Being a student for your business “Business Acumen” is a best practice that you must follow. Effective leadership requires both interpersonal skills and business acumen, also in today’s organizations, employees often find it difficult to learn new skills and transfer current knowledge across functions. Companies too feel the urgent need to spur entrepreneurship and ownership at all levels, requiring employees to demonstrate business acumen in their day-to-day decisions.
Business acumen play important role in so many famous businessman stories through shrewdness, vision and business savvy, generations of leaders, pioneers overcame daunting obstacles to create tremendous wealth and value but,
Business Acumen ???
Some people called “Business Savvy or Business Sense” business acumen is an ability that allows you to understand and cope with different business situations. By another easy way understanding of how your company makes money.
Note: business acumen not a single skill it’s a wide complex of competences, knowledge and awareness of multiples elements of your business.
Business Acumen is the sum of three areas of knowledge & understanding:
1- Financial Acumen
The foundation one is Financial Acumen It’s important to every leader, manager & employee to understanding financial issues which comprises a firm grasp of the things that drive profit and cash flow, supported by fluency in the jargon used in financial statements, and enough accounting principles not to get bamboozled by figures that others have compiled, which could be based on misunderstandings. through financial acumen the top leaders can readily prioritize issues, question assumptions, contribute freely to business discussions, and see how their decisions can directly affect financial results in both the short and long term.
2- Marketing Orientation
It’s important to understand your external business environment or what we call market orientation like customers needs, customers purchasing behaviors, competitors, suppliers, how you can analyze marketing competitive data, new technology that change the rules of engagement and impound marketing skills. A purely internal view of the business, no matter how clear, will never be sufficient to support wise decision making in a rapidly changing world.
2- Strategic Perspective
Leadership is a focus in many big companies, but the actual needs of leadership in 5 years’ time may be quite different from those we have today, as business models change and leaders will have to deal with innovation not just in product or market, but in customer relationships, supplier relationships, more virtual teamwork, and rapid changes in what is outsourced or in-sourced. so Leaders must understand the business and help the team to understand it.Understanding critical inter-dependencies across functions and divisions and Short and long term of business decisions
Why Business Acumen so Important?
a- People with business acumen can be more efficient in their work, by using Business acumen training solution the employee can interactions across all functions in an organization which covers Sales and Marketing, Procurement, Production, Finance and HR.
b- People with business acumen can able to understand the different trade-offs of actions, which can help make better and more logical decisions.
c- by following business acumen strategy you can Transform your employees to leaders which make them able to:
Analyze the market and set strategic goals for their business.
Identify risks (Internal & external) and factor them into strategic, operational and tactical decisions.
Take decisions on capital investments, investments and divestment’s.
Determine production levels, subcontracting arrangements.
Undertake strategic initiatives for innovation.
Determine marketing mix (pricing, promotions, product features) to attract, retain and grow customer base and share of wallet.
How to Make Business Acumen as a part of Organizational Culture?
What is easier to learn about something new via reading, lecture and case studies but that’s not professional because professionalism comes by practice and follow up. Implementing of business acumen without practicing it does not give employees the confidence to do it will furthermore it can cost organization a high costs by erroneous implementation for business acumen concepts.
The best way to bring business acumen to life is through experiential , in particular and customized business simulations.this learning platform will create high realistic, engaging experiences that lead to both to behavior change and effective back on the job implementations.
Meeting the challenge of building Business Acumen
When your organisation is experiencing turbulent times and you are in a position where you have to lead through change, you must stay purpose driven. If the leader of an organisation veers away from the organisation’s purpose, how in the world are the employees of that organisation supposed to stay on target? It’s just not going to happen.You might not know the exact way in the beginning, you may be more nervous than you have ever been in your career or the criticism from the outside world may be at an all-time high, but if you direct all of your focus on staying purpose driven and creating a culture high on purpose, the “how” will eventually present itself.