It's good to talk!

<>Steven Hitchen: How do you view the current problems at Złote Tarasy as regards communication? [editor's note: construction of the city centre multi-use development has been halted due to a legal objection placed by an environmental group]

<>Piotr Czarnowski*: They are just in the wrong place at the wrong time. I'd say, perhaps, that the problems didn't come out of the blue; that there were indications of what was going to happen in the days before. Maybe they should have reacted quicker. However, I think that when it did break, they responded promptly, fairly and openly. Communicating habitually makes you less vulnerable to crises. If you wait until an emergency you will find that you have no established channels of communication. If your intended audience doesn't know you, they will have difficulty in forming conclusions because they will not have had time to build up opinions and expectations. If you have communicated for a long time they will already know that you are a transparent, reliable company.

<>Would you say that the approach to public relations in real estate is different to that in other sectors?

<>The PR market generally is still quite immature in Poland and most firms have a very short-term outlook. This is why typically PR agencies are used as sales people, to help carry out advertising campaigns. I believe that this applies to real estate too. Developers usually only consider communication when construction is almost finished, and they have space to sell. I think that PR in real estate could mature a lot more quickly than elsewhere, as there is a lot to distinguish between the market players.

<>If you were to give a developer advice on a PR strategy, what would you say would be the vital elements?

<>Think long term! The post-communist years of quick returns are over. The market is starting to resemble those in more developed countries. You have to think about who your client will be in 10 or 20 years. This is what makes PR for real estate different than for consumer goods. For developers B2B (business to business) communication is particularly important. As the customers become more sophisticated, then products will have to more closely fit their requirements. From the outset I believe that you should have regular dialogue with a central group of potential clients. A problem that all developers can face is bureaucracy and corruption. This can often be overcome through effective communication. In such situations you don't just seek to address your clients, but also your clients' clients, or the public at large. This could be consulting with the neighbourhood's inhabitants; informing them of the project's benefits in terms of facilities or jobs. It would also concern possible environmental damage, or the measures in place to limit it. People are starting to take an active interest in their surroundings. If you are able to get the public's support, there will be less scope for the authorities to block your plans; or at least the onus will be on them to convince the public why they are blocking them.

<>Does a PR budget have to be large? How much should a company expect to pay?

<>A budget starting from around EUR 4,000 per month should be sufficient to maintain communication activity in normal times. If a business wishes to hire an agency it should look at the price list for extra services. Some PR firms give an all-inclusive service for this kind of price, with just out of pocket expenses being added. Other agencies initially seem cheaper, but they charge extra for services such as preparing press releases. In this case the monthly bill quickly exceeds expectations.

<>So, a firm can choose between recruiting staff to provide the service internally, or can outsource to a public relations agency. What are the advantages and disadvantages of each solution?

<>By having an in-house team you ensure loyalty, motivation, and of course a full understanding of your business. There is a risk though of tunnel vision, whereas an agency may have a better view of the global environment. An agency is also likely to have a wider set of tools at its disposal as well as a greater number of contacts. However an outside consultant must spend time getting to know the client's business. This could take two or three months to be done well. If the client follows the short-term approach that I have already highlighted, then there is no financial incentive for the consultant to invest time and money getting to know the business and its industry.

<>Presumably, even when a firm uses an agency, there must be someone inside the company to coordinate PR

<>Yes, and the higher up the firm the better. I prefer to have someone who I can contact 24 hours per day if need be, preferably from top management. Small companies can have part-time coordinators, but there is always the risk that if one person looks after several tasks, then PR will be the lowest priority, especially if management continuously judges employees on output. This is because communication work is generally not tangible and the effects are only felt in the long term. I recently gave up negotiations with a prospective client because during a period of six months I was only able to meet the PR coordinator twice. She was simply too busy with other responsibilities.

<>If a firm decides to employ an agency to handle its PR requirements, how should it choose the service provider?

<>I'd say that they should go with "chemistry". I believe that for this kind of service, tenders do not give a good idea of what will be required from the client firm, nor exactly what the communication provider will deliver.