Annual Report 2010

advancing the business of public relations

2010 ANNUAL REPORT | 2

Our Mission

To advance the business of public

relations firms by building the

market and firms’ value as

strategic business partners.

The Council of Public Relations

Firms is dedicated to strengthening the recognition and role of public relations

firms in corporate strategy, business performance and social education; to

serving as an authoritative source of information and expert comment and to

setting standards for the industry.

Key Member Benefits

What’s the ROI for members:

• Members’ visibility and “findability” via the

Council’s Find-a-Firm

• Proprietary data

• Education

• Networking

• Advocacy

93%

Annual member retentionrate since 2005

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2010 Board of Directors

CHAIR Margery KrausFounder & CEO, APCO Worldwide

CHAIR ELECT Andy PolanskyPresident, Weber Shandwick

SECRETARY Laura TomasettiManaging Director, 360 Public Relations

TREASURER Jens BangPresident & CEO, Cone

TIER 2 LIAISON John SengFounder & President, SPECTRUM

TIER 3 LIAISON Laura TomasettiManaging Director, 360 Public Relations

IMMEDIATE PAST CHAIR Ray KotcherSenior Partner & CEO, Ketchum

PRESIDENT Kathy Cripps

Christine BarneyCEO & Managing Partner, rbb Public Relations

Tom CoynePresident & CEO, Coyne Public Relations

Ken EudyCEO, Capstrat

David FuscusCEO, Xenophon Strategies

Lou HoffmanPresident & CEO, The Hoffman Agency

Donna Imperato CEO, Cohn & Wolfe

Ken Makovsky President, Makovsky + Company

Becky Powell-Schwartz President,The Powell Group

Jennifer ProsekManaging Partner, CJP Communications

Dave SenayPresident & CEO, Fleishman-Hillard

Jim TsokanosPresident, North America, MSLGROUP

Melissa Waggener ZorkinCEO, President & Founder,Waggener Edstrom Worldwide

BOARD MEMBERS

EXECUTIVE COMMITTEE

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The public relations industry experienced an impressive bounce-back in 2010. Inaddition to the growth numbers we collected in surveys, our members told us at Councilmeetings and other events – in between new business pitches – that business was backin a big way.

Our industry has solidified its place in corporate strategy and in marketing. Today, publicrelations firms are being propelled to even greater heights by social media and themultitude of digital communications platforms. The public relations industry has changedin a way that offers more career opportunities, provides significant connection withclients and their brands, and requires more innovation and strategic contribution by PRfirms than ever before.

One of the Council’s important responsibilities is to integrate these new trends anddevelopments with the essential, institutionalized programs our members value, such asthe Annual Business Benchmark Study, the Compensation and Benefit Survey andnetworking events. We launched notable new programming in 2010, covering key areassuch as education, advocacy and training. Leading the way was the High Point Series, amodule-based development program for mid-level professionals making the transitioninto senior management and agency leadership. If the response from the first twoprograms – both sold out – is an indication of future success, the High Point Seriesshould continue to grow in stature and value. The Firm Voice blog premiered in Marchand has provided the industry with a distinct voice on issues as well as emerging trendsthat impact public relations. We also launched a premier partnership program withindustry service providers that will enhance our ability to serve members.

These successes are only possible with the support of volunteers who believe in themission of the Council of PR Firms. To that end, I’d like to recognize the dedication andcommitment of the 2010 Chair, Margery Kraus, our Board, committees and task forcesthis past year – and every year. Your hard work and the involvement of your firms havepaid enormous dividends, resulting in the development of effective programs – includingour second straight sold out Critical Issues Forum – and overall, a strong firm-focusedtrade organization.

Thanks for your continued support.

Kathy CrippsPresidentCouncil of Public Relations Firms

Letter from the President

We launched notable new

programming in 2010, covering

key areas such as education,

advocacy and training.

Leading the way was the

High Point Series, a module-

based development program

for mid-level professionals

making the transition into

senior management and

agency leadership.

2010 ANNUAL REPORT | 5

Governance of the Council

The following committees helped shape and

implement the Council’s 2010 agenda.

Thanks to those who give generously of their

time and talents.

Agency Management Committee• Ralph Katz (co-chair), CooperKatz & Company• Luke Lambert (co-chair), Gibbs & Soell Public Relations• Amy Binder, RF|Binder Partners• Rob Flaherty, Ketchum (chair, Critical Issues Forum) • Patrick Ford, Burson-Marsteller • Ed Moed, Peppercom• Marian Salzman, Euro RSCG Worldwide PR• Gary Stockman, Porter Novelli

Audit Committee• Andy Cooper (Chair), CooperKatz & Company• Jens Bang, Cone• Tom Coyne, Coyne Public Relations• Doug Spong, Carmichael Lynch Spong

Client Services Committee• Kathy Baughman, HLB Communications • Kate Cronin, Ogilvy Public Relations Worldwide• Ron Culp, Ketchum • Bryan Harris, Taylor• Paul Jensen, Weber Shandwick• Rich Jernstedt, Fleishman-Hillard• Kirk Stewart, APCO Worldwide• Harlan Teller, FD

Eligibility & Membership Committee• Cos Mallozzi (chair), Gibbs & Soell Public Relations • Mark Eber, IMRE • Patrick Ford, Burson-Marsteller• David Fuscus, Xenophon Strategies • Kathryn Morrison, SunStar Strategic

Issues Monitoring Committee• Shanna Duncan, Hyde Park Communications• Margaret Dunning, Widmeyer Communications• David Fuscus, Xenophon Strategies• Jan Hausrath, APCO Worldwide• Michael Kehs, Hill & Knowlton• Tammy Lindenberg, Xenophon Strategies• Rob Mathias, Ogilvy Public Relations Worldwide• Jeff Weintraub, Fleishman-Hillard

Leadership & Governance Committee• Abby Carr (chair), BlissPR• Margaret Booth, M Booth & Associates • Margery Kraus, APCO Worldwide• Laura Tomasetti, 360 Public Relations• Doug Spong, Carmichael Lynch Spong• Julie Winskie, Porter Novelli

Leadership Training Task Force• Abby Carr (chair), BlissPR• Leslie Copeland, Waggener Edstrom Worldwide• Mildred Galvin, Fleishman-Hillard• Rita Masini, MSLGROUP• Elise Mitchell, Mitchell Communications Group

HR RoundtableChair – Stephanie Howley, Cohn & Wolfe

CFO RoundtableChair – Marty Franken, Constituency Management Group

In 2011 the Council is creating new communities toaddress specific topics:• COO Community• Measurement and Evaluation Standards• Procurement Task Force

The Council is committed to providing outstanding educational programs focused on the needs ofpublic relations firms. Have a look at some that were offered in 2010.

Critical Issues Forum: Staring Down the Future – Learning to Thrive in an Integrated World

“This is PR’s time to shine.” This was both a direct quote and an overalltheme during Marc Pritchard’s Critical Issues Forum keynote. Speaking infront of a capacity crowd, Pritchard, the global marketing and brandbuilding officer for Procter & Gamble, presented several cases thatdemonstrated the strength of public relations and how it is often the engineof effective “purpose-inspired brand-building” campaigns for P&G’sportfolio of brands.

Ali Velshi, chief business correspondent for CNN, led off the program withsharp insights into the mindset of post-recession consumers.

Babson College president Len Schlesinger led the Socratic discussionamong several brand marketers, addressing the main topic for the event“learning to thrive in an integrated world.” Panelists included: Ted Gilvar,chief marketing officer, Monster Worldwide; Leontyne Green, chiefmarketing officer, IKEA U.S.; Christian McMahan, former chief marketingofficer, Heineken USA; Larry Solomon, senior vice president, corporatecommunications, AT&T; and Jessica Zoob, senior vice president, globalbusiness development, American Express.

The High Point Series

Developed and launched in 2010, the High Point Series is a comprehensive series of professional development coursesspecially created for mid- to senior level public relations professionals. The curriculum is designed to assist high potentialprofessionals cultivate the leadership and management skills necessary to lead a public relations firm.

The first two programs, Motivating and Managing People and Understanding theFinances of Your Business, were offered in July and September, in Washington DC andNew York City respectively. The series continues in 2011 with the following modules:Managing Client Relationships, New Business Development, Ideas and Innovationand Agency Leadership.

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Events: Educating & Networking

Ali Velshi

Year-by-year percentage growth ofCritical Issues Forum attendance

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Events: Educating & Networking (cont.)

Harvard Leadership Program Leadership and Decision Making for Superior Performance

June

PR Leadership Forum co-sponsored with The Arthur W Page Society and the Institute forPublic Relations

February | hosted by KetchumAugust | hosted by Burson-Marsteller

Finding the Right Balance: Optimizing Social Media inHighly Regulated Industries panel discussionDeveloped and hosted by the Client Advisory Committee the discussionfeatured panelists from the Corporate Executive Board, Davis & GilbertLLP, Johnson & Johnson, Scottrade and State Farm.

September | hosted by Ogilvy Public Relations Worldwide

WebinarsApril | Bridging Brands and Bloggers

July | Augmented Reality: What PR Firms Should Know

July | Implications of Healthcare Reform for your Firm

Howard University Career FairHeld in March on the campus of Howard University, 21 member firmsmet with dozens students from Howard and American Universities

LAGRANT Foundation Career WorkshopsFebruary | New York UniversitySeptember | Cohn & Wolfe

2010 BreakfastRoundtable SeriesThanks to the following firms forhosting

• Boston > 360 Public Relations

• Chicago > Ketchum

• Dallas > Weber Shandwick

• Denver > Linhart PR

• Los Angeles > Consensus Inc.

• Minneapolis > Padilla SpeerBeardsley

• New York > MSLGROUP

• San Francisco > Text 100

• Seattle > Waggener EdstromWorldwide

• St. Louis > Fleishman-Hillard

• Washington DC > WidmeyerCommunications

17.5%Percentage of Harvard Leadership Program attendees that have attended more than once

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The Firm Voice Blog

The Council’s weeklyblog provides thoughtleadership for the publicrelations industry on a

wide range of topics, from digital communications trends and PR industrydata to the latest on consumer behavior and government regulations.Several guest posts by Council members contributed to the success of theblog, which attracted more than 10,000 unique visitors from over 100countries in 2010.

You can also find the Council on

Twitter: @CouncilPRFirms

Flikr: flickr.com/councilprfirms

Slideshare: slideshare.com/councilprfrims

Social Media

Most read Firm Voiceposts of 2010• I Hate Facebook

• To be a Leader Get in Your"Discomfort Zone"

• The Science of Creativity andPR Firm Success

• 3rd Quarter Member SurveyResults: PR Rebounding Thanksto Social Media

• Reverberations: The FTC MeansBusiness and What PR FirmsShould Do

Stakeholders 2.0: How to Build Better Social Media Campaigns Published November 10, 2010

Applying a modified version of the Groundswell framework developed by Forrester Research, this white paper featured amatrix tool for developing an effective social media campaign. The paper also described sample public relations actionsthat campaigns use to mobilize specific social media stakeholders, offering examples from successful campaigns.

The PR Factor Released November 29, 2010 in AdAge (distribution – 250,000) and on adage.com

“The expanding roles of digital options changes where and how consumers and businessesreceive information, the need for content has increased geometrically… Public relations firms findthemselves at the center of this content revolution. With an historic focus on two-waycommunications, public relations professionals innately understand many of these new,interactive content opportunities.” — EXCERPT FROM CONTENT CREATORS

Articles Included: The Digital Sweet Spot; Content Creators; Q&A With Procter & Gamble’s Marc Pritchard; Metrics of

Success; Playing By The Rules

Both can be found on www.prfirms.org

Publications

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Publications (cont.)

Issues Monitoring Report Released April 2010

Articles included:

• Five Lessons from Health Reform

• Privacy and Behavioral Marketing: A Briefing

• The FTC and Its Impact on the Social Media Landscape: An Update

• States Moving Aggressively on Sales Tax Audits

• Form 1099 Expansion and Your Firm

Premier Partner Program

In 2010, the Council announced its charter Premier Partners: five leading service providers to thepublic relations industry whose thought leadership, practical experience and financial support willfurther the Council’s mission to advance the interests of its 100-plus member firms nationwide, andthe pubic relations profession overall.

The Council’s Premier Partners are best-in-class experts: Business Wire, the Berkshire Hathaway-owned leader in pressrelease distribution; Davis & Gilbert, the preeminent law firm for marketing communications companies; EVENTSYTLE,an international experience design and event production agency; Option A Advisors, a consultancy focused on helpingagency principals realize full enterprise value; and Synaptic Digital, the leading global media solutions provider, formedthrough the integration of The NewsMarket and Medialink.

Research

Proprietary research reports available free to members only:

• Compensation & Benefits Survey with Deloitte

• Business Benchmarking Survey

• Quarterly Quick Surveys

1,238average number of click-thrus to member websites from Find-A-Firm

25 Council events held in 2010

Find-a-Find is a searchable databasedesigned to help clients with anagency search.

2010 ANNUAL REPORT | 10

COUNCIL OF PUBLIC RELATIONS FIRMS, INC.

STATEMENT OF FINANCIAL POSITIONDecember 31, 2010 December 31, 2009

Cash $738,955 $887,861

Accounts Receivable 1,413 4,543

Property & Equipment – Net 8,988 7,460

Other Assets 21,291 14,768

Liabilities (65,853) (211,216)

Net Assets $704,794 $703,416

STATEMENT OF REVENUE AND EXPENSESFor the Year Ended

December 31, 2010 December 31, 2009

REVENUES

Dues $ 899,873 $ 904,189

Other Revenue 278,403 196,197

$1,178,276 $1,100,386

FUNCTIONAL EXPENSES

Business Advocacy $ 222,624 $ 296,119

Talent Advocacy 140,178 73,434

Agency Management 529,088 450,155

Industry Relations 190,296 149,459

Management & General 94,712 88,195

Total Expenses 1,176,898 1,057,362

Increase in Net Assets $ 1,378 $ 43,024

Financial Highlights

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877-PRFIRMS (877-773-4767) • 877-PRFAXES (877-773-2937)

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