HOW TO SELECT A PROFESSIONAL GR FIRM ?

Choosing the right GR firm for the work you have at hand is critical because it can bring an objective, independent point of view to help you achieve your communications goals vis-à-vis public authorities. External GR consultants are exposed to different organisations on several different levels; they can apply the best solutions to your GR communications challenges, using a variety of new ideas and tools along the way. You end up with clear, objective thinking and proven strategic and tactical solutions. If you are thinking about retaining the services of a professional GR firm, you should consider a number of elements before making your final choice. The selection process is the key to finding a firm that will fit your organisation's needs.

The wise use of professional GR strategy and services can add a great deal to the successful communications efforts of any organization. The many tools of the GR communications process require experience, specialised skills, solid judgement and concerned objectivity - all of which the right GR firm should bring to bear on an organisation's needs.

1. Define your organisation's needs

Before your organisation can communicate successfully with others or even retain a GR firm to help it communicate, it first must know what it wants to achieve.The first step in the search for a GR firm is to identify and prioritise your organisation's corporate goals. Later, these management goals can be shared candidly with the GR firm you choose. They will become the basis for determining your organisation's GR  goals; your GR firm will use these to develop strategies, tactics and tasks specifically oriented to your management's needs. An excellent goal-focusing exercise is to construct an informational backgrounder that would outline briefly:

• history of your organization (when founded, size, products, services, etc.);
• mission, aims of organisation;
• any special GR skills/resources sought;
• key "publics" or stakeholders with whom your organisation has a relationship (don't forget to list your allies and opponents);
• issues or areas of potential concern of which the GR firm should be aware;
• current or past GR efforts and an evaluation of their success;
• available market or public opinion research about your organisation and/or its products/services;
• any requirements of collateral materials, advertising, etc.;
• budget commitment/parameters: it is important to be able to compare proposals at comparable budget levels; if you are not able to set these estimates, (even though it may be a range), you will likely receive proposals ranging from low to high ends of the scale;
• initial length of contract with selected firm or individual;
• special circumstances that would affect any aspect of the GR programme.

Developing this information will help to clarify the scope of your GR programme, which in turn will help to pinpoint the qualities and strengths your organisation should be seeking in a GR firm. Later, in meeting with the candidates, the backgrounder can be used as an outline for discussion and to assess how well each firm's capabilities fit your organisation's needs.

2. Review Credentials and Capabilities

After identifying the GR firms for your initial screening, contact a principal at each firm by telephone or letter. Describe your organisation and its GR needs as you see them. Ask if they would be interested in talking with you. If so, check to make sure that they do not already represent a client which might cause a conflict of interest. If their response sounds promising, ask the principal to a send a letter with:

• the firm's general background and any experience in your organisation's area; • its range of services;
• the depth of professional qualifications of the firm's principals and staff;
• specialised skills or resources house design capabilities;
• a current client list;
• the firm's policies on charging for its counsel and services (fee structure);
• any relevant collateral material.

3. Meet with the Short List

After reviewing the responses, select those which best seem to fit your organisation's needs and set up a meeting at the offices of each to get further acquainted. At this point, you should be down to a short list of three or four firms. During this first visit (for which about two hours should be allowed) look for:

• a general capabilities presentation on the GR firm, but with some information directed to your organisation's needs as outlined to the firm earlier. Although the content of most firms' presentations will be similar, presentation styles may differ according to the orientation of the firms.
• an opportunity to talk with key senior members of the GR firm who need to be clear about your organisation's goals in order for their firm to provide appropriate support for yours. It is equally important that the key decision makers from your organisation are in attendance. (It would be premature at this first meeting to expect to meet those individuals who would be on your organisation's account team.)
• familiarity with the buzz words of your business and references to trends in your field -- a good indication of previous experience or homework done.
• a two-way discussion: the meeting should not only serve as an opportunity for the firm to present its credentials, but for you to discuss your organisation's needs. During your visit you might be asked to identify other firms with whom you are talking. It is perfectly appropriate to provide this information and you should not feel uncomfortable about doing so. In fact, it is to your benefit: the more the information a firm has to work with -- and this includes knowing the types of GR firms you are considering -- the better it can qualify your organisation's needs and provide a more focused response. However, you are in no way obliged to share this information and if you chose not to do so, your decision should be respected by all involved.

4. Chemistry Test with Key Players

Visiting the offices of the top contenders, hearing their presentations and talking with senior members should narrow your organisation's search to one or two firms. Now is the time to request that each set up a meeting for you with those who would be the principal players on your organisation's account team. Treat this meeting as you would an interview -- prospective employer to prospective employee. This is your opportunity to test the chemistry among all who will be involved on the account. Be sure to ask:

• How long will it take to get up to speed on your account ?
• What reporting methods are used ?
• How does the firm measure success ?
• Does the key account person understand your organisation's needs and ask intelligent questions ?
• Does this key person appear to have the supervisory ability to lead the account team?
• Does he or she have any experience in your organisation's field?
• Who is the backup key person when your account person is not available?  

5. The Proposal and Presentation

If after meeting with key people, you are still uncertain about which firm would be the best fit for your organisation, ask each to send a written proposal, or make an hour-long oral presentation (with supporting documentation) outlining how it would provide the GR services your organisation needs to achieve its goals and objectives. The firms or individuals will likely focus on creative strategy to solve a business problem, enabling you and your colleagues to see how the individuals think and how you could work together. Remember, the more information with which you provide them at the time of your request, the better, more thorough results you will get as they seek out the solutions. This proposal or presentation should not be confused with a GR  plan. It is inappropriate to ask firms or individual who make their livelihood in this manner to undertake speculative work, and in fact, most firms are not willing to submit speculative work. If your organisation wishes, you can offer to pay each firm a set budget amount to help defray time and material costs. The return on such an investment would be a good one as your organisation gains excellent insight into how creative and responsive each candidate can be to a client's needs. Once your decision is made, the next step is to meet with the successful firm or individual to discuss fee arrangements and initial length of contract. The firm can then send you a signed letter of agreement outlining these terms. As soon as you return a copy with your signature, your organisation's newest management asset will go to work. It is important to notify all candidates as promptly as possible. Most firms put a great deal into this process and deserve more than a call or a letter. It is more appropriate to meet with the unsuccessful firms shortly after the selection process is complete, to enable them to be de-briefed and understand why they were unsuccessful, or what qualities and capabilities the successful firm possessed.

6. Maximizing the Effectiveness of your GR Firm

If your organisation wants its GR firm to succeed, it must supply more than monetary support. You must approach the relationship as a partnership. Be prepared to help your GR firm help you. They cannot be expected to work in a vacuum. Your firm will require access and information and should be updated as routinely and consistently as you would any of your own top-level employees. Be as frank with your GR firm as you would be with your attorney. Add them to mailing lists for any materials that pertain to or impact on their assignment. If your organisation ever faces a situation where a highly confidential matter may become public, alert your GR firm. It is prepared to advise in such highly sensitive situations, to weigh communication alternatives and to develop the most appropriate approach. During your GR firm's learning curve, your organisation will see much of the account team while it analyzes problems and opportunities and begins to define and (help) implement programmes. To keep up the momentum of this interaction, meet with the key account person at least once a month to update him or her on how and what your organisation is doing and to review the GR firm's focus and progress on current and long-term objectives.

7. Looking Ahead For both parties - the client and the GR firm

The selection and familiarization processes are time-intensive. So once a choice is made, the best working relationship between the two is an ongoing one whether you are retaining a firm or individual for a project or for a long-term relationship. It is important at the beginning of the relationship to decide when it will be reviewed and renewed. In a long-term relationship, generally within three to six months your organisation and its GR firm should know each other well enough to discuss a longer contract, usually a year with an automatic renewal option. At this point and then annually through the duration of the relationship, the GR firm should submit recommendations for a 12-month GR  programme and the budget needed for its implementation. The GR firm should clearly define the objectives it expects to achieve during the period and how the programme will tie into your organisation's other programmes. After your organisation approves the GR programme and budget either in their entirety or with revisions, you should expect to review the programme with the GR firm quarterly so that progress can be tracked and any necessary adjustments or changes made in response to new internal or external developments affecting your organisation.

8. Fee Arrangements

GR firms charge for their time in much the same way as do most attorneys, accountants and other professional consultants retained to help businesses run more productively. Your GR firm's hourly rates will have a high and low range depending on who works on your organisation's account and you should be informed by your GR firm of its range. There are several options in billing for services, and based on its initial perception of your organisation's needs, your GR  firm  will recommend one of them:

a) Hourly fee against monthly or yearly budget

A GR firm may establish a minimum monthly fee for its services based on the number of hours per month it estimates will be spent on the client. The minimum monthly fee arrangement is ideal for organisations which may need a variety of specialized services with time requirements which differ from month to month. For instance, if your organisation's annual GR budget (for external counsel or support) is € 60,000, then you should expect to allot approximately € 5,000 per month. This minimum is billed in advance to the client each month, and then the members of the GR firm charge their time against that minimum based on their individual hourly rates. If the hours worked exceed the monthly minimum fee, the client's next bill will include the cost of the previous month's additional time. If your organisation wishes to be notified if the hours worked in any given month will exceed the monthly minimum (so it can have the option of deferring an activity or task to another month), you should specify, and this requirement should be included in the letter of agreement.

b) Project Fees

GR services for a one-time project may be provided for a specific set fee which has been determined by the prospective client and which may include both services and expenses. Some firms may decline to undertake projects under such a fee arrangement if their estimate of the hours, supplier costs and out of pocket costs involved indicates that the project budget ceiling is too low. Others may be willing to take on the assignment to open the door to further work with the client or if they deem the organisation is one whose addition to their client roster would make any time expended beyond the budget ceiling a worthwhile investment.

c) Retainer Fee

This arrangement works well for organisations which have their own communication capabilities but need counseling for complex GR communication questions and issues, or periodic help with specialised tasks such as speech writing. With an agreed upon monthly retainer fee, members of the GR firm will be available to assist the client whenever needed. In this instance, your organisation pays a flat rate fee, billed in advance each month whether or not any services are used. Retainer fees should be reviewed periodically to determine if any adjustments are needed based on use of services. Regardless of the fee arrangement selected, it is important to know how a GR firm  accounts for their time, and they should outline for you the type of written monthly activity reports they provide their clients. Information provided by a firm during fee discussions should also include such billing policy details as:

• minimum time segment charged (hour, half hour, quarter hour, etc.);
• maximum amount of chargeable time per day;
• policy on billing travel time;
• commission/markup percentages, if any;
• interest charge percentage, if any, on balances over 30 days past due.

To ensure your mutual relationship gets off to the best start, the method of billing fees/time charges, suppliers' costs, out-of-pocket expenses and markup/commission percentages, as well as payment terms and any interest charges for late payment should be fully detailed in the letter of agreement your organisation receives from its GR firm.

Conclusion

To sum up a successful relationship between client and GR firm is based on these fundamentals: the best match of capabilities to needs, total agreement on objectives, constant accessibility, full information sharing, continuous interaction, regular programme and progress reviews and a clear understanding of contract responsibilities. Underlying all is mutual trust and respect. Assemble these components and together, you can build a strong, rewarding and lasting business relationship.