Business Acumen

How to Improve your Business Acumen & Entrepreneurial Thinking
Business Acumen Defined
Understanding the organizations business model and financial goals; utilizing economic, financial, and organizational data to build and document the business case for investing in workplace learning and performance solutions; using business terminology when communicating with others. (Bemthal et al., 2004)
Components of Business Acumen

Thorough insight into organization
Comprehensive understanding of the organizations operations

Ability to apply and interpret financial data Correct use of business terminology Identify the priorities of the organization Creating a value proposition
Advancing the learning and performance agenda of the organization
Gaining Insight into the Organization
Increase knowledge of the organizations business model, strategic plan, and competitive position in the marketplace Know how the business leverages core competencies for growth and profitability Know what the value statement is to external customers
Understanding Business Operations

Develop knowledge of the organizations structure, systems, functions, and business processes Be familiar with planning processes and decision-making channels
Know the information management systems

Understand how products and services are developed, sold, and delivered to customers
Applying and Interpreting Financial Data

Know the financial goals of the organization Understand financial data and how it relates to business success measures Ability to interpret balance sheets, graphs, charts, tables, etc. Ability to perform quantitative calculations in building a business case, preparing budgets, evaluating the impact of a program, and determining return-on-investment (ROI).
Use of Business Terminology
Ability to translate business jargon into business terminology that stakeholders and customers will understand and respect Know and speak the language of the organization
Identifying Organizational Priorities

Thorough knowledge of the needs and expectations of customers
Ability to track changes in the needs and expectations of customers Determining links between internal demands and external needs Understand the business priorities of internal clients and how the organization can assist them with achieving greater success
Create a Value Proposition
Determine link between business needs and particular solutions Document how particular solutions achieve results Identify outcomes that result from implemented solutions
Ability to create a compelling business case
Advancing the Learning and Performance Agenda

Insight into how decisions are made within the organizational structure Know how power is exercised Ability to use ones understanding of organizational politics across business units and key decision-makers Identify key stakeholders and their priorities
Ability to present and successfully defend learning and performance solutions

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Common Mistakes in Developing Business Acumen

Lack of understanding of basic business terminology Overuse of buzzwords Incorrect use of return-on-investment (ROI) speak Failure to understand what key stakeholders definitions of ROI are Unconditional love or inflexible use of one specific approach,
method, idea, or product.
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How to Increase Business Acumen
Increase understanding of financial terminology and organizational performance metrics Work at the pace of the organization Understand the financial picture of the organization Volunteer
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Understanding Financial Terminology and Performance Metrics

Enroll in a finance course
Practice reviewing and interpreting financial data such as departmental financial statements, balance sheets, etc.
Develop and monitor a personal budget and ask internal experts for feedback
Observe the strategies of colleagues who make successful financial decisions

Partner with a financial manager to gain insight Ask a financially savvy colleague for tips and feedback Volunteer for cross-training opportunities
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Working at the Organizations Pace

Work with clients collaboratively to identify and communicate progress of a particular plan
Earn the right to be included in financial business-planning processes Administer an ROI analysis for an idea you want to implement Present the analysis to senior leaders.
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Understanding the Financial Picture

Understand the organizations financial goals, profit margins, and how they measure against the competition Read industry specific publications to track trends Know your customers Take on leadership roles Attend professional conferences Network with industry professionals
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Volunteering
Volunteer to manage the finances of a community organization

Volunteer to work on a community project that involves significant business activity Review the financial health of a community organization and provide feedback for improvements
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Benefits of Developing Business Acumen

Promotes teamwork
Fosters knowledge sharing environment Gain understanding of how your department contributes to organizational objectives Ability to see how your actions make a difference Continued
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Benefits of Developing Business Acumen
Aligns your goals with those of the organization Significantly increases chances for upward mobility
Increases motivation to learn

Creates comfort engaging in business or company specific discussions
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Without strong business acumen, workplace learning and performance professionals are merely transactional service providers who can be easily purchased in the marketplace. Tom Thivierge,
Director of Succession Planning for General Motors
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Entrepreneurship Defined
doing things that are not generally done in the ordinary course of business routine. (Penn State University)
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Develop Entrepreneurial Thinking

Have a thorough understanding of the organization Know how the organization operates and generates income Know your competitors Engage in intelligent risk-taking Become an innovative thinker
Think like the owner
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Understanding the Organization

Familiarize yourself with the history of the organization Get involved Ask to learn how to interpret important documents Know the mission statement Identify ways you can contribute to the mission
Lead task forces
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Understanding Operations
Attend training offered

Know the strategic plan Know your departments business plan Continually look for ways to develop yourself
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Knowing the Competitors

Ask customers how your organization measures up to competitors Obtain and review the competitions promotional literature Use information about competition to look for ways for your organization to gain the competitive advantage Stay current with industry changes Join professional associations
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Engaging in Intelligent Risk-taking
Make decisions that involve risks View mistakes as opportunities to learn Expect setbacks Take initiative Know the difference between a healthy risk and a foolish chance
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Be an Innovative Thinker
Foster a creative environment Look for new ways to improve old routines Have faith in your capabilities Identify ways to empower yourself Never assume that an idea wont work just because its never been tried before Suspend critical judgment of ideas
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"I know I will be _________. Therefore I will be ___________. Fill in the blank." Ryan P.
Allis, entrepreneur
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Bibliography
Bemthal, Paul R., Karen Colteryahn, Patty Davis, Jennifer Naughon, William J. Rothwell, and Rich Wellins. ASTD 2004 Competency Study: Mapping the Future New Workplace Learning and Performance Competencies. Alexandria, VA: ASTD Press, 2004. Encouraging Entrepreneurial Thinking. Motivational Magic Resource Database. October 17, 2008. http://www.motivationalmagic.com/library/ebooks/motivation/McGraw-Hill%20%20Briefcase%20Books%20-%20Motivating%20Employees.pdf Entrepreneurship. Penn State University. October 22, 2008. http://www.mne.psu.edu/lamancusa/Entrepn/Module1/Lecture/Entre.doc Green, Raymond D. Beyond Financial Literacy: The Importance of Business Acumen Training for Managers and Employees. Paradigm Learning. October 22, 2008. http://paradigmlearning.com/documents/WP_Business%20Acumen.pdf Stern, Barry and Bob Walters. Build Your Business Acumen Workplace learning and performance professionals need to think and talk like their internal customers. Heres how. June 2005. American Society for Training & Development. October 17, 2008. http://www.astd.org/NR/rdonlyres/7EA68B02-ED44-4DAE-B5B4041A4056C349/12335/Business_building.pdf
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How to Improve your Business Acumen & Entrepreneurial Thinking

Business Acumen Defined

Components of Business Acumen

Comprehensive understanding of the organizations operations

Advancing the learning and performance agenda of the organization

Gaining Insight into the Organization

Understanding Business Operations

Know the information management systems

Applying and Interpreting Financial Data

Use of Business Terminology

Identifying Organizational Priorities

Create a Value Proposition

Ability to create a compelling business case

Advancing the Learning and Performance Agenda

Ability to present and successfully defend learning and performance solutions

Common Mistakes in Developing Business Acumen

How to Increase Business Acumen

Understanding Financial Terminology and Performance Metrics

Observe the strategies of colleagues who make successful financial decisions

Working at the Organizations Pace

Understanding the Financial Picture

Volunteer to manage the finances of a community organization

Benefits of Developing Business Acumen

Benefits of Developing Business Acumen

Increases motivation to learn

Develop Entrepreneurial Thinking

Think like the owner

Understanding the Organization

Lead task forces

Attend training offered

Knowing the Competitors

Engaging in Intelligent Risk-taking

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