2011

A n n u a l R e p o r t

2011 A n n u a l R e p o r t 2

Council Mission

Advocate for and advance the business of public relations firms by building the market and the value of firms as strategic business partners.

2011 Board of Directors

Executive Committee

Andy Polansky, Chair, Weber Shandwick

Ken Eudy, Treasurer, Capstrat

Laura Tomasetti, Secretary, 360 Public Relations

Janet Tyler, Tier Liaison, Airfoil Public relations

Elise Mitchell, Tier Liaison, Mitchell Communications Group

Margery Kraus, Immediate Past Chair, APCO Worldwide

Kathy Cripps, President, Council of Public Relations Firms

Board Members

Christine Barney, rbb Public Relations

Amy Binder, RF|Binder Partners, Inc.

Tom Coyne, Coyne Public Relations

David Fuscus, Xenophon Strategies

Donna Imperato, Cohn & Wolfe

Sharon Linhart, Linhart Public Relations

Ken Makovsky, Makovsky + Company

Becky Powell-Schwartz, The Powell Group

Jennifer Prosek, CJP Communications

Dave Senay, Fleishman-Hillard

Gary Stockman, Porter Novelli

Melissa Waggener Zorkin, Waggener Edstrom Worldwide

2011 A n n u a l R e p o r t 3

Letter from the Chair

2011 was another strong year for the public relations business, and the Council and its membership continue to set the pace for an industry that is positioned well for continued success.

With its mission of advancing the business of public relations firms, and supporting the public relations industry as a whole, the Council in its thirteenth year of operations focused on key initiatives vital to the future of the business.

One area high on the agenda, clearly, is the opportunities firms have to generate business around digital marketing and social media. The Council put a stake in the ground at the agenda-setting SXSW Interactive with a standing-room-only panel discussion comprised of leading marketers. The Council seized on other opportunities to promote public relations firms’ social and digital expertise through ongoing media outreach.

Promoting diversity and inclusion is another priority for the Council. To bring attention and spur action in this area, the Council held two 1/2-day workshops with FutureWorks Institute. The Council also launched the inaugural Diversity Distinction in PR Awards with PRWeek. The initiative received a great deal of support from across the industry and laid the groundwork for an expanded awards program in 2012.

Your Board of Directors has identified other key priorities as well. We are working toward the development of common language and standards in measurement and analytics. This has become increasingly important as we have seen budget increases and associated requests for ROI data. The Council’s measurement task forces joined up with IPR, AMEC and other leading research-oriented groups in the Fall to build upon this important work, which started at the beginning of the year.

We also have been undertaking efforts to educate the procurement community about the public relations industry. A procurement white paper, developed with our CFO roundtable and members of the ANA financial services committee, was an example of like-minded groups collaborating for important educational and awareness campaigns. We also have held several meetings with procurement executives from large U.S. multinational companies and PR firm executives to continue this education process.

As you will see in the following pages of this annual report, it was indeed a busy and productive year for us.

There has never been a better time for public relations. As chair, I have relished the opportunity to work with so many of you in our collective effort to move the industry forward. Thanks for your support.

Andy PolanskyChair 2010-2012President, Weber Shandwick

2011 A n n u a l R e p o r t 4

Strategic Planning Session

The Council revisted and revised its strategic plan in March in order to align priorities with the changing communications environment. The plan was previously updated in 2007.

Mission Statement:Advocate for and advance the business of public relations firms by building the market and the value of firms as strategic business partners.

Principles:• Promote excellence in the practice of public relations• Enhance future success for member firms in a rapidly changing environment• Share best practices in firm management• Champion honesty, integrity and transparency• Expand and diversify the talent pool

Strategic Objectives:• Facilitating firm growth• Advocacy of firms• Making member firms better

The Council’s Strategic Framework

A g e n c y M a n a g e m e n t A d v o c a c y

Stakeholder Outreach

Media Relations

Data/Benchmarking

Networking & Business

Management Events

Leadership & Professional

Development

2011 A n n u a l R e p o r t 5

Governance of the Council

The following committees help shape and implement the Council’s agenda and respond to member needs. Thanks to those who gave generously of their time and talents in 2011.

Agency Management CommitteeThe Agency Management Committee’s focus is to provide member firms with programs that help achieve increased revenue growth and operational efficiency. The committee oversees many of the Council’s strategic programming and events, including the Critical Issues Forum.

• Ralph Katz (co-chair), CooperKatz & Company • Luke Lambert (co-chair), Gibbs & Soell Public Relations • Kate Cronin, Ogilvy Public Relations Worldwide• Rob Flaherty, Ketchum (chair, Critical Issues Forum) • Patrick Ford, Burson-Marsteller • Jim Joseph, Cohn & Wolfe• Ed Moed, Peppercom• Marian Salzman, Euro RSCG Worldwide PR

Audit Committee• Ken Eudy (Chair), Capstrat• Andy Cooper, CooperKatz & Company• Jens Bang, Cone Communications• Tom Coyne, Coyne Public Relations

Eligibility and Membership CommitteeThe Eligibility and Membership committee recruits and reviews prospective members based on defined standards of client service, fiscal accountability, professional development and business operations.

• Cos Mallozzi (chair), Gibbs & Soell Public Relations • Pat Ford, Burson-Marsteller• David Fuscus, Xenophon Strategies • Mark Eber, IMRE

2011 A n n u a l R e p o r t 6

Governance of the Council continued

Issues Monitoring CommitteeThe committee helps keep Council members apprised of issues that have the potential to impact their business through periodic issues reports.

• Margaret Dunning, Widmeyer Communications• David Fuscus, Xenophon Strategies• Jan Hausrath, APCO Worldwide• Tammy Lindenberg, Xenophon Strategies• Rob Mathias, Ogilvy Public Relations Worldwide• Jeff Weintraub, Fleishman-Hillard

Leadership & GovernanceThe Leadership & Governance committee plays an integral role in the identification and education of new Council Board members.

• Laura Tomasetti (chair), 360 Public Relations• Jens Bang, Cone Communications• Margery Kraus, APCO Worldwide• Sharon Linhart, Linhart Public Relations• Jen Prosek, CJP Communications• Gary Stockman, Porter Novelli

Leadership Training Task ForceThe leadership Training Task Force assists with the identification and development of leadership training programs, including the High Point Series.

• Leslie Copeland, Waggener Edstrom Worldwide• Mildred Galvin, Fleishman-Hillard• Rita Masini, MSLGroup• Elise Mitchell, Mitchell Communications Group

HR RoundtableThe HR Roundtable identifies and discusses HR best practices, including talent and legal trends, and drives participation for several talent-related programs throughout the year.• Co-Chair – Stephanie Howley, Cohn & Wolfe• Co-Chair – Maya Kalkay, Burson-Marsteller

2011 A n n u a l R e p o r t 7

Governance of the Council continued

CFO RoundtableThe CFO Roundtable addresses the financial topics associated with growing and managing a public relations firm; it also designs the annual business benchmark study.• Chair – Marty Franken, Constituency Management Group

COO CommunityLaunched in 2011, the COO Community is an interactive peer group of chief operating officers focused on networking and sharing best practices that impact their firms’ core business operations.• Chair – Bryan Harris, Taylor

2011 A n n u a l R e p o r t 8

Business Management Events

The Council is committed to providing outstanding educational programs that are focused on the needs of public relations firms.

The Critical Issues Forum is the Council’s signature annual revent, and 2011 was a sellout.

Marked by social movements, from the Arab Spring to the Occupy Wall Street protests, 2011 was a year of community-driven crusades. But what role does public relations play in reaching communities and motivating them to action? The 2011 Critical Issues Forum featured speeches and discussions from leaders from politics, media and marketing, all facilitated by Babson College president Len Schlesinger. The event was chaired by Ketchum president, Rob Flaherty. Led by a keynote speech from former White House Press Secretary Robert Gibbs and a live interview with Pete Cashmore, Founder and CEO of Mashable, the 2011 Critical Issues Forum attracted more than 250 PR industry leaders. Additional speakers included Maryam Banikarim, Chief Marketing Officer, Gannett Co.; Jane Harrell, Associate Producer, Petfinder.com; Gary Hoenig, General Manager & Editorial Director, ESPN Publishing; Dustee Tucker Jenkins, Vice President, Communications, Target; and Evan Welsh, Director,

Global Media Relations, SAP.

Following the Critical Issues Forum, the Council hosted two special Premier Partner workshops: Cracking the CODE: Storytelling Across Earned, Owned & Paid Media led by Premier Partner Synaptic Digital and Enhancing Agency Value led by Premier Partners Option A Advisors and Davis & Gilbert LLP.

On the eve of the Critical Issues Forum, the Council’s Annual Dinner featured a conversation with Tyler Mathisen, co-anchor of CNBC’s Power Lunch.

Critical Issues Forum keynote speaker

Robert Gibbs

Pete Cashmore, Founder & CEO, Mashable

Social Revolution

November 21, 2011 | The New York Club, NYC

Are you mobilizing communities or just another voice in the crowd?

SOCIAL REVOLUTIONor just a voice in the crowd?

Are you mobilizing communities

2011 A n n u a l R e p o r t 9

Business Management Events continued

2011 South by Southwest Panel: Marketing Budgets Have Gone Social - Is it Working? In front of a standing-room-only crowd at South by Southwest Interactive in Austin, the Council-sponsored panel discussion focused on how brands have shifted their budgets into socially-driven campaigns and the impact it has had on business.

Moderated by Council member Kathy Baughman, Principal, ComBlu, the panel featured Julie Hamp, former Senior Vice President and CCO, PepsiCo; Kris Narayanan, Vice President, Digital Marketing, Samsung; and David Witt, Director, Global Digital Marketing & Brand Public Relations, The Hershey Company.

Additional Council ProgramsHow to Win a Cannes Lion Hosted by USA Today, the Council invited judges for the 2011 Cannes International Festival of Creativity to share insights with members on how to win one of marketing’s top international awards.

Breakfast Briefings: Findings from the 2010 Strategic Initiative Study with FD and the Arthur W Page SocietyCouncil members in New York City and Chicago were provided unique insights into the study, which reinforced the importance of bridging strategy and communications.

2011 A n n u a l R e p o r t 10

Business Management Events continued

Breakfast RoundtablesThe Council organized networking meetings across the country to bring PR firm leaders together to discuss the opportunities and challenges related to client and talent trends, as well as market specific needs.

Thanks to the following Council members for hosting.• Atlanta – Jackson Spalding• Austin – Hill+Knowlton Strategies• Boston – PAN Communications• Chicago – Fleishman-Hillard• Dallas – Weber Shandwick• Detroit – Airfoil Public Relations• Los Angeles – FTI Consulting• New York - GolinHarris• San Francisco - WCG• Seattle – Waggener Edstrom• Washington DC – Ogilvy Public Relations Worldwide

The Council’s Top Rated ProgramsAccording to the Council’s 2011 Member Survey, the following events were ranked in order of value to members.

Event (in order of rank)

1. Harvard Leadership Program with Dr. Nanda

2. Critical Issues Forum

3. Breakfast Roundtables and regional meetings

4. High Point Series (Firm Finances, New Business, Managing, Motivating People)

5. Council webinars (various topics)

2011 A n n u a l R e p o r t 11

Leadership & Professional Development Programs

Diversity Distinction in PR AwardsTo honor excellence in promoting ethnic diversity within the public relations sector, the Council, in partnership with PRWeek, launched the inaugural Diversity Distinction in PR Awards in 2011. The awards aim to support and inspire professionals of diverse backgrounds and those who strive to encourage and strengthen diversity across the public relations workforce in the following three categories:• Best Public Relations Firm Diversity Initiative

Winner: APCO Worldwide• Best Community Initiative

Winner: Porter Novelli• Diversity Champion

Winner: Kim Hunter, LAGRANT Communications

Diversity & Inclusion Workshop with FutureWorksThe Council collaborated with the FutureWork Institute to create a special diversity and inclusion train-the-trainers session, designed to help firms establish, and/or reenergize, diversity and inclusion initiatives.

Held in New York City and Chicago, the workshop provided the business case for diversity and inclusion, offered participants the opportunity to learn about best practices and provided a process for determining the strategic and appropriate actions for each organizations.

Additional Professional Development ProgramsHarvard Leadership Program Fifty attendees participated in the Council’s perennially top-rated educational program to learn Dimensions of Leadership in Professional Service Firms. Participants learned methods for implementing organizational change in addition to effective management and negotiating skills. This marked the 8th year the Council has partnered with Dr. Ashish Nanda, Faculty Chair, Executive Education, and Research Director, Center for Law and the Professions, Harvard University.

2011 A n n u a l R e p o r t 12

Leadership & Professional Development Programs continued

High Point Series• Motivating & Managing People - This specially

designed agency management program was created for mid-level public relations professionals, to help them develop the mentoring and leadership skills necessary to lead productive and motivated account teams.

• Understanding the Finances of Your Business - Attendees learned to interpret and assess the critical factors and metrics associated with the finances of running a public relations firm.

PR Leadership Forum Co-sponsored by the Council of Public Relations Firms, the Arthur W. Page Society, and the Institute for Public Relations the Leadership Forum’s major objective is to develop outstanding future leaders of public relations and communications, and to provide networking opportunities where rising stars can learn from national leaders in the field and from each other.

Student OutreachThe Council organized and participated multiple programs in 2011 designed to help prepare college students for a career in public relations, including:• Howard University Career Fair• LAGRANT Foundation Scholarship Awards• Internfest The Council held events for college

students and future PR professionals including the annual Internfest (right) and

the Howard University Career Fair (left).

2011 A n n u a l R e p o r t 13

Premier Partners

The Council’s Premier Partners are top-tier service providers, long-established and emerging, with deep knowledge of the business of public relations firms.

Premier partnerships go beyond financial support to the Council. These companies help public relations firms grow and prosper. Our partners look forward to sharing their latest proprietary research, battle-tested insights and specialized knowledge through webinars, white papers and programs with Council members.

2011 Partners

2011 A n n u a l R e p o r t 14

Premier Partner Webinar Series

The Council held a series of educational webinars led by our Premier Partners. Titles in the series included:

• Protecting Intellectual Property During the New Business Process – Davis & Gilbert LLP: The webinar covered various aspects of protecting intellectual property during the pitch process, including speculative creative work, and the ins and outs of negotiating intellectual property during the process.

• Maximizing Your Agency’s Value: As an Asset or a Lifestyle - Option A Advisors: Specially designed for independent firm owners, this program provided strategies for leaders who manage their firm as an asset or a lifestyle.

• Firming Up the Firm: Better Information, Better Results – Deltek: Featuring Andy Kochar of Council member firm Ogilvy Public Relations Worldwide, the webinar provided information for firms on how to improve back-end systems and increase efficiency.

• Using Consumer Insights to Win and Keep Clients – VeraQuest: Participants in this webinar learned how to uncover new trends or unexpected insights that can inspire and underpin new business campaigns, and bring fresh thinking to mature relationships.

2011 A n n u a l R e p o r t 15

Publications

The 2011 PR Factor: “Leading Today’s Marketing Conversations”A 16-page custom publication that appeared in Advertising Age, November 2011.

Procurement Q&ADeveloped by the public relations firms CEOs, CFOs and client procurement representatives to be used as a resource for procurement professionals when assessing contracts with public relations firms.

The Firm Voice BlogPosting new content weekly, the Firm Voice Blog provides thought leadership for the public relations industry by raising the awareness of and having a point of view on the issues and trends that impact public relations firms and their clients.

Business Benchmarking SurveyManaged by the CFO Roundtable, this annual survey is an unrivaled source of customized data for public relations firms.

Quick SurveysConducted quarterly, Quick Surveys provided a snapshot into business, clients and industry trends.

Issues Monitoring ReportsHelp members stay informed on developing issues on Capitol Hill and beyond that impact their firms and clients.

2011 A n n u a l R e p o r t 16

Resources

The Councils Top Rated ResourcesAccording to the Council’s 2011 Member Survey the following resources were ranked in order of value to members.

Event (in order of rank)

1. Compensation and benefits survey (w/Deloitte)

2. Annual business benchmark survery

3. Quarterly quick surveys

4. Networking Opportunities

5. Issues Monitoring Reports

2011 A n n u a l R e p o r t 17

Financial Highlights 2011

COUNCIL OF PUBLIC RELATIONS FIRMS, INCFinancial Highlights

Statements of Financial Position December 31,

2011 2010 Cash $851,141 $738,955Accounts Receivable 1,413 Property & Equipment- Net 6,994 8,988 Other Assets 25,046 21,291 Liabilities (104,202) (65,853)

Net Assets $778,979 $704,794

Statements of Revenue and Expenses For the Year Ended December 31,

2011 2010 Revenues Dues $926,537 $899,873 Other Revenues 359,016 278,403

$1,285,553 $1,178,276 Functional Expenses Business Advocacy $232,300 $222,624 Talent Advocacy 196,501 140,178 Agency Management 481,290 529,088 Industry Relations 191,633 190,296 Management & General 109,644 94,712

Total Expenses 1,211,368 1,176,898

Increase in Net Assets $74,185 $1,378

2011 A n n u a l R e p o r t 18

2011 Council of Public Relations Firms Members

360 Public Relations LLC

Ackermann PR

Adfero Group

Airfoil Public Relations

Anne Klein Communications Group, LLC

APCO Worldwide

Barkley

Behan Communications, Inc.

Bliss PR

Burson-Marsteller

Capstrat

Carmichael Lynch Spong

Catalyst Public Relations

Chandler Chicco Agency

Citizen Paine

CJP Communications

Cohn & Wolfe

Communiqué PR

Cone Communications

Consensus Inc.

CooperKatz & Company

Corporate Ink Public Relations, Ltd.

Coyne Public Relations

Cramer-Krasselt PR

Crenshaw Communications

CRT/tanaka

DeVries Public Relations

Dix & Eaton

Emanate

Euro RSCG Worldwide PR

Fahlgren Mortine Public Relations

Fleishman-Hillard

French | West | Vaughan

FTI Consulting

G.S. Schwartz & Co.

Gibbs & Soell, Inc.

GolinHarris

GreenTarget Global Group, LLC

Gregory FCA Communications, Inc.

Ground Floor Media, Inc.

Hanser & Associates

Hill+Knowlton Strategies

HLB Communications

The Hoffman Agency

Horn Group, Inc.

IMRE

Jackson Spalding, Inc.

Jasculca/Terman & Associates

JeffreyGroup

JohnstonWells Public Relations

KAPLOW

Ketchum

Kwittken & Company LLC

L.C. Williams & Associates

Lambert, Edwards & Associates

LaunchSquad LLC

Linhart Public Relations

Lippe Taylor

LVM Group

M Booth

Makovsky + Company

Marina Maher Communications

Middleberg Communications LLC

Mitchell Communications Group

MSLGROUP Americas

Nyhus Communications

Ogilvy Public Relations Worldwide

O’Malley Hansen Communications

Padilla Speer Beardsley

PAN Communications

Paul Werth Associates

Peppercom

Pierpont Communications

Porter Novelli

The Powell Group

Rasky Baerlein Strategic Communications

rbb Public Relations

Reputation Partners, LLC

Revive Public Relations

RF|Binder Partners, Inc.

RLF Communications, LLC

Ron Sachs Communications

Saxum

Sharp Communications, Inc.

SPECTRUM

Standing Partnership

Stanton Communications

SunStar Strategic

Taylor

Text 100 Public Relations

Tier One Partners

Tonic Life Communications

Torme Lauricella

Tunheim Partners, Inc.

The Vandiver Group, Inc.

Waggener Edstrom Worldwide

WCG

Weber Shandwick

Widmeyer Communications

Wragg & Casas Public Relations

Xenophon Strategies, Inc.

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