What is Business Acumen?
You may have been tasked to “increase the business acumen skills” of your organization’s leaders. Or perhaps you’re curious about what business acumen includes, exactly. We’d like to present our perspective on why every corporate leader needs more than just a basic level of business acumen.
At IndustryMasters, we believe business acumen goes beyond finance and accounting. It exceeds simply understanding an organization’s or industry’s key performance indicators and various ratios. We believe business acumen is all that AND the ability to apply that knowledge. It’s about making sound decisions for your organization.
Yes, business acumen is knowing how to generate a profit, and it also includes understanding what your organization’s strategy is and how that compares to your competitors. It’s about knowing how your organization creates value, how it attracts customers, how it delivers to those customers and how your business course corrects for market changes and competitive activity. Understanding these is critical for leaders to confidently make sound business decisions.
We create complex virtual worlds in which time advances quickly allowing learners to witness the results of their decisions immediately. Business simulations offer a test bed or sandbox for practice in decision making. Simulations include real-world challenges and crises that push learners to learn, apply and adapt.
Above all, business simulations also offer an opportunity to step aside and analyze the situation from various perspectives. This is an advantage that real-world crises often do not allow.
Adding a simulation to a leadership development program, ensures that learners emerge with a stronger financial acumen. They feel less intimidation around the subject and greater confidence in their ability to quickly make sound decisions.