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Have you ever tried to explain PR to your Finance department? The Japanese have a great phrase “Muzukashii desu”. Basically meaning “it’s difficult”. But why?
Finance staff are trained to think in terms of hard numbers, predictable ROI, and short-term line items. PR, on the other hand, usually delivers intangible and long-term value that’s hard to quantify. A few reasons it feels so difficult:
PR Produces Intangibles
- Finance departments want metrics like cost per lead, revenue contribution, or margins.
- PR produces outcomes like brand reputation, trust, awareness, credibility, and influence which don’t immediately show up in the P&L.
Lagging vs. Leading Indicators
- PR is a long game — coverage, thought leadership, and reputation build slowly, then influence deal flow, partnerships, or valuations later.
- Finance wants to tie this month’s spend to this quarter’s results. PR rarely works on that timeline.
Different Languages (Think Japanese and English)
- Finance speaks in ROI, EBITDA, payback period.
- PR speaks in media hits, share of voice, sentiment, reputation lift, key message penetration.
Without translation, the two sides are speaking in different languages.
Risk vs. Opportunity
- Finance often sees PR as a cost center (press releases, agencies, events).
- PR sees it as risk insurance (protecting the brand during crisis) and an opportunity driver (investor confidence, market entry, talent attraction).
So, is there a device that can translate PR speak into finance speak? Invariably, the PR team will be presenting to the finance team to justify the spend. Side note, have you ever heard of a finance team presenting to PR about how the new spreadsheet data format is going to make the company that much better? Having over the years moderated battling finance and PR departments, I think one of the keys is framing PR in financial terms:
- Reputation lowers cost of capital (investors more willing to back you).
- Strong PR reduces customer acquisition costs (trust shortens the sales cycle).
- Positive coverage builds enterprise value (better multiples at exit).
- Crisis management avoids catastrophic downside costs (lawsuits, boycotts, lost contracts).
Another key is embedding a finance person in a PR issue-say crisis management, so they have an opportunity to get out of finance speak. Nothing like a reality lesson where a numbers person hears what people on the outside think of the company.
Muzukashii desu ~
About the authorGary Sumihiro is the founder of Sumihiro Investments LLC, a global strategic advisor, and board member of several companies. Recently, Sumihiro Investments entered into a strategic relationship with EDGE Partners LLC. For more information about Sumihiro Investments and EDGE Partners see the linked article.