Whether you’re just starting in a corporate work setting or an established business professional, you are probably very familiar with the phrase “business acumen”. As of late, the phrase can feel like one of those corporate-y-ish buzzwords we all love to hate until, finally, we start saying it too (and then we can’t stop!). But the meaning behind the phrase is one of great importance and understanding how to improve your business acumen can fuel your professional growth.

Business acumen is an overall understanding of the business and how it operates. Knowledge of the business is a valuable skill set needed to navigate complex issues and understand how an individual role contributes to the big picture. With the right business acumen, problem-solving becomes more natural, and opportunities for upward mobility present themselves.

For the right business clarity, you must demonstrate financial literacy, strategic thinking, and market awareness.

Financial Literacy

Understanding where the money is made and where it goes isn’t just important in your personal life, it’s an essential tool in your business repertoire. At the most basic level, being capable of reading an income statement is a great start. You don’t have to be an accountant to have a basic understanding of revenue, expenses, gains, and losses but having this knowledge sets the foundation for strategic thinking.  

Even a basic-level financial knowledge can create the confidence to ask questions and offer ideas. It also helps increase engagement in the overall success of the business. When we look up from the lens of our role and start broadening our view of the whole business, we become more strategic and valuable.

Strategic Thinking

Thinking strategically is simply the process of using intentionality and rational thought to consider outcomes. Strategic thinking is a key ingredient in a successful business and is an essential function of the executive role. While businesses need task-oriented individuals who can execute, there need to be individuals who think about and plan for the long-term goals of the company.

Strategic thinking is a product of business knowledge and the ability to think from a higher viewpoint. This higher viewpoint is only possible once you understand and know the entire operation.

Market Awareness

Understanding the market and industry in which one’s business operates is critical to the decision-making process. Regardless of what position one holds in the organization, knowing the product and service offered, the customer being served, and the competition is an important part of career growth.

Market awareness also refers to your business’s brand authority and how well you understand the customer and your brand’s reputation. Having a deep knowledge of the customer perspective is key when making important decisions or solving problems that arise.

How to Increase Business Acumen

A deeper knowledge of the business often comes with experience and exposure over time, but there are ways professionals can increase their business acumen sooner and it starts with taking note of your surroundings. Who do you interact with regularly in your role and what resources are at your fingertips?

Developing business acumen involves active listening, asking the right questions, and self-learning.

Oftentimes, you will find that the people and departments you interact with in your role can help you enhance your knowledge of the business. How often do we need another business function to complete the essential functions of our jobs? Probably much more frequently than we realize.

Utilize those individuals as sources of knowledge. Ask them more about what they do and how the work gets done. When you understand the ins and outs of different departments, you can start to piece together the bigger picture.

Leverage the resources available to you, even if it is not directly related to your job. Many organizations will offer company-wide access to important resources related to products, services, and industry news. While this type of material may not be the most captivating read, it can be a goldmine for increasing business acumen.

Take advantage of opportunities to attend meetings and hear officers of the organization speak. Not only does this provide the chance to observe successful businessmen and women in your organization, but it’s face time with leadership. Your organization might also offer town hall settings where you can hear about recent updates and business performance, as well as ask questions.

Self-development is an excellent way to grow your career and build your brand. Reading books, listening to podcasts, taking a class, or buying a membership to a business-related club are all great ways to increase business acumen.

For some, there may be philosophical changes to consider such as your mindset and approach to your work. Many of us go to work to do our job and then go home, which is not inherently wrong and is a personal decision. However, if you want to improve your business acumen, you may need to adjust how you interact at work.

Active listening during meetings and conversations is key. Seeking to understand first and asking questions can shape a new perspective and build strategic relationships beyond just the task at hand.

While we here at The Work Life Wire love a good workplace buzzword, we also know that business acumen represents something every ambitious professional should seek. As you can see, the journey toward improving your business acumen is much more obtainable than you may think.