Taking risks and making big decisions which lead to good outcomes are inevitable parts of running a business. a good businessperson needs to be able to do the right thing as fast as possible and that’s a skill. The terms business acumen, business savvy, and business sense are often used interchangeably. They generally refer to keenness and quickness in making decisions and judgments in business situations. The foresight and insight that leads to a creative merging of stakeholder interests is the essence of business acumen. Below is a complete definition of business acumen and how one can develop this skill.
Business acumen definition
All organizations these days- big or small, are in need of leaders managers and employees contributing to the achievement of their goals and objectives by making the right business decisions. Therefore, all the people who work for a firm regardless of their position need business acumen competency to think like the owner of the business. This way they can make sure about the effectiveness of their business strategy. According to an executive: “business acumen is keen, fundamental, street-smart insight into how your business operates and how it makes money and sustains profitable growth, now and in the future.”
How to develop this competency
People with strong business acumen use a business framework in order to ensure completeness and integration in a business situation. The framework combines the objectives, the competitive strategies, the people and activities that produce and sell products and services, and the processes that support a manager’s ability to deal with the complexity. The framework is simple and therefore applicable to all types of business activity. This framework is often called a business model.
If you want to become more effective and valuable, more profitable and sustain growth working on business acumen is the way to improve your company’s performance. No matter how big it is. Below are some tips that can help you with that.
- See the “big picture” of your organization. Know how the key drivers of your business relate to each other, work together to produce profitable growth, and relate to the job. You need to have all the information about the process of your business and have a business strategy and a business plan. The first step would be developing the way of strategic thinking.
- Understand important company communications and data, including financial statements. Be able to understand financial acumen. This includes presenting content and application of the income statement, the balance sheet, the cash flow report, and the metrics of business performance.
- You’ll also need tools for marking since nowadays marketing’s a big part of business success. Among these tools, we can name search engine optimization, content-based marketing and social media. To create awareness and make a strong brand pay great attention to marketing.
- Use your knowledge to make good decisions.
- Understand how your actions and decisions affect key company measures and the objectives of your company’s leadership. Understand essential information and focus on key objectives
- Effectively communicate your ideas to other employees, managers, and executives.