Communications and business value: measuring the link

Abstract

Purpose

This research examines the importance of measurement in the communications industry and business in general, the insufficiency of measurement in communications, how communications professionals' measurement needs are changing, obstacles to meeting measurement needs, and the potential benefits from understanding the link between intangibles and business value.

Design/methodology/approach

Research methods used to link communications activities to business outcomes included statistical analysis (collecting, evaluating, and drawing conclusions from data) of intangible assets, or non‐accounting, non‐financial business drivers such as people, ideas and relationships. Measurement data was based on information companies already owned, including media content analysis data and employee survey results.

Findings

Pilot studies have demonstrated that this model will provide greater insight into how intangibles such as communication activities contribute to business outcomes that matter to senior management and will eliminate the obstacles to measurement – concerns about expense, fear of results, and isolation of the effect of individual activities.

Originality/value

This discussion is essential to understanding that the communications industry in particular and corporations as a whole need a way to add meaning to the data they already have; to link existing data to business outcomes; and to demonstrate that effective communications activities and other intangibles move organizations toward their business objectives.

Citation

Argenti, P.A. (2006), "Communications and business value: measuring the link", Journal of Business Strategy, Vol. 27 No. 6, pp. 29-40. https://doi.org/10.1108/02756660610710337