PR Institute CEO resigns amid rumours of dispute with board
Ray Shaw has resigned as CEO of the main public relations industry body, the Public Relations Institute of Australia (PRIA), Mumbrella can reveal.
Shaw’s departure comes just nine months into the role and is thought to have been triggered following a dispute between the CEO and the board over the strategic direction of the financially troubled industry body.
When contacted today Shaw declined to comment on the reasons for his departure, saying only that he would be returning to journalism. But multiple sources have told Mumbrella that the CEO and board were increasingly at loggerheads over PRIA’s direction amid falling membership numbers and declining financial revenues.
PRIA president Mike Watson denied there had been a falling out, telling Mumbrella: “No not at all. Ray wanted to re-enter retirement.
“Ray was a retiree and he registered an interest in having a greater role in the Public Relation Institute back in June last year. That was facilitated, and in his time Ray did a good job with a number of special projects, in particular our national conference.”
The departure leaves PRIA looking for its fifth CEO in four years and follows on from last year’s board fight which saw Mike Watson replace Teri-Helen Gaynor and the entire national board resign en masse.
In the wake of a change of leadership at PRIA the new president last year admitted the PR industry association had financial problems and came close to insolvency last year. It is also thought to have seen paid and voting memberships fall from around 2000 members in 2009 to around 1300-1200 today.
“I don’t think there is anything surprising about members falling,” said Watson. “There aren’t too many organisations where memberships aren’t falling. We live in a time where people choose to have maximum flexibility.”
Watson today argued that last year saw an improved financial result although the association still showed a minor loss. “We will be making a profit this year that is for sure. We made a profit last year as well… the profit was in fact a paper loss due to the fact that we had changed the membership joining arrangements of the institute.”
Nic Christensen
Update 1pm – PRIA has now put out the following statement:
PRIA’s new direction
The Public Relations Institute of Australia (PRIA) has seen the first upturn in its performance for several years, according to Beaton’s recent benchmark survey of Australian Associations.
The turnaround follows the election of a new Board in February 2014. Since then, the effort has focused on developing new member engagement programs, and bringing value back to PRIA’s post nominal system, with the reintroduction of continuing professional education requirements.
Part of the new direction was to determine what role the 100 plus volunteers on Board, State/Territory Councils, College of Fellows, Registered Consultancies Group, and the many committees and advisory panels, should perform. “We are determined to build a new PRIA in a united, collaborative, and hands-on way,” said National President Mike Watson.
Another issue was to ensure the Institute lived within its means. The role and services of National Office – its single greatest expense – need to be redefined. Chief Executive Officer, Ray Shaw, has stepped down to enable both the position and office to change to a more administrative and transactional role.
“Shaw was engaged at a high level to analyse and reset the business model of the organisation and he has done that very well in a short time,” explained Watson. “He has introduced many new systems and processes to give the Board a solid foundation on which to make strategic change,” he added.
PRIA will focus on member programs including mentoring, tertiary accreditation, new student and consultancy staff memberships called PRelationships, expanding consultancy registration, and education programs linked to global competencies.
When the President’s statement refers to the former CEO by his surname and not his first name, you do have to wonder what’s going on
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This quote from Mike Watson should win an Award:
“We made a profit last year as well… the profit was in fact a paper loss …”
Gold. Pure Gold
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Another chapter in the sorry saga of the PRIA over the last few years…what about some good PR?
Looks like my membership to the Communications council will be sooner rather than later.
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Agree Glen Frost, sounds like the George W of PR with quotes like that.
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Just sad…. PRIA is a dinosaur that has failed to shift from the old guard – corporate affairs, public sector focused – to the new world of multi-sector, integrated PR!
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I don’t know Mike Watson, never met him.
However, his quotes here are laughable for the most part – except for the one about Ray Shaw. To refer to someone (without their permission) as a retiree and talk about them re-entering retirement is somewhere between insensitive, patronising and cruel.
I’m guessing from the quotes above and what Ive seen of Mike’s leadership of the board that he has trouble empathising with others (and thats a euphemism for something that I am sure would get edited out).
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AKA, I am gobsmacked that you see PRIA as focused on corporate affairs. From where I sit – in corporate – I saw them as focused on product pr and agencies.
Perhaps the problem is that they are irrelevant to everyone. That they can run a webinar on “From unknown to expert” followed the next month by “Integrity and Values” screams that this is an organisation that has lost its way.
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Sounds like you should have attended “From unknown to expert” @Former member 😛
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