Why Business Acumen Is Critical for New Hires

While still important, writing has fallen to second place in what hiring managers are demanding from the next generation of communication leaders. As we predicted more than a decade ago, business acumen now tops most wish lists for PR job openings at all levels. 

“Give me a young PR pro who can think strategically about my business, and I bet they will be a good writer,” predicted a corporate communications officer in response to our most recent round of checks with senior PR professionals on desired competencies.

We began studying and writing about this sea-change in communications some 12 years ago when writing tests were still mandatory for most PR positions. Five years later, we began seeing business acumen edging into a tie with writing as the most desired attribute for new hires. Our latest industry checks and conversations solidify the shift to business acumen and strategic thinking as top qualities sought by hiring managers.

“You can’t advise C-suite executives if you don’t speak their language, and to truly be their partners, it’s essential to understand how your partners realize financial success, compete in the marketplace and deal with regulatory and economic headwinds,” said Corinne Gudovic, managing director, brand practice, Ruder Finn.

Veteran corporate communication leaders agree and have undertaken measures to increase business basics and strategic thinking into their teams’ knowledge base.

“As organizations evolve to stay in step with the accelerated pace of change and disruption in our operating environment, communications leaders are building business acumen into the core capabilities of our teams,” said Target CCO Katie Boylan. “Because, more than any other skill or capability, understanding the business is vital for communicators as we navigate change, counsel our internal partners and stay anchored to strategy, which ultimately differentiates our brands and drives value for our stakeholders.”

Said Kathryn Beiser, chief communications officer of Eli Lilly and Company: “Corporate communicators play a pivotal role in bridging the gap between a company’s business objectives and its stakeholders.”

To be effective, Beiser said, “communicators need an understanding of ‘business basics’ plus ‘the business of your business.’”

Corporate and agency recruiters firmly believe that business acumen differentiates candidates for every position level within today’s organizations.

Julie Biber, Edelman’s global head of search and recruitment, lists three reasons for today’s focus:

• Business acumen is critical to understanding the business landscape — understanding industry trends, market dynamics and competition.
• Navigating financial issues — financial literacy is essential for PR/comms professionals. It helps to guide in making informed decisions.
• Credibility with stakeholders and leadership — gain the trust of the C-suite. Become a strategic advisor and a trusted business partner.

Edelman and HUNTER are among the agencies implementing business learning and development programs for team members. 

“We recognize that younger professionals may not have developed through a classic business undergraduate curriculum, so we supplement their education and turn them into lifelong learners through our mini-MBA program taught by the leaders in our firm who are MBAs or JDs,” says HUNTER CEO Grace Leong, APR. 

Armed with exposure to financial reporting, strategic planning, operations, supply chain legal and negotiation training, the agency’s younger communications pros become C-Suite ready in an accelerated way, Leong explained. 

“This commitment also demands that these pros stay current on business matters through heavy consumption of business media outlets and is complemented by frequent roundtable discussions in the office about national and world economic news and events,” she said.

Building your own business acumen

Summarizing and building on the insights gained from communication leaders and recruiters, we have developed 10 ways emerging pros can increase their business acumen. 

Here’s the list that is covered in our recent books and workshops:

• Expand your news diet to include more business news.
• Get into the habit of reading more business books.
• Read the writings and interviews of top business leaders.
• Add business edutainment shows (such as “Shark Tank”) to your viewing queue.
• Seek out formal learning and development programs from your organization, alma mater or online.
• Consider going back to school for an advanced degree or certificate in business or communication management. 
• Pick a favorite public company and track its investor communications.
• Invest in a public company and closely follow its financial performance and communications.
• Develop a network of pros across business functions within your organization.
• Create your own “board of directors” to help provide strategic guidance and advice.