Business acumen is defined as: "keenness and quickness in understanding and dealing with a business situation in a manner that is likely to lead to a good outcome."
Unfortunately improving business acumen is not a pursuit of many business owners and leaders. Fortunately business acumen is not a gift at birth and can be learned through experience and formal training. Effective mastery of business acumen will allow you to understand how your business makes money and impacts your bottom line.
What is business acumen in practice?
Kevin Cope, author of "Seeing the Big Picture," describes business acumen as "the ability of an individual to view the business with an 'executive mentality' in that they understand how the moving parts of a company work together to make it successful and how financial metrics like profit, cash flow, return on equity and company value reflect how each of those moving parts is doing its job."
What is a successful culture?
Specifically someone who has a strong sense of business acumen has the following . . .
by David K. Williams, Contributor Forbes.com
David Wiliam's article on Trust raises a number of great points that we can overlook as we navigate the daily crises and issues of our respective businesses. We cannot overlook the emotional health of our organizations as it will influence the quality of the decisions that will be made throughout the organization on behalf of the business. At the end of the day expertise and knowledge may not be enough to hold a group together when it is the collective trust that each has for others that will allow a group and a business to prevail.
Examples of healthy organizations are where people:
- Are loyal to one another.
- Never judge - seek first to understand.
- Laugh with (not at) others.
- Take issues directly to the source.
- Express genuine appreciation up, down, and across their organizational structure.
- Set your standards very high.
- Recognize that people aren't problems - problems are problems.
- Smile frequently.
- Don't start sentences or thoughts with, "What's in it for me?" but with, "How can I serve you?"
Trust is based on the Quality of Promises.
- How committed are team members to keeping their obligations?
- Do employees hold peers accountable for their commitments?
- Do team members consider promises to customers to be no more and no less important than their promises to peers?
- Is everyone at your organization willing to forgive themselves and one another?
- What happens when circumstances cause people to fail to keep commitments?
- Read the full article for more information on how this information may apply to your organization.
to read the complete article.
Note: Ask yourself the following questions.
- Do you have a measure of the health of your organization?
- Do you examine the interchange between members of your executive group?
- Do you have a high trust function within your organization?
If you are looking for guidance on developing a culture development plan contact Mike to learn about the Executive Coaching services available from Brice Consulting for you and your organization.
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