PR Agencies of the Future

Are the PR consultancies of today teetering on extinction?

Here are the preliminary findings from an unscientific survey of colleagues globally.

The hallmarks of future great agencies, according to the "wisdom of the crowd," will include the following: glocalization; versatility; diversity; value-based remuneration; services that focus on collaboration, community, credibility and content; and leadership.

Glocalization
Distinctions between "international" and national or local agencies will diminish as opportunities and challenges emerge from abroad, particularly in emerging markets.

US-led networks (and to a lesser degree, European-based) will continue to drive expansion in these markets, most notably China and India, but there may be reverse-flow investment as well, in which clients and even agencies in these markets look for opportunities to expand internationally from their home bases.

Local agencies, wherever they sit, will find increasing opportunities (and pressure) to link with international networks.

US-led networks will find ways to develop "global" programs that aren't simply "templates" for local market agencies to adapt.

And no matter what we do, we'll all get our asses kicked by agencies based in Delhi or Mumbai.

Versatility
The opportunities of a "glocal" market will reward the agencies that can most adroitly and consistently bring their specialist expertise to the fore. The number of agencies capable of doing this now is approximately zero.

Structurally, successful agencies will place less emphasis on their internal silos (e.g., practice areas or departments) and more on meeting the "integrated solution" needs of specific clients.

Financially, profit-and-loss management will be liberated from geographic centres and departments and attached to specific engagements with clients, permitting greater transparency on costs and fees.

Agency employees become more comfortable in their capacity as "knowledge workers," and more adept at "learning to learn" -- building knowledge and gaining fluidity in their ability to build relationships with clients and audiences quickly and efficiently.

And successful agencies will become as flexible externally as they are internally; not only will they organise themselves to meeting complicated clients needs with internal specialist skills, they'll also learn to work quickly and seamlessly with a host of other external agencies and consultancies, law firms and freelancers and client resources.

Diversity
Versatility will require a far more diverse work force that most agencies currently employ.

While the core of successful businesses will remain rooted in professionals who grew up in the agency world -- people who live, eat and sleep public relations -- they will be complemented by professionals drawn from other communications disciplines, such as advertising, digital media and promotions. Some will find ways to apply people from the arts -- writing, photography, design and production -- on the main accounts, and not just as support for special services. Likewise, agencies will also find ways to deploy greater numbers of former journalists, editors and producers.

We'll also see agencies with people who can help us understand how audiences interpret, process and act on the information, including cultural anthropologists, psychologists, and potentially even people of faith and spiritual backgrounds.

Larger agencies will begin employing professional managers to "run the business" and to coach and develop talented counsellors and account handlers, rather than merely promoting up the ladder those proven adept at client service or agency politics.

And we'll see teams with wider ranges of experience socially and culturally, and with a richer representation of nationalities, ethnicities, religions and languages. The current model -- young white women managed by middle-aged white women directed by older white male executives -- is reaching its natural conclusion.

Value and Results
The agency of the future will evolve beyond antiquated remuneration systems, and earn income on the bases of expertise, efficiency and results.

They will offer value in ideas, creativity and strategy in ways the client simply cannot develop on their own, and this expertise will be charged on consultancy rates, at a premium.

The implementation of ideas, using a combination of agency resources, client capabilities and free-lancers and consultants, will ensure the best execution at the best price.

And the great agencies will identify targets -- hard commercial objectives -- with clients and agree a reward system to share in the effectiveness of activities.

Collaboration, Community and Credibility
Current opinion is varied and divided on the emerging / converging / diverging nature of "main stream media" and "social" or "consumer produced" media and, based on individual interpretation of where these trends are headed, the services agencies provide will take on very different looks.

There will be similarities even so, however. Services will be highly collaborative, literally co-operating with audiences, rather than merely speaking at them.

And audiences themselves will be seen more as communities -- dynamic, powerful collections of economic, creative and intellectual resource.

Importantly, services of the successful agency will stress credibility and transparency, whether in mainstream or consumer produced media.

Competition for "content" services will be fierce, and involve an array of contenders: ad agencies, "digital" agencies and IT consultants, not to mention millions -- potentially billions -- of every day people who are now producing their very own content every single day.

Leadership
Successful agencies of the future will be leadership businesses.

They will work to improve the general PR business by improving the quality and tenor of the trade media, awards and recognition programmes. They will work in partnership with universities to produce globally competitive practitioners, and they will participate actively in industry associations and independent forums and communities (like this site).

Finally, leadership agencies will see no compromise between being brave and ethical, finding a way to deliver results, in creative, brilliant new ways, without surrendering an ounce of ethical integrity in the process.

Preliminary Conclusions
Fundamental and transformational shifts in human affairs -- every bit as pervasive and sweeping as earlier revolutions in industrialisation and agriculture -- are gaining momentum in every part of the world. These changes are enhanced and expedited by technology, but their effects are by no means limited to the digital environment. Virtually every aspect of modern life is changing quickly and significantly, including health, the environment, religion, culture, politics and industry.

PR consultancies can embrace these changes and increase the value of their services to organisations striving to make sense of a rapidly evolving landscape. Successful adaptation will require sweeping and almost immediate transformation to the way most agencies see their place in the world, how they organise and deploy their human assets, who they hire and how they develop their talent, how they refine services in a changing media environment, and how willing they are to serve as leaders within the public relation business and society as a whole.

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About Ketchum
Ketchum is one of the leading global communication consultancies. Founded in 1923, Ketchum has 23 offices and 44 affiliates in North America, Europe, Asia Pacific and Latin America. With its five global practice areas -- Brand Marketing, Corporate Communications, Healthcare, Food & Nutrition, and Technology -- Ketchum offers clients a unique breadth and depth of marketing and corporate communications expertise. The PRWeek 2002 Agency of the Year, Ketchum is a unit of Omnicom Group Inc. Additional information on Ketchum, its award-winning work, and past news releases can be found at www.ketchum.com.

About David Gallagher
Partner / CEO, Ketchum London
email: david DOT gallagher AT ketchum.com

As chief executive of Ketchum's London office, David oversees all account service and business support functions for the agency's UK operations. David works directly with the London-based teams to offer clients award-winning service in the UK and international markets.

At the European level, David participates on a team of agency heads to provide co-ordinated PR services in European domestic markets and internationally across the EU region and beyond. Globally, David is a partner in the world-wide management, a capacity in which he counsels international clients on matters related to product communications, issues management and third-party advocacy.

David serves on the management boards of the Public Relations Consultants Association (PRCA) and the International Communications Consultants Organisation (ICCO), and is active in various local charitable causes.

He has been with Ketchum since 1994, when he joined the agency's Washington, DC office. He brings more 18 years of public relations experience, both as a client and as a senior agency advisor to some of the world's leading brands and companies. His background spans the spectrum of strategic public relations services, including market development, crisis / issues management, and stakeholder relations, among others.

Prior to joining Ketchum, David worked for a small agency and two national NGOs in Washington, DC. He now resides in London, with his wife Lesley and his two children, Matthew (8) and Grace (4).