I work in the banking industry, so I’m kind of partial to numbers and financial data. While I’m not a numbers geek, I did volunteer during my Senior Capstone to be in charge of compiling statistics for the class. So excuse my bias here, but I’m going to take Dave Fleet’s post one step further, and say not only do PR people need math – you’ll be ahead of the competition if you can decipher basic financial data.
I get it, not everyone is a numbers person. I also understand that not everyone enjoys reading about earnings. I’m sure you took your basic math and accounting class in college and then vowed to never crack another financial textbook. That’s cool, but you’ll have a competitive advantage over other PR folks if you take a little time to understand the basics.
A few reasons why you need to understand financial data:
- It’ll get you a seat at the C-table – Want to impress your CEO, CFO, SVP? Know the numbers that they talk about. Yes, other things matter, but the C’s and upper management are concerned about numbers and profitability. I’m sure they are concerned about the cute ad campaign that’s going on, but how does that help the books?
- The media and your customers are curious – Just cut your dividend? What’s the difference between net income and net revenue? Your company was in-line or beat expectations but your stock is down? Being able to translate the lingo with the media and customers can prevent uneasiness and cure any concerns that may cause a crisis down the line.
- Know why your company is doing what it is – It’s common sense that the economy is having an impact on most businesses. But what’s the reason behind some of your company’s recent actions? For example, you read that banks aren’t lending, but what’s the reason? Maybe net charge-off’s on credit cards are up 1%; maybe the delinquency on commercial loans are at 2.4%. Why is your company hiring in one department, but laying off in another? You’re earnings report probably tells a good story why.
- Most importantly, it affects your paycheck – If there’s a better reason out there, let me know. Understanding the financial information behind your company is directly correlated with your paycheck. It gives me reassurance knowing that I’ll have a job next quarter because I understand that my business line contributed X amount. If I were in a department in which sales were slowing, I’d be a little more skeptical about the security of my position.
At this point I’m sure you’re all running out to pick up the latest book on investing and understanding financial data – the subject is riveting, I know. But do you see where I’m coming from? I hope you can at least understand why the C’s make such a fuss about earnings reports and basic financial information. Take 30 minutes and sit down with someone at your company that handles this information – be it accounting, investor relations, your CFO or whatever title/position your company calls it. Have them explain the basics to you and why it matters.
Dave’s post made great points on understanding some of the basics when it comes to math. Being able to gather and translate research, trends, data is vital in today’s market. But take it up a notch – be the numbers person at your company. It’ll open a lot more doors and opportunities than you think.
