One of the highlights of PSA-TEC 2025 in Denver for me was an educational session that I had the privilege of co-hosting: “Effective Leadership Using P&L Statements.”
Led by PSA CFO Allen Riggs, the session wasn’t just about numbers – it was about how leaders can leverage their Profit & Loss (P&L) statements to enhance strategy, ask the right questions, lead more effectively, and how to use them to create clarity in financial conversations.
As someone without a finance background, I know how overwhelming a P&L can seem. Early in my career, I facilitated a five-day course that dedicated an entire day to training store managers on how to coach from a P&L, which shaped my perspective on how it can be a powerful leadership tool when used correctly.
Riggs emphasized that a P&L should create more questions than answers, helping leaders assess performance and challenge assumptions. “A P&L is not a measure of success; it is a snapshot in time,” he explained. “It tells you what’s happening, but not always why. The key is to use it to drive clarity and conversations within your business.”
Turning Data into Decisions
The session featured a mock P&L exercise. Instead of just reviewing numbers, we worked together to uncover the right questions leaders should be asking: What trends stand out at first glance? Where should we dig deeper to understand potential challenges? What areas might require leadership action?
This exercise simplified what can feel like an overwhelming document, making it less about numbers and more about insights. By structuring a P&L to highlight trends, Riggs demonstrated that leaders don’t need to be financial experts to track what truly matters for their business.
Revenue and Profit Per Headcount
Another key takeaway was tracking revenue and profit per headcount, which is a simple yet effective way to gauge business health. By analyzing financial performance per employee – whether in the field, back office, or by specific department – leaders can quickly determine if an investment in people is efficient or need adjustment.
For integrators, these insights are essential. Whether running a small team or a multi-location business, understanding and using a P&L helps identify trends before they become major challenges, aids in making informed decisions, and encourages productive financial discussions. A well-structured P&L allows leaders to look beyond the numbers and focus on how financial data informs long-term strategy.
Where to Start
Leaving this session, I was reminded that great business leadership doesn’t require being a finance expert; it requires using financial insights to build a stronger business strategy. At the end of the day, a well-used P&L helps leaders build stronger, more strategic, and more successful businesses.
For integrators looking to elevate their leadership and put some of these concepts into practice, it makes sense to start small. Pick one key metric in the P&L to track and discuss each month, and use it to start conversations with your team. Focus on understanding financial trends, not just reporting numbers.
