Today while talking with Ben Cook, President of Acumen Learning, we dive into the critical components that all companies think about – the 5 drivers! Ben gives us great insights into the drivers and why they’re important. Let's review the Q&A: Question: Hi Ben! We talk a lot about the ‘5 business drivers’. Can we start with what the 5 drivers are and why they’re important? Yes! The 5 drivers are what all successful companies think about in order to succeed! Those 5 drivers are: Cash, profit, assets, growth, and people. We believe you can’t be successful without being extremely mindful of each one of these. You obviously need customers and employees to run a business, you need to be balancing both the growth of the business while also attending to its profitability, which then should generate strong cash flows, you get the idea. Each one of the 5 Drivers are intertwined with the others… too little focus on one can hurt the others. And Vice versa. Question: How do the five drivers - cash, profit, assets, growth, and people – present themselves within a business, particularly in terms of sales strategy and execution? The five drivers are interdependent components that businesses, and especially sales teams, need to balance effectively. For instance, sales teams are typically intensely focused on driving growth of the top-line (sales). But without an attention to disciplined pricing of the products or attention to the costs to sell and distribute the product…then those sales won’t translate to profitability. And the less profitable the sales are, the less cash flow the company then makes on each sale. And that then impacts the available resources to invest in new assets such as products, technologies, and other necessary resources to generate those sales. And without great products or an ability to get the products effectively to the customer, then marketshare (people) then gets compromised and your ability to invest in further demand generation efforts or invest in your people internally gets further challenged. Question: Could you elaborate on how understanding the priorities of businesses in terms of the five drivers can inform a company’s sales strategies? Certainly. Recognizing which driver holds the greatest importance for a particular business should guide the sales professionals in tailoring their solutions to what the customer most wants. For instance, if a company is most focused on its growth, then your approach about be to link your products/services to how you can help drive for your customer better products, more customers, better innovation, clearer product differentiation, and more pricing power. However, if your customers are most focused on profitability, your value statements should then focus on demonstrating how your products can help your customers be more cost effective, have better operating efficiencies, and a batter ROI to align with their top priority. If you aren’t customizing your sales approach to the customer, you won’t get very far in closing deals. An easy way to find their top priorities is listening to their earnings calls where you’ll quickly notice what they’re focusing on and what they care most about! Knowing and understanding these 5 drivers will help you have better sales conversations, connect with prospects and customers better in a language they most care about, and drive more sales for your company. And just to reiterate, the best sales professionals carefully align their offerings with the client's key drivers to maximize relevance and value. Otherwise, it’s like selling baby items to somebody without a baby. You don’t even know what they need! Question: In your experience, how do the five drivers manifest differently across various industries. And what implications does this have for the sales strategies of the company? This is a great question because what is relevant for one industry could be completely irrelevant for another. Different industries exhibit unique dynamics in terms of the five drivers. For instance, retail firms need to prioritize asset utilization, cost efficiencies, and operating scale due to their thinner than average margins. Now, a very different industry like pharmaceutical companies have higher-profit margins driven by patent protectedness, product differentiation, and innovation. Their success is determined by their ability to translate R&D to new products than then drive marketshare. Your sales strategies must adapt accordingly, tailoring value propositions and solutions to meet industry-specific challenges and objectives. Back to the original point of customizing solutions for every individual’s priorities, it’s important to understand your clients before talking with them. Understand what their industry focuses on, what their role deals with, and what their company is hyper-focused on. Keeping the 5 drivers in mind will keep your research clear and concise. Question: For sales professionals engaging with publicly traded companies, how can they leverage publicly available financial information to better understand the client's priorities among the five drivers? Oh, this is my favorite question. I briefly mentioned in question 3 how important this is. Publicly available financial statements and investor relations materials (such as their quarterly press releases, presentations they are giving to investors, etc.) offer valuable insights into a company's emphasis on the five drivers. Analyzing trends in revenue growth, profitability, investment patterns in assets such as infrastructure or acquisitions, and trends in cash flows provides sales professionals with a deeper understanding of the client's strategic focus. They’re basically giving you a road map into their company – utilize it!!! This information enables more targeted sales pitches and alignment of your solutions with the client's priorities. Question: Those are really great tips! If that information is so crucial to tailoring the sales process, what happens if a company isn’t public? What strategies can sales professionals employ to gain insight into their priorities? This part is tough but definitely possible. While financial data may be limited for privately held companies, sales professionals can gather information through broader industry analysis or research of your customer’s competitor who might be public. By understanding industry trends and benchmark companies, as well as studying competitors positioning and messaging, sales professionals can infer the priorities and challenges of their target clients. Each industry tends to have common themes and pressures so where one company might have a specific profile, others in the same industry will likely be thinking in similar ways. However, it is important to engage in open dialogue with your customer and ask insightful questions during your client interactions! As you demonstrate that you have put in the work to understand the industry and its typical priorities and challenges, then your customer can provide additional answers and insights that will play even more of a valuable role in your positioning. This can uncover valuable insights into their business drivers and strategic objectives. It will also help your clients to feel valued and show them that you genuinely care about positively impacting their performance and to ensure you align with their priorities. Question: Last question for you Ben, how can sales professionals continuously refine their business acumen to better understand and address the evolving needs of their clients in terms of the five drivers? What a great question. Developing strong business acumen requires ongoing learning and adaptation. Sales professionals can stay informed about industry trends, economic indicators, and emerging technologies relevant to their clients' businesses. Additionally, actively seeking feedback from clients, peers, and industry experts can provide valuable perspectives to refine sales strategies and approaches. By continuously honing their understanding of the five drivers and their priorities for their clients, sales professionals can enhance their effectiveness as trusted advisors and partners to their clients. Like I mentioned before, all companies think about the 5 drivers – cash, profit, assets, growth, and people. So, determining which is most prevalent in the beginning is key to relationship building in sales. When they realize you’re knowledgeable in their field and role, they will more fully trust that what you offer is for the betterment of their business. ACTIVITY: Now that you've explored the critical components of the five business drivers and their significance in sales strategies, let's engage in a learning activity for your next team meeting: Exercise:   Customer Priorities Mapping Divide participants into small groups and have them each represent a sales team for a hypothetical company. Focus on diverse industries like retail, pharmaceuticals, and technology. Each group will discuss and identify how the five business drivers (cash, profit, assets, growth, and people) manifest in their industry. Identify key challenges and priorities their company might face. Develop a customized sales strategy that aligns with the identified priorities of their industry and company. Consider how their products or services can address these priorities effectively. Have each group present their customer priorities map and sales strategy to the entire team. Have a discussion around what works and doesn't work for each strategy. This exercise bridges theoretical knowledge with practical application, helping teams understand how to tailor sales strategies to different industries by focusing on the five business drivers. It fosters a deeper appreciation for the nuances of customer priorities and the role of business acumen in successful sales execution. Continue your learning… The Impact of Business Acumen on the Sales Process Benefits of Business Acumen for Sales The Five Business Drivers of Sales Next Steps… Why Do We Teach the 5 Business Driver Model Article: Get a demo of our business acumen training: Attend a preview of our course from our Founder and CEO, Kevin Cope: Test your Business Acumen with this assessment: ✅ Subscribe to our YouTube Channel  for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning  to keep up with all company updates! ✅ For more on our business acumen training visit our  website ! #businessacumen   #businessstrategy   #financialacumen   #financialstrategy   #learninganddevelopment   #HR   #leadershipdevelopment   #training   #businesssuccess    #businessacumentraining   #financialacumentraining  #sales #salessuccess #financialhealth #business

Welcome to this insightful Q&A session with Cam Crockett, one of our financial consultants. Today, we're discussing how we can all further our own business acumen. Let's get started! Question: Hi Cam! Let’s start strong. How would you describe the ongoing process of developing business acumen? Business acumen is keen, street-smart insight into how your business operates, how it makes money and sustains profitable growth. It is not a one-time event. It’s a continuous process of learning and application. It requires regular practice and engagement to retain and build upon the knowledge gained from learning initiatives or academic studies. If you don’t practice what you learn, you can’t become an expert at something. Question: I love that last phrase..."If you don’t practice what you learn, you can’t become an expert at something." Can you explain the significance of listening to executives' prepared remarks during earnings calls for enhancing business acumen? Sure! Executives' prepared remarks during earnings calls provide valuable insights into a company's strategic focus, goals, and objectives. Understanding these messages is crucial for leaders within the organization to align their efforts with the overarching strategies and priorities set by the executive team. It’s like their way of giving you a cheat sheet…they’re telling you exactly what they care most about! Question: Interesting. So we all need to be listening! How can leaders leverage financial statements to enhance their business acumen? This is a great question! I love the financial statements. They give so many key indicators into a company. Leaders can review key financial statements (income statements, balance sheets, and cash flow statements) to gain insights into the company's financial performance and health. These statements will give you trends of revenue growth, profitability, cash flow generation trends, and financial strength, which is so important to making changes in not just the business, but also your role! Understanding these indicators is essential for making informed decisions, seeing the bigger picture, and driving positive changes within the organization. Question: How can leaders identify and understand the key metrics that are important for their organization? Leaders should actively research and familiarize themselves with the metrics that drive their organization's performance. These may include metrics like earnings per share, return on invested capital, revenue growth, profitability metrics, and cash flow indicators. It's essential to know how these metrics are measured and what they signify about the company's health and performance. Like we’ve said in previous questions, familiarizing yourself with financial statements, and listening to what your executives are saying during earnings calls are a great way to know exactly what the organization needs. Question: Now…going off that last question. How can that be actionable? What actions can leaders take to impact the specific metrics important to their organization? You started with listening to earnings calls and familiarizing yourself with financial statements. What else can we do? Yes, definitely listening to earnings calls and understanding the financial statements. Then, I think leaders should analyze how their teams, projects, and programs contribute to the key metrics identified by the executive team. By understanding their role in driving these metrics, leaders can align their efforts and resources more effectively to support the company's strategic objectives. Some specific examples are setting clear objectives. Once we know the key metrics, it should be extremely clear what can be done to improve the processes and systems. Another is promoting learning and innovation within their teams to identify new opportunities for optimization and growth. This might involve conducting process audits, or investing in training and development programs. We believe business acumen training is a great way to see the big picture and drive results. Without understanding how your role impacts the money-making process, it’s hard to know what decisions are making the most sense. These are just a few actionable ways that leaders can take to make changes to specific metrics in the organization…and drive results! Question: In what ways can leaders apply their understanding of business acumen to their decision-making and leadership roles within the organization? I believe leaders should be very intentional about teaching their knowledge and skillsets to their teams, fostering a culture of business acumen within the organization. It’s really hard to create a team of future leaders without business acumen. What this looks like is direct and clear communication to employees on how their role impacts the bottom line. It is giving actionable insights into process improvements. It is aligning their goals and their teams’ goals with the organization's strategies and objectives. These are all ways leaders can really apply their business acumen. ACTIVITY: Now that we've explored various dimensions of enhancing and furthering your business acumen through understanding financial statements, metrics, and decision-making, let's engage in an interactive activity that reinforces these concepts and encourages practical application: Exercise:  Business Acumen Simulation Divide your team in a few small groups. Present a simulated business scenario or case study relevant to your company's industry or recent challenges it has encountered. It could involve a strategic decision like entering a new market, launching a new product, or optimizing internal processes for efficiency. Provide each team with a set of financial statements (income statement, balance sheet, cash flow statement) for the simulated company, along with relevant industry data and market trends. Task each team with analyzing the provided financial data, interpreting the implications for the given scenario, and developing a comprehensive action plan or strategic recommendation. Give the team 10 minutes and encourage them to consider how their proposed strategies align with the company's overarching goals and objectives, as well as the potential impact on key performance metrics that we have discussed today. Reconvene the teams and have each one present their analysis and recommendations to the rest of the participants. Facilitate a discussion following the presentations, encouraging participants to reflect on the insights gained from the exercise and how they can apply these principles to their roles within the organization. This simulation activity provides participants with a hands-on opportunity to apply their understanding of business acumen in a dynamic and interactive setting. By working together to analyze financial data, interpret market dynamics, and develop strategic recommendations, participants gain valuable experience in critical thinking, collaboration, and decision-making, all of which are essential components of effective business leadership. Continue your learning… Measuring Business Acumen   Further Your Business Acumen   Quickly Navigate the Financials Next Steps… Earnings Calls: The Soap Operas of Business article: Get a demo of our business acumen training: Attend a preview of our course from our Founder and CEO, Kevin Cope: Test your Business Acumen with this assessment: ✅ Subscribe to our YouTube Channel  for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning  to keep up with all company updates! ✅ For more on our business acumen training visit our  website ! #businessacumen   #businessstrategy   #financialacumen   #financialstrategy   #learninganddevelopment   #HR   #leadershipdevelopment   #training   #businesssuccess    #businessacumentraining   #financialacumentraining  #financialhealth #business #furtheringbusinessacumen

Press Release OREM, Utah – May 2, 2024 Download the Business Acumen Press Release: News Facts: Known for its commitment to advancing financial security through a comprehensive range of products, a leading insurance firm sought business acumen training to empower its emerging leaders. With a focus on bridging the gap for significant technology transformation initiatives, they turned to Acumen Learning for customized training. The insurance firm has an Emerging Leaders Program that prepares individuals for executive and vice president positions. The program aimed to equip these leaders with the necessary skills and insights to enhance their potential within the organization. The training aimed to help navigate the intricacies of finance and business acumen, with a focus on industry-specific nuances. Participants gained insights into technology transformation initiatives, understanding the rationale behind strategic decisions, and embracing a holistic view of the business landscape. The ongoing commitment to nurturing future talent within the company is evident. The insurance firm wants to extend Acumen Learning’s business acumen training to its associates, solidifying the progress made in enhancing business and financial acumen while preparing for ongoing digital transformations. The training enabled these future leaders to make informed decisions, adapt to change, and drive long-term profitability. This partnership underscores a shared commitment to nurturing talent, fostering innovation, and propelling organizational growth in an era of digital transformation. Supporting Quotes: “This session was beneficial as it got you to think more outside of your day-to-day operations and the impact things have.” “I’m learning real company scenarios that I can apply in my job as a leader rather than generic concepts I already know.” “The business acumen session far exceeded my expectations. The concepts are relevant and language that leaders should be using.” “It has become clear that this company’s dedication to equipping their emerging leaders with essential business skills is driving tangible results,” said Brian Peterson, Business Development Director at Acumen Learning. “We’re excited to continue supporting their vision for success.” “The leader’s commitment to mastering business acumen is commendable," says Cam Crockett, Senior Financial Consultant with Acumen Learning. "We are thrilled to support their journey towards excellence and are excited about the prospect of extending this transformative course, ensuring widespread proficiency in navigating our evolving landscape.” About Acumen Learning Founded in 2002, Acumen Learning's highly customized business acumen and sales training programs have helped organizations develop employees who are more engaged, efficient, and effective in their work. To further support its mission, Acumen Learning published, Seeing the Big Picture – Business Acumen to Build Your Credibility, Career, and Company , in 2012 which quickly became a #1 Wall Street Journal and a New York Times bestseller. More than 20  years later, Acumen Learning has been trusted by more than 200 organizations on six continents to help employees understand how their company makes money, and to take real steps towards improving that process.

We have Greg Kandare, our senior financial consultant here today to discuss the oil and gas industry and the supply chain. Let's get to it. Question: Okay, Greg… let's start by talking about why business acumen is so important for the oil and gas industry. You got it. Business acumen is crucial for the oil and gas industry due to its complex and multifaceted nature. With operations spanning exploration, production, transportation, refining, and retail, the industry requires managers and leaders who can understand and navigate the financial and strategic challenges inherent in every supply chain segment. Effective decision-making, risk management, and resource allocation are essential for driving profitability and sustainability in this dynamic industry, and business acumen is a great way to help you develop those. Question: How does the upstream segment of the oil and gas supply chain differ from the midstream and downstream segments in terms of financial and strategic characteristics? The upstream segment, which encompasses exploration and production, involves high-risk and capital-intensive activities. Companies in this segment invest significant resources in discovering and extracting oil and gas reserves, with returns often realized over extended periods. In contrast, the midstream segment, focusing on transportation and processing, is typically lower in risk and more stable in returns, often through fee-for-service arrangements. The downstream segment also involves refining and retail and it operates on thin margins due to the commoditized nature of petroleum products. Question: Interesting! We’re learning so much about the different facets of oil and gas. What are some key challenges and opportunities facing the midstream segment of the oil and gas supply chain? The midstream segment faces challenges such as regulatory compliance, environmental concerns, and volatile market conditions. However, it also presents opportunities for innovation and investment in infrastructure to enhance efficiency and reliability. With the growing demand for energy transportation and storage solutions, midstream companies can capitalize on strategic partnerships and technological advancements to drive growth and mitigate risks. Question: How do fluctuations in oil and gas prices impact the profitability of companies across the supply chain, and how can business acumen help mitigate these risks? You are correct in that business acumen helps mitigate these risks, oftentimes by just having the forethought to understand where they could come from. Fluctuations in oil and gas prices can significantly affect companies all across the supply chain, influencing everything from production costs to consumer demand. For instance, a rise in oil prices increases transportation costs for suppliers, impacting the prices of components for manufacturing companies. Additionally, operational expenses, such as fuel costs for delivery fleets, can strain profit margins. On the other hand, companies heavily reliant on fossil fuels, face increased production costs and potential declines in consumer demand during price spikes.   Business acumen plays a crucial role in navigating these challenges. By anticipating market trends and managing costs effectively, companies can mitigate the impact of price volatility. Strategies such as negotiating long-term contracts with suppliers, investing in alternative energy sources, or diversifying product lines can help buffer against sudden price fluctuations. Moreover, implementing strategic hedging and risk management practices can further safeguard financial performance, allowing companies to adapt to changing market conditions while maintaining profitability. Overall, understanding and proactively addressing the implications of oil and gas price fluctuations are essential for long-term success in the supply chain. Question: Wow! It’s interesting to learn that more than just the buyer is impacted by a rise in gas prices. Last question! In what ways can companies in the oil and gas industry leverage business acumen to drive sustainable growth and innovation? Companies in the oil and gas industry can leverage business acumen to identify many different opportunities, but especially for operational efficiency, technological innovation, and even strategic partnerships. By understanding market dynamics, regulatory trends, and consumer preferences, businesses can adapt their strategies to meet evolving demands while mitigating environmental and social risks. Also, cultivating a culture of continuous learning and collaboration fosters innovation and resilience in the face of industry disruptions. ACTIVITY: Now that you've explored the complexities of the oil and gas supply chain and the importance of business acumen, let's engage in a learning activity you can easily do during your next team meeting: Exercise:   Supply Chain Risk Management Simulation Divide your team into small groups, each representing a segment of the oil and gas supply chain: upstream (exploration and production), midstream (transportation and processing), and downstream (refining and retail). Give them a scenario: "A sudden geopolitical event disrupts oil supply, causing prices to spike." Have each team discuss the impact on their segment. Identify key risks and brainstorm mitigation strategies. Present your strategies to the team, ask questions, and provide feedback. Discuss the interconnected segments and the importance of collaboration and business acumen in managing risks. This exercise bridges theoretical knowledge with practical application, enhancing participants' understanding of supply chain risk management in the oil and gas industry. By simulating real-world scenarios, teams can develop a deeper appreciation for the complexities of the industry and the importance of proactive risk management and strategic foresight. Continue your learning… Oil & Gas Business Cycle  Why Does Gas Keep Going Up? Next Steps… How to Have Success in the Oil and Gas Industry Article: Get a demo of our business acumen training: Attend a preview of our course from our Founder and CEO, Kevin Cope: Test your Business Acumen with this self-assessment: ✅ Subscribe to our YouTube Channel  for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning  to keep up with all company updates! ✅ For more on our business acumen training visit our  website ! #businessacumen   #businessstrategy   #financialacumen   #financialstrategy   #learninganddevelopment   #HR   #leadershipdevelopment   #training   #businesssuccess    #businessacumentraining   #financialacumentraining  #oil #oilandgas   #business #gasprices

Press Release OREM, Utah – May 23, 2024 Download the Business Acumen Press Release: News Facts: Acumen Learning announces a strategic collaboration with one of the largest data center providers in the world. Renowned for their innovative real estate investment trust background, they specialize in building and managing cutting-edge data centers and services, catering not only to industry giants but also to companies seeking to leverage their expertise. Acumen Learning engaged with the directors and senior directors within the organization. These high-level executives sought guidance in navigating their transition from a real estate-centric model to also a dynamic service provider role. Acumen Learning provided comprehensive training sessions designed to equip leadership with essential business acumen skills. By delving into key concepts such as business strategy, financial acumen, and effective communication, Acumen Learning’s customized business acumen course enabled participants to bridge the gap between their real estate heritage and their evolving role as service providers. The participants gave the course a resounding 4.9 out of 5 in overall course effectiveness, demonstrating their high satisfaction. Now equipped with newfound business acumen skills and a deeper understanding of customer needs, the company’s leadership has decided to expand the courses globally. Acumen Learning remains dedicated to empowering organizations worldwide with the essential skills needed for sustainable growth and success. With a proven track record of delivering impactful training solutions customized to diverse industries, Acumen Learning continues to be a trusted partner. Supporting Quotes: “Absolutely amazing. Time well spent. Engaging and interactive and had fun learning about finance. Who knew that was possible? I want to go through the course again and again. Highly recommended.” “Outstanding content that was presented and articulated in a way that was relatable to my role. Provided an outstanding baseline for understanding the fundamentals of finance that is relatable to my day to day. It will definitely enhance my approach to the business.” “Awesome class. This should be required for all managers and up. It had the right level of detail and relevant examples.” “Excellent course that helped me understand the strategy of the company, what I should be looking at when reading financial statements, and what questions to ask.” “This group was unique and stood out to me as exceptional," says Ryan Hunt, Financial Consultant at Acumen Learning. "They engaged deeply with the complexity of the business, applying principles to navigate it effectively and identify the impact of their roles. They worked diligently to swiftly uncover profound insights about their company, the other companies they analyzed, and how these insights would impact the industry.” About Acumen Learning Founded in 2002, Acumen Learning's highly customized business acumen and sales training programs have helped organizations develop employees who are more engaged, efficient, and effective in their work. To further support its mission, Acumen Learning published, Seeing the Big Picture – Business Acumen to Build Your Credibility, Career, and Company , in 2012 which quickly became a #1 Wall Street Journal and a New York Times bestseller. More than 20  years later, Acumen Learning has been trusted by more than 200 organizations on six continents to help employees understand how their company makes money, and to take real steps towards improving that process.

Quantifying business acumen training is an essential endeavor for anyone seeking to excel in the corporate world or make a lasting impact within an organization. In a landscape marked by constant change and fierce competition, understanding and quantifying one's business acumen can be the key to personal and professional success. Whether you're an executive striving to enhance decision-making or an individual aspiring to stand out in interviews and career progression, the ability to measure and articulate your business acumen can be a powerful tool. Join us as we delve into crucial aspects of business acumen with President of Acumen Learning, Ben Cook. Question: How do you suggest quantifying business acumen for individuals in their current roles or past experiences? When you're assessing your business acumen, especially for interviews or self-reflection, consider the impact you've had on the company. Think about it from various angles, such as how you've contributed to company growth, acquiring more customers, increasing revenue, launching new products, and gaining market share. These factors reflect your ability to drive success for the business. Question: What about roles that may not directly relate to revenue generation, like quality management? Even in roles that don't directly involve revenue generation, you can quantify your impact. For example, consider how you've expedited product launches, improved product quality, reduced recalls, or minimized regulatory concerns. Quality has a significant influence on factors like speed to market and market reputation, which ultimately affect market share and profitability. Question: In IT roles, what should individuals focus on to measure their business acumen? In IT roles, it's essential to look beyond revenue and examine your contributions to cost management and operational efficiency. Have you successfully reduced operational costs by 5% or enabled the introduction of more products into the market while maintaining the same operating costs? These metrics reflect your ability to drive efficiency and cost-effectiveness in the business. Question: How can professionals in Human Resources showcase their impact on business acumen? Professionals in HR can demonstrate their business acumen by attracting top talent that leads to increased revenue or greater innovation efficiency, resulting in faster market entry. Calculate the speed at which you've helped the company reach the market compared to the usual timeline and the cost savings associated with this. Quantify the impact of your HR efforts on the company's profitability and growth. Question: Could you elaborate on the key areas that individuals should focus on when quantifying their impact on business acumen? Absolutely. To quantify your impact on business acumen, consider key areas such as business growth, profitability, operational efficiency, and process optimization. Reflect on whether your actions have contributed to standardization, optimization, centralization, or automation. You can also think about any ideas you've implemented that expanded into new markets or deepened your presence in existing ones. All of these factors directly affect a company's financial performance . Question: Can you provide guidance on how to put this quantified impact into practice, such as on a resume or during an interview? Certainly. To showcase your business acumen , incorporate the quantified impacts into your resume and interview discussions. Be specific about how your contributions affected revenue, cost, profitability, and efficiency. Describe any innovative ideas that facilitated market expansion or process improvement. By presenting data-backed evidence of your impact, you can effectively demonstrate your business acumen to potential employers. Question: Can you provide examples of specific metrics or key performance indicators that professionals can use to quantify their impact on business acumen? You are right, measuring impact often involves using specific metrics or KPIs. Depending on your role and industry, these might include metrics like revenue growth percentages, customer acquisition rates, cost reduction percentages, product launch timelines, or market share expansion figures. It's essential to identify relevant metrics that align with your contributions. Question: How can professionals ensure that they accurately attribute their contributions to the overall success of the business, especially in larger organizations? In larger organizations, it can be challenging to attribute individual contributions to overall success. However, it is so important to do so in order to feel valued. To address this, focus on projects or initiatives where your influence was significant and measurable. Collaborate with colleagues and managers to gather data and insights that clearly demonstrate your impact. Highlighting teamwork and cross-functional efforts can also help establish your role in the organization's achievements. Question: What role does strategic thinking play in demonstrating business acumen, and how can individuals showcase their strategic contributions? Strategic thinking is a vital aspect of business acumen. To showcase your strategic contributions, discuss how your decisions and actions align with the company's long-term goals and vision. Explain how your initiatives fit into the broader strategic framework and how they contribute to sustainable growth and profitability. Provide examples of how you've helped shape the company's strategic direction. Question: Last question Ben! Can you offer advice on effectively communicating these quantified impacts in an interview or on a resume, especially for individuals who may not have a traditional business background? Certainly. When communicating quantified impacts, focus on the outcomes and the value you've brought to the organization. Be specific with numbers and data. Use plain language to describe complex achievements, making them accessible to a broader audience. For those without a traditional business background, emphasize transferable skills and your ability to drive results, regardless of your role. Use real-world examples and stories to illustrate your contributions and their impact on the business. ACTIVITY: Now that you've explored how important measuring your business acumen skills are, let's engage in a learning activity you can do during your next team meeting: Exercise 1: Quantifying Your Impact 1. Ask your team to take 3 minutes and write down all of the quantifiable impacts they have made in their roles. This could include percentages, timelines, cost savings, revenue growth, etc. Encourage them to consider the key areas Ben discussed in this Q&A: business growth, profitability, operational efficiency, and process optimization. 2. Then ask your team to put it in resume format. How would they display this on their resume? This helps them to be clear and concise with their answers. 3. Have each person share what they came up with and discuss it among the team. This will help team members get ideas and be able to articulate the value they are bringing to the company. This exercise aims to empower individuals within your team to actively reflect on their professional impact and articulate it in a measurable way. By prompting team members to quantify their contributions and translate them into resume format, they not only gain a clearer understanding of their achievements but also refine their ability to communicate their business acumen. Sharing these insights within the team fosters a collaborative environment where individuals can learn from each other's experiences, sparking new ideas and strategies for driving success. Continue your learning... Measuring Business Acumen Best Interview Tips Business Acumen In Your Interview Next Steps... Why do you need Business Acumen to get hired? Download the course overview for our Applying Business Acumen Course: Get a demo of our business acumen training: Attend a preview of our course from Kevin Cope, CEO of Acumen Learning: ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website ! #businessacumen #businessstrategy #financialacumen #financialstrategy #learninganddevelopment #HR #leadershipdevelopment #training #businesssuccess #people #businessacumentraining #financialacumentraining

Today we have Monty Magleby here to give us insights on depreciation and amortization. We’ve come up with some great questions to ask him and got some advice from our senior financial consultant. Thanks for joining us today Monty! Question: We know that depreciation is the word we use for tangible assets while amortization is the word used for intangible assets. Can you provide insights into why there's a distinction in terminology and accounting treatment between these two types of assets? Yes, the differentiation in terminology and accounting treatment is rooted in the fundamental characteristics of tangible and intangible assets. Depreciation is applied to tangible assets, which are physical and can be touched or seen, including equipment and vehicles. The rationale behind using the term "depreciation" for tangible assets lies in the natural wear and tear or physical deterioration these assets may experience over time. The accounting treatment involves spreading out the costs of these tangible assets over their estimated “useful lives” to align with one of the funding principles of accounting which is the “matching principle,” which always tries to match costs with benefits. On the other hand, amortization is employed for intangible assets, which lack physical substance but still hold intrinsic value, such as software, patents, and copyrights. The term "amortization" is used because it reflects the process of gradually allocating the cost of intangible assets over their expected useful lives. Unlike tangible assets, intangible assets may not physically deteriorate, but they still tend to lose value over time. This could happen because technology seems to advance or there could be legal limitations. For example, software may become outdated or a patent may decrease in value because of new innovations in that particular technology. One other important difference between depreciation and amortization is that amortization usually employs the straight-line method of spreading the asset’s costs over its useful life, whereas many depreciation methods can be used including accelerated depreciation that may offer tax breaks and other advantages in the short term to the company. The fundamental reason that companies are required to capitalize these costs over time goes back that the “matching principle” of accounting. If companies were to fully expense certain large costs like buildings or equipment all in the year they were acquired, that would greatly reduce their profit for that year, and then perhaps artificially boost their profit the next year since none of those expenses would be shown. That would make their profit kind of 'lumpy' over time, as I like to say. Question: Did you just use the word ‘lumpy’ when describing a company's profitability if it were to expense the total cost of an asset upfront? I love it! How does the practice of depreciating and amortizing assets contribute to a more stable and accurate representation of a company's financial performance? Yes, I did! But if you think about it, it actually makes sense. Here's an example…let’s say Walmart builds 15 new superstores during one calendar year—those are obviously very expensive to build. If they were to expense the full cost of those buildings in that year, their profit would be reduced significantly for that year. But the following year, they would have those 15 new stores operating and providing significant additional revenues for the company without any expenses against them, so that would in a sense make the profit for that year artificially high. By depreciating those assets, the new buildings, over the useful life of the asset, which in this case may be 30-40 years, the company is matching the cost of those assets with the benefits they receive from them over time, thereby giving a much more accurate view of true profitability. So, to sum that up, depreciating and amortizing assets contribute to a more stable and accurate representation of a company's financial performance by preventing the upfront expensing of the total cost of an asset. This approach ensures a gradual recognition of expenses over the asset's useful life, preventing abrupt fluctuations in profitability and providing stakeholders with a more consistent portrayal of the company's financial health. Does that make sense? Question: Yes, that is extremely helpful! Thanks Monty. Now, tax benefits were mentioned as one of the advantages of depreciating and amortizing assets. Could you talk about how companies can strategically leverage tax benefits through these accounting practices and any considerations they should keep in mind? The key strategy lies in aligning the depreciation or amortization schedule with the company's overall tax planning. By strategically timing the recognition of these expenses, companies can optimize their taxable income, potentially lowering their tax liability. For example, accelerating depreciation in years when the company has higher taxable income can lead to significant tax savings. So to condense that…strategically leveraging tax benefits through depreciation and amortization involves aligning the timing and methods of asset expense recognition with the company's broader tax planning objectives. This approach not only contributes to enhanced financial efficiency but also requires a nuanced understanding of both accounting and tax principles. Question: Can you provide a real-life example or case study where a company's decision to depreciate or amortize assets had a significant impact on its financial stability or strategic planning? Certainly! Imagine a manufacturing company that invests in amazing robotic machinery to enhance its production capabilities. In line with the accounting principles that we’ve talked about, the company decides to depreciate the equipment over its estimated useful life, recognizing the expense gradually over several years. This strategic approach aligns the cost of the equipment with the long-term benefits it provides, like increased efficiency, reduced labor costs, and higher production output. By depreciating the machinery, the company not only adheres to accounting standards but also ensures that the impact on its financial stability is better measured. Instead of a significant one-time expense affecting profitability in the acquisition year, the gradual depreciation allows for smoother financial planning and budgeting. This, in turn, facilitates strategic decision-making regarding future investments in technology and equipment. The approach not only supports the company's financial stability by avoiding abrupt profit fluctuations but also contributes to informed strategic planning. It enables the management to assess the true cost of the asset over its useful life, factor in ongoing maintenance expenses, and plan for future technology upgrades or replacements. This example illustrates how the decision to depreciate assets can have a substantial and positive impact on both financial stability and the long-term strategic direction of a company. Question: Wow, that's great. The useful life of assets is often mentioned when talking about assets. How do companies determine the useful life of their assets internally, and what factors might influence these estimates? Internally, companies consider various factors when determining the useful life of their assets. Factors include technological obsolescence, expected wear and tear, industry standards, and the specific nature of the asset. Regular assessments and reviews help companies adjust their estimates based on changes in business conditions and technology advancements. However, it’s important to note that there are government standards that must be followed as well. In the United States, the Financial Accounting Standards Board regulates these areas and sets some parameters with which companies must comply. Question: And now we'll end on a high note. How does a solid understanding of depreciation and amortization contribute to improved decision-making for businesses, beyond financial reporting, and what role does financial acumen play in utilizing this information effectively? Oh, this is a great question! A solid understanding of depreciation and amortization is crucial when making informed decisions beyond financial reporting. Financial acumen enables professionals to interpret the impact of these accounting practices on overall business strategy, resource allocation, and profitability. It empowers decision-makers to optimize the balance between short-term financial results and long-term strategic goals, fostering a more holistic approach to managing company assets. ACTIVITY: Now that we've talked in depth about depreciation and amortization and how it applies to a business, let's engage in a learning activity you can easily do during your next team meeting: Exercise:  Depreciating and Asset Start with giving your team a simple scenario involving the acquisition of a tangible asset. Try using something relevant to your company, but you could also use the example of a new building as we mentioned in the Walmart example. Give the team details like cost, estimated useful life, value, and any relevant tax considerations. Divide the team into two groups and instruct them to discuss how they would depreciate the asset based on the provided scenario. Once you’ve given them 3-5 minutes, bring the groups together and discuss their approaches to depreciating the item. Encourage each group to share their rationale for selecting a particular depreciation method and any considerations they took into account. Highlight any differences or similarities in the depreciation approaches taken by each group and facilitate a discussion around the team’s decisions. This activity allows team members to apply their understanding of depreciation in a practical scenario, fostering collaboration and critical thinking within the group. By comparing and discussing different approaches, participants gain insights into the factors influencing depreciation decisions and their impact on financial performance. Continue your learning… Depreciation vs. Amortization How to Analyze Investments Next Steps… Quickly Navigate the Financials Article: Get a demo of our business acumen training: Attend a preview of our course from our Founder and CEO, Kevin Cope: Test your Business Acumen with this assessment: ✅ Subscribe to our YouTube Channel  for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning  to keep up with all company updates! ✅ For more on our business acumen training visit our  website ! #businessacumen   #businessstrategy   #financialacumen   #financialstrategy   #learninganddevelopment   #HR   #leadershipdevelopment   #training   #businesssuccess    #businessacumentraining   #financialacumentraining  #cashposition #financialhealth #business

Press Release OREM, Utah – March 7, 2024 Download the Business Acumen Press Release: News Facts: A leading pharmaceutical company in Japan has teamed up with Acumen Learning to provide business acumen training for its future leaders. With a firm commitment to advancing global health initiatives, this pharmaceutical giant recognizes the crucial role of business acumen in achieving its mission. This group of high-potential directors represents the organization’s future leadership. Through a comprehensive 2-day program, we equipped these directors with essential skills to embrace an entrepreneurial mindset within their roles, provide insights into the big picture of their organization, and empower participants to make informed business decisions. The impact of the business acumen training is already reverberating within the organization. The company has a vision that extends beyond this initial cohort, aiming to implement Acumen Learning’s business acumen training across the entire company, demonstrating the program’s potential for widespread success and organizational transformation. Acumen Learning teaches customized business acumen to 3 of the 5 largest pharmaceutical companies in the world. Our customized programs empower individuals with the knowledge, skills, and mindset needed to thrive in dynamic business environments, driving success and innovation at every level. Supporting Quotes: “This is something we should do more pervasively with leaders.” “It was impactful.” “Business acumen is a skillset we don’t get today.” “It has been clear to us in our 20+ years of working with every industry, every function, and in every geography, that every business needs more financially savvy businesspeople at all levels,” says Ben Cook, President of Acumen Learning. “Business acumen equips each individual with the knowledge, insights, and mindset to make businesssavvy decisions, seize new opportunities, and drive sustainable success. In today’s complex and interconnected world, developing strong business acumen is not just a competitive advantage; it is an essential skill for thriving in any role or industry.” About Acumen Learning Founded in 2002, Acumen Learning's highly customized business acumen and sales training programs have helped organizations develop employees who are more engaged, efficient, and effective in their work. To further support its mission, Acumen Learning published, Seeing the Big Picture – Business Acumen to Build Your Credibility, Career, and Company , in 2012 which quickly became a #1 Wall Street Journal and a New York Times bestseller. More than 20  years later, Acumen Learning has been trusted by more than 200 organizations on six continents to help employees understand how their company makes money, and to take real steps towards improving that process.

Today we have Ryan Hunt, senior financial consultant here to give us some great insights on how to measure business acumen! Thanks for joining us Ryan! Question: We’re going to start strong. How can a finance professional effectively demonstrate their impact on a company's growth and profitability? Essentially…how does one measure their own business acumen? Finance professionals typically have the numbers or know how to get them. In fact, just the other day, I had one executive tell me that sometimes we look at too many numbers. To demonstrate good business acumen as a finance professional, we have to go beyond the numbers. The best way is to be a partner to the business. Understand what the organization is trying to do, down to the individual roles of those you partner with. Don’t just bring numbers and percentages, but bring possible solutions that could add value to the business. Lastly, communicate in a way that is meaningful to the business – not just specific percentages, metrics, or other numbers – but here’s how WE can move the business forward. The measure of your business acumen as a finance professional is how often people come to you, not for reports and analyses, but how often they include you in finding solutions. Question: In the realm of business acumen, how does financial decision-making play a crucial role in driving a company's success? There’s no doubt that the numbers are critical. We use numbers to measure the impact of our decisions, and whether we like it or not, in business, we make decisions based on what the numbers are telling us. Using leading and lagging indicators we make decisions that influence strategic choices that impact growth, market share, and overall profitability. Having good business acumen helps you to understand what consequences will happen when you make certain decisions. Sometimes tweaking tiny operational procedures can make huge impacts…for good or for bad! Finance professionals play a pivotal role in shaping a company's economic story by helping manage resources and identify and analyze investment opportunities. Question: Now we’re going to get a bit granular. Can you help us understand how we can contribute to innovation within a company, and how this innovation can impact financial outcomes? I’ll often joke that finance first says, “No!” and then asks questions. The fact of the matter is innovation is critical for a company and everyone can play a pivotal role in innovating. Picture a manufacturing company aiming to enhance its production efficiency. Employees from the production line, with insights into daily operations, collaborate with colleagues from the finance department. Together, they analyze the operational and financial feasibility of implementing automation technology. Employees contribute by providing on-the-ground insights into the current production challenges, while finance professionals assess the potential costs and benefits of implementing the new technology. The finance professionals don’t know exactly what is needed in the production line, like the floor workers. And the floor workers may not always understand the financial implications that the finance team does. This collaborative effort ensures that the innovation aligns with the company’s financial goals and operational needs. In essence, employees at all levels have the power to drive innovation by offering unique perspectives and actively participating in cross-functional collaborations. The resulting innovations, when aligned with strategic goals, operating realities, and financial objectives, can lead to improved efficiency, cost savings, and ultimately, positive impacts on the company’s financial performance. And who doesn’t want that??? Question: That is awesome! These are great tips and scenarios we can take to try and implement in our own companies. I have found that it is hard to show leaders in non-financial roles why they would need financial knowledge and business acumen. What role does financial acumen play in addressing challenges like regulatory concerns, quality control, and speed to market, especially for professionals in non-finance roles? Financial acumen is essential in non-finance roles when tackling challenges, and in many cases…even more essential! Go back to our collaborative innovation example. If the ops team depends solely on finance to bring the financial assumptions, they may be missing an opportunity to stress test or even modify assumptions that may not make sense in this case. If this is another iteration of a project that we’ve done 3 or 4 times now, are the cost assumptions still valid? Or are we now more efficient as a project team and can lower the cost assumptions, thereby increasing the ROI of the project? That’s just one example in operations, but as you look across the other areas you noted, financial acumen is critical in those areas too. In quality control, we have to balance the cost of waste vs. speed and efficiency of production. Going slower may increase quality, but what if the incremental quality improvements go beyond spec and now we can’t fulfill orders on time. While waste and warranty costs may go down, so will revenue, so we need to find the balance. Compliance functions have a very real financial and people impact because they protect us from the cost of non-compliance which could range anywhere from fines, to work stoppages, and in some real cases even injury or death! Compliance has to understand the risk involved, the probability of negative events, and the magnitude of those events. Then they have to find ways to monitor and control the processes in cost-effective ways that balance the risk with the cost. Both of these examples directly impact the company's bottom line, not to mention the possible impact to customers and employees. This showcases how financial acumen in non-financial roles can lead to both functional effectiveness and financial success! Question: How can finance professionals effectively communicate their contributions to non-financial stakeholders, emphasizing the economic and financial benefits of their decisions? Communication is a huge part of business acumen. It allows every employee to see the implications of executive decisions and the way they’re trickling through the business. We love to say – if you think you’ve communicated it enough, communicate it again and it probably still won’t be enough. Finance professionals should translate complex financial concepts into clear, accessible language that relates to the business (segment, function, department, and even role). People connect to stories, not numbers. The better you get at telling the story of the business and how decisions impact the people you support, the better you will partner with the business to be a success rather than just being a gatekeeper of financial resources. Question: In the context of business acumen, what advice do you have for professionals looking to quantify and showcase their impact on a company's bottom line during job interviews? When discussing impact during job interviews or promotional interviews, professionals should focus on specific examples tied to revenue growth, cost savings, or operational efficiencies. Quantifying your impact is huge! If you’re in marketing, I want you to tell me the direct traffic percentage growth we had when implementing a new marketing campaign. Tell me about the improvement of conversion rates and incremental sales. If you’re in sales, I want you to tell me how you were able to improve your close rate or how you protected the value of your brand by eliminating discounting. If you’re in HR, I want to know what your employee retention is, what you did to save on turnover, and what you did to keep top talent. Quantifying these impacts with measurable outcomes, such as percentage improvements or dollar amounts, helps demonstrate a clear understanding of the financial implications of your decisions. Hopefully, that’s helpful! I really believe business acumen can be beneficial to any employee, at any company, at any level. I’ve named several ways people could use business acumen, and I could name 100 more! ACTIVITY: Now that we've delved into various aspects of measuring business acumen and its significance across different roles within a company, let's engage in a learning activity that reinforces the principles discussed and encourages practical application: Exercise: Financial Impact Analysis Start by presenting a hypothetical business scenario relevant to your company's industry or recent challenges it has faced. For example, consider a situation where the company is contemplating a new product launch, a cost-saving initiative, or an expansion into a new market. Provide the team with key financial data pertinent to the scenario, including projected costs, potential revenue streams, anticipated market trends, and relevant performance metrics. Divide the team into smaller groups and assign each group a specific aspect of the scenario to analyze. For instance, one group could focus on assessing the potential return on investment (ROI), another group could examine the projected cash flow implications, while a third group could explore the potential risks and uncertainties associated with the proposed initiative. Give the teams a set amount of time to analyze their assigned aspect of the scenario and develop a comprehensive analysis with recommendations. After the allotted time, reconvene the groups and have each one present their findings to the rest of the team. Encourage discussions around the different perspectives and insights offered by each group, as well as any areas of agreement or disagreement. Encourage participants to consider the broader implications for the company's growth, profitability, and strategic objectives. This activity provides team members with an opportunity to apply their understanding of business acumen in a practical context, fostering critical thinking, collaboration, and the ability to communicate financial insights effectively. By engaging in a structured analysis of a real-world scenario, participants gain valuable experience in evaluating business decisions from a financial perspective and understanding their impact on organizational success. Continue your learning… Measuring Business Acumen Further Your Business Acumen Next Steps… Quickly Navigate the Financials Article: Get a demo of our business acumen training: Attend a preview of our course from our Founder and CEO, Kevin Cope: Test your Business Acumen with this assessment: ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #financialacumen #financialstrategy #learninganddevelopment #HR #leadershipdevelopment #training #businesssuccess  #businessacumentraining #financialacumentraining #financialhealth #business #measuringbusinessacumen

We have Kenny Snarr, a senior financial consultant here today to talk to us about gross margin and why we should be aware of it! This is a metric that is actually vital to understand no matter the role you play in a business. Entry-level positions should know and understand it and of course, executives should as well. Let's talk with Kenny. Question: Hi Kenny! Can you just start by elaborating on the significance of gross margin as a measure of profitability? Gross margin is a critical metric that indicates the efficiency of our operations in creating value around our products. It's a profitability measure derived from subtracting direct costs or COGS from total revenues. Essentially, it provides insights into how well we manage costs and establish pricing. So, to put it simply, gross margin helps a company make more money by being smart about both what they charge and how they spend on making great products. It's a sneak peek into how well a business is doing in the money game! Question: How does the calculation of gross profit contribute to understanding a company's financial performance? Gross profit is the initial metric derived by subtracting direct costs from total revenues. This figure represents the starting point for assessing a company's profitability. By analyzing gross profit, we gain a fundamental understanding of how effectively we are managing the direct costs associated with our products and services. When we talk about the calculation of gross profit, think of it as the first big financial clue we get when looking at a company's books. It's not just a number; it's the result of subtracting the direct costs—those unavoidable expenses linked directly to making or providing a product—from the total money the company made. Now, this gross profit number is like the opening scene of a movie. It sets the tone for all of the financials. Let's break it down further. Imagine a bakery – the total money they make selling cakes minus the flour, sugar, and other costs of making those cakes gives you the gross profit. This figure is the initial glimpse of how well the bakery is doing at the most basic level of making and selling its goods. Breaking down the gross profit is like peeling back layers. It's the first thing we look at to understand how well a company is handling the fundamental costs linked directly to its products or services. If the gross profit looks healthy, it's a sign that the company is effectively managing these costs. On the flip side, if the gross profit seems a bit off, it's a cue to investigate and possibly adjust the strategy for handling these direct costs. In essence, we’re seeing how smooth a company is at balancing the money it makes with the expenses directly tied to what it offers. Question: Wow, that’s great! Now…we know that gross margin reflects both the strength of pricing and insights into the cost structure. Can you elaborate on how it provides insights into these two aspects? Certainly. Gross margin is calculated by dividing the gross profit by total revenues. This percentage indicates the portion of profit that remains after deducting direct costs. It offers insights into our ability to build a robust pricing structure and also sheds light on how well we negotiate and manage the direct costs of our products and services. Question: From a leadership standpoint, how can understanding gross margin contribute to strategic decision-making? Leadership can leverage insights from gross margin to strengthen the perception of value around our products, which then influences pricing strategies. How else do you think Apple got all of us on board to buy a $1200 iPhone? 20 years ago, nobody would have dreamed of paying that kind of money for a phone. However, they’ve branded themselves and they have credibility in the market, so people are willing to pay that large price point. Additionally, it provides a means to evaluate and enhance our effectiveness in negotiating and managing the direct costs associated with our offerings. Question: Can you share examples of how companies might use gross margin analysis to improve their pricing strategies and cost management? Absolutely. Companies can leverage gross margin analysis to refine their financial strategies. Consider Costco, renowned for selling their famous rotisserie chickens at a jaw-dropping $5 each. Now, let's say, at the end of the quarter, they observe a significant increase in sales volume. Through gross margin analysis, Costco can evaluate the financial health of this venture. If the gross margin remains robust, it suggests that even at the low $5 price point, they are generating a substantial profit after accounting for the direct costs of chicken production, labor, and overhead. This insight provides confidence that their pricing strategy aligns with customer expectations and allows them to maintain a healthy profitability ratio. This could also give them the leverage to raise the prices. On the cost side, if the gross margin indicates a decline, Costco can investigate further. Perhaps the cost of chicken feed or other production elements increased unexpectedly. This prompts them to reevaluate their supplier agreements or streamline their production processes to mitigate the impact on profitability while keeping the irresistible $5 price intact. In essence, the gross margin analysis serves as a practical tool for Costco to assess and optimize both their pricing strategies and cost management, ensuring a delicate balance between providing value to customers and safeguarding their own financial success. Question: Last question Kenny and then I'll let you go. In one of our videos, it mentions that gross margin is the first profit metric on the P&L. How does this metric set the stage for analyzing overall financial performance? Great question! Gross margin, being the initial profit metric, serves as a foundation for understanding a company's pricing strength and cost management. By examining gross margin, we gain valuable insights into the interplay between revenue generation, direct costs, and overall profitability, laying the groundwork for comprehensive financial analysis. Hopefully, that makes sense. ACTIVITY: Now that you've explored gross margin and what it says about a business, let's engage in a learning activity you can easily do during your next team meeting: Exercise: Calculating Gross Margin Take your company's P&L. If you don't work for a public company, look up a company you admire. The first line item on the P&L is gross margin. Assess the numbers you're seeing and talk about why it's considered a good gross margin metric or if it could use some improvement. Then talk with your neighbor about the things you can do to impact gross margin in your own roles. Good luck! This exercise helps you understand the difference between a good gross margin and one that needs improvement. Then, you'll discuss why it's important in your role. This shows you that your role matters and you can make a difference. Continue your learning… Gross Margin vs. Operating Margin Explaining Gross Margin Next Steps… Quickly Navigate the Financials Article: Get a demo of our business acumen training: Attend a preview of our course from our Founder and CEO, Kevin Cope: Test your Business Acumen with this assessment: ✅ Subscribe to our YouTube Channel for more Business Acumen videos! ✅ Follow us on LinkedIn @AcumenLearning to keep up with all company updates! ✅ For more on our business acumen training visit our website! #businessacumen #businessstrategy #financialacumen #financialstrategy #learninganddevelopment #HR #leadershipdevelopment #training #businesssuccess  #businessacumentraining #financialacumentraining #cashposition #financialhealth #business

Press Release OREM, Utah – February 28, 2024 Download the Business Acumen Press Release: News Facts: A prominent regional resource management company based in Texas, renowned for its landfill and trash collection services, has recently embarked on an ambitious initiative to enhance the business acumen of its operational leaders. To enhance the business expertise of its leadership team, the company sought out Acumen Learning. With a sharp focus on improving financial comprehension, operational efficiency, strategy, and overall business acumen, Acumen Learning customized a business acumen training course specifically for its operational leaders. Through interactive sessions, participants gained invaluable insights into key financial principles and strategic decision-making, equipping them with the tools necessary to drive sustainable growth and success within their roles. The partnership yielded transformative results. Participants significantly improved their understanding of financial concepts and the application of strategic principles. With outstanding ratings including a Net Promoter Score of 80, the success of the program underscores the value of investing in employee development. As a trusted leader in business acumen training, Acumen Learning is dedicated to empowering organizations with the knowledge and skills needed to drive meaningful business results. Through our customized approach to learning and development, we enable companies across industries to unlock their full potential and achieve sustainable growth. Supporting Quotes: “The tools given will help in my current role and give me a better understanding when financials are talked about.” “Excellent class, great flow and I learned a great deal.” “The topic was MUCH more interesting than I anticipated and I know this is information I’ll use at work and in my personal life. The instrucor was excellent, knowledgeable and personable. Really enjoyed the class and conversations.” “Great program.” “This instructor was excellent and had thoughtful dialogue. I would take any class he taught.” “This company’s proactivity in prioritizing the enhancement of its leaders’ business acumen is amazing, and not always common," says Greg Kandare, Senior Financial Consultant at Acumen Learning. "Through our customized learning solutions, we’ve witnessed significant strides in participants’ understanding of financial concepts and strategic decision-making. This initiative further proves the importance of investing in continuous learning and development to drive sustainable growth and success.” About Acumen Learning Founded in 2002, Acumen Learning's highly customized business acumen and sales training programs have helped organizations develop employees who are more engaged, efficient, and effective in their work. To further support its mission, Acumen Learning published, Seeing the Big Picture – Business Acumen to Build Your Credibility, Career, and Company, in 2012 which quickly became a #1 Wall Street Journal and a New York Times bestseller. More than 20 years later, Acumen Learning has been trusted by more than 200 organizations on six continents to help employees understand how their company makes money, and to take real steps towards improving that process.

Press Release OREM, Utah – February 2, 2024 Download the Business Acumen Press Release: News Facts: A prominent player in the pharmaceutical industry sought Acumen Learning to enhance the business acumen of its market development managers, encompassing both leaders and their teams within their immunology, oncology, and the payer markets. The customized training aimed to balance the unique and complex dynamics of this highly science-minded and patient-centered business, with the need to appreciate the business & economic realities of their customers. The initiative aimed to connect the pharmaceutical industry’s commitment to improving lives while developing a greater business and financial awareness of their customers. The training enabled the leaders to delve into the intricacies of their customers’ businesses and cultivate a mindset conducive to becoming thought partners. This program navigated the complexities of pharmaceuticals while emphasizing the critical importance of having a grasp of customer needs. Acumen Learning’s expertise resonated with these leaders as they walked away from the program more informed and attentive thought partners, equipped with the tools to navigate the intersection of science and business within the industry. This partnership showcases the value of fostering business acumen and cultivating effective thought partnerships in a highly specialized domain. Supporting Quotes: “The information and discussion was rich and relevant….far more relevant than we even thought at the time.” —Marketplace Sales Training Manager “Overall, 10/10. Really enjoyed the content, facilitator, and investment in deeper understanding around my customers. This makes me better prepared on a broader scale to engage with customers.” “It was simply outstanding.” “One of the best value-add trainings I have been a part of in my tenure at (company). The compare/contrast of mfg. vs payer, deep dive into the metrics that are important to the customer, the application by role, deeper understanding around the financial health of the payer, but most importantly the “why” and how this links to our role in what we do. I loved the focused approach with 5 key drivers.” About Acumen Learning Founded in 2002, Acumen Learning's highly customized business acumen and sales training programs have helped organizations develop employees who are more engaged, efficient, and effective in their work. To further support its mission, Acumen Learning published, Seeing the Big Picture – Business Acumen to Build Your Credibility, Career, and Company, in 2012 which quickly became a #1 Wall Street Journal and a New York Times bestseller. More than 20 years later, Acumen Learning has been trusted by more than 200 organizations on six continents to help employees understand how their company makes money, and to take real steps towards improving that process.