Why is Business Acumen Important? And... How Does it Impact Me?
Why is business acumen important?
Well, there are a variety of reasons! But one of the big ones (in our opinion) is that having an understanding of the business: how the company makes money, how it operates, how it is positioned within the industry will help people understand how to put their priorities and strategies in alignment with the organizational goals.
...but why is that important?
Business acumen is vital in driving relevance within employees' roles and their credibility. It allows them to make recommendations that fit the direction of the company using the language of business.
How do good business acumen skills impact me?
Business acumen (definition) is part business language, part how the business operates, how it makes money and ensuring you make decisions that align with the strategy of the business. Equipped with this knowledge, you are more prepared to make a meaningful impact within your organization because it allows you to present your ideas more proficiently, and see the impact these ideas will have on the whole organization, not just their department.
How do good business acumen skills impact an organization?
Individuals want to make an impact, they want to see the meaning that comes from their role. When you understand how the business is making money and what part you can play in that, it starts to really deepen your awareness of the impact you can have, how you drive value to the broader organization, and the connective tissue between what decisions you make every day and how it impacts the bigger picture can bring meaning and context to your day-to-day.
This will not only help the individual advance their career and make the changes they want to see, but it will help the organization as a whole make smarter, faster, and more effective business decisions. Apart from that, it'll help keep employees happy and motivated - and we all know, employees are essential to good business!