21 September 2020
You may have heard people talk about how business acumen is an exceptionally vital skill for workers to possess. But can you confidently say that your employees have a full grip of this ability?
First, you need to understand what business acumen is and why it's in your company's best interest to help your employees develop this skill.
While not generally taught in business school, professionals believe that it is essential to recognise how a company works financially and how one's duties and behaviour impact the overall success of a business.
For others, business acumen means recognising some business disciplines — for example, finance and accounting — or knowing the basics of other functional areas within an organisation — for example, logistics or sales. But in reality, business acumen is more critical than that.
Here are four reasons why candidates with business acumen make great employees:
1.They understand the financial side of the business
People with advanced business sensitivities understand the finances of a business. They have a good grasp of the company's revenue model, how money is spent within the business and how it manages its cash flow.
Without capital, you won't have a business. This is why it is vitally important that your workers and prospective employees understand how your organisation's money functions.
2.They have the potential to be more strategic
Once an employee understands what generates sales and what tasks are most critical, their decisions can be far more proactive. Without understanding which duties and responsibilities are more valuable from an organisational point of view, it isn't easy to prioritise correctly and invest enough time on activities that eventually contribute to greater profits for the business.
3.They share the goals of the company
When an organisation succeeds, its workers are also successful. Not everybody knows this, which is why individual staff members may have priorities that contradict the objectives of the company. If more staff had business acumen, they would be more likely to behave in a way that helps the company as a whole. Imagine a workforce, with each member working towards achieving goals that are in the best interest of your business.
4. They're more effective at directing others
Business acumen is essential at all levels of employment, but it may be particularly important for managers who have to lead other employees. Managers who do not understand the business they work for are likely to make uninformed decisions that do not have a positive impact on the organisation. Managers with a good business sense understand the priorities of the organisation and better meet expectations.
Managers who show this skill are also more successful in directing others. They can articulate specific objectives that others are inspired to achieve, and they help encourage others to become more involved in the business.
Being business-savvy and fully aware of the relation between daily work and company finances is crucial for any employee, no matter what level they are in the company or what the specifics of their work are.
Do you want workers who set and work towards strategic objectives? If you want to have committed, involved and purposeful staff, why not book a Business Acumen Training Course with us today on firstname.lastname@example.org.