Mind your Business
By: Jazmin Holdway, Account Supervisor at PRLab
April 4, 2019
Business describes the practice of earning a living through engagement in commerce. This blog refers to what public relations professionals do as a business function. After all, PR helps clients improve their bottom line, right? So, senior communications executives are pushing to further understand their business because PR has shifted to focus on what leaders should do, not just say. This has created new seats at the table for those that understand business and the corporate language. Based on a survey of Arthur W Page Society executives in 2014, 85% believe it is “extremely important” that graduates have a solid grounding in business.
So, what is considered a solid grounding in business? According to the same research, it is the essential business acumen and knowledge for future strategic communications and the public relations industry, or the understanding of:
- Accounting
- Financial statements
- Finance and the stock market
- Economics and the economy
- Program measurement and evaluation
- Intangible assets and nonfinancial information
- Social responsibility
- Corporate governance
- Corporate reputation
As the public relations industry moves from instructing executives on what to say towards what to do, the demand for business knowledge and terminology becomes higher. As a strategic communicator, we must be able to understand all-aspects of the strategic planning process to contribute to the overall business objectives. This includes being able to communicate both internally and externally, regardless of whether you are working for an agency or in-house.
Business knowledge plays a different role when working in-house, as the business of the firm and the business of achieving the mission of the organization differs. High-level organizational knowledge is key for strategic communicators. Long term, business acumen is related to higher compensation, promotion and even job satisfaction through the understanding of how strategic decisions impact the business and its success. Are you considering learning the business of business yet?
It is evident that senior executives consider business competency to be a highly valued component of public relations education and training, and the current education programs may not doing enough to bridge this gap. Colleges and universities are now looking at opportunities to bring business in. Boston University’s graduate public relations program now gives students the opportunity to learn business from some of the industry’s top PR executives. Differentiating business from the type of strategy a company uses, the type of language and the overall business of a PR agency is an important lesson to learn. To capitalize on the PR function, a company needs them to support of the overall business objectives.
This idea was expressed in 2013 by PR professional, Kathy Cripps: “In an increasingly competitive marketplace, the firms that best understand their client’s business concerns and challenges will have a decided advantage over competitors.”
In addition, business knowledge can be used to help improve relationships with stakeholders, especially those most concerned with the financial well-being of the company. Being able to understand how businesses work and the terminology that is used does not come natural to people, especially those who are not trained in the business field. This is where education becomes extremely important.
Business knowledge is beneficial for public relations professionals. To be exact, nine out of 10 executives surveyed indicated that a higher compensation for public relations professions can be a result of demonstrating business competencies. I’ll repeat that: People with a better knowledge of business can be better paid! This just shows how business skills are starting to be more valued throughout communicators. This can also lead to growth, and potential for better workplace satisfaction. Time to mind your business.