Business acumen is the quickness and keenness in dealing and understanding a business situation in such a way that will lead to an optimal result. In addition, business acumen has also emerged as a main vehicle for enhancing leadership skills and overall financial performance. This article will discuss why business acumen is crucial for all of us.
Business acumen not only help managers cope with uncertainties; it also improves overall organization performance. It can be used to improve the value chain among managers, customers, and leaders through better visibility and credibility, more effective communication, transparency in information and trust, and consistency in decision making. In the end, business acumen make leaders more effective, credible, and capable of influencing the various factors that affect organizations. Thus, the value chain framework helps managers to effectively plan and deliver an organization’s activities.
A clear understanding of the value chain provides a great opportunity for managers to influence the factors that can make or break organizational performance. More importantly, business acumen helps leaders to manage uncertainty and handle transitions in the best possible manner. It also improves the quality of decision making and leads to increased productivity and helps to make businesses more competitive. Finally, business acumen helps managers to align their actions with the objectives of the company and to communicate the same to their subordinates in a clear and consistent manner. This leads to improved morale and employee engagement along with increased profitability. To sum up, business acumen results in a clear understanding of the issues that face organizations in particular and the ability to proactively address these issues.