Public Affairs Professionals need to (better) speak P&L.The Internal Side of Public Affairs (5).

Alan Hardacre, PhD

Co-Founder Advocacy Academy, Advocacy Strategy

I believe there is gap that is becoming more and more evident in Public Affairs - the lack of financial literacy among Public Affairs professionals. If I have heard 'we need more commercial PA people' once I have heard it....And by financial literacy I don’t just mean understanding numbers. It's about grasping the fundamental language of business. Many Public Affairs professionals find themselves grappling with financial concepts, struggling to interpret balance sheets, income statements, or cash flow projections – and really get into the weeds of their business. How many of us know where our margins are made and what is critical to our business success? The answers to these questions have some serious consequences.

The core of this series of posts is about how Public Affairs initiatives should seamlessly align with the goals of your business, and that means you need to understand the financials. So, without a solid understanding of financial metrics and how your Public Affairs work directly impacts the bottom line, Public Affairs professionals risk being disconnected from the core of their organization. It also means they will struggle to communicate in the key language that all businesses talk – Profit & Loss (P&L). This is about how you communicate.

You might have seen my previous posts on the need for Public Affairs functions to start quantifying their work – well this is where P&L literacy comes to the fore. Although not only here – speaking P&L cuts across much of a senior Public Affairs professional’s life. To address this issue, investing in financial education for Public Affairs professionals is imperative. Sit down with a GM for a day and go over everything from a to z. By equipping yourself with the necessary financial skills, you can find new and innovative ways to support your organization, demonstrate the value of your work in financial terms, and ultimately contribute more effectively.

Greater financial literacy also fosters better cross-functional collaboration (common language). When Public Affairs professionals can speak P&L they can bridge the gap between functions, align strategies, and foster a more cohesive organizational understanding of Public Affairs and what it contributes. In today's fast-paced and competitive business environment, the intersection of Public Affairs and P&L is not just a nice to have - it's becoming essential.

As usual reach out if you want to discuss more.