Ita Gibney was the sole shareholder in Gibney Communications, a corporate PR company. The business was tightly controlled and had a turnover of more than €1.5m when the Enterprise Network profiled it in November 2004.
Gibney wanted to create a dynamic in which the business could grow rapidly and needed to create a new organisational model where staff were more involved in its management.
To boost business, she also needed to attract talent and wished to recruit at a senior level. “What we need are heavy-hitters who can manage a portfolio of clients,” she said.
What the experts said
Given that public relations is such a people-centred business, it is critical that key staff have the incentive to stay with the firm, advised Derry Gray of BDO Simpson Xavier. “Also, the introduction of third-party investors or shareholders may be an attraction for the firm, particularly if international projects were to flow from such a strategic partnership.”
Merger and acquisition is one option Gibney should consider, suggested Barry O’Loghlen of Bank of Ireland. “There are a number of good quality medium-sized firms she could talk to about a merger to maintain growth momentum,” he said.
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Gibney should focus on particular segments of the market, aim to be number one and then move on, was the advice offered by Niall Feely of Eircom. “The first target could be either new multinational corporates or the government, depending on where Gibney sees the most potential. Tight focus will deliver powerful benefits,” he advised. “The key to the strategy must be in empowering the teams and the individuals in them. This empowerment relies on trust placed on the qualities of employees.”
Action taken
Gibney has appointed two new account directors and an account manager. She says this has created a larger senior management structure, freeing her to take a more strategic role. Gibney hopes to recruit another account director and account manager shortly. The company’s former auditor has also joined the board as a non-executive finance director.
Turnover has grown by about 25% over the past year, with recent clients gains including McDonald’s and AOL. Other clients such as Ulster Bank and Dublin Port have been very active. Gibney says she looked into acquiring or merging with other PR firms, but could not identify suitable matches.
Conclusion
Gibney remains committed to the notion of sharing equity in her firm and is devising ways to make this happen. She said this would be on the basis of the firm growing significantly from its current turnover levels.
This may prove the magnet that attracts senior talent, paving the way for the growth she seeks.