communicate with increasingly demanding clients and their consultant professionals, the trade and business media, and their own managers and staff.
Public relations (PR) has increased in importance in the 1990’s in construction due to increased competition and the need to develop and maintain good corporate images for marketing success. Public relations processes, in the commercial sense, need to address both internal and external audiences. From an external stand point, the contracting business needs to continually communicate with its clients and customers, the media, central and local government and the local communities in which it operates on a national and increasingly international level. A company also needs to communicate with its management and staff to help maintain commitment to the overall business and marketing objectives of the organisation.
This research has identified that public relations has begun to develop as a distinct management function within many construction organisations. If managed effectively, and with the active support of top management, public relations can develop and sustain a competitive corporate image, essential for the success of the modern construction business.
INTRODUCTION
The management of public relations is a well established discipline in general industrial, manufacturing and service sectors, but within construction, is generally in its infancy. The construction industry in the 1990’s is a highly dynamic and challenging business environment. Recent industry reports have emphasised the need for greater attention to be paid to its image (CSSE, 1989; Latham, 1994). Faced with increased competition and more demanding clients, construction organisations need to plan and co-ordinate their corporate and marketing communications, moving beyond a reactive and crisis management mode to a more proactive stance in addressing positively, a much wider network of stakeholders.
The last decade has seen increased action by environmental and other groups, most notably the anti-roads lobby. There is evidence of a movement particularly amongst the larger organisations in construction, to develop public relations management in an attempt to improve communications with a wide variety of different stakeholders (Costain Group, 1993;1994; John Laing Group, 1986 -1994; George Wimpey plc, 1989-1994).
There has been little attention paid in construction to the management of this business function, and the practice and processes involved in developing an integrated communications strategy. This paper will seek to define public relations, develop an approach to internal and external communications at a corporate and project level, and suggest a strategic framework of public relations for construction contracting organisations.
The research on which this paper is based, has provided an insight into the current application of the principles of public relations management to organisations operating in building and civil engineering, and provides recommendations for possible improvement.
THE ROLE OF PUBLIC RELATIONS IN CONSTRUCTION CONTRACTING
Public relations as a business process and a function of management has not been given attention in construction. There are few exceptions, for example a number of articles in professional journals in the mid-1980’s (Kreamer, 1985; Leech, 1981; Rutland, 1985) and the more recent work of the authors (Preece, Moodley and Graham, 1996a). Given the increased competition for work and emphasis in construction of relationship marketing (Fellows and Langford, 1993), an argument for the role of public relations in terms of establishing and maintaining "goodwill and mutual understanding", would seem to be well founded. The outcome enhances corporate image and identity would seem to be essential in the promotion of contractual services.
PR Activities as Part of Marketing and Sales
Despite the importance of the construction industry to the economy, there is little empirical data on PR strategies used by firms to communicate business messages to clients. As indicated in recent research into the promotional strategies of major UK construction firms (Preece, 1993; Preece, 1994; Male and Preece, 1994; Preece, Male and Moodley, 1996) there is a need for organisations to develop and communicate more distinctive and differentiating messages; as a means of educating potential customers about the firm and retaining existing clients.
Public relations activity is much misunderstood, and in the context of the construction industry it may be better known as ‘press relations’. Media relations is one of the most important tasks facing any PR department. In commercial terms, the specialist press such as New Civil Engineer, Building, and Construction News can raise the profile of the firm and its activities with those who influence the client; architects, quantity surveyors and engineers. General business magazines and newspapers may be targeted to reach client organisations in specific industries.
Press and media relations has an increasingly significant role to play in support of the marketing of construction services in communicating with clients about the company and creating a positive business climate. This comes prior to the use of more direct promotional techniques, such as promotional brochures, direct mail and pre-qualification team presentations and interviews.
Improving Communications to Support Internal Marketing
Public relations has an internal function within the organisation. A firm needs to communicate with its own management and staff, and indeed all those who combine to produce the products and services offered by the organisation. Public relations may be involved in producing a variety of in-house literature including journals and newspapers or organising internal events such as management conferences to discuss future strategy or announce major changes to the organisation.
Much of the construction industry is service based and heavily reliant on people. The variety of different managers, designers and engineers, across functions and within and between organisations and projects need to be involved in the culture, mission and objectives of the firm or practice. Improving the image of the organisation can only be effective if all those whom the firm relies upon in delivering the services and products to the customer understand what is expected of them in terms of performance.
Project Level Public Relations Strategies
The project has been described as the "shop window" in contracting. Many clients have been found to be concerned with bad reflective image and are seeking a responsible approach to operations on site and minimal disruption and damage to the natural environment (Preece, 1993). The business case for organisations in construction to develop corporate and project level community relations plans in addition to environmental policies is becoming clearer.
A recent paper by Ceran and Dorman (1995) entitled "The Complete Project Manager" addressed the need for the modern project manager to view his or her work from a much more holistic perspective. Promises made to the client and company reputations are rendered useless, "if the work is not executed in a manner that results in a finished project that meets the established requirements".
The success of construction projects is dependent on the organisation and its project management team developing and maintaining good relations with a variety of different people and organisations who have a stake in, and who are affected by the work executed. Contracting organisations require public relations strategies at the project level. Project and site management teams need to have the necessary client, media and community relations skills (Preece, Moodley and Graham, 1996b). Given the dangerous and relatively unpredictable nature of the environment at a project level, crisis management plans and skills would also seem to be a necessity.
A HOLISTIC MODEL OF PUBLIC RELATIONS PROCESSES IN CONSTRUCTION CONTRACTING
This section synthesises the previous discussion in the form of a basic framework, which integrates public relations and marketing communications in the construction industry. Figure 1 shows the development of a public relations model. The model is developed in six phases in the development of public relations strategies. Each phase may be viewed under two main headings:
This relates to the fact that the management of public relations as a business process is concerned with communications with external audiences, that is clients, government, shareholders and investors, local communities, the media and the general public, and internal audiences, including management and other staff within the organisation.
The following sections will examine each main phase in the framework.
Setting Clear and Measurable PR Objectives
The ultimate objective of PR is to develop and build a sustainable corporate image and reputation for the business. A further objective must be to build a positive working environment with subcontractors and suppliers, who will have either a positive or negative impact on the overall image of the firm with its many audiences. Issues concerning quality and performance expectations need to be communicated with all those involved in providing the service to the client.
Public relations should have a separate and defined role within the construction organisation. It should, however, be complimentary to the marketing function. Construction organisations need to adopt both a pro-active strategy to create a favourable business climate for the firm or practice and a reactive strategy to be able to deal efficiently with crisis situations.
Establishing PR Strategies and Processes
Comprehensive public relations strategies educate, inform, explain, and persuade (Marken, 1993). Strategies need to be developed both at a corporate and project level, and need to be focused externally and internally. External strategies and processes will include client, investor, media, and community relations. Internal strategies will include management and employee relations. Each of these strategies will include a wide range of powerful tools that need to be developed within well-planned and researched programmes rather than just an occasional exercise in image building. In addition, these strategies must support the organisation’s overall corporate and marketing objectives. A multidimensional strategy should be seen as necessary in supporting corporate advertising, literature, and more direct marketing and sales activities such as pre-qualification interviews or presentations (Marken, 1993).
Analysing PR Environments
It is important for public relations practitioners to have an early focus on issues as a means of shaping the opinions of their many publics. Research plays an important role in the early identification of possible public relations issues and problems. One US organisation that has used this method successfully is Arkla Incorporated, a major petrochemical organisation. By employing one of the most fundamental of research methods - face-to-face meetings and interviews - the company worked with environmental groups to build an interstate pipeline system (Hart, 1993).
Contracting organisations need to develop a constant dialogue between themselves, their clients and their advisors, that is architects, quality surveyors and engineers, employees, suppliers and sub-contractors, shareholders, local, central and international government bodies, such as the European Union, plus local communities in which firms operate, professional bodies and the media. The type of research and information necessary will obviously depend on specific organisational circumstances but the information on current and future needs, expectations and issues, should enable firms to make more reliable public relations decision making at all levels.
Making Choices of Strategy, Tools and Techniques
One of the key choices in the provision of an overall commitment to public relations is whether to develop an in-house public relations function, or to contract out PR work to agencies or consultants. Important issues concerning conflict which may arise between a firm and an agent or consultant have been identified in terms of concerns over knowing each other's businesses, contributing to a consistent communication flow, finances, and 'chemistry’ (Bourland, 1993). Organisations may decide to contract out specialised work such as investor relations or political lobbying where particular skills and experience are necessary.
Implementing PR Strategies
Implementation of PR strategies will include active promotion of the need for a professional approach to the top management of the firm. Senior management, possibly across functional or geographical boundaries, will need to be engaged in the strategies for them to be effective. The decision will need to be taken as to whether to develop an in-house PR team or to select outside PR consultants or agencies to undertake the work. There would appear to be an attitude within the construction industry that PR is free advertising (Preece,1993). This would indicate a need for more formal training of those charged with the implementation of public relations within construction organisations. Firms need to employ those with both experience and formal education and to actively encourage the formal training of existing personnel.
Getting Feedback
Organisations need to actively seek feedback on the effects of PR on improved client, investor, employee and community relationships and commercial success. Using research, practitioners can meet the growing need to justify the cost of public relations programmes, and prove results. The key is to make research part of planning a campaign strategy. During the late 1980’s a number of medium-to-large UK construction organisations were found to be in the process of conducting corporate image research to identify how they were being perceived by their target clients and others (Preece, 1993). Public relations researchers provide quantitative and qualitative measures of what the media is saying about a client's products and issues. Research can be applied to assess what influence, if any, the PR techniques and media applied have on attitudes, perceptions and actions towards the organisation (Hauss, 1993).
It would seem to be most important to feed back results to the senior management of the organisation who may not be convinced of the need for investment in the communication function.
The following section will detail the execution of the research, which sought to test the above model in construction contracting businesses.
RESEARCH OBJECTIVES
The research objectives were to establish;
METHODOLOGY
The research, on which this paper is based, employed a triangulation methodology which combined a carefully designed and piloted postal questionnaire combined with face-to-face and telephone interviews, an examination of documents and a small number of exploratory in-depth case studies of contracting organisations (Graham, 1996).
The main focus of the study was construction contractors in the top UK 100 according to turnover. A response rate to the postal questionnaire of 47% was achieved.
In-depth interviews were conducted with the following;
The research also involved an analysis of internal documentation produced by a sample of contractors (N=54) to investigate their use and contents, and gauge the quality of such material. A large sample of material was obtained, including house journals, newspapers, employee annual reports.
Five detailed case studies were executed in the course of this research. These involved in-depth interviews with senior management with responsibility for pubic relations in contracting organisations.
KEY FINDINGS
The following section will summarise the key results from the survey under a number of headings related to the research objectives:
Each are examined and finally the in-depth case studies are presented.
CONSTRUCTION CONTRACTORS – ORGANISATION, PROCESSES, TOOLS AND TECHNIQUES
Organisation and PR Functions
The majority of large construction companies (77%) have a department which handles public relations activities, "public relations", "corporate communications" or similar. Alternatively, public relations is quite often handled as part of the marketing department. Many contractors (65%) use an agency, with the most popular agency functions being media relations (70%) and design and production of publicity materials (50%). Just under 40% of firms who used a PR agency were involved in alterations to their corporate identity. Around 35% of agencies were employed to assist in investor relations activities.
Public relations as a function of the construction business was found to be involved across a range of activities, the most popular being compiling a photographic library (95%), media lists (89%), organising events (88%), producing company publications (80%). Other activities included developing environmental policies, speech writing for directors, sponsorship, mailshots and company suggestion schemes.
Over the past few years there would appear to have been a drop in the numbers of pubic relations staff employed. This is most notable in the larger companies, where a reduction in PR staff has been quite dramatic in some cases. On average construction firms in the sample employed around 3 members of staff in a PR role. The largest public relations department responding to the survey had twelve members of staff. Around 32% of public relations managers in construction have a background as a journalist. The Marketing Director oversees 23% of all public relations functions.
Less than half of the firms in the sample (48%) provide training for their staff. Around 41% of companies in the survey indicted that they provide PR training for non-PR staff. This includes training in customer care, media relations, telephone techniques and presentational skills. Two thirds of firms in the survey emphasised the importance of PR to staff groups; marketing, sales, senior management and directors, project and site managers, receptionists, telephonists, security and anyone who came into contact with existing or potential clients.
Relative Importance of Public Relations Objectives
Public relations is not highly formalised in construction as a management discipline as it could be. Only half the firms have a PR strategy. Yet the ultimate objective in construction public relations is to enhance reputation and improve corporate image and to support more direct marketing activities.
For publicly quoted firms, a key PR objective is to promote the organisation to shareholders, externally, and increasingly, internally to staff shareholders.
Use of Research and Information to Support PR Activities
The most favoured methods of external image assessment in contracting are via personal contact with key clients, professional consultants, such as architects, quantity surveyors and engineers, as well as subcontractors and suppliers. Media coverage is also rated by around half the companies, most of which use a press cutting agency. Very few firms use other PR support services such as media guides, editors or news agencies.
PR Activities and Techniques - External Audiences
The following Table 1 shows the most popular public relations activities, in terms of their relative importance.
Emphasis is very clearly on marketing related activities. All firms use press releases to inform the media about company activities and projects. 70% of firms produce feature articles, which are often in collaboration with clients and consultants on major projects. PR functions (70%) are also involved in producing marketing brochures. Other activities considered of less importance included media advertising, attendance at exhibitions, press conferences and site based activities.
The key to successful client-aimed public relations is to tailor the PR activities to the desired client, and present it on their terms. To what extent firms are actually meeting this has yet to be established.
PR Internal Techniques - Employee Relations and Communications
The general reputation and image of a contractor are gained through all forms of contact. It is of importance that all staff act as ambassadors for the company and are aware of public relations objectives and their implications in every department and function. Gaining the support and active involvement in PR strategies would not seem to be given high priority at present, although a small number of the larger organisations does seem to be using a variety of well planned and high quality approaches to internal communications. These include notice board material, company newspapers, newsletter and conferences.
Table 2 show the main techniques used by firms to communicate with their managers and staff.
CLIENT PERCEPTIONS
The interviews with client organisations were aimed at establishing how important they thought pubic relations was in terms of gaining access to tender lists and ultimately winning work. The general points to arise from the interviews were as follows;
To be selected for pre-qualification, contractors need to be generally known as " a quality players". Once selected to be placed on a tender list of to do work for a client, press reports and coverage, word-of-mouth and other independent sources must stay favourable to ensure continued consideration for further work.
Positive word-of-mouth recommendation was seen of paramount importance in terms of influencing decisions. The trade press for architects and other more technical advisors, and the specific business media for end-user client organisations are also considered to be one of the primary sources of information on the previous and current work of contractors. Therefore emphasis has to be on ensuring well-planned and consistently good media relations.
Major clients should be informed of contractor developments on a continual basis. This could be through seminars and presentations to those within client organisations, which are responsible for selecting firms, on particular aspects of their work
Major procuring retail clients are concerned with reflective image. During the construction or alteration of premises, such as high street stores, public relations is of paramount importance. This is a time of potential disruption and inconvenience to the public, who are also the customers of the client. Retail clients often seek to project a quality local image and have well established community policies.
Increasingly contractors have to demonstrate that their own PR approach is satisfactory before they will be awarded the job. Contractors may be urged to use local subcontractors wherever possible. On-site staff need to be able to work in harmony with the public and customers. Project sites and their surroundings need to be safe, kept tidy and as clean as possible.
Clients emphasised the increasingly important public relations role of the project manager, who needs to be able to react effectively to problems on site rather than relying on a remote public relations department at head office. The public relations benefits of performing well for clients are that contractors may use their clients in their own public relations output, that is promotional material, press releases and activities.
TRADE AND BUSINESS JOURNALISTS
The media editors and journalists interviewed during the course of this research emphasised the need for contractors to maintain good, one-to-one relations with all those sources which may be referred to by clients and consultants. Criticisms were generally that many construction firms did not appear to have developed well-planned press or media relation strategies. They lacked the expertise and style in writing effective press releases and did not appear to carry out systematic media research to establish information needs of editors.
The editors and journalists interviewed represented high profile trade and business media that were in receipt of many news releases, most of which could not be used due to shortage of space. The filtering process was considered to be fairly ruthless. The majority of press releases were virtually unreadable and difficult to comprehend. These were immediately discarded. It was accepted that most articles would require some degree of checking or clarification. Being newsworthy is the ultimate criterion.
The respondents to this element of the study emphasised the need for there to be a mutually beneficial relationship between themselves in the media and public relations professionals working within construction firms. They were able to give further insight into the organisation and public relations strategies of contractors. Four basic configurations were observed.
The first type of organisation, was where a contractor did not have a public relations department or operation. Although it was possible to speak directly to the relevant people within the organisation and get accurate information, in the event of a "big story" breaking, these firms would often employ pubic relations agency on a one-off basis. The agency would typically have little idea of how the company operates – it was very "hit and miss".
The second arrangement was where contractors employed an external public relations agency on a long-term basis. A drawback here was seen to be that it was often difficult to get more detailed and sensitive information quickly, as the agent would have to first check with the firm. The perception here was that there was a tendency for information to be supplied in a very "sanitised" form.
The third type of organisation was where a contractor employed a dedicated in-house public relations department. This had a similar effect to the previous arrangement, but it was seen to be easier to obtain extended and speedier comment and conformation because the media only had to deal with one contact.
The final set-up was the engineer turned public relations manager. Those editors and journalists interviewed considered this to be beneficial, particularly where news items were of a more technical nature. However, the perception was that due to a lack of training in basic PR skills, the construction business may not be gaining full benefit from this arrangement.
CASE STUDIES
The following representative case studies were conducted with senior public relations managers within four medium to large contractors. The subjects of the studies explore further the areas outlined previously, most importantly client, media, employee, investor relations, lobbying and the role of the project manager in public relations. Also explored is how contractors can be more proactive and co-operative in changing the image of the industry generally to the benefit of all contracting businesses.
Contractor A
Contractor A is a privately owned, medium-sized company in the north east of England, with interests in building and civil engineering work. It employs around five hundred staff and has a turnover of approximately £100 million. Public relations is managed through a business development and marketing services function consisting of two full-time staff. This department reports directly to the managing director of the firm. The department maintains a database of contacts with clients and their advisors, which details past and current relationships. The aim is to ensure a consistency of messages throughout the firm whether this is through personal contact, presentation, or through brochures, the house journal, notice board or press releases.
The media relations strategy is to establish one-to-one relationships with editors and journalist in appropriate publications. The aim is to be able to telephone and give stories directly, rather than blindly submit press releases, which was seen to have only very limited success. Target publications are geared towards clients, for instance retail trade journals. As the firm has a strong regional client base, regional newspapers and business magazines are targeted.
Contractor A produces a glossy house journal as part of it’s internal communications strategy. This document has changed over the years to allow it to be used externally as a marketing tool. The firm considers it to be important, however, to get the balance right in terms of addressing both external and internal publics. The firm emphasised that the document was carefully planned and controlled, however, no research had been conducted to date as to how managers and staff perceived it.
The company notice board is still a key tool for the dissemination of information to internal audiences. The company takes this seriously and emphasises that materials were carefully selected to "give the right impression" to employees and visitors. The public relations function controlled and monitored how boards were used at project site level and issued display guidelines.
As part of a portfolio of publicity material, Contractor A publishes an annual report. Although a privately owned business, the firm believes that its annual report, which is targeted at clients and their consultants, helps in building and maintaining confidence in the financial stability of the company.
Contractor B
Contractor B is a UK subsidiary of a large international group of companies. It specialises in road construction, maintenance and surfacing. It is based in the south east of England and employs around one thousand people. It has an annual turnover of approximately £100 million. Public relations activities are carried out through the marketing department. The primary functions are media relations with specialist press, involvement with appropriate professional bodies, corporate hospitality and lobbying.
The specialist press coverage is seen as essential in keeping the name of the company in the eye of clients and for promoting new products. Support for relevant professional bodies, most notably the Institution of Highways and Transportation, is part of maintaining brand awareness. Corporate hospitality is viewed as part of a one-to-one strategy to win over important client representatives and to maintain a positive business relationship.
Lobbying for Contractor B was given considerable emphasis. The objective was to achieve more favourable treatment by key specifiers. The firm lobbies the Highways Agency and the Department of Transport. It uses the British Roads Federation for higher profile lobbying of elected members for policy change. Lobbying techniques include one-to-one contact and hospitality. Contractor B’s Board members meet with Department of Transport civil servants and company representatives visit local authority technical specifiers.
The benefits to the firm are that lobbying has successfully seen the adoption of new techniques as standard. Larger scale lobbying was seen to increase benefits to all engaged in this side of the industry.
Contractor C
Contractor C is a very large internationally active construction group with its group head office in London. It employs around six thousand people and has a turnover of approximately one billion pounds. The public relations department employs twelve staff. The approach of the head of this department is to promote PR to the company’s directorate by stressing the direct marketing benefits of the function in terms of boosting the corporate image and profile of the business.
As a centralised function, a significant role of the department is in servicing group companies and divisions. The policy of the group is to control corporate identity and all press and media relations from the centre to ensure a consistent group view. PR staff actively seek out good stories from across the group to release to the wider audience.
The company is keen to stress good community relations. The policy of the company is to ensure that local communities, who will be affected by construction or related work, are given advanced notice and that there is an established complaints procedure for the general public throughout projects. Clients are always encouraged to give advanced notice of major work through their own media relations.
Although PR is on hand to deal with the public, project site staff are given training in customer service skills, as these are seen to be in the front line with the public. The fleet of plant have freephone telephone numbers for public complaints, as part of their livery.
Contractor D
Contractor D is one of the UK’s largest construction firms. It operates in a wide range of markets encompassing construction, property and housing, nationally and increasingly internationally. Public relations is handled by a team of twelve, some of whom have a background in journalism. The department is located at the London headquarters.
The company considers investor relations to be their most important public relations function. It was viewed as essential for shareholders to have confidence in management and to know the direction the company was going. Key target audiences were City analysts and institutional investors.
Various techniques were used to communicate with investors. The first was the publication of detailed share-price information. Legislation limits this to three times per year for the interim results, year-end results and the Annual General Meeting. At these times, press releases are issued and conferences held for analysts, institutions and the media. Other methods are year round. Maintaining the flow of information entails one-to-one meetings with analysts and institutions, facility visits to further investor understanding of the company, and tours by the Chairman and Financial Director to meet regional investors.
Contractor E
The focus of the case study of Contractor E was the public relations role of the project management team. The project for the Highways Agency was a road connection to a motorway. There is a very busy interchange near to the site, which needed to be maintained in an operational capacity. The works were complicated and required extensive temporary construction and traffic diversions. The area is primarily road systems, few houses or industrial units being affected by the construction process. However, owing to the fact that the interchange is on a main route out of a major city, many tens of thousands of people pass through the site and may have their journeys disrupted on a daily basis. These conditions affect the way in which PR for the project has been carried out. Emphasis was placed on relations with the motorists, who use the road during reconstruction.
The first public relations exercise carried out was through the client who produced an explanatory leaflet about the work. This detailed the location, extent and aims of the work. This was distributed locally. Once the contractors had been appointed, an exhibition was set-up in a shopping centre in the City centre to advertise the impending start of work and answer questions from the public. This was manned by the client, contractor and engineers. A highly publicised turf-cutting ceremony by the Mayor completed pre-construction publicity activity, with the intention to reach as many affected people, especially potential motorists, as possible.
Once construction work commenced, on-site public relations was handled by the project manager and his staff. They adopted a re-active approach, formal activity being handled by the contractors public relations management located at head office. Staff received no formal public relations training and therefore it is the firm’s policy that employees should in particularly, not communicate directly with the media. However, the project manager saw his PR role as one of promoting the company’s name to the general public and to assist the PR department in broader marketing efforts aimed at raising the profile of the firm. The project manager had been involved in organising technical events aimed at journalists, engineers and consultants to visit the site and view the work.
One of the main efforts of the contractor was to ensure good sign-posting. Prominent signs and boards were positioned around the site. These needed to be maintained on a regular basis as, together with dirty road cones, these are a regular cause of complaint from the client and general public.
To provide information and encourage co-operation from the local community, the contractor has been involved on behalf of the Client, in door-to-door leaflet campaigns to nearby houses and industrial units. The travelling public are informed of traffic changes via AA Roadwatch and on local radio stations.
The project manager was responsible for providing technical information for the company newspaper and other project sheets used in marketing efforts.
In the event of a crisis situation, that is an accident on site, anti-roads protesters, the company procedure is that the project manager is responsible for ensuring that public relations managers are informed immediately. They would then take over. The project manager on this particular project was found to be heavily reliant on support from the centralised public relations function. His role and responsibilities were largely to provide technical information used as part of campaigns co-ordinated by the public relations experts within the firm.
Summary of Case Study Research
The over-riding message coming through the case studies conducted as part of this research was the focus on building lasting relationships with a variety of different internal and external publics. There was a genuine enthusiasm for the role of PR in supporting business objectives, but a constant fear that due to economic conditions in the industry, senior management within firms may decide that the function was surplus to requirements. The need for the function to communicate the importance of maintaining public relations as an integral part of corporate and project level strategies to senior management was therefore seen as a primary role of those charged with this management function in contracting organisations.
A common theme across the case study research was how contractors could improve the overall image of the industry. All public relations activities executed by firms in construction was seen to be fighting a losing battle against the background of miss-trust and lack of confidence from the industry’s clients and the media. What was seen to be essential was for contractors to change their cultures to focus on serving the needs of their clients and ensuring satisfaction. This needed to be communicated consistently to all publics. Although greater co-operation between contractors was seen to be highly desirable, the fact that the industry was very competitive made this difficult in practice.
ANALYSIS
In all public relations activities used by construction organisations, the emphasis is clearly on the marketing benefit. Marketing is the driving force behind PR and is a way of gaining the support and involvement of top management. Well targeted PR, aimed at established and potential clients of the business assists in getting firms onto select tender lists. Clients have indicated that being well known and creating positive word-of-mouth will give a contractor an edge over the competition. However, due to a lack of appreciation of the value of public relations, strategic support and commitment, current practice has a number of shortcomings.
Despite media relations taking up a considerable amount of resources in terms of time and money spent on activities aimed at raising the profile of the firm and its project operations many companies would not seem to have developed strong links with the trade and business media. According to media editors and journalists interviewed during the course of this research, many press and news releases they receive are poorly composed and presented and do not address their needs.
Given the importance of the management and staff of construction organisations in providing management and technical services to clients, it would seem that at present firms are not managing employee relations and communications effectively. This research has identified that much of the internal material, such as newspapers and house journals, is poor quality and little impact unless it is also used externally. However, in a small number of companies it would appear that this is an area of development, with attention being paid for instance, to the content and layout of company notice boards, which may be viewed by external visitors. However, the general picture would appear to be that construction firms do not view employees as a significant target public. Until this is resolved, public relations strategies aimed at improving company and marketing images will be largely frustrated.
To be effective, public relations has to be an integral part of the company and project strategies of the organisation. At present, PR would seem to be heavily centralised and remote. The public relations role of all staff, and increasingly those involved in project management who are in direct contact with clients and their consultants, has not yet been clearly defined.
Public relations would not generally seem to be taken seriously by the most senior management within construction organisations. This is illustrated by staff cuts, lack of evaluation into the functions effectiveness and insufficient resourcing. Those charged with public relations often experience frustration and perceive there to be little sympathy or appreciation of their role and function.
The Model Revisited
At the beginning of this paper, the authors outlined the development of a strategic framework for public relations in construction contracting, which was based on a literature review and initial exploratory studies. In the light of the research work conducted, the following statements may be made.
CONCLUSIONS AND RECOMMENDATIONS
Public relations is an essential part of the business process, particularly in the dynamic economic climate of the construction industry. At a time of increased competition and ever more demanding and critical clients, the business case for developing a positive public relations profile for the organisation is clear.
Public relations can improve the perceptions of a wide and diverse range of internal and external audiences and thus create a positive general and business environment for the firm. A public relations strategy in the commercial sense needs to address both internal and external audiences. For a construction firm or practice this means communicating with its management and staff, helping to improve morale, retain skilled personnel and maintain commitment to the overall objectives of the organisation
In recent years public relations has developed into a distinct management function within the organisation structures of many medium to large contracting organisations. If managed effectively, and with the active support of top management, public relations can develop and sustain a competitive corporate image and identity for the construction business. However, the shortcomings highlighted through this research study have been;
The construction business needs comprehensive and well-planned strategies in continually communicating with its target publics.
The construction industry has had a very poor image with a wide section of the customers and clients and the general public. This image is partly shaped by the major players; the construction firms and major consultants who are judged largely on how they execute their activities with as little disruption to normality for the population as possible. Public relations which is aimed at informing and educating the wider society about the construction industry’s practices could do much to improve the perceptions of many. Following from the Latham Report (1994), which recommended that the industry needed to improve its "public image," Working Group 7 was set up. Its remit was to examine ways of better promoting the construction industry in a positive manner. The outcome of this effort may be a positive step.
Construction is a highly transient industry. Local community relations would seem to be especially important at the level of building and civil engineering projects on a national and increasingly global level. Given the expectations of certain major procuring clients in the retail industry for instance, a more formalised approach and strategies may need to be developed possibly through wider environmental policies.
In terms of further research areas to be identified, the following issues may need to be addressed;
REFERENCES
Bourland, P.G. (1993) The Nature of Conflict in Firm-Client Relations: A Content Analysis of Public Relations Journal, 1980-89, Public Relations Review, 19 (4), pp. 385-398.
Centre for Strategic Studies in Construction (1989) Investing in Building 2001. Reading University.
Ceren, T. and Dorman, A. (1995) The Complete Project Manager, Journal of Architectural Engineering. June, pp. 67-73.
Costain Group Publications, Costain and Young People Joint Venture. Costain Group Plc.
Costain Group Publications, Community Involvement Policy. Costain Group Plc.
Fellows, R. and Langford, D. (1993) Marketing and the Construction Client, The Chartered Institute of Building.
George Wimpey PLC, Annual Reports, 1989-1994.
Graham, C. (1996) Developing, Refining and Testing a Model of Public Relations in the Construction Industry, Unpublished 4th Year M.Eng. Dissertation, Department of Civil Engineering, University of Leeds, UK.
Hart, M.A. (1993) Early Focus on Issues Shapes Public Opinion, Public Relations Quarterly, 38 (4), pp. 43-44.
Hauss, D. (1993) Measuring the Impact of Public Relations, Public Relations Journal, 49 (2), pp.14-15.
Kreamer, P. (1985) A Strong Identity Creates a Memorable Image, Building Technology and Management. December, pp 20-21. Chartered Institute of Building.
John Laing Group, Annual Reports, 1986 –1994.
Latham Report (1994) Constructing The Team, HMSO.
Leech, A. (1981) PR Begins at Home, Building Technology and Management, February, p. 24. Chartered Institute Of Building.
Male, S. and Preece, C. (1994) Promotional Strategies in the Marketing of Contractual Services within UK Construction Firms. A J Etkin International Seminar on Strategic Planning in Construction Firms, June, Haifa, Israel.
Marken, G. A. (1993) Effective Public Relations ... More than a Few News Releases, Public Relations Quarterly, 38 (4), pp. 47-48.
Preece, C. N. (1993) The Management of Promotion for Competitive Advantage in UK Construction Firms, Unpublished PhD., Heriot-Watt University, Edinburgh, UK.
Preece, C.N. (1994) Promoting Construction for Competitive Advantage. Chartered Builder July/August, Chartered Institute of Building, UK.
Preece, C.N., Male, S. and Moodley, K. (1996) Targeting, Tailoring and Trimming - the More Effectiveness of Promotional Literature in the Marketing of Contractual Services, The 1st National Construction Marketing Conference, Thursday 4 July, Oxford Brookes University, Oxford.
Preece, C.N., Moodley, K. and Graham, C. (1996a) Public Relations to Support More Effective Marketing in UK Construction Contractors, The 1st National Construction Marketing Conference, Thursday 4 July, Oxford Brookes University, Oxford.
Preece, C.N., Moodley, K. and Graham, C. (1996b) The Public Relations Role of the Project Manager on Transport Infrastructure Schemes, 24th PTRC European Transport Forum, 2-6 September, Brunel University.
Rutland, P. (1985) Presenting the Company Image, Building Technology and Management, October, pp. 13-14. Chartered Institute of Building.
