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What it is why it s important

and

how to get it

By Dr Raymond R Reilly University of Michigan and Dr Gregory P. Reilly University

of

onnecticut

B

USiness acumen

is

keenness and quickness in under

standing

and

dealing

with

a

business

situation in

a manner that

is

likely to lead to a

good

outcome.

Business savvy and business sense are otten used as

syn-

ooyms,

but they don't describe what

people

with business

ocumen do differently than those who are

lacking

the skill.

Individuals with business acumen:

Have an acute perception of the dimensions of

business issues

Can

make

sense

out of complexity and an uncertain

future

AIe mindful

of

he implications

of

a choice for

all

the affected parties

AIe decisive

Are

flexible

if

urther is warranted

in

the futwe

Thus, devdoping stronger business acumenmeans more

thoughtful

analysis,

clearer logic underlying business

deci-

sions,

closer attention to key

dimensions

of implementation

and operation, and more disciplined perfurmance manage

ment.

Stronger business acumen does not necessarily equate

with

greater formality

in

these activities by organizations or

individuals

. Acumen is

housed

in the

mind,

and those with

it

are able to use

it

effectively vithout necessarily relying

on

or

ganizational support or detailed business case development.

Tf.lE BENEFITS OF STRONGER

BuSINESS ACUMEN

Everyone who works in a business

has

the potential to con

tribute to the

success

of the finn

.The

CEO

wants

a sales

force

that

drives

profit-producing

revenue,

designers that

create product offerings appealing to the targeted custom

ers, production people who steadily increase quality and

lower

costs and

service

providers who efficiendy support the

octivities of he entire organization. Functlonalleaders with

excellent

business acumen h p increase

effectiveness

and

efficiency of individual departments; however, the greatest

benefits to the organization come when everyone works to

gether

for

the good of he wbole .

This ability

and knowledge

leads

managers

to make better tradeoffs focused

on

creating

value. An organization full of high business

acumen

indi

viduals can

expect

to

see:

Individual contributors better able to appreciate the

connections between their

activities

and success of

thewhole

Departments that better understand opponunities

for cooperative value-creati

on

Managers

that better plan, organize guide and

control the activities that produce the products and

services

desired by customers

HR

WIet

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Leaders

with a heightened perspective that trans

htes into an ability to inspire and excite the organi-

7lltion to achieve its potential

Stronger business acumen among indNiduals across an orga

nization encourages a shared understanding

of

he opponu-

tities and threats

facing

the firm and enables a more logical

and coordinated response.

~ L E M E N T S

OF BUSINESS

CUMEN

Strengthening business acumen requires understanding and

focus in four critical areas:

lhderstanding one s thought processes

Developing business knowledge

Effective use

of

management processes

Management and leadership skills

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