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Chrysler Buries PR in the Corporate Bureaucracy

December 13th, 2007 @ 7:07 am

5 Comments

Categories: Management, Public Relations

Tags: DaimlerChrysler AG, Public Relations, Marketing, Corporate Communications, Jon Greer

Chrysler’s top spokesperson resigned this week, and going forward, the PR department will report to the head of HR.

Does this make sense to you? It doesn’t make a lot of sense to me.

Chrysler was recently acquired by Cerberus, a private equity firm with a history of being tight-lipped (most PE firms are). And Cerberus brought in a new CEO, Bob Nardelli, the guy who did such a wonderful job at Home Depot.

Said Nardelli: “Now that Chrysler is an independent company again, we are taking every opportunity to realign functions in a more holistic manner that allows us to more effectively drive company strategy.”

Really?

There’s no doubt that a lot of important communication happens to and among employees. But that’s the only connection I can see between PR and HR.

The argument that Chrysler is now a privately owned company doesn’t wash with me, either. There are plenty of large private corporations out there, and most have their PR team properly aligned under a corporate communications head or a marketing head.

As a consumer company in the Internet age, and in the face of global competition, the last thing Chrysler needs is to stick its head in the sand and bury PR and communications inside its corporate bureaucracy. But that seems to be the “strategy” that Nardelli is referring to.

PR needs to have direct access to the C-suite and a seat at the table when important business decisions are being made. That’s how PR can have the most positive impact on corporate strategy and success.

Now, when every consumer can tell the world what they think via the World Wide Web, is no time to take a giant step backwards in valuing the communications function. If Nardelli was truly aligning Chrysler’s operations to more effectively drive corporate strategy, he’d be moving the head of PR into the office next to his.

Did you know that Jon Greer is available to speak to your company or PR agency about PR and media relations? Contact Jon for more information!

 
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  •  
    1

    folabiakin

    12/14/07 | Report as spam

    Chrsyler Back To The Stone Age

    It's amazing that an American Company of the size of Chrysler would be making this kind of blunder. Thiis is definitely a throwback to the stone age for the Company. Of all functions, HR (perhaps beaten only by Finance) should the last function that public relations should report to.

    I don't think the Head of HR at Chrysler has got either the skills, the temperament or ability to understand the importance of the value that PR brings to the table. So while he or she is being schooled in the rudiments of PR (assuming he/she even wants to learn), the ability of PR (and by extension, the Company)to communicate with and help build the brand will suffer. And God forbid that the Company experiences a Crisis now.

    What Chrysler has done has been tried and seen to fail in the 1970s. The prognosis doesn't look very good.

  •  
    2

    jongreer

    12/14/07 | Report as spam

    And the cars aren't great either...

    And you know, it's not like Chrysler is setting the world on fire with their products, either. You'd think they would want and need an aggressive communication program to sell more cars and trucks.

    One other thought: maybe Chrysler is getting ready for some sort of showdown with labor, and that's why they figure they need PR to be right in the middle of the HR department.

  •  
    3

    Shrinagesh

    12/15/07 | Report as spam

    RE: Chrysler Buries PR in the Corporate Bureaucracy

    This is pure BAD PR

  •  
    4

    alan.hart@...

    12/27/07 | Report as spam

    PR....really

    I don't see this as a bad move for a private company. There goal at the moment is business fundamentals not press hits. PR has never been a strategic function in the same way that marketing or finance is. PR by its nature takes the result of strategy (actions) and promotes them in the best light possible to publications and external stakeholders. If you want to get strategy for business fundamentals in a private company right, PR does not need a seat at the table.

  •  
    5

    gdong155

    12/27/07 | Report as spam

    RE: Chrysler Buries PR in the Corporate Bureaucracy

    This makes total sense for a CEO who didn't want anyone to talk at the annual shareholder's meeting...except him.

    PR, which is all about managing the messaging and imaging of a firm to the outside AND inside world, reporting to HR which is all about creating delusional views of the workplace for the inside fold... hmmmm another GE executive alumnus who hasn't adapted.

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