PR Networks								Ruth Allen/Ruthmedia/1

ÔShandwick/McCann PR Merger Goes AheadÕ, ÔIncepta Snaps Up Key CommunicationsÕ, ÔBeattie to Re-boot LeedsÕ, ÔNP to Re-brand as publicrelations-uk.comÕ. A random selection of headlines from this yearÕs PR press gives an impression of PR on the move as never before. Whether through mergers, takeovers, link-ups or expansions, PR ÔnetworksÕ seem to be spreading their tentacles from the regions throughout the nation - and on to Europe and the world. Is the ÔnetworkÕ the model for modern PR? Why have so many networks been formed? Are they good for the industry? Will their growth continue?

Perhaps surprisingly for a trend that is so widely discussed in PR circles, the most difficult question is the basic one - what is a network? For some commentators, itÕs any PR consultancy with two, three, four or more offices throughout the UK.  Others emphasise the European and international dimension. Another model sees PR networks as one of the necessary constituent elements of a Ôfull serviceÕ agency. ÒOur network of full service offices provides PR, advertising, marketing, new media, telemarketing and recruitment services in four UK cities,Ó says Martin Long of Golley Slater PR. ÒWe also have an affiliate network of PR agencies reaching across Europe.Ó

 A number of commentators point to the shifting nature of networks. ÒThe big firms have always had a network of shops nationally, and later internationally,Ó says Chris McDowall, Director General of the PRCA. ÒWith this the buyer gets brand assurance. What has changed is that there are an increasing number of bilateral and multilateral agreements between different brands who come together to form ÔnetworksÕ so as to pass business from one market to another.Ó

Some networks may look like networks, but donÕt think they are. ÒWe wouldnÕt particularly call ourselves a network,Ó says Crawford Brankin, Operations Director of Beattie Media, who have spread to eight offices throughout the UK - including a key new one in the City of London - from their Glasgow base. ÒItÕs more a case of the natural expansion of a growing business. WeÕve no particular desire to get into the takeover business.Ó  Diane Page, Managing Director of Barkers in Birmingham, with £1 million turnover from two main centres in the Midlands and Scotland, has similar doubts about the concept. ÒWeÕre not really part of a network,Ó she says. ÒWeÕve been working well for twenty-seven years without any major takeovers. We offer a good service in each of our regions - the offices talk to each other but we donÕt share any clients or accounts.Ó 

Others who think they are networks might not be. ÒAre they real networks - or in name only?Ó asks Christopher Davies, Managing Director of the Bristol office of Grayling, whose Havas-owned network spreads to New York and Singapore. ÒDo they actually talk to each other or meet their colleagues?Ó This view is shared by Jonathan Reay of Whitfield Rush, the Birmingham consultancy which advises clients on PR choices and strategy. ÒA lot of networks are not real networks. Often itÕs just a company that happens to have two or three offices, in loose affiliation. With the exception of Harrison Cowley, I would question whether real networks actually exist.Ó  

Harrison Cowley, with ten offices throughout the UK and Ireland, feel you need something extra special to be counted as a network. ÒIt should mean more than just the bricks and mortar which make up the company - it should mean the culture of the people who work within it,Ó says Sandy Lindsay, newly appointed as associate director with special responsibilities for HCÕs network offer. ÒAt Harrison Cowley, we are truly networked in everything we do. We have no head office - each is as important as the other. We truly work as one big team - weÕre Ôone office with very long corridorsÕ - and this is what we believe makes us unique.Ó

Harrison Cowley have ideas about the reasons behind the recent changes ÒThere has certainly been something of an acquisition feeding frenzy as US multinationals grow in the only way they can,Ó says Lindsay. ÒItÕs not just a recent phenomenon, but itÕs certainly a developing trend. Big companies have to get bigger to deliver shareholder value.Ó This is confirmed by Nick Brown of Northern Profile, whose network has spread from Newcastle to Leeds, Manchester and recently London, with a forthcoming rebranding as publicrelations-uk.com. ÒItÕs natural if you want to be a big player,Ó says Brown. ÒEconomies of scale are good for a client, who can deal with one agency they know and like.Ó Chris McDowall of the PRCA sees it as a five year trend that has left the UK top ten with only one major independent consultancy. ÒPR consultancies are attractive propositions, particularly to the US owned advertising firms.  PR firms are cash cows - overheads are low and the return on investment is good.Ó

One of the other major incentives underlying the growth of networks is the economic, social, cultural and political re-aligment of the UK. The recent landmark report ÔThe Renaissance of Regional NationsÕ, commissioned by Harrison Cowley in association with the Newspaper Society, outlined the shift in power from London to the devolved, self-confident regions and the need for international brands to Òthink global - but act localÓ. ÒRegional economic and political structures and lifestyles are in the ascendancy,Ó says Nigel Sarbutts, Associate Director at Harrison CowleyÕs Leeds Office. ÒPR networks are there to serve that market, catering for example for multinationals who want to reach widely from the national to the local levels.Ó

 Sarbutts thinks networks are good for the industry because this ability to offer a local service in the context of a national set-up is good for the client. Sally Ward, UK Development Director of Countrywide Porter Novelli, agrees : ÒItÕs useful for clients who want regional representation, combined with the national back-up resources of a large agency.Ó  The same message comes from Brian Beech, Regional Director of the Havas-owned Leedex GTPR : ÒWeÕre chameleon like - we can be whatever the client wants. We have the local and regional knowledge, backed up by the expertise of our national network. Our accounts can be serviced by the best team for that clientÕs needs.Ó 

ÒIt gives the client more choice in terms of service,Ó says Rob Salmon, Co-Director of Shandwick International, currently re-branding as Weber Shandwick Worldwide. ÒWhen you have more consultants that you can use as an internal research pool, it provides a fantastic resource for clients to tap into.Ó Christine Arthur of Key Communications-Incepta sees it as a case of Ômore resources in the tool boxÕ to help the client. ÒBut thereÕs also an element of self-interest for the agency and its employees,Ó she adds. ÒThere are greater training choices and facilities on a UK, European and now even international level.Ó 

Flora Martin of InceptaÕs Citigate Smarts agrees it is good for employment. ÒNow we can improve investment in our staff, with opportunities throughout the world,Ó  she says. Nick Brown points to the tremendous opportunities for team-building and career development. ÒItÕs easy for people to work in other parts of the country, or for our training director to call in colleagues from other offices with specialist skills.Ó 

ÒCrossfertilisation is very important for us in our career development training,Ó says Nigel Sarbutts. ÒWe learn from our colleagues in different offices - itÕs important to take on board Ôvariations on a themeÕ.Ó  Jonathan Reay believes there are advantages for the industry as a whole in the growth in size and numbers of networks : ÒIt allows us to introduce more elements of quality control and evaluation of the service we provide.Ó

Amidst the general celebration of the network, are there any dissenting voices? A note of caution is added by a few of the key players. ÒMergers only work if both parties want it to happen,Ó warns Diane Page. ÒIf not, things can go badly wrong.Ó Nick Brown highlights another problem of expansion : ÒYou have to resist the pressure to open offices just anywhere, for the sake of opening offices.Ó Christine Arthur warns of the danger of becoming too big for your clients, and in her words Òattempting to be all things to all peopleÓ, a phrase also favoured by Jo Leah, Co-Director of Shandwick. ÒThe network model is excellent, but its effective delivery depends on the precise way it is structured organisationally and financially,Ó she says. ÒRegional companies, which are often Ôpersonality drivenÕ, also have to watch out when they expand - especially to London - that they donÕt lose that feature that makes them unique.Ó

ÒPeople should do what they are good at,Ó warns Sally Ward. ÒThat means there will always be a place for good local agencies.Ó  While this sentiment is echoed by many, the overwhelming message  is that networks are the thing of the future. According to most players, the market is buoyant, the industry has grown up, and there are better trained professionals catering for a more educated client base. ÒWe are becoming more a part of forward planning for companies,Ó says Rob Salmon. PR is becoming more of a boardroom agenda matter - a strategic rather than a tactical issue for many companies, in an era when reputation management is crucial. ÒWeÕre more integrated with their total marketing approach,Ó says Diane Page. ÒThey see we can influence their bottom line,Ó is how Nick Brown sums it up.

Jo Leah is clear about the value of networks : ÒIn a world where clients have to Ôthink like a brand and act like a retailerÕ, a single network agency is the answer. National delivery through local market knowledge and experience is what networks can do most efficiently.Ó  Lutz Meyer, Chief Executive of Weber Shandwick WorldwideÕs European operations, stresses the global challenge that PR networks are facing. ÒIn our new technological era, every office is now a worldwide portal, helping our clients find the global integrated communications solutions they are seeking. It is vital that we form international alliances, with the energy and skills these bring, to meet their needs.Ó

So is there another year of growth, mergers and acquisitions ahead? ÒYes,Ó says Sandy Lindsay, pointing to the cyclical nature of the recent expansion. ÒThe knock-on effect of all this activity is that it will be the trigger for a whole round of new breakaways, which will in turn lead to more mergers, realignments, takeovers and so on in ever-increasing circles.Ó

ÒWith more mergers and takeovers ahead, the future looks exciting and challenging,Ó comments Christine Arthur. ÒThe challenge for networks is to make it happen.Ó