Business acumen is all too often associated with being a “hustler”, seen as a natural trait by those born with an entrepreneurial mind, naturally gifted with making money. The truth is that it is an acquired skill and more importantly should be possessed by more than the business owner, but by the employee as well.

Also referred to as business savvy, business acumen is not the amorphous ability to just magically flip a profit. In an article on Bigthink.com, titled “Business acumen training: A how-to guide”, on the 14^th June 2023, business acumen is defined as: “… a deep understanding of how an organization executes strategy to achieve its objectives, how it delivers value, and how this all translates to financial success.”

As aforementioned, it is an essential skill for the entrepreneur, their Board of Directors, CEO, Executive team and senior management team. However, it is an essential skill which extends to employees as well. In fact, a lack of business acumen throughout the business organogram, can prove detrimental to any business. This is evidenced by an article on the Niagra Institute website, titled: “What is Business Acumen and Does it Pay to Develop it?”, which highlights how a lack of business acumen prevents growth: “65% of business leaders agreed that a lack of business acumen held their organizations back.

Without a holistic understanding of the different business functions, how they intersect, and how your organization creates value, your ability to make sound business decisions will be hindered.”

Is it the sole responsibility of those occupying the proverbial top floors of a business to possess business acumen? A CEO and their top management structure may have a deep understanding of business strategy, value and how to achieve financial success, however, if the rest of the employees do not, it stalls growth.

An article on Acumenlearning.com, titled: “Turn Your Leaders Into Business Leaders”, it is clear that business acumen is an essential skill, which should be present at all levels within the business: “While most people understand their job, only one out of ten understand metrics that are important to their CEO, and 95% don’t understand their company’s strategy. You end up with employees who are more interested in only getting their work done than in seeing how their work contributes to the bottom line. But when employees have business acumen, productivity accelerates, engagement improves, and solutions come together as individuals, teams, and executives align around common objectives.”

So, business acumen is an essential skill for all employees. Seeing that you’re not simply born with it, how then do we reverse the stark statistics mentioned in the Acumenlearning.com article mentioned above?

Returning to the Bigthink.com article, it is clear that business acumen training is the most effective way to pass on this essential skill.

“By participating in business acumen training, employees acquire the skills necessary to help them succeed. These skills include problem-solving, strategic thinking, and financial literacy. Business acumen also improves teamwork and collaboration, as being cognizant of the broader business context empowers employees to communicate in more constructive ways.

In addition to competency development, business acumen grants employees a stronger sense of ownership over their work because it gives them a clearer view of how they contribute to the bottom line. This clarity can bring about increased engagement and job satisfaction.”

Apart from ensuring buy-in into the broader business strategy and increasing greater engagement, what tangible and applicable skills are acquired through business acumen training? The Bithink.com article expounds: “Business acumen training can develop specific skills to enhance an employee’s perception of the business landscape and improve their financial decision-making. These might include:

In reference to the last listed skill of adaptability, any business operating within the twenty first century needs to be adaptable. In an age of computer learning, artificial intelligence, accelerated technological evolution and understanding of society, a business which is not agile and able to adapt, is as good as the, now extinct, Dodo. In another article on Acumenlearning.com, titled: “Grow or Die” – How Business Acumen Accelerates Change Management”, the importance of business acumen in facilitating adaptability is clarified: “Business acumen helps to accelerate change management… business acumen helps people find the why, identify opportunities, assess risk, win the buy-in of needed partners, and make better, faster, stronger decisions.”

Business acumen is so much more than the ability to “hustle” but rather an essential skill for better appreciation and adoption of the “big picture”, business strategy and buy-in into these concepts. It further provides the tools and skills for a business to make educated decisions which are intended to add to the bottom line. It is therefore not only important to have a business savvy CEO, but much rather a driver, office cleaner, receptionist, call centre operator, IT specialist or General Manager who possesses business acumen.

So, business acumen is an essential skill for all employees. Seeing that you’re not simply born with it, how then do we reverse the stark statistics mentioned in the Acumenlearning.com article mentioned above?

Returning to the Bigthink.com article, it is clear that business acumen training is the most effective way to pass on this essential skill.