"The care of intangible assets has been lost in many places"
Ulrich Bollmann, President of the BPRA, on current developments in the PR industry
Ulrich Bollmann, President of the BPRA, on current developments in the PR industry "The maintenance of intangible assets has been lost in many places"
The Association of Public Relations Agencies in Switzerland (BPRA) is celebrating its 25th anniversary these days. Ulrich Bollmann, BPRA President and CEO of Burson-Marsteller Switzerland, thinks out loud about the possibilities of PR in the current crisis, comments on budgets and ventures a look into the future.
The BPRA is 25 years old. How does it exploit the anniversary in a PR-friendly way?
Ulrich Bollmann: The highlight is of course the platform that WerbeWoche is offering us with this interview. We also invited all management members of the affiliated member companies, friendly associations and the trade media to a high-profile anniversary event. We also revamped our entire documentation, including the website. PR people simply do anniversaries a little differently than their more navel-gazing colleagues in advertising.
What were the key stages in BPRA's history?
Bollmann: The decision of the three founding agencies to make the BPRA an association open to all agencies with a certain performance record, the development of transparent market statistics together with a skills index for members and, finally, in more recent times, the systematic development of tools to improve agency management.
Groucho Marx once declared that he would never join a club that accepted him as a member. What is there to whisper about the non-members of the BPRA, who represent around 20 percent of the market?
Bollmann: Very few people like the role of Groucho Marx. However, we consider most of them to be potential members as soon as they meet the admission criteria.
PR agencies are expecting slower growth in the current year. Surprising in a time of many crises and communication breakdowns.
Bollmann: Only to a certain extent. You have to differentiate between bad business strategies that can't be covered up even with the best communication advice, and good business strategies that are poorly sold. I have the impression that the former category currently predominates. Where self-criticism is lacking and personal self-interest dominates business decisions, even communication strategies, media training and brilliantly written statements can no longer lead the way.
A year ago, the agencies expected an increase in fees of 15 percent for 2001. Now they are expecting a total of 1.3 percent growth. Which budgets have lost the most money?
Bollmann: I don't know of any major industry in which annual budgets have not been massively reduced in all areas in recent months. As a supplier, we are automatically affected by this. When Switzerland fell into a similar downward spiral ten years ago, most company managers still had pangs of conscience and put a lot of effort into communication in an attempt to alleviate the consequences for those affected. Today, short-term thinking cost center managers dominate for the most part. The sense of caring for intangible assets has been lost in many places. This is a mistake that will cost many companies dearly.
What are the PR industry's expectations for the coming year and how does this compare with other countries?
Bollmann: All agencies expect the current trend to continue. At Burson-Marsteller, we expect another slightly above-average development. I don't have any comparisons with other countries. The second PR World Congress will take place in San Francisco in mid-November, which will provide more information.
How do agencies react to lower growth rates?
Bollmann: Apart from the smallest companies, every agency must ensure that staff costs do not exceed 60 percent of fee income in the long term. Otherwise they can no longer finance the infrastructure for a professional service. This is why services that were initially outsourced to freelancers are now provided in-house. Greater caution is exercised when replacing employees who have left the company. In view of the persistently difficult personnel market, salary cuts are probably the last resort.
What is happening in the area of training?
Bollmann: Training in our industry is provided by the SPRI and the Sawi, which is why the BPRA does not consider this area to be a core task. This does not include special issues relating to agency management, for example in the area of employment contracts or client contracts. It is unbelievable how legalized we have become in recent times. Clients in large companies in particular occasionally allow their in-house lawyers to accompany the awarding of contracts to an extent that is downright counterproductive.
What is the BPRA's most important goal for the coming year?
Bollmann: The General Assembly has decided to establish intensive contact with federal administration agencies that award PR contracts. In doing so, we want to improve the professionalism of tenders, as this is the only way to ensure that the taxpayers' money that flows to the agencies as part of such contracts can be translated into efficient services.
What is the most important goal of BPRA President Ulrich Bollmann?
Bollmann: To implement this mandate from the members along with all other ongoing tasks.
What PR task would particularly attract Burson-Marsteller in Switzerland?
Bollmann: That's almost the patriotic question. Seriously, the Solidarity Foundation is a very interesting topic. And not just the referendum, but also the subsequent support. Its value lies not only in its establishment, but also in its long-term positioning with founders and future beneficiaries. The tool has potential because it is as unique worldwide as the ICRC. Neither individual birth defects nor party political bluster can obscure this. As a company that is firmly rooted in the country through our activities, with expertise in the field of public affairs and a global network, we have what it takes to turn it into a success story. Interview: Andreas Panzeri
The Association of Public Relations Agencies in Switzerland (BPRA) is celebrating its 25th anniversary these days. Ulrich Bollmann, BPRA President and CEO of Burson-Marsteller Switzerland, thinks out loud about the possibilities of PR in the current crisis, comments on budgets and ventures a look into the future.
The BPRA is 25 years old. How does it exploit the anniversary in a PR-friendly way?
Ulrich Bollmann: The highlight is of course the platform that WerbeWoche is offering us with this interview. We also invited all management members of the affiliated member companies, friendly associations and the trade media to a high-profile anniversary event. We also revamped our entire documentation, including the website. PR people simply do anniversaries a little differently than their more navel-gazing colleagues in advertising.
What were the key stages in BPRA's history?
Bollmann: The decision of the three founding agencies to make the BPRA an association open to all agencies with a certain performance record, the development of transparent market statistics together with a skills index for members and, finally, in more recent times, the systematic development of tools to improve agency management.
Groucho Marx once declared that he would never join a club that accepted him as a member. What is there to whisper about the non-members of the BPRA, who represent around 20 percent of the market?
Bollmann: Very few people like the role of Groucho Marx. However, we consider most of them to be potential members as soon as they meet the admission criteria.
PR agencies are expecting slower growth in the current year. Surprising in a time of many crises and communication breakdowns.
Bollmann: Only to a certain extent. You have to differentiate between bad business strategies that can't be covered up even with the best communication advice, and good business strategies that are poorly sold. I have the impression that the former category currently predominates. Where self-criticism is lacking and personal self-interest dominates business decisions, even communication strategies, media training and brilliantly written statements can no longer lead the way.
A year ago, the agencies expected an increase in fees of 15 percent for 2001. Now they are expecting a total of 1.3 percent growth. Which budgets have lost the most money?
Bollmann: I don't know of any major industry in which annual budgets have not been massively reduced in all areas in recent months. As a supplier, we are automatically affected by this. When Switzerland fell into a similar downward spiral ten years ago, most company managers still had pangs of conscience and put a lot of effort into communication in an attempt to alleviate the consequences for those affected. Today, short-term thinking cost center managers dominate for the most part. The sense of caring for intangible assets has been lost in many places. This is a mistake that will cost many companies dearly.
What are the PR industry's expectations for the coming year and how does this compare with other countries?
Bollmann: All agencies expect the current trend to continue. At Burson-Marsteller, we expect another slightly above-average development. I don't have any comparisons with other countries. The second PR World Congress will take place in San Francisco in mid-November, which will provide more information.
How do agencies react to lower growth rates?
Bollmann: Apart from the smallest companies, every agency must ensure that staff costs do not exceed 60 percent of fee income in the long term. Otherwise they can no longer finance the infrastructure for a professional service. This is why services that were initially outsourced to freelancers are now provided in-house. Greater caution is exercised when replacing employees who have left the company. In view of the persistently difficult personnel market, salary cuts are probably the last resort.
What is happening in the area of training?
Bollmann: Training in our industry is provided by the SPRI and the Sawi, which is why the BPRA does not consider this area to be a core task. This does not include special issues relating to agency management, for example in the area of employment contracts or client contracts. It is unbelievable how legalized we have become in recent times. Clients in large companies in particular occasionally allow their in-house lawyers to accompany the awarding of contracts to an extent that is downright counterproductive.
What is the BPRA's most important goal for the coming year?
Bollmann: The General Assembly has decided to establish intensive contact with federal administration agencies that award PR contracts. In doing so, we want to improve the professionalism of tenders, as this is the only way to ensure that the taxpayers' money that flows to the agencies as part of such contracts can be translated into efficient services.
What is the most important goal of BPRA President Ulrich Bollmann?
Bollmann: To implement this mandate from the members along with all other ongoing tasks.
What PR task would particularly attract Burson-Marsteller in Switzerland?
Bollmann: That's almost the patriotic question. Seriously, the Solidarity Foundation is a very interesting topic. And not just the referendum, but also the subsequent support. Its value lies not only in its establishment, but also in its long-term positioning with founders and future beneficiaries. The tool has potential because it is as unique worldwide as the ICRC. Neither individual birth defects nor party political bluster can obscure this. As a company that is firmly rooted in the country through our activities, with expertise in the field of public affairs and a global network, we have what it takes to turn it into a success story. Interview: Andreas Panzeri
