Press Release OREM, Utah – August 17, 2023 Download the Business Acumen Press Release: News Facts: In collaboration with an industry leader in the PEO (Professional Employer Organization) sector, Acumen Learning embarked on a transformative initiative aimed at enhancing the sales proficiency and business acumen competency of the organization’s sales teams. This innovative company hosts an annual National Sales Summit for its sales leaders, designed to elevate their skills. Acumen Learning crafted a customized business acumen curriculum tailored specifically to this company’s unique needs. It was highlighted that a pivotal aspect of a successful sales leader lies in their profound understanding of their clients’ businesses, underlining the utmost importance of business acumen. Through the customized business acumen session, the company took a powerful step in enabling their sales leaders to deeply understand the strategic direction, financial realities, and business impact of their clients and then position their solutions in an approach that directly links their contribution to the clients’ financial success. This partnership exemplifies the critical importance of building meaningful relationships in driving greater sales success. Following the program’s completion, the feedback from the Professional Employer Organization has been resoundingly positive. The results underscored the success of the session, with expressing their unequivocal satisfaction and enthusiasm for the future of their sales teams and teams across the organization. They are excited to continue their journey of business acumen and are committed to continuing their expertise in the industries they work within. Acumen Learning is honored to add this Professional Employer Organization to their list of esteemed graduates and are excited to continue their learning journey with them. Supporting Quotes: “I had hopes it would be great and expectations it would be great, but it was better than my hopes and expectations,” notes Executive Vice President of this Professional Employer Organization. “I was really impressed with the customization.” “We’ve already changed internal messaging to include the 5 drivers. It’s becoming part of the company language.” “I thought the breakouts were great,” says the Vice President of this PEO. “I’m a big fan of getting us out of our shells and getting out of our seat.” “We have new employees who we’d love to have go through the business acumen training as part of the onboarding process.” “Our collaboration with this visionary PEO was a remarkable success,” says Brian Peterson, Director of Business Development at Acumen Learning. “We witnessed a tangible shift in their sales teams’ approach, reflecting a profound understanding of their clients’ needs. This partnership demonstrates the potential for transformative change when industry leaders come together to champion sales excellence.” “This initiative was a unique opportunity to help a forward-thinking company revolutionize their approach to sales," says Acumen Learning's President, Ben Cook. "By grasping their clients’ businesses on a fundamental level, sales professionals can build more meaningful relationships and drive greater success. It’s not just about meeting quotas but forging lasting partnerships that thrive in a dynamic marketplace.” 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 wanted to explore the retail industry and how employees within could benefit from business acumen. Today we have Kenny Snarr here to talk us through the challenges they face and how business acumen can be a key contributor to their success. Let's dive in and ask Kenny some questions! Question: Kenny, what do you think are some of the key challenges professionals in the retail industry are facing today? In the retail industry, professionals and executives face several significant challenges. One of the most pressing issues is the slim profit margins, where a minor mishap can have a substantial impact on the bottom line. I’ve mentioned this story before, but I was talking with a leader at Walmart, and he told me an astonishing statistic. He said if a turkey during the holidays gets ruined for some reason or another, whether it falls off the truck, expires, or gets dropped, Walmart then has to sell 53 more turkeys to make up for the money lost from the one. That just shows how thin the margins are in retail. But then rising costs, including those related to goods, labor, and distribution, are also a constant concern. Additionally, the challenge of managing inventory effectively is a critical issue that retailers grapple with due to supply chain disruptions and inflation. Question: Wow! Those are slim margins Walmart is facing. How can business acumen help address these challenges? Business acumen indeed plays a pivotal role in addressing these challenges. It empowers employees at all levels to contribute to a company's financial performance by finding ways to streamline processes, reduce costs, and minimize losses. For executives, business acumen helps bridge the gap between corporate strategy and financial objectives, enabling effective execution. It also provides a holistic view of the organization, helping identify hidden opportunities for improvement. Question: Can you elaborate on the importance of employees in the retail industry to understand the financial aspects of their work, even for seemingly small decisions? Understanding the financial aspects of their work is crucial for retail employees because even seemingly small decisions can have significant financial implications. In an industry with thin profit margins, like Walmart, these decisions can make or break profitability. By making informed choices that align with the company's financial goals, employees can directly impact the bottom line. If you have business acumen skills, it’s easy to see why giving discounts or free gifts with purchases can be a tough way to make money. But as a salesperson, that sounds like the perfect solution. However, when you think about the business from an executive’s standpoint, you understand the broader picture in a much more tactical way. Question: That makes sense. It’s interesting to see that business acumen can help all employees align. Different departments have different objectives and business acumen helps them see eye to eye. So how can business acumen help retail executives overcome their limited perspective and effectively craft and execute corporate strategy? Business acumen is a powerful tool for retail executives and retail employees too! It helps them communicate and translate the financial tenets of the company's strategy to all employees, facilitating better execution. It also allows employees to see the organization from the executives' perspective, which can uncover hidden opportunities for improvement. If you think about a salesperson at a tech store, their primary responsibility is to sell the latest electronic gadgets to customers. Often, they might focus on closing individual sales, meeting their personal quotas, and ensuring customer satisfaction. Which don't get me wrong...is commendable. However, with a deeper understanding of business acumen, they'd not only emphasize selling the product but also comprehend the broader financial impact. For instance, if they're selling high-margin accessories or service plans along with the gadgets, they're not only maximizing the customer's purchase but also significantly enhancing the store's profitability. Understanding business acumen would go beyond a single sale. It involves perceiving how your actions contribute to the store's overall financial health. Instead of solely concentrating on selling the gadgets, you'd recognize the importance of upselling, leveraging promotions, or even managing inventory effectively. This understanding aids in driving not just personal success but also the success of the entire business. By comprehending the broader financial implications, you'd actively contribute to the company's bottom line and overall growth. This is a small example but emphasizes how an individual's understanding of business acumen can go beyond immediate sales and focus on holistic business success, thereby contributing significantly to the company's overall financial health and success. Question: That’s an interesting comparison…one that shows the importance of business acumen for all employees! Can you elaborate on how business acumen empowers individuals to quantify the value they bring to the organization? Certainly. Business acumen enables individuals to understand how their work directly impacts financial principles like cash flow, profitability, and revenue growth. By aligning their actions with corporate objectives and being able to articulate this connection, employees can demonstrate their contributions to the organization's success. Not only does this quantification of value help employees showcase their impact at the highest levels of the organization, it also gives them a sense of purpose for their role. They can better see how they are making a difference. Question: Kenny, you’ve worked with a lot of retail companies over the years. In your opinion, what is the ultimate outcome of cultivating business acumen in the retail industry? Fostering business acumen within the retail industry yields far-reaching benefits. It not only elevates the sector but also positions it for sustained success. With a workforce and leadership that possesses a profound grasp of financial principles and a broader perspective, the industry can not only withstand the challenges of a competitive landscape but also proactively identify and seize opportunities. As consumer preferences continue to evolve, those with a strong foundation in business acumen will be at the forefront, steering the industry toward continued growth and innovation. ACTIVITY: Now that you've explored the ins and outs of the retail space, let's engage in a learning activity you can do during your next team meeting: Exercise : Key differences between Sears and Walmart 1. Have your team watch this quick 1-minute video: 2. And now let's chat about it: -What distinguished Sears from its competitors in terms of strategic business practices during its prime? -In Sears' most successful times, what specific elements of business acumen were evident in their approach? -Where did Sears demonstrate deficiencies in business acumen leading to its decline in its final years as a business? -How did the strategic approach of Sears differ from that of Walmart? -Where did Sears accurately predict limited growth in the retail industry, and conversely, where did they misjudge the situation? This challenge offers an interactive way for teams to understand the implications of their decisions. Sears was a business that seemingly couldn't fail, they were doing all of the right things! And (to the public eye) quickly turned south. This is a great way to integrate your teams to think about businesses and the growth that can be had within the retail space. Continue your learning... The challenge of Retail The Challenges Retail Executives Face Growth and Retail Case Study What the Retail Industry Needs to Get and Keep Employees: Ballooning Inventory: Get a demo of our business acumen training: ✅ 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 #learninganddevelopment #leadershipdevelopment #salessuccess #financialstrategy #financialacumen #businesssuccess #workplaceskills #skills #businessacumenskills #business #HR #Humanresources #retail #retailindustry #retailchallenges

Press Release OREM, Utah – July 19, 2023 Download the Business Acumen Press Release: News Facts: Acumen Learning, partners with a Fortune 500 energy company to drive leadership excellence and engagement. This global energy company hosts a Leadership Essentials Program designed to develop leaders across various functions within the company. Acumen Learning played a pivotal role, delivering a customized business acumen training to drive engagement and foster a culture of informed decision-making throughout the organization. Acumen Learning’s business acumen training focused on equipping leaders with essential business acumen skills. We empowered finance leaders, accounting leaders, HR, safety, compliance, legal, and operations leaders to make data-driven decisions, enabling them to operate more strategically and drive better outcomes. This customized training provided these leaders with a deeper comprehension of the organization’s strategic objectives, facilitating a more cohesive and engaged workforce. The program has already seen tremendous success, with 600 participants enrolled this year, and plans to train a total of 1600 leaders in the near future. Participants felt like their understanding on business skills was enhanced and it empowered them to make better, data-backed decisions, ultimately driving faster and more effective outcomes across the organization. This emphasis has fostered a stronger sense of engagement among employees, creating a more united and empowered workforce. As a trusted leader in business acumen training, Acumen Learning continues to make a difference for organizations worldwide. We have delivered customized business acumen courses to renowned companies on the Fortune 500 list, including 32 of the Fortune 50, further cementing its reputation as a top provider of business acumen training. Supporting Quotes: “Good content. The constant linking between the information being presented and real-world numbers from our company made it very very interesting.” “The course boosted my business acumen, provided a better understanding at what drives companies’ growth, and delivered the best overview of understanding a P&L. The instructor kept us on time, provided high energy throughout the day, and kept the class engaged.” “Really good, summarized immersion on financials with day-to-day examples related to company.” “Great low-level examples to work thru as groups. Great pace and trainer had an obvious strong background in this topic.” “Very nicely done. Loved the basic examples via the case study and then relating the concepts to [company’s] numbers.” “Very informative, lots of useful information and tools to take away and continue understanding.” “I loved witnessing these leaders gain an understanding of the ‘why’ behind their decisions," says Brent Barclay, Senior Financial Consultant. "They unlocked a deeper level of strategic thinking and will be able to drive better outcomes for their teams and the organization. They brought such enthusiasm to the training and I have no doubt they will leave this program with a newfound sense of purpose and the ability to lead with confidence.” 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.

Business acumen is an essential skill set that goes far beyond finance. While finance is undoubtedly a critical aspect of business acumen, it is just one piece of the puzzle. To truly thrive in the dynamic landscape of today's business world, individuals need to cultivate a holistic perspective and embrace the broader implications of their choices. By developing business acumen, professionals can become invaluable assets to their organizations, playing a pivotal role in shaping strategies, fostering innovation, operating more efficiently, and delivering sustainable growth. Today we’ve asked our President, Ben Cook some questions about the topic. Here are his thoughts: Question: What is business acumen, and why is it important in today's business world? Business acumen is the ability to understand how a business operates and makes money, along with the capacity to make informed decisions that contribute to its success. It goes beyond just finance and encompasses a holistic understanding of all aspects of an organization. In today's dynamic business landscape, business acumen is crucial because it empowers individuals to navigate complexities, identify opportunities, mitigate risks, and drive sustainable growth. It enables us to play a pivotal role in shaping our company's strategies and fostering innovation, ultimately propelling it toward success. Question: How does business acumen differ from financial acumen, and why is it important to make this distinction? Business acumen differs from just financial acumen in that it's a broader skill set that encompasses a comprehensive understanding of all facets of an organization. While financial acuity is undoubtedly important and provides the language of business and is vital to think about how a company allocates resources and measures it financial outcomes, business acumen delves into the choices we make every day as individuals and as a company. It's about making decisions that contribute to the company's short- and long-term success, such as assessing the company’s market opportunities, where to best invest in product development to maximize market differentiation, how to operate most efficiently, what partners are best to help you grow, and drive choices on which markets to participate in. It also involves managing the tension between short-term and long-term goals, optimizing sales, and controlling costs. While financial acumen is a part of business acumen, it's essential to recognize that business acumen is about driving business success, not just pulling levers to drive short-term economic outcomes. Question: How can individuals go about developing their business acumen, and what are the key steps they should follow in this process? To develop your business acumen, you should start by understanding how your organization works, including its products, customers, and competition. Learn about financial basics like your income statement (the P&L) and the company’s cash flows, but also seeing the company through its market position, price/volume/mix of your products that drive sales and market share, key risks, competitive dynamics, and the constraints you operate within. We have a ton of videos that go over the basics in these categories. I would also encourage you to think long-term and see how different parts of the business connect. Stay updated on industry trends, collaborate with colleagues, seek mentorship, and consider taking courses. Remember, it's an ongoing process of learning from both successes and failures! Business acumen is not a one-time event that you’ll walk away with. It takes work. Question: Could you elaborate on the importance of taking courses as part of the journey to enhance one's business acumen? Taking business acumen courses can be doing things like taking courses on finance, strategy, operations, marketing, etc. If the audience doesn’t know, we have an online course that is a very digestible way to gain an understanding of business acumen. We go over the 5 things that all successful businesses think about. Cash, profit, assets, growth, and people. These are so crucial to the sustainability of business, and I think that’s a great first step in trying to develop your business acumen! But also having a cadence of listening to your/customers analyst calls, reading executive messaging, hearing from leaders from other parts of the business can also be hugely beneficial to developing this broader awareness of the business. Question: Why is it crucial for leaders to identify gaps in their team's business acumen? I love this question! Do we have all day? I could go on and on about this one. Identifying gaps in the business acumen of your team is crucial for several reasons. It gives you a competitive edge. Having a team with strong business acumen ensures that your team is well-equipped to make informed decisions that drive the company's success. It can keep the team from being too myopic or short-term in their thinking. It can push their assumptions to seeing possibilities beyond what has been done in the past. Teams with well-rounded business acumen are better at making effective decisions that consider both short-term and long-term implications. Teams that consider variables such as market trends, customer expectations, competitive position, profitability targets, etc. This allows leaders to address weakness and areas for improvement while also mitigating potential risks to help prevent costly mistakes. I would hope my team members understand the business impact of the work they do, because if one of my consultants doesn’t understand how their work helps us better impact the business of our customers, grow our impact to the customers we serve, finding new ways to better reach leaders and arm them with usable tools, and impact the bottom line of our company, they’ll be wasting a ton of time on things that aren’t worth working on. Business acumen also helps align to the company’s goals. Like I briefly mentioned before, it ensures that everyone is working towards the same objectives. And for my last point, business acumen helps your team members continuously improve. Acknowledging gaps is the first step toward improvement. It opens the door to targeted training and development efforts to strengthen the team's capabilities. Question: Why is it crucial for leaders to identify gaps in their team's business acumen? I love this question! Do we have all day? I could go on and on about this one. Identifying gaps in the business acumen of your team is crucial for several reasons. It gives you a competive edge. Having a team with strong business acumen ensures that your team is well-equipped to make informed decisions that drive the company's success. Having business acumen equips you with effective decision making and risk mitigation. Teams with well-rounded business acumen are better at making effective decisions that consider both short-term and long-term implications. It allows leaders to address weakness and mitigate potential risks to help prevent costly mistakes. I would hope my team members understand the work their doing, because if one of my consultants doesn’t understand how his work helps the bottom line of our company, he’ll be wasting a ton of time on things that aren’t worthy. Business acumen also helps align to the company’s goals. Like I briefly mentioned before, it ensures that everyone is working towards the same objectives. And for my last point, business acumen helps your team members continuously improve. Acknowledging gaps is the first step toward improvement. It opens the door to targeted training and development efforts to strengthen the team's capabilities. Question: How does business acumen empower individuals to make a meaningful impact on their organizations? Well…business acumen certainly does equip individuals to have a significant impact on their organizations in several ways. First, it helps them make informed decisions that contribute to the company's success, while also identifying potential opportunities as well as better assess risks. Additionally, it encourages long-term thinking, allowing individuals to shape the company's direction and growth profile. Business acumen promotes collaboration between different departments, making it easier to work together for common goals once they are all ‘rowing in the same direction.’ It also inspires innovation, leading to new ways to create value and improve processes. In a changing and dynamic business environment, it enables adaptability to handle challenges and seize opportunities. Lastly, strong business acumen often goes hand in hand with leadership, as leaders with these skills can guide their teams to a brighter and better future. That’s a bit of a long-winded question, but in summary, business acumen empowers individuals to play crucial roles in their organizations, influencing strategies, driving innovation, and ensuring sustainable growth, ultimately making a lasting impact on the company's direction and success. ACTIVITY: Now that you've explored the differences between finance and business acumen, let's engage in a learning activity you can do during your next team meeting: Exercise 1: Business Acumen vs. Financial Acumen Challenge Briefly review the key points from the Q&A session with Ben Cook, and then split your group up into 2 teams. Each team has 5 minutes to generate examples of business acumen and financial acumen on separate notecards. Encourage participants to think about real-world scenarios and specific actions or decisions that demonstrate each type of acumen. After the 5 minutes is up, allow each team to take a turn presenting their examples to the entire group. Facilitate a brief discussion to explore why certain examples are indicative of business acumen or financial acumen. The objective of this activity is to allow each participant to understand the distinctions between business and financial acumen. Recognizing that both skill sets play pivotal roles in the business landscape, the activity aims to highlight how each team member's grasp of these competencies can significantly impact the overall success of the organization. Ultimately, this deeper comprehension will contribute to more well-informed decision-making and a holistic approach to driving the success of the team and the broader business. Continue your learning... Is Business Acumen About Finance Finding the Gaps in Your Business Acumen Why Business Acumen Should Matter to Everyone Next Steps... Download the course overview for our Building Business Acumen Course: Attend a preview of our course: Test your Business Acumen with this quick quiz! ✅ 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 #financialcompetency #finance

Press Release OREM, Utah – August 8, 2023 Download the Business Acumen Press Release: News Facts: Innovative Business Acumen Training Fuels Transformation for Prominent Medical Device Company Towards Profitable Growth. The sales teams of a leading medical device corporation recently underwent a customized business acumen training program, resulting in company engagement, and promising growth potential. The Chief Learning Officer, who had previously collaborated with Acumen Learning during their tenure at a Fortune 500 company, has now transitioned to a medical device company and expressed interest in Acumen Learning’s business acumen training, once again. Emphasizing an aggressive growth plan to achieve profitability, the company recognized the importance of equipping its teams with the essential skills and knowledge to drive engagement, strengthen business understanding, executive selling, and productivity. The initial focus was directed towards senior sales leaders, recognizing their pivotal role in driving revenue and encouraging high engagement. The customized training encompassed business acumen, culture alignment, and financial literacy. Through relevant case studies, exploration of financial statements, and engaging class discussions, Acumen Learning effectively bridged the gap between individual roles and the overarching company objectives, aligning every participant with the company’s growth trajectory. Acumen Learning’s business acumen course, previously leveraged by the newly appointed executive, was promptly integrated into the company’s agenda, marking a pivotal step toward achieving its ambitious goals. It is crucial that every employee truly grasps how their roles contribute to the company’s growth towards profitability. The client’s feedback highlights the impact of this customized business acumen course and how the facilitation and breakout sessions went beyond expectations. The training resonated strongly with participants, sparking enthusiasm and engagement. The combination of business acumen and cultural alignment paved a path not only for future growth, but also to a harmonious workplace that values both innovation and financial savviness. Acumen Learning is proud to work with 7 of the 10 largest medical device companies in the world. Supporting Quotes: “We are thrilled to have been part of this remarkable transformation journey for our client," says the President of Acumen Learning. "Witnessing the positive impact of our business acumen training on their growth trajectory, company engagement, and pathway to profitability has been truly rewarding. Our mission has always been to empower businesses with the insights and skills they need to thrive in dynamic industries.” 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.

In this Q&A session, we delve into the critical balance between revenue growth and cost reduction in the business world. Ben Cook, President of Acumen Learning, provides insights into these strategies and their significance. Let's explore the impact and how business acumen informs these decisions. QUESTION: Ben, can you shed some light on the two common scenarios—reduce costs and increase sales— that executives often grapple with when it comes to business growth? Absolutely! Well, in the world of business, you're going to frequently find yourself dealing with two common scenarios. First, you'll often hear the rallying cry from executives "cut costs, cut costs, cut costs!" as if it were a mantra. On the flip side, they likely are also pounding the table, urging everyone to "step up our game and start selling more to drive the top-line!" So, it's really a tale of two strategies – selling more and growing top-line revenues (or ‘sales’), or cutting costs. It all depends on the company's strategy and what the executives believe will be most effective. But this isn’t really an either-or scenario, it truly needs to be a gentle balance of both. QUESTION: You often emphasize cost reduction. Could you tell us more about the significance of this strategy? Certainly. Cost reduction is a common focus for many organizations. The reason is that by reducing costs, a company can directly improve its profitability. This is especially evident during certain periods, such as the end of a quarter or fiscal year when organizations strive to maximize their profits. Effective cost reduction strategies can directly impact the bottom line. However, it's important to note that cost reduction goes beyond mere cutbacks or layoffs. While these can be important strategies, it's equally crucial to identify inefficiencies and enhance productivity. Often, employees associate cost-cutting with minor changes, like using black ink instead of color. While even small measures are important, I'm always challenging our team to think more creatively. Cost reduction should encompass process optimization, waste reduction, and working smarter. When your CEO emphasizes cost-cutting, it involves more than just budget slashing; it's about becoming more efficient and finding innovative ways to enhance productivity. These combined efforts, along with direct cost reduction, can significantly impact a company's profitability, especially during critical periods like when you're trying to hit year-end financial goals. QUESTION: Ben, the P&L is frequently discussed with employees and shareholders more than other financial statements, why does it get all the love? Ah, the financial statement of choice in many conversations is the Profit and Loss (P&L) statement, or as some people like to call it, the income statement. It tends to be the go-to statement for discussing how a company is performing financially. And in it, you’ve got three main players. First, there's top-line"sales," which is all about the revenue a company brings in. Then second, we have the costs to operate the company: Cost of Goods Sold or ‘COGS’ which are the direct costs it takes to manufacture the products or the costs to buy the products to then sell. Operating Expenses, which is often referred to as SG&A which stands for ‘selling, general, and administrative expenses.' These costs cover the costs related to selling and distributing the products as well as the running of the business day-in and day-out, items such as marketing, sales commissions, distribution costs of the products to the customer, HR, IT, finance, legal, etc. The third major cost is Product Development/R&D which is the costs to develop a product you will be able to get to the market at a later date. After all those costs, which also include taxes, etc. you get the last part of the P&L which is the bottom-line profit or also known as ‘net income’ or ‘net earnings.’ But here's the real beauty of the P&L statement: every employee, regardless of their role, is represented on the P&L and has an impact on it. Every person in the organization can either contribute to increasing sales or decreasing costs, influencing the company's profitability. Employees need to understand that they have a direct hand in pulling these levers to make the company more profitable. Moreover, shareholders closely scrutinize the P&L to gauge whether the company is headed in the right direction. They want to see trends that suggest the company's employees are making the right moves to enhance profitability. In essence, the P&L statement highlights the actionable areas where employees can make a difference in the company's financial health. It's a valuable tool for aligning employee efforts with business objectives and demonstrating the company's commitment to profitability. QUESTION: Ben, often times in your courses you'll reference the average gross profit margin for companies in the S&P 500, what insights can you provide? When we're talking about those big players in the S&P 500, the average gross profit margin tends to hang around 45%. It gives you a good sense of how profitable their products or services are. It basically means that for every dollar the company is able to generate in sales, they have 55 cents in direct costs (or COGS). And they have 45 cents left over. It makes for a good benchmark to measure the impact of different strategies. QUESTION: Speaking of strategies, can you walk us through the impact of increasing sales by $100k on a company's profitability? Certainly, let's look at it. Picture a company that manages to drum up an additional $100k in selling more products/services. Now, that might sound like a victory parade, but here's the deal: with greater sales comes greater responsibility. They've got to shoulder various costs like the cost of goods sold (COGS) and the overhead costs that are captured in SG&A (Selling, General, and Administrative) expenses. So let's break that down. First, they tackle the cost of goods sold, covering expenses like labor, raw materials, shipping, and quality testing – the essentials for preparing products for sale. Using our S&P average, about 55% of every $100k in sales goes into these costs, leaving around 45% or $45k as gross profit. But there's more to the picture! They also have expenses like commissions for salespeople, distribution costs, customer service expenses, and possibly increased marketing – these are the SG&A expenses, eating up about 25% or $25k of every $100k in sales. When you crunch the numbers, subtracting COGS and SG&A from the extra $100k in sales results in the operating profit, approximately $20k. However, before you start tallying profits, there's one more step – taxes. Companies pay taxes based on profits, not just sales, with an average tax rate of around 20%. This means about $4k goes to taxes from that $20k operating profit. So now, to answer your question, after all these calculations, when the average company boosts its sales by $100k, what's left in the profit pot is roughly $16k more. It's like a slice of the pie – substantial, but not the whole pie. And that is how the profitability equation unfolds with a $100k boost in sales. Now ask me what happens when a company reduces costs by $100k. QUESTION: Ok, what happens to profitability if we reduce costs by $100k? I'm glad you asked. When a company manages to slice off $100k from its expenses, it's like discovering hidden treasure. You see, this $100k reduction in costs is like putting money directly into the company's pocket. Because I didn’t spend it, I get to keep it… it’s not in someone else’s pocket, it's still in your pocket. Now, let's consider the impact. After all the hard work and smart decisions to cut costs, the company gets to keep all of that $100k, except for one little thing: taxes. We pay taxes based on operating profits, not sales. The average company's tax rate hovers around 20%. So, when we take out 20% in taxes from that $100k cost reduction, we're left with $80k in additional profit. So, reducing costs by $100k is a significant win for profitability. It's akin to having extra money in your pocket. In a nutshell, it's a direct and substantial contribution to the company's overall profitability. To put it in perspective, if you add $100k in sales volume, that translates to only about $16k more in profit, but if you manage to cut costs by $100k, you're looking at an extra $80k in profit. However, I want to mention again and again that neither is better than the other. Depending on your industry, the products you’re selling, the market, and many other factors, determines why a company would choose one method over the other. And also, I want to add that if you can increase the price of your products/services, you also get that $80K to the bottom line. So reducing of costs or raising price have great benefits to the bottom-line. But also, because you can’t your way to prosperity, you need to also grow sales, customers, market share, etc. to remain vibrant in the marketplace! QUESTION: So there's a balance? For sure! Striking the right balance between increasing sales and cutting costs is crucial. And executives wrestle day-in and day-out finding that sweet spot between the two strategies. While cost reduction can quickly boost profitability, it's essential not to go overboard. A balanced approach that considers both sales growth and cost reduction is the key to achieving long-term success. QUESTION: How can employees contribute to both sales growth and cost reduction based on your advice? Employees can make a substantial impact on both fronts by connecting their roles to sales growth and cost reduction. Developing business acumen helps employees understand how their actions can influence profitability. This dual focus empowers the company to invest in research, talent, and marketing efforts while maintaining a competitive edge. It's a win-win situation where employees play a pivotal role in driving the company's financial success. QUESTION: Ben, last question. How does having strong business acumen help individuals and companies determine the best growth method—increasing sales or reducing costs—for their unique circumstances, and why is business acumen so important? Business acumen acts as a compass for navigating the business world. It empowers individuals and companies to see the bigger picture and make informed decisions regarding the most suitable growth strategy. With a deep understanding of their industry, competition, and market dynamics, they can assess whether pushing for increased sales aligns with product demand and market trends. Alternatively, when struggling with profitability, business acumen enables them to identify inefficiencies and areas for cost reduction through financial and process analysis. ACTIVITY: Now that you've explored the impact of increasing sales and reducing costs, let's engage in two learning activities you can easily do during your next team meeting: Exercise 1: 100 Up 100 Down Split your team into groups. Present them with a scenario: Imagine your company had an additional $100,000 in its budget. You have two options: Invest the entire amount in efforts to increase sales or cut costs. Give your teams 5-10 minutes to discuss which option they think would have a bigger impact on the company's profitability. Each group should then present their choice and their reasoning to the rest of the team. Answer: While your team discusses this scenario, keep in mind the insights from our Q&A session. When you add $100,000 in sales volume, it typically translates to about $16,000 more in profit. In contrast, when you cut costs by $100,000, it usually results in an extra $80,000 in profit. These numbers are based on averages from the S&P 500, representing some of the largest and most established companies. However, it's essential to remember that the choice between these strategies depends on various factors. Neither is inherently better, and it's crucial to find the right balance between sales growth and cost reduction. Exercise 2: Cost Cutting Idea Challenge Challenge your team to come up with as many cost-cutting ideas as they can in 5 minutes. Encourage them to think creatively about ways to improve efficiency, reduce waste, or optimize processes. After 5 minutes, each team member can share their top ideas with the group. These exercises are designed to help your team think critically about the balance between increasing sales and reducing costs, as well as encouraging a culture of continuous improvement. It's a great way to apply the principles discussed in our Q&A session to your own business context. Have fun with these exercises and discover new ways to enhance your company's profitability! Continue your learning… Selling More or Cutting Costs? Breaking down the P&L Why Business Acumen Should Matter to Everyone The Impact of Business Acumen on the Sales Process Next Steps… Get a demo of our business acumen training: Attend a preview of our course from our Founder and CEO, Kevin Cope: ✅ 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 #sellmore #cutcosts #businessacumentraining #financialacumentraining

Today we are welcoming Monty Magleby, one of our Senior Financial Consultants. We are delving into the importance of business acumen for finance professionals. Let's get started! Question: Understanding the complexity of finance is pivotal for finance professionals because it is more than just accounting, right? Absolutely. Even experienced finance professionals may struggle with applying their technical knowledge of real business scenarios. For instance, knowing debits and credits is one thing, but understanding how they impact business decisions can be a challenge. Similarly, calculating metrics like EBITDA is essential, but comprehending how to leverage them for strategic choices is where the real value lies. Finance encompasses various functions, such as treasury, cash management, financial planning, and more. To excel in our roles, we must grasp how these functions intertwine with the broader business. Question: I've heard it mentioned that even seasoned finance professionals can have gaps in their business acumen. Could you share some common examples of these gaps and how they impact their roles? That is right, unfortunately. The first challenge involves not just having technical knowledge but also the ability to apply it. For example, closing the books and issuing reports is important, but do we truly understand the underlying business dynamics? Have we engaged with business leaders to comprehend their challenges and market influences? Being able to interpret the numbers and explain why they changed is crucial for moving beyond reporting. Question: In one of our videos, we talk about two significant challenges when trying to bridge these gaps. Can you elaborate on the challenge of applying technical knowledge to the business and understanding its context? The real challenge here is making that technical knowledge click with the actual business game plan. It's not just about knowing the strategy; it's about truly getting why it matters. This means we've got to wrap our heads around what's happening in the market, what trends are steering the industry, and where we fit into the big picture of the business. Understanding our department's strategy is important, but linking it to the businesses we work with and the overall corporate strategy is where the real magic happens. Question: Interesting. So moving on to the second challenge, how can finance professionals connect with their organization's strategy and the broader corporate strategy? What steps can they take to achieve this? Alright, so here's the deal with connecting finance to the big-picture strategy. It's not just about crunching numbers anymore. We've got to get in the mix with the people running the show. That means diving into discussions about where the business is headed, sharing our financial insights, and actually pitching in to shape plans that sync up with the overall strategy. We must aim to be more than just employees, but someone who is a partner to the business. Question: So then how do we become more like a business partner? Can you give us some practical advice on how finance professionals can transition from being seen as bean counters to strategic partners? So, going from bean counters to strategic players takes a bit of a mindset shift. Step one is diving deep into what's driving the numbers, not just what they are. We've got to really understand the ins and outs of what's affecting how things are going and figuring out what actions to take. Step two is linking those numbers to where the company is headed. It's about being the translator between finance and the big-picture strategy. Understanding not just the 'what' but also the 'why' behind where the organization is going is key. Question: Monty, why would you say that taking a business or financial acumen class is important for finance professionals, even though they're already financially savvy? How can this type of class help connect all the dots for them? You bring up an excellent point because a business acumen class often feels unnecessary to finance professionals since they’re already well-versed in the finance world. But even in the finance arena, there is a lot of areas of specialization in very specific roles. So taking a business acumen class can often refresh them on the big picture of how a business operates and where their role fits into that grand scheme. Besides, finance professionals often speak a language that can be challenging for those outside the finance world to understand. When they interact with colleagues in operations, marketing, sales, or other divisions, it can sometimes feel like they're speaking a foreign language. This is where business acumen training becomes invaluable. It helps finance professionals bridge the gap and speak the language of business to non-financial peers. Question: So, in essence, business acumen training isn't just about numbers; it's about helping finance professionals communicate effectively with their colleagues across the organization? Is it a crucial part of becoming a well-rounded and strategic contributor to the business? Certainly. I've witnessed finance professionals truly elevate their impact within organizations by embracing business and financial acumen. One notable example involved a finance manager who, after undergoing comprehensive business acumen training, transformed their role. Previously, this manager had primarily focused on financial reporting and budgeting. However, armed with a deeper understanding of the business's strategy and operations, they began collaborating with department heads. They started interpreting financial data in a way that provided actionable insights for improving operational efficiency and strategic decision-making. In meetings, this finance professional could discuss not just financial metrics but also the broader context of how those metrics are tied to the company's goals. They effectively communicate how various financial levers could be adjusted to support the strategic direction. This approach significantly enhanced their credibility and influence within the organization. In essence, by increasing their business acumen, this finance manager became a true partner to the business, making a more substantial and lasting impact rather than solely focusing on reporting. Question: Monty, as we wrap up, what advice would you have for finance professionals who are considering enhancing their business and financial acumen? How can they embark on this journey to become more strategic contributors to their organizations? My advice to finance professionals looking to enhance their business and financial acumen is to embrace continuous learning and engagement. Start by seeking out courses or training programs that focus on business acumen. These courses can provide valuable insights into understanding the broader aspects of how a business operates. You could also actively engage with colleagues from different departments within your organization. Take the initiative to understand their challenges, objectives, and how your financial expertise can support their goals. This collaboration can help you bridge the gap between finance and other functions, making you a more effective communicator and strategic partner. Also, don't underestimate the power of real-world experience. Look for opportunities to take on cross-functional projects or roles that allow you to apply your financial knowledge in diverse settings. This practical exposure can significantly enhance your ability to connect the dots between finance and the overall business strategy. So just to summarize since that was long, the journey to becoming a more strategic contributor involves a combination of formal education, collaboration, and hands-on experience. Embracing business and financial acumen as an ongoing commitment can position you as a vital asset to your organization and help you make a more significant impact on its success. ACTIVITY: Now that you've explored the impact of the finance department, let's engage in a learning activity you can do during your next team meeting: Exercise 1: Financial Decision Making 1. Ask your team to imagine they are part of the finance department in a company facing a critical financial decision. Provide a hypothetical scenario: The company is considering either investing a substantial amount in a new project for revenue growth or implementing cost-cutting measures to improve profitability. Divide the team into groups. 2. Each group should deliberate and present arguments for their chosen approach: investing in growth or focusing on cost-cutting. Encourage them to consider financial implications, risk factors, long-term impacts, and alignment with the company's strategy. 3. After the group discussions, have each team present their decision and rationale to the entire team, emphasizing the financial implications and strategic alignment of their chosen approach. Facilitate a discussion to compare and contrast the different perspectives presented, highlighting the potential impact on the company's financial health and strategic goals. This exercise aims to encourage finance professionals to think critically about financial decisions and strategic alignment. By simulating real-life scenarios and assessing the impact of financial choices on the business, teams can better understand the nuances of financial acumen in decision-making. This activity is designed to reinforce the importance of aligning financial strategies with broader business objectives, a key aspect of enhancing business acumen in the finance realm. Continue your learning… Business Acumen for Finance People Is Business Acumen About Finance? Finding the Business Acumen Gaps Why Business Acumen is Essential for Financial Services Next Steps… Get a demo of our business acumen training: Attend a preview of our course from our Founder and CEO, Kevin Cope: Take this quick quiz: ✅ 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 #finance #businessacumentraining #financialacumentraining

Press Release OREM, Utah – July 3, 2023 Download the Business Acumen Press Release: News Facts: One of the world’s leading consumer electronics manufacturers partnered with Acumen Learning on a business acumen training initiative to drive strategic sales initiatives and profitable growth. This Fortune 50 company sought to enhance their field sales representatives’ skills in pitching internal projects and sales initiatives to create mutually beneficial sales promotional programs. To achieve this, they partnered with Acumen Learning for a specialized training program that leveraged ROI analysis and improved business case development. Acumen Learning created a highly customized training program that was tailored to the needs of the sales academy. A key element of this program was the development of a custom ROI analysis tool, which played a pivotal role in the business acumen training. These interactive sessions equipped sales leaders, marketing teams, product marketing, and digital marketing leaders with the expertise to effectively leverage the ROI analysis tool and optimize its utility in their strategic decision-making processes. This extremely targeted approach created significant improvement in the team’s ability to quantify the ROI for various initiatives, including discounts, rebates, and the use of marketing development funds. Through the utilization of this ROI tool and quantitative analysis, the sales teams were empowered to develop stronger business cases, make data-driven decisions, and accurately assess the financial impact of their proposals. As a leading provider of business acumen training, Acumen Learning has a track record of success in delivering customized programs to renowned companies, including 32 out of the Fortune 50. Supporting Quotes: “This course received the highest NPS scores that we’ve ever had for our sales academy.” “With our highly customized training program and ROI analysis tool, we have empowered the sales teams to navigate the ever-changing business landscape with strategic expertise,” said Ron Saffell, Sales Director at Acumen Learning. “The commitment to equipping sales professionals with the necessary skills and tools to drive profitable growth showcases the company’s visionary approach. It is a privilege to see the transformative impact our business acumen training has on our clients’ success.” “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 smarter businesspeople at all levels,” says Ben Cook, President of Acumen Learning. “Business acumen equips each individual with the knowledge, insights, and mindset to make business-savvy 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.” “The realization of the impact that our customized ROI analysis tool can have on our client’s sales organizations has exceeded my expectations," says Kenny Snarr, Senior Financial Consultant at Acumen Learning. "It has become abundantly clear that this tool enables accuracy in investment decisions, facilitates meaningful conversations regarding profitability and investment metrics, strengthens business case development, and ultimately showcases the strategic impact that can be achieved with each initiative.” 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.

People You May Know Who Are Business Acumen Super Stars Not everyone who enters business leadership roles has the skills to keep their company afloat. In fact, Harvard Business Review found that 2 out of every 5 CEOs fail within their first 18 months. Some don’t understand the day-to-day struggles of their employees, don’t know how to prepare for economic downturns, or are unable to innovate beyond their day-to-day to-do list. However, we love to see when individuals who exude business acumen are successful because of it. Test your Business Acumen skills here: Steve Jobs One of the most iconic individuals of the 21st century Like many great ideas, Apple began in a garage — Steve Jobs’s parent’s garage to be specific. Though he left Apple for 12 years, his return in 1997 as the interim CEO could not have come at a more critical time. In fact, Dell CEO and founder Michael Dell said that if he were in Jobs' shoes, he'd “shut it down and give the money back to the shareholders.” On Jobs’s return, Apple had a pipeline of 350 different products, many of which were outdated, expensive, and failing in the market. Jobs' solution was to first borrow cash to keep the company afloat and refocus the company on four products, one of which became the iMac. Of course, his innovative mind and pursuit for perfection from Apple’s products and employees brought us the advancements in computer processes and products which has led us to smartphones and internet accessibility of today. It all really came down to a change in business strategy and anticipating — even inventing — customer needs. Even after his death, Apple has continued to be a hallmark of ingenuity as the largest company with a $2.5 trillion market cap. Ray Kroc and Harry Sonneborn The team responsible for expanding the very successful McDonald's Dick and Mac McDonald may have started the small food menu icon, but Ray Kroc and Harry Sonneborn are the ones that made McDonald's the largest fast food chain in the world. In 1954, Ray believed that the initial six locations could be more, and he took on the risk of expansion and began building. When Ray met Harry two years later, that’s when things really started cooking. Harry Sonneborn offered an idea to Ray that would be the most critical financial decision to ever hit McDonald’s: real estate. Sonneborn suggested Ray not only license McDonald’s to franchisees but also rent the land the building was on. Sonneborn explained, “We are not technically in the food business. We are in the real estate business. The only reason we sell 15-cent hamburgers is because they are the greatest producer of revenue, from which our tenants can pay us our rent.” With this new business strategy in mind, Ray was able to open 597 McDonald’s by the time of his death in 1984, and today McDonald’s has a $190 billion market cap. Innovative, business savvy, and forward-thinking skills is what helped Ray and Harry succeed beyond the average business owner. A phenomenal business acumen example. John W. Nordstrom A legacy centered on the business acumen of people in every aspect of his company In 1901, John Nordstrom joined his friend, Carl Wallin, both Swedish immigrants, in the start of a shoe business. Their work ethic translated into a philosophy of providing exceptional service, selection, quality and value. Within the first four years of opening, they went from their opening sales of $12.50 to $80,000 and built a loyal customer base. Nordstrom's mission has always been around its people — not just its customers, but its employees as well. Nordstrom strives for fairness in all areas of its company. Even today, Nordstrom's motto is still, “customers [deserve] the best service, selection, quality and value.” This personal service touch has given Nordstrom its signature customer service persona and has placed it among the most successful department stores still to this day. Stars of Business Acumen Business acumen is about exuding the knowledge to succeed. Whether that be creating innovations with the changing technologies, keeping people the center of your business model, or having enough cash on hand to pivot when the economy crashes. Leaders who have taken the time to learn and implement their business acumen skills are the ones still successfully leading today. Business acumen is the key. Learn today the things that could change your career! Download the course overview for our Building Business Acumen Course: Examples of Strong Business Acumen: So, what are some examples of good business acumen? I think there are a lot of examples of business acumen, but let me share a few. Those people who can take a good idea and translate that into the economic value of that idea, to the company. And not just being able to frame the idea in the financial and business implications of that idea, but also how to tactically drive that idea forward to execution. To finish learning about business acumen examples, click below: ✅ 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 #learninganddevelopment #leadershipdevelopment #financetraining #businesstraining #financialstrategy #financialacumen #businesssuccess #SteveJobs #Mcdonalds #RayKroc #Nordstrom #advocates

Build Your Business Acumen In our book, Seeing the Big Picture, we have a list of six extremely practical ideas to encourage and support your development and application of business acumen. We firmly believe business acumen is not a one-time ordeal or list item you can check off. It is a continual journey of growth and learning. 1. Commit the Time to Study and Research Set aside time for regular study and research. Your days are already full, and crowded with professional and personal activities. Nevertheless, carve out the time to advance your credibility, your career, and your company. How much time do you spend watching television? Could you chat with coworkers less and read industry information more? Could you use your lunchtime more productively? An hour of research even once a week will have a great payoff. Whether you can spend an hour a week or a half-hour daily, set aside time for study and preparation regularly. Then put it to use. The Resources section in the back of our book, Seeing the Big Picture, offers a host of opportunities to learn more about business in general and your industry specifically. You can also sign up for our monthly newsletter or access other resources. You should also devote time to learning how your company is organized and operates: its organization and internal structure, who the key officers are, your primary products and services, your present and future goals. Understand the important priorities, values, and strategies of your CEO, division head, and direct supervisor. Do you know how your company is doing financially or what its financial goals are? Go deeper than the big picture of your company and explore the financials of each division or department if you can. How are the 5 Key Drivers being prioritized throughout your organization? You can learn this by reading: the annual report; e-mail and other communications from your boss; company press releases; materials on the company website; quarterly Form 10-Q filings and annual 10-K filings; and other resources about your company, including interviews of your senior leadership in all media. Ask your supervisor how to access additional internal operating data if it isn't readily available. Also, if you are an employee of a public company, listen to your CEO's quarterly conference calls with Wall Street analysts. This quarterly call provides a current report on your company's operations and financial performance and your CEO's priorities and future plans. If you miss the actual call, an archived recording will likely be found on your company's website in the investor relations section. You should also know who your three to four most important competitors are and learn their basic financial data, strategies, products and services, and strengths and weaknesses. Read their annual reports, their Websites, and information about them in the media. Finally, learn what is happening in the external environment that might affect your company. Read or listen to financial, economic, and business news from websites and print and broadcast media, including books, magazines, the Wall Street Journal, and the business section of any large metropolitan daily paper. As Harold S. Geneen, once CEO of ITT and father of the international conglomerate, once said, "When you have mastered numbers, you will in fact no longer be reading numbers, any more than you read words when reading books. You will be reading meanings." 2. Talk with Key Company Managers Build relationships with key leaders and managers at your company. Start with your boss or supervisor. Talk regularly with peers or teammates in different departments who have specific expertise. Ask questions that reveal your own research. Share your helpful insights in return. Talk with your boss or supervisor about the big picture of your organization and how your team or department, and you personally, can have a more significant impact. Learn the key measures and "dashboard metrics" that your boss and your company's senior management are focused on. Discuss with your supervisor how you can better achieve these targets so you know how your team and job function fit in. Setting up these discussions need not be complicated or overly formal; meet people for lunch, or set brief appointments in their offices. Let your reasons be known: you want to become more knowledgeable in order to make more effective contributions. Build relationships! 3. Be Proactive — Contribute and Follow Through Whenever an assignment or opportunity for action results from your study, discussions, or meetings, follow through and do it. Report back in a timely way to the appropriate parties. When realistic or appropriate, put your comments and questions into succinct, meaningful, and timely e-mails or memos addressed to appropriate personnel. However, don't overwhelm people with a flood of ideas or recommendations. Be targeted in your approach. Draw up a brief written action list concerning any or all of the 5 Key Drivers. Link your actions to results that "move the needle" in areas important to your boss and senior management and that support the key measures they have identified. Identify in writing how your actions impact the drivers. Give a copy to your boss or supervisor and discuss. 4. Attend Industry Meetings and Make Outside Contacts If your company provides any occasion for you to attend industry conferences or major customer meetings, take the opportunity. Network with those you meet there. Read the literature available. Grow your own database of contacts. Keep in touch with them over time, as possible. Gain your own direct sources of helpful industry, economic, or business information. Stay in communication with those you meet. 5. Find a Mentor Ask a coworker — maybe a peer or senior manager — to work with and mentor you. Your partner should be someone to whom you can make a commitment regarding your business acumen action plan and to whom you can be accountable. That person may want to further his or her own knowledge, and you can help and support each other. Being a mentor to someone else will help you both. Above all, be accountable to yourself in your assignment to see your company's big picture and continue developing your business acumen. Get a demo for Business Acumen Training: 6. Influence Management To influence senior management, you must follow all of the above recommendations as you prepare yourself to present an idea or opportunity. Then, when asking a leader to consider seriously your views of recommendations, follow these four important suggestions — principles that have worked for thousands of employees across many industries and types of companies: Listen to understand: Listen first. Your sole purpose in listening? To understand where the individual or management team is coming from, to get what's important to them. In every meeting, listen carefully for opportunities to ask insightful questions and learn even more. If you deeply understand their point of view, their needs and priorities, it will first influence you. Then you'll be better equipped to influence them. Present their case and needs to them: Once you have listened deeply, make a "my understanding of your needs and objectives" summary before making your own proposals. Once managers know that you really do understand their perspective, they will be more open to listening to your analysis and proposals. You'll have built greater trust. Speak their language: Once you've established mutual understanding, connect your analysis and recommendations to their strategic goals, concerns, and needs. Link your message to what's important to them, in financial language they understand. Demonstrate the impact of your proposal or analysis on those drivers important to them. Remember that every department or function has differing priorities. Use ROI analysis: Ultimately, every business decision boils down to determining how best to use cash for maximum return on investment. Make a convincing case for a favorable ROI through your recommendation. Get our best-selling book, Seeing the Big Picture: Learn how to Build Business Acumen on your Team! Head to our website for more in-depth information regarding any of these topics. ✅ 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 #buildingbusinessacumen #businessstrategy #learninganddvelopment #leadershipdevelopment #financetraining #businesstraining #financialstrategy #financialacumen #businesssuccess #5drivers

Press Release OREM, Utah – June 18, 2023 Download the Business Acumen Press Release: News Facts: A top 10 commercial vehicle manufacturer has joined forces with Acumen Learning for business acumen training solutions, to empower its employees with business acumen and align them to the organization’s strategic vision. The company recognized the need for a substantial cultural change to adapt to industry transformation and prioritize solution-focused approaches. The initiative focused on empowering employees to take more ownership and accountability for decisions, cultivating an entrepreneurial mindset, and fostering a broader perspective within the organization. Acumen Learning facilitated a customized two-day business acumen course that brought together L&D leaders, managers, vice presidents, and representatives from the manufacturing, communication, and e-mobility sectors. The participants left the program with a renewed ability to see the big picture, understanding the broader mission of the company and the impact of their roles in driving both cultural transformation and revenue growth. The business acumen course delivered outstanding results, receiving positive feedback from both participants and the leadership team. By tackling the cultural obstacles that hindered employee retention and talent attraction, we successfully contributed to a 5% reduction in retention costs. This achievement improved engagement, alignment, and enhanced participants’ business acumen skills. Acumen Learning is happy to add a top 10 commercial vehicle manufacturing company to its esteemed list of clients. This partnership adds another prominent company to its portfolio, cementing its position as a trusted provider of business acumen training to top-tier players in the industry. Supporting Quotes: “This course had a lot of good information spread out over the 2 day sessions. It was very broad in the coverage of financial statements and how different groups impact them. As someone in Finance, it was a good refresh and reminded me of my time studying in college.” “Very good on basic financial drivers for a company and how to understand financial statements.” “Excellent session, Ryan kept it engaging and interactive. Lots of relevant content to my role and company.” “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 smarter businesspeople at all levels,” says Ben Cook, President of Acumen Learning. “Business acumen equips each individual with the knowledge, insights, and mindset to make business-savvy 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.” “It was truly inspiring to witness these leaders embrace the business concepts and cultural shifts of their company,” said Ryan Hunt, Senior Financial Consultant at Acumen Learning.” I loved witnessing the positive impact it had on their understanding of the company’s strategy and their role in it. Seeing their growth in business acumen and their newfound ability to ‘see the big picture’ has been immensely rewarding.” 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.

In this Q&A, we delve into the realm of financial literacy within the business world. Kenny Snarr, Senior Financial Consultant at Acumen Learning, offers profound insights into the significance of financial terms and their pivotal role in fostering success within the workplace. Join us as we uncover how business acumen shapes informed decisions, empowering individuals to thrive in the professional landscape. Question: Kenny, why is financial literacy crucial in the workplace, and how does it impact both employees and companies? Financial literacy is vital because it goes beyond just managing personal finances. It's a gateway to better decision-making, risk management, and innovation within the workplace. When employees have a solid grasp of financial concepts, they can make informed choices that align with their company's objectives, ultimately driving growth and success. For organizations, this translates into reduced turnover rates, enhanced risk management, and a more motivated and successful team. Question: "Grow or Die" - it's a saying that I think most of us have heard over the years. Harvard Business Review published this article back in 2018, but in my opinion, I think it's more relevant today than ever. How does business acumen accelerate this and why is it important? Well, business acumen helps people find the why, identify opportunities, assess risk, win the buy-in of needed partners, and make better, faster, stronger decisions. Now, let's discuss the five behaviors covered in the article. Question: There is a study that mentions that only 44% of organizations provide programs to help employees make informed financial decisions. What would be your rebuttal as to why more companies should invest in financial literacy programs for their employees? Absolutely. Investing in financial literacy programs is a win-win for both employees and companies. When companies prioritize the financial well-being of their workforce, they not only create more motivated and loyal employees but also foster a culture of informed decision-making. This, in turn, leads to better strategic choices, risk mitigation, and ultimately, growth and innovation. It's a worthwhile investment that sets forward-thinking companies apart from the rest. Question: How does business acumen help you to gain financial literacy? Do we have all day? I could talk about this for hours. Business acumen acts as the bridge between theoretical financial knowledge and its practical application in the real world. It's not just simply about learning financial concepts; it's about grasping how these concepts interconnect within the dynamics of an organization. Financial literacy, when reinforced with business acumen, transforms into a journey of continual learning and application. Understanding the term 'cash flow' goes beyond its definition; it involves knowing how to influence and optimize it within the context of a business. Business acumen empowers individuals to not only comprehend financial terminology but also to interpret how these concepts affect the overall financial health of a company. It's about recognizing patterns, making informed decisions, and taking actions that positively impact cash flow and, subsequently, the organization’s success. This journey of business acumen is ongoing, requiring a commitment to constant improvement and refinement of skills. It's about applying learned financial principles to solve real-world problems and make tangible differences. The combination of financial literacy and business acumen equips individuals to not only understand financial intricacies but to leverage that understanding to drive improvements, create value, and contribute meaningfully to the success of the business. Question: In your opinion, what are the key outcomes of developing financial literacy in employees? Do you have any examples? Like I’ve mentioned, business acumen and financial literacy develop informed decision making, an understanding of risk management, and driving innovation and growth. Those are the three main things that are critically important. Financial literacy empowers employees to make informed decisions by giving them the confidence and understanding to navigate complex financial landscapes. This leads to decisions that align with the company's financial objectives, whether they're entry-level employees or seasoned professionals. Question: In one of our videos titled "Why Business Acumen Should Matter to Everyone - Both Individuals and Organizations" our CEO discusses the importance of business acumen. Could you share some key takeaways from the video and explain why business acumen matters to both individuals and organizations? In the video, we emphasize that business acumen is not just for executives or finance professionals; it's essential for everyone, from entry-level employees to senior leaders and even executives! Business acumen provides individuals with the ability to understand how their decisions impact the financial health of the organization. When individuals have business acumen, they become more effective contributors to the company's success, driving better financial outcomes and ultimately benefiting both themselves and the organization. ACTIVITY: Now that you've explored the impact of financial literacy, let's engage in a learning activity you can do during your next team meeting: Exercise : Financial Glossary Quiz Challenge Divide participants into two teams - Team A and Team B. Provide each team with the company's financial glossary. Set a timer for 5 minutes. Team A will quiz Team B on different financial terms from the glossary. Team A can ask questions, provide definitions, or offer scenarios related to the terms to Team B. After 5 minutes, switch roles. Now, Team B becomes the quizzer, posing questions to Team A about the financial terms from the glossary. After both teams have had a chance to quiz each other, count the number of correct answers from each team. The team with the most correct answers collectively wins the challenge. These exercises are designed to help your team become more familiar with the financial language and concepts specific to our company. By engaging in this quiz challenge, team members get a chance to actively apply and test their knowledge of the financial glossary. This interactive activity aims to reinforce understanding and familiarity with key financial terms, fostering a more robust grasp of financial literacy within the workplace! Continue your learning... Important Financial Acronyms Is Business Acumen About Finance? Finding the Business Acumen Gaps Organic & Inorganic Growth Check out the financial glossary to get a better understanding of financial terms: Get our best-selling book, Seeing the Big Picture: Download the course overview for our Building Business Acumen Course: Get a demo of our business acumen training: ✅ 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 #financialcompetency #financialliteracy #finance #gaps #finances #financialacronyms