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.

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.

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.

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 – September 4, 2023 Download the Business Acumen Press Release: News Facts: A leading global engineering and professional services firm has joined forces with Acumen Learning to enhance its business acumen and leadership capabilities within their leaders. In a highly competitive industry, this large organization understands the importance of equipping its leaders with the necessary skills to navigate the complexities of their field. This strategic collaboration proves the firm’s dedication to prepare mid-level managers for senior and executive-level leadership roles while emphasizing the need for a balanced understanding of the business aspects of their industry. The attendees included individuals in the engineering department, sales leaders, HR professionals, finance and accounting experts, and IT leaders. The session placed a strong emphasis on enhancing the skills of their functionally brilliant employees and assisting them in achieving a blend of their technical proficiency and business acumen. As the firm strives for continued success, this partnership with Acumen Learning underscores its dedication to cultivating well-rounded leaders who can navigate the intricate intersection of technical expertise and business acumen. The initial training received overwhelming praise, with a remarkable 92 Net Promoter Score. Participants expressed their satisfaction and eagerness for more sessions in the coming year, signaling a strong commitment to personal and professional growth. Acumen Learning is excited to continue expanding its reach into the engineering and professional services sector. This partnership adds another industry-leading company to our portfolio, solidifying its reputation as a trusted provider of business acumen and strategy training across diverse sectors. Supporting Quotes: “It was very very informative and very relevant. Literally one of the best trainings on business I have ever taken.” “It was very informative. Something I will take back to my teams and try to use on a more regular basis.” “It was a great overview on the financial drivers from a high level and made it relatable and tied to our statements and leadership expectations from managers.” “I really enjoyed it. I’ve never had a course like this and learned so much. Learning about financials really helped me to better understand why we focus on DL, utilization, DSO... these often seem like all we hear about, which is tough when you feel like you’re working so hard. Finding other ways to motivate staff as to why we’re focused on it will be important...and I think I now have the starting blocks to do that.” “This was a VERY helpful course and hit all the high points of what I needed to know and also gave me context for where they fit into leadership’s view of things and growth plans for our firm.” “It’s gratifying to witness the participants commitment to honing their business acumen and leadership skills," says Acumen Learning's Senior Financial consultant, Monty Magleby. "I love helping these functionally brilliant leaders hone in their business acumen. Our partnership aims to empower these exceptional individuals with a well-rounded understanding of their industry and I look forward to supporting their journey toward personal and professional growth.” 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

We’ve done an interview with one of our Senior Financial Consultants, Greg Kandare to help you better understand the importance of business acumen and a culture of learning: Question: Greg, can you explain why business acumen is so important in today's rapidly changing business landscape? Absolutely, in today's business world, change is constant. To navigate this ever-evolving landscape effectively, organizations need employees who understand the intricacies of how businesses operate. Business acumen provides that understanding. It encompasses a deep knowledge of various business principles, strategies, and concepts, giving employees the ability to make informed decisions and contribute strategically. In essence, it empowers individuals to not only adapt to change but also drive the success of the organization by making meaningful contributions. Question: How does teaching individuals how to learn contribute to self-sufficiency and independence in their growth and development? You are exactly right in your question, teaching individuals how to learn is all about fostering self-sufficiency and independence. When employees acquire the skills and mindset needed to become lifelong learners, they gain confidence and adaptability. They no longer rely solely on external sources for knowledge; instead, they become self-sufficient in acquiring the information and skills they need to excel in their roles. This self-sufficiency is a valuable asset in a rapidly changing business landscape. Question: How does fostering a culture of learning benefit organizations? Great question. Fostering a culture of learning within an organization is incredibly beneficial. When employees are encouraged to share their knowledge and insights, it creates a collaborative environment where everyone can learn from each other. This culture of knowledge sharing becomes a powerful catalyst for growth and continuous improvement. It promotes innovation, problem-solving, and a sense of ownership among employees. Executives who embrace their role as teachers and learners set the tone for the entire organization, creating an environment where continuous learning is not only valued but also prioritized. Question: Greg, can you elaborate on how business acumen training enhances communication and leadership skills? Business acumen training is not just about understanding business concepts; it also involves teaching essential communication and leadership skills. When individuals learn how to effectively convey their knowledge and expertise, they become better teachers. They develop skills such as active listening, articulation, and the ability to simplify complex ideas, which are crucial for effective communication. Additionally, by being open to learning, individuals foster a growth mindset, enhance their leadership abilities, and create an atmosphere of collaboration and knowledge sharing. So, business acumen training is an investment in your employees' personal development and career growth, benefiting both the individual and the organization. Question: In your opinion, how does teaching people to learn and then teach contribute to a culture of continuous learning and growth within organizations? Teaching people how to learn and then teach their skills is a transformative approach that cross-trains individuals and empowers them with a diverse skill set. This approach creates a culture where continuous learning and growth are at the core of the organization. It encourages employees to adapt to change, contribute strategically, and inspire their colleagues. By embracing the power of business acumen and teaching individuals how to learn and teach, organizations cultivate a future where learning and growth are not just encouraged but ingrained in the company's DNA. Business Acumen Skills for Managers and Leaders: Question: Greg, you’ve done your fair share of being a manager and in leadership positions. How does the process of learning and teaching benefit leaders and managers within a business, and how does business acumen serve as a valuable asset in their roles? That’s a great question! There’s no doubt that learning and teaching are instrumental in the roles of leaders and managers. When leaders embrace their role as teachers, they foster a culture of continuous improvement and knowledge sharing among their teams. This promotes innovation, problem-solving, and a sense of ownership, ultimately driving the organization forward. Business acumen is a valuable tool for leaders as it helps them make informed strategic decisions, align their teams with the company's goals, and effectively communicate the rationale behind their choices. It enables leaders to inspire their teams by demonstrating a deep understanding of the business and its dynamics, creating a more engaged and motivated workforce. Question: Last question Greg. I want to pivot a bit more towards sales. How does the process of learning and teaching benefit leaders and managers within a business, and how does business acumen serve as an advantage? Learning and teaching can be transformative for individuals in sales roles. When sales professionals are equipped with the ability to teach, they can effectively communicate complex ideas and concepts to clients and prospects. This skill allows them to build stronger relationships, provide more value, and close deals more effectively. Business acumen is a critical component because it helps salespeople understand the broader business context, align their solutions with clients' strategic objectives, and make informed decisions. It empowers them to be consultative sellers, creating win-win situations for both the customer and the organization. ACTIVITY: Now that you've explored the impact of what a learning environment can do for a company, let's engage in a learning activity you can easily do during your next team meeting: Exercise: Business Acumen Brainstorm Ask your team to jot down practical and actionable initiatives that they believe can help enhance business acumen and promote a culture of learning within the organization. Have each team member share one idea. Write these ideas down and create a list of actionable initiatives. Discuss as a group which ideas are the most feasible and impactful. Determine how these initiatives can be implemented and develop an action plan. This exercise is a quick and interactive way to engage your team in generating practical ideas for enhancing business acumen and a culture of learning. It doesn't require lengthy presentations and can be completed in a shorter time frame, making it more doable for your team. Continue your learning.... What Your CEO Needs You to Know The Drama of Earnings Calls Teaching People to be Teachers How to Teach Sales People with Business Acumen Next Steps… Understanding Earnings Calls: Understand the art of earnings calls and how you can get the most out of them! Use this brilliant tool to learn about your own company or one you find interesting: Get a demo of our business acumen training for sales: 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 #onlinetraining #businesssuccess #people #financialcompetency #change #learning #L&D

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

Press Release OREM, Utah – June 1, 2023 Download the Business Acumen Press Release: News Facts: A large SaaS organization partners with Acumen Learning to align all employees to a common strategy through customized business acumen courses. As part of their company-wide initiative, this leading SaaS company is committed to equipping non-finance leaders with essential business acumen skills, empowering them to drive success. Simultaneously, the initiative enables executives to enhance their financial awareness, fostering stronger leadership within the industry. By prioritizing the upleveling of their leaders, they recognize that better decision-making leads to improved margins and overall organizational success. Acumen Learning delivered a highly customized, one-day business acumen course designed specifically for mid to upper-level managers, with a focus on enhancing their understanding of the corporate mission. This comprehensive program successfully engaged participants from sales, marketing, IT teams, and the leadership team, paving the way for wider adoption of the course across the entire organization in the future. The business acumen course had great results. It was well perceived by participants and the leadership team who gave it a Net Promoter Score of 92. This means that the participants found it highly applicable and would recommend this course to their peers. Acumen Learning is excited to continue expanding its reach into the technology sector. This partnership adds another industry-leading company to our portfolio, solidifying its reputation as a trusted provider of business acumen training across diverse sectors, including top-tier players in the SaaS industry. Supporting Quotes: “Really helpful. A great mix of theory with practical application which helped my retention so much. I loved that we used our own financials and could really understand how it applied to us. I came in with very little knowledge and feel like I have a great jumping off point for future learning. Also, Greg made it super engaging!” "Outstanding! Grounding it in our actual company performance really brought the content to life!” “Super helpful. Something I’ve always wanted to learn and want to continue to learn. Will be practicing the earnings call review exercise to keep it fresh. Greg was excellent and patient and well-paced.” “Very interactive, helpful resources, great that we applied concepts directly to our company’s results.” “I thought this course was excellent. I am leaving more knowledgeable in this area than when I came in. I definitely need to continue to be intentional in reinforcing the learning going forward. I appreciate the tools, tips and resources to continue with that.” “Great course, lots of energy, well-tailored to our company.” “Empowering leaders with essential business acumen skills is crucial across all industries, and I have the privilege of witnessing it firsthand,” says Greg Kandare, Senior Financial Consultant at Acumen Learning. “It has been a pleasure to observe the growth of these SaaS leaders as they align with the company’s vision and enhance their financial awareness.The participant’s commitment to learning and making informed strategic decisions is truly amazing.” 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 several different generations in the workforce right now. We all have different personalities, unique responses, and opinions about things, and we’re all very different from each other. Managing a baby boomer is going to be an extremely different task than managing someone from Gen Z or Gen X. We are living in a unique time with unique individuals so what are the most needed skills to not only survive but succeed in the modern workplace? Introduction: The workforce in general has always been made up of people with vastly different personalities, experiences, and backgrounds. It’s not an easy task for managers and executives to lead teams and encourage their employees in the unique ways each person needs it. We’re now facing a workforce with an extra factor: generational differences. In today's workforce, we have several different generations coexisting, each with their own unique personalities, responses, and opinions. Supervising a baby boomer is vastly different from managing someone from Gen Z or Gen X. We are living in a unique time with diverse individuals, making it crucial to identify the most needed skills for not only surviving but thriving in the modern workplace. A study conducted by Purdue University highlights the generational differences in the workforce, shedding light on the importance of equipping employees with specific skills to bridge these gaps and foster success. Business acumen is the key to developing the top three skills that enable employees to navigate generational differences and achieve excellence in the workplace. How Business Acumen Can Help Your Business Relationships: Situational understanding is just as important in business. And it’s more critical in business now than ever. We’ve all heard the statistic that buyers have 70% of their process complete before they even meet with you. They’re now doing their own research beforehand to figure out what they want and need, to make their time with you more efficient. In some ways, this can be great! However, the sales process used to be a lot of education to the buyers, now it is much more about creating urgency. It’s not about educating or sharing your product anymore, it’s being a consultant. It’s about understanding their problem and being able to offer solutions that solve that problem. So how can we educate ourselves to be able to articulate situational understanding? The Purdue Study: The study conducted by Purdue University examined the generational differences in the workforce and their implications for management and collaboration. The research revealed fascinating insights into the distinct characteristics and preferences of different generations, including baby boomers, Gen X, millennials, and Gen Z. Understanding these differences is essential for creating an inclusive and productive work environment. 1. Adaptability and Flexibility: One of the most crucial skills in bridging the differences in each other is adaptability. Each generation has its own unique set of values, work styles, and communication preferences. Employees who can adapt their approach to accommodate diverse perspectives and expectations are better positioned to build strong relationships and foster collaboration. Adaptability enables individuals to navigate the complexities of working with colleagues from different generations, embracing diverse ideas, and finding common ground. 2. Effective Communication: Effective communication is paramount when bridging generational gaps in the workplace. Isn’t communication the key to marriage? Or the key to friendships? Communication is also key in the workforce. Each generation has its preferred communication methods, whether it's face-to-face conversations, email, instant messaging, or social media platforms. Employees who can communicate effectively can bridge gaps, build trust, and facilitate meaningful collaboration. Understanding the nuances of generational communication styles and adapting one's communication approach accordingly is key to fostering understanding and avoiding miscommunication. Elevating your Workplace Performance: 3. Empathy and Emotional Intelligence: Empathy and emotional intelligence play a vital role in not only navigating generational differences but being an effective leader in general. Everyone has their own set of life experiences, values, and expectations shaped by the social, economic, and technological context in which they grew up. Now once you throw in generational differences, we’re now working with even more factors. Managers and employees who can empathize with the perspectives and challenges of colleagues can build stronger relationships, enhance teamwork, and promote a culture of inclusivity. Harvard business school highlighted a study done on emotional intelligence. It states that “emotional intelligence is the strongest predictor of performance. And hiring managers have noticed 71 percent of employers surveyed by CareerBuilder said they value EQ over IQ, reporting that employees with high emotional intelligence are more likely to stay calm under pressure, resolve conflict effectively, and respond to co-workers with empathy." Business acumen is a key way in being able to understand the best ways to navigate emotional intelligence and enhance EQ. When you understand business acumen, you’re able to make smarter business decisions based on the factors you’ve been given. Developing emotional intelligence allows individuals to recognize and manage their emotions and understand the emotions of others, fostering a harmonious and productive work environment. How to Succeed in the Modern Workplace: As we navigate a workforce composed of various personalities, multiple generations, and individuals with vastly different backgrounds, understanding business acumen can bridge generational differences. It is crucial for organizational success. Business acumen is the gateway to understanding the needs of the people around you. The Purdue University study sheds light on the unique characteristics and preferences of each generation, emphasizing the importance of equipping employees with specific skills to foster collaboration and productivity. Adaptability, effective communication, empathy, and emotional intelligence emerge as the top three skills necessary to bridge generational gaps and create an inclusive and thriving workplace. By developing these skills, organizations can empower their employees to navigate diverse perspectives, leverage the strengths of different generations, and drive success in the modern workplace. Navigating Change in the Workforce: ✅ 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 #generations #GenX #GenY #BabyBoomers #CareerBuilder #HarvardBusinessSchool #PurdueUniversity #adapt #communication #emotionalintelligence

Finance professionals are not exempt from the influence of business acumen! Don't snooze on the invaluable tools available to enhance your career, strengthen your credibility, and expand your business and financial expertise. In this video we help you do just that, read the transcript of the video below: Understanding the Complexity of Finance: “If you've ever asked finance for more money you usually get two answers and they come in an interesting order. So first you get the answer "no" the next answer comes in the form of a question – an incredulous "why?" Why would you ever want more money? Now maybe that's a little harsh and just like any other department, finance is actually a group of different functions. Usually when we say 'finance' we're talking about accounting. But in reality, there are a bunch of other groups like treasury, cash management, financial planning and analysis, billing, payables, and more. You may even have a finance function integrated in your own department. So for example, if you're in the CPG world, the revenue growth management function can be thought of as a finance function that helps the business with pricing to ensure promos and other trade dollars are invested wisely. Get a demo of our business acumen training: Business Acumen will Transform Financial Professionals into Strategic Partners: Regardless of how you think about the finance function, business acumen is key for every financial professional. Especially if they want to be seen as business partners rather than bean counters. You would think that business acumen is an inherent skill that all finance professionals are born with or at least it's beat into them during school. But having been in or around finance departments for nearly 20 years now, I've noticed that even finance professionals have gaps in their business acumen. When professionals first enter the corporate finance department a lot of us are just trying to understand exactly what we're doing. We may know debits and credits but we may never have applied them to an actual business. For example what is a credit to revenue actually mean? We may know how to calculate metrics like EBITDA but how do we use EBITDA to make actual business decisions? Get our best selling book, Seeing the Big Picture: Empowering Financial Professionals for Strategic Impact: So, whether you're a finance professional or you work with one, be aware of two big gaps that we have to overcome to be better partners to the business. The first gap is not just having the technical knowledge but being able to apply it to the business. For example, each month we close the books. We look at variances and we issue reports. But do we really understand how our business works? Have we spoken to business owners or department leaders to understand the trends that they're seeing, the challenges that they're facing, or even the external pressures we may not even understand? If revenue goes up, can we point to a specific action we took to grow? Did we change pricing? Did we run a promotion to push volume? Have we pushed certain products that change the mix of our revenue? If we issue reports but we can't have an intelligent conversation with our bosses or the business about movements in those numbers or variances to budget and plan, we will be seen as bean counters and paper pushers. We need to know why the numbers moved and what's driving the business. But all of that is looking into the past. It's important that we understand the context of the business and the levers we pulled to achieve the performance. But as a business partner we need to be more than just good analysts. We need to help the business push into the present and into the future. Use Business Acumen to Connect with your Strategy: And that leads us to gap number two. Gap number two is our failure to connect with our strategy at multiple levels. Our own department strategy, the strategy of the businesses we support, and ultimately the overall corporate strategy. But knowing that we want profitable growth through differentiated products and services by being radically customer centric, isn't enough. We need to know why? What forces in the market are we facing? Be it competitive, regulatory, or even sourcing challenges. What are the trends in our industry? Where is our business in the business life cycle? Where is the economy in its latest cycle? Who is our customer? Where are we not going to play? We need to understand all of that context so we can take what we learned by filling gap number one and help the business identify appropriate initiatives, help them measure the behaviors we need to see, help write compelling and strategically aligned business plans for new initiatives. Even create financing opportunities to pay for the new initiatives, anticipate shifts in strategy, metrics, and performance, and on and on and on. If we want to be business partners we have to think like the business — like business owners not just purveyors of P&L's, not just experts on EBITDA. Attend a FREE earnings call debrief: Download the FREE tool - the earnings call workbook: Become the Strategic Partner Your Business Needs Using Business Acumen: So, here's my challenge to you. If you are a finance professional or you want to play one on TV, continue developing your own business acumen to be the partner your business needs. And you can do it by doing two things! Number one – know what forces are driving current and past performance to help business owners get more out of the numbers. And number two - know where the business is going and why so you can be a positive force driving your business to further success.” Why Business Acumen is Essential for Financial Professionals: For financial professionals, business acumen is essential for success... not only within your organization but also for your career as a whole. The good news is that you’ve already got a big head start with your understanding of the financial portion. So, you just need to focus on developing a complete understanding of the strategy and skill. With business acumen, you work to understand the WHOLE business, not just the numbers part of it. Then you’ll develop the skills you need to effectively communicate findings and plans with colleagues and clients. Essentially, you’re learning to speak the language of business. Finish the article: ✅ 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 #culture #leadershipdevelopment #training #finance #businesssuccess #people #financialcompetency #financialsuccess #businesssuccess