The Importance of Business Acumen During Recessions
How to Continue Success During a Recession
Why Business Acumen is Even More Important During a Recession:
We've experienced a few recessionary pressures this year. It seems like uncertainty and unknowns are becoming the norm in business, but with the right skills and knowledge, we can get through those times. During our 20 years in business, we at Acumen Learning have seen that business acumen training is even more relevant when the economy faces uncertainty. And executives know it.
When companies need to be agile, it takes every employee to implement change. That's why business acumen is needed at all levels. Having a workforce that's aware of company pressures, understands cost trends and operating priorities, and position within the marketplace is more important during a recession.
How to Help your Team develop Business Acumen:
Helping employees gain those skills really comes down to helping them understand what the costs are and where executives are taking the company because during a recession your costs are typically growing and your margins shrink. You start to have customers who are challenged in their own businesses and might be buying less from you. Uncertainty often leads companies to pull back on their investments. Unless employees understand what you're doing as a company — and why you're doing it — they may just see this as a short-term knee-jerk reaction. And disappointed that you're taking some of these steps.
The Framework of Business Acumen:
Business acumen gives a framework for why these decisions are made. An explanation for why you're holding off hiring decisions or raising prices or why you're looking for other ways to reduce your costs. These are all steps that companies can take to recession-proof a bit of their business. However, if people don't understand why you're doing it — what part they play in the solution as opposed to just being a victim of this — then it's hard to do well during very difficult times like a recession. Business acumen is a tool you especially need in a recession to be able to link your role and to be able to drive business success even during difficult times.
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