It was her sister Bernie who had the high life, that's how Penny McDonald remembers it. "Bernie worked for BA for ten years," says Penny. "She used to call me up and say ‘Penny, pack your bags, we're going away for a long weekend'. It was fantastic, we'd jump on a plane anywhere. I was just so envious!"

The tables have surely turned recently. Since becoming managing director of the Outside Organisation - a company that manages the brand and PR for bands, musicians, models and sports stars - it's now Penny mixing it with the jet set.

And when she comes down to earth, it's to work with legends like Bowie, Led Zeppelin, The Who, The Sex Pistols, Bon Jovi, Prince and Sir Paul McCartney, right through to more recent stars like Katherine Jenkins, Leona Lewis and Rihanna.

This month, McDonald, 47, celebrates her first anniversary at Outside after a year spent whipping the company's structure into shape. Since starting out ten years ago, its clients have come predominantly from the music industry, thanks to CEO Alan Edwards. Today, its 34 London-based PR staff are split into four separate divisions, attracting new clients from all sides.

Alongside music, their international division manages international campaigns such as fragrance launches for clients like P Diddy. Their consumer division caters for lifestyle clients/events like Kelly Hoppen and the Elle Style Awards. Their talent division, meanwhile, looks after personalities from the worlds of sports and entertainment like footballer Freddie Ljungberg and supermodel Naomi Campbell. "We span 360 degrees," she insists. "If our clients want to go international, release a book, or just be out and about in the right places, that's what we do."

So, how does Outside work? McDonald and Edwards initially meet with new clients face-to-face (many are referrals, they also pitch for business). "We find out what they would like from us, whether they like to travel or have any writing ability or presentation skills, right through to events they wish to attend or be seen at."

"The worst campaigns are when people derail. Things go wrong, often something inappropriate is said and their career, brand, everything can be ruined."

Together, they agree a ‘bigger picture' PR plan which comes with a ‘roadmap' advising what the client should and shouldn't do along the way. A similar process happens for the companies they advise, like AOL and Sony BMG.

Crisis management is another essential offering at Outside. It proved crucial for clients like Guy Hands, of private equity house Terra Firma, when he announced his EMI shake up earlier this year. And is presumably an ongoing service provided to Amy Winehouse.

"The worst campaigns are when people derail themselves or go off and do adhoc things that are not in the plan," explains McDonald. "Things go wrong, often something inappropriate is said and their career, brand, everything can be ruined."

For Amy, she says, a new plan and roadmap has been devised - and it certainly appears to be working given her improved image and gracious acceptance of five Grammys last month. "She's getting back on course, getting the treatment that she requires and, from that treatment, she should be back in the recording studio doing what she does best."

By her own admission, McDonald is still learning in her new role. Originally from Dulwich, she was a journalist at the Daily Telegraph for 13 years from the age of 21, before being poached by Redwood Publishing Group to launch Sky TV magazine. "At the time, no one had heard of Sky, so it was my job to tell them about the wealth and breadth of programmes on offer."

After seven years, by then Redwood's PR director, she was head hunted once again by Publicis, an advertising agency, becoming the publishing arm's editorial director. Three years on, she bumped into Alan Edwards in London.

They'd known each other from her Telegraph days when ‘he used to bombard me with phone calls' about concerts he was putting on. Back then, popular music entries in the Telegraph were minimal but Edwards insisted on taking her to lunch to explain about Outside.

"There are nights when I am so tired, like the last Prince gig which ended at 4.15am. It's 24/7 and crazy but you have to live it to repeat the success."

It was the beginning of a long friendship. McDonald persuaded the Telegraph's pop critic to go to some gigs and he then persuaded his editor that they needed to start carrying more pop in the newspaper. "It's phenomenal now," she laughs, "pop is one of the dominant forces in the media but, 13 years ago, it just wasn't the case."

Her first assignment at Outside was managing Barbra Streisand's European tour, an experience she calls ‘the biggest learning curve'. Each night for three months, she'd ensure the press had their tickets, their quotes and sound bites, before introducing Barbra to them, her fans and special guests such as Meryl Streep, Pierce Brosnan and Nicolas Cage.

"It was incredible, but it was a job," she emphasises, saying likewise about the 21 concerts Outside did with Prince last autumn, the Fashion Relief show they put together in just four weeks with Naomi Campbell, though she wavers on mentioning an event with Bill Clinton. "That was a real moment. I remember feeling, my god, I'm in the presence of somebody great."

She calls 2007 ‘the most phenomenal year', with Outside involved in every single big UK event. "There were nights when I was just so tired, like the last Prince gig which ended at 4.15am and I slept right through until one the next day. It's 24/7 and crazy but you have to live it because if you don't, you can't experience it and repeat the success."

How does this hectic work life affect home life in Blackheath with her husband David and son Rory? "When David was working for Sky News, then a 24-hour station, I was the one managing Rory and our work/home balance. Now Rory's 13, David does that more. There's always a consistency and I'd never jeopardise that. I take great pride in my family."

As for her future at Outside, she and Edwards have developed a plan until 2012. Beyond that, she sees them growing old together. As well as counting him as her ‘best friend' and boasting a ‘great working relationship', Outside satisfies another innate instinct in her – influencing the news.

"I've always had a hunger and thirst for news and, as a journalist, I had that drive and determination to influence it. Now, with Outside, I'm doing that again in a different way. And it's so exciting."

For more information on The Outside Organisation, click onto www.outside-org.co.uk

By Barbara Walshe