The current economic climate is so challenging that many PR agency leaders have adopted the mindset that simply maintaining their current position—without layoffs or revenue decline—constitutes a successful year. Growth is no longer the default benchmark for success.
For established businesses, the default goal of perpetual growth can be counterproductive. A more sustainable approach is focusing on protecting the team's peace and well-being, questioning the need for "more," and finding comfort in holistic success rather than just metrics.
Patagonia deliberately restrains revenue growth, viewing it not as the primary goal but as a means to an end. The company's true objective is growth in environmental and social impact, for which financial growth is simply a funding mechanism. This redefines success away from purely financial metrics.
Economic pressure forces leaders to prioritize immediate, bold actions over incremental gains. This creates a stigma against continuous improvement, which can be perceived as slow or lacking strategic impact. The mandate is for massive, transformative change, not small, sustainable steps.
When a business flatlines, the critical question isn't which new marketing channel to try. It's whether the founder has the motivation and long-term desire to reignite growth. This "founder activation energy" is a finite resource with a high opportunity cost that must be assessed before choosing a path.
The current job market is characterized by a lack of transactions, where companies are hesitant to either hire or fire amidst economic uncertainty. This creates a challenging environment of stagnation for job seekers, which is distinct from a typical recession defined by widespread layoffs.
The PR industry risks stagnation if it remains focused on commoditizable services like media relations. The path to future-proofing the profession and increasing fees lies in elevating practitioners to strategic advisory roles that directly influence management decisions.
In turbulent economic times, leadership often cuts marketing first. However, marketing is the lifeblood of an organization, driving revenue and reputation. Data shows that increased marketing investment during downturns leads to greater returns and long-term growth.
Businesses should operate in a constant state of "offense"—innovating, seeking new clients, and exploring new services. Being forced into offense because of a defensive situation (like losing a major client) is far less effective and more stressful than proactive growth.
Instead of paying a continuous high retainer for PR, brands should deploy it in focused 'sprints' around specific story-worthy moments. This includes new product launches, funding announcements, or major partnerships, maximizing impact and ROI for the brand.
The PRCA is redefining public relations to position it as a strategic management discipline integral to business success. The new definition moves beyond traditional metrics to focus on demonstrating commercial impact and driving organizational goals.