Business acumen and its critical aspects

The critical aspects of business acumen

Interpersonal skills are considered a critical aspect of industrial relations a...

  • Business acumen and its critical aspects
    Nitish Khanna Image Nitish Khanna

    Business acumen and its critical aspects

    The critical aspects of business acumen

    Interpersonal skills are considered a critical aspect of industrial relations and a particular skill that has in recent times, been projected to the forefront of management practices. This need has been significantly contributed to by the global economic turbulence experienced in recent times. In various working environments, coaching programs have been structured towards the resolution of personal conflicts and developing a team morale that has helped with the preparations to meet the many and varied challenges.

    While many consider that interpersonal skills are an integral and critical aspect of the widely coveted skill known as business acumen, a white paper from the Perth Leadership Institute puts forward the argument that the downturns in the various economies demand the dedicated development of business acumen, not interpersonal skills. The paper further states that critical aspects of business acumen should be addressed within management coaching programs. Mr. E. Ted Prince, the founder and Chief Executive Officer (CEO) of the Perth Leadership Institute, believes that coaching programs should be designed for the business cycle and, in a downturn, focus on the development of the ability in leaders to help companies with financial survival and generating capital.

    The circumstances within business environments have a significant influence in what are regarded as critical aspects and influences in business acumen. In periods of economic health and wellbeing, when finance is readily available, interpersonal skills may assume a leading position in management coaching. In times of poor economic performances, the priority of business is profitability. Therefore, the focus needs to be directed towards the survival of businesses, which is a critical aspect of management and their business acumen.

    Company and career influences

    In addition to the welfare of the company being often at risk, likewise is the career of a worker. This is a situation in which the concerns related to profitability concerns, related to business acumen, now assume greater importance than the limitations of interpersonal skills. It also demonstrates that management lacking knowledge in the critical aspects of business acumen, could be termed a negative career influence in an economic downturn.

    The ability of an individual to help in the creation of capital or other beneficial financial and business outcomes to a business can be recognized as critical aspects of business acumen. It may therefore, be considered a crucial factor, in any enterprise, that coaching resources should be directed towards developing the abilities of management to these areas of crucial effectiveness. While it is usual for traditional management coaching methods to focus on interpersonal skills and vocational capabilities, they should be considered amongst the critical aspects of business acumen and direct financially related results.

    Conflicting skills

    Another critical and complex aspect attributed to business acumen was demonstrated by the most recent crisis on Wall Street. It was one in which financial literacy was shown to lack influence in business outcomes and generating finance. A further influencing factor proposed by Mr. E. Ted Prince, was that there could be a conflict between IQ and academic skills, in relation to wealth creation and business acumen!

    It is a critical aspect concerning issues regarding the focus required in management recruitment for management and development expertise. It is a situation involving a critical aspect of business acumen, especially applicable in conditions of economic crisis.

    Business acumen in the marketplace

    Businesses need profit to exist, therefore, the sale of any product or service is not dependent on whether it is software, advice or equipment. It is associated with the critical aspect of business acumen, which is improving the business of consumers and generating greater income. The general sales training offered by many professional instructors, adhere to the format selling at high price to sell the discount, gaining access to influencers and understanding associated business challenges and the opportunities for selling.

    A critical aspect of business acumen provides a solution regarding how to utilize to the full, information which has been obtained from decision makers. Business value justification assesses the needs of customers, which forms the foundation for providing the most appropriate selling tools. These include comparable business cases and user testimonials and details about determined improvements. Adding to this critical aspect of business acumen, are model projection of Return on Investment (ROI) as well as tactics and strategies for gaining and the maintenance of communication access to key, business executives. They are critical aspects of business that can be utilized in a variety of operational environments.

    Critical thinking in business acumen

    The high paced and ease of communication business world of today, with is continuous and rapid changes, demands ever increasing amounts of varying data. This created the need for ability in diagnosing and establishing a critical aspect of business acumen, by way of critical thinking. It emphasizes crucial need for effective problem solving, decision-making and is the foundation to overall an aware and, good business acumen.

    The development of critical thinking ability and the ability of maximizing reasoning effectiveness, involves further, critical aspects of business acumen, ingenious or innovation, used to a great extent by successful scientists, strategists and Nobel Prize winners. The capability of enhancing critical thinking skills provides users with their most crucial resource and the ultimate in gaining a competitive advantage, the mind! It is a developed source of thought that has the capacity to produce many and varied business oriented advantages. Amongst them, are flexibility and versatility, more proficient strategy implementation and improvement initiatives, with less wasted effort! This in turn, magnifies to higher levels of employee engagement and innovation, all of which contributes to key business outcomes; for example, improved quality, productivity and profitability.

    Business insight

    An in depth insight of their particular market environment, is a necessary and integral part of business leadership today. It is a critical aspect of business acumen that means being aware of who customers are, their needs and how to meet them! It includes competitor awareness and their offerings, as well as the trends that are influencing and redefining the market. It includes a personal understanding of the competitive positioning, related to their company, its perceived brand value to the customer and how it can be sustained and developed.