Why is Business Acumen Important?
Having an understanding of how the business operates and makes money, has a clear correlation when driving relevance to each individual role. When you help your employees understand how the business strategies align with them personally, it gives them power in their role. It helps to show how each person is making a difference.
Franklin Covey published “Today’s modern employees are increasingly specialized in order to have the greatest impact. But that often means they don’t see how the whole organization runs, and how their role affects the bottom line.”
It’s hard to comprehend the necessity of business acumen until you see the effects of not having it. When you aren't playing every role within your business, you don’t know exactly what’s going well and what isn’t. Unless you are or have been in a role, it's difficult to have a good understanding of the struggles within the role or even the department.
So what is the best way to develop this understanding? Taking a deep dive into each role is impractical and inefficient, but there is something that could help! Business acumen training. Having a deep understanding of business acumen will allow you to see the bigger picture in your organization.
To maximize the potential of your people, individuals need to understand that their role is beneficial to the overall growth of the organization. They need to feel valued and needed. By helping them to see the company strategies, and giving them a better understanding of why the CEO makes the decisions that she does, it helps employees to see the direct impact they have. Teaching business acumen to your employees will help everybody feel valued, needed, and better connected to their own company. Not only are you teaching what the direction of the company should look like, but also
-the financial position of your company compared to competitors
-the struggles and benefits of your industry
-how the market is progressing/digressing
-the behind the scenes of cutting costs, upping sales quotas, hiring and firing
-the amount of cash the company has on hand, and where it’s going
The goal of business acumen is to help everyone feel connected to the overall success of the company. Does your company need this?
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