What’s Acumen Got to Do with It?

In Tina Turner’s hit: “What’s Love Got to Do With It?”, one of the lyrics suggest it’s just a sweet old-fashioned notion.  Acumen is anything but old fashioned. However, it is “sweet” from the standpoint of the power having it can bring both to individuals and organizations. According to Roget’s College Thesaurus, Synonyms for acumen are discernment, shrewdness, penetration, and intelligence. As a leader, having these traits are not only sweet, but valuable. They will prove valuable in your leadership, growing your organization, building your teams, and career. How does one acquire acumen and how do you drive it through your organization?

The Confusion

Acumen is one of those terms like strategic thinking. Because it has many moving parts, it has many definitions. Further, one can possess nonbusiness and business acumen. For example, we can all possess some level of intelligence. Some of us can be shrewd shoppers and others can be shrewd businesspeople. This article will focus on business acumen. As a leader, having business acumen is essential. But does your administrative assistant need to have or even understand business acumen? Oh goody, more confusion. Before answering the question of who needs business acumen, let’s look at the importance of business acumen and its value to you and your organization.  

The Importance of Business Acumen

Understanding how business functions is important. Understanding how YOUR business functions is even more important. Yes, we hire people who have talents in which we are not as strong. However, we must have at least a basic understanding of that function, for example understanding the wider environment in which your business operates, if we are to monitor, contribute, and ensure accountability for that function.  

Business acumen also consists of the ability to:

• See and take advantage of opportunities
• Understand and communicate with every behavioral type at every level of your organization
• Solve problems, make good decisions, and have discernment
• Focus on the right priorities at the right time

These are important because of rapid changes we see today in the market, technology, and disruptions. Of course, these times are challenging. However, having important elements of business acumen in your tool kit will allow you to meet them with head force winds, avoid costly delays, and be resilient after the fact.

HR, Sales, and Acumen

You may think these entities are like oil and water. Business acumen is the key to getting HR “a seat at the table” they crave. HR’s role today must not only be that of “protecting employees” but HR must also understand operations, function, the industry, and competition. As with HR, sales, too has had a lot to learn about winning in the business environment of today. Salespeople must understand the goals of the department, organization, and industry. Gone are the days of the “slap on the back, tell a joke, now give me the order” salesperson. Today, salespeople are more consultive. This means, taking the time to know and understand your customers and their needs. That understanding needs to extend to your organization. If you promise a huge sign on bonuses, but the finance department has no clue or the organization cannot afford such promises, you have done no one a favor. Sales can no longer be a self-centered activity or isolated department.

In The Know

Team members who have business acumen are better able to take charge of their career path. Further, people gain knowledge in areas such as finance, communication, profitability, and reporting to name a few. This helps the team member, the team, and the organization. Think about succession planning. Isn’t it a wise decision to help high performers gain the knowledge they need as they build their career with your organization?

Business acumen is indeed important to the entire organization and all its internal and external stakeholders.

Acquiring Business Acumen

Ensure that your organization has coaching and mentoring programs in place so that those who do possess more robust business acumen pass it along to those coming up the ranks. Add job shadowing in different departments to gain business acumen around different functions in your organization such as finance, marketing, and HR. Provide resources like training programs and on-site materials anyone can use. Keep people up to date on trends and movement in your industry. Be transparent about happenings that affect your organization as well.

Doing the above activities serves a two-fold purpose. It both prepares team members with the business acumen they will need, and it drives the idea of acquiring business acumen throughout the organization and creating a culture for it. If this isn’t a part of your culture, how can you expect the knowledge of business acumen to flourish? Further business acumen will be vital for the survival of your business. Sweet indeed and that’s what acumen has to do with it.

For more information on establishing a culture of business acumen in your organization, call me at 404-320-7834, or email  This email address is being protected from spambots. You need JavaScript enabled to view it., or visit www.performstrat.com.

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