Having the ability to understand all the business functions within your organization and industry and relating them to your specific role in order to provide maximum impact to the business and your role. Good and quick judgment calls.
Every business consists of parts and pieces that when put together, define or make the business function like a well-oiled machine and achieve set goals and targets, which eventually leads to the achievement of the organization’s mission and vision.
The core understanding of a business system and how that business achieves its goals is what constitutes business acumen. Knowing that every piece of the puzzle is important having a deep understanding of WHY it is important and using every piece or placing every puzzle piece in the exact place it is meant to be and function is what leads to good strategies and decision-making.
The word Acumen in itself is derived from the Latin verb “Acuere” which means to sharpen and also is derived from another Latin word “acus” which is needle. With that knowledge, we can conclude that to possess business acumen in a specific business is to have a needle sharp /fine/specific/detailed knowledge of the business.
Business acumen is built over time or acquired over time. It is not something that is developed immediately at the start of an individual’s career. Continuous education is essential. Not just acquiring knowledge of your area but expanding the knowledge scope to other areas allows an individual to slowly but surely become sharp in other areas.
Business acumen is especially important for people in leadership positions. Being able to juggle different balls and make strong firm and confident decisions for the organization is the expectation of employees.
Having the thought process needed for the particular business decision being required at the time.
To have strong business acumen, a person must have strong knowledge of the following aspects of the business and industry: Strategy, Business, Systems, Economic Awareness, Effective Administration, Finance, Marketing, and operations.
A person with strong business acumen must be able to explain clearly how the business makes money, the roles of the individual positions, and what makes something work and something else not work.
He/ she must know the key objectives be able to focus on them and know what options they have available. When it comes to problem-solving, identify the right approach, choose it, and be good at the execution of decision.
Having strong analytical abilities and critical thinking skills is essential. Another key ingredient in this building block is firm decision-making skills, and strong focus (eyes on the ball). People with strong business acumen tend to be strong and decisive leaders.
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