Business Acumen - Competency
Definition: Business Acumen means understanding the business enterprise; gathering business information; thinking strategically; working efficiently; forward thinking; leadership and influence; understanding the mission and vision; sharing information; being impactful; working toward and supporting the customer; having financial literacy; managing risk; analytical; managing change; awareness of the market; and having regulatory knowledge.
360-Feedback Surveys Measuring Business Acumen:
Survey 1 (4-point scale; Competency Comments)
Survey 2 (4-point scale; Competency Comments)
Survey 3 (5-point scale; Competency Comments)
Survey 4 (5-point scale; radio buttons)
Survey 5 (4-point scale; words)
Survey 6 (4-point scale; words)
Survey 7 (5-point scale; competency comments; N/A)
Survey 8 (3-point scale; Agree/Disagree words; N/A)
Survey 9 (3-point scale; Strength/Development; N/A)
Survey 10 (Comment boxes only)
Survey 11 (Single rating per competency)
Survey 12 (Slide-bar scale)
Survey 13 (4-point scale; numbers; floating anchors)
Survey 14 (4-point scale; N/A)
What is Business Acumen?
Business Acumen encompasses a comprehensive understanding of the business enterprise; collecting and utilizing business information; strategic thinking and forward planning; efficient and impactful work habits; leadership skills and the ability to influence others; grasping the company's mission and vision; effectively sharing pertinent information; providing meaningful contributions and support; prioritizing customer satisfaction and support; financial literacy and risk management; strong analytical abilities; managing and adapting to change; market awareness and regulatory knowledge Why is Business Acumen important in the workplace?
Business Acumen is a vital skill for several reasons:
- Strategic Decision-Making: Business Acumen enables individuals to make better-informed decisions that align with the organizations strategy, goals and objectives; understanding the financial and operational aspects of the business.
- Problem-Solving: Business Acumen helps an individual to view problems from the business perspective; understanding how different facets of the business operate and interact; finding innovative solutions to problems.
- Financial Awareness: Understanding the financial metrics used can lead to better budgeting, forecasting and allocation of resources.
What are key aspects of Business Acumen?
- Understanding the Business Enterprise
- Gathering Business Information
- Working Efficiently
- Forward Thinking
- Mission and Vision
- Information Sharing
- Impactful
- Financial Literacy
- Analytical
- Market Awareness
- Regulatory Knowledge
How can I improve my Business Acumen?
- Expand your knowledge: Read: Consume business books, articles, and reports. Focus on topics like strategy, finance, marketing, and leadership. Courses and Certifications: Enroll in online courses or obtain certifications related to business management and industry-specific skills.
- Gain Practical Experience: Hands-On Projects: Participate in or lead projects that require strategic thinking, financial analysis, and decision-making. Job Rotation: Explore different roles within your organization to gain a broader perspective on the business.
- Stay Informed: Industry News: Follow news and trends related to your industry to understand market dynamics and regulatory changes. Networking: Engage with professionals in your field through industry events, conferences, and networking groups.
- Develop Strategic Thinking: Scenario Planning: Practice anticipating and planning for various business scenarios and their potential impacts. Problem-Solving Exercises: Regularly challenge yourself with complex problems that require strategic solutions.
- Enhance your Leadership and Influencing Skills: Mentorship: Seek out mentors who can provide guidance and insights based on their experience. Soft Skills: Work on communication, negotiation, and team-building skills to effectively lead and influence others.
- Understand Financial Metrics: Financial Literacy: Study financial statements, budgeting, and financial performance metrics to make informed decisions. Analytical Tools: Familiarize yourself with tools and software that aid in financial analysis and forecasting.
- Increate your Risk Management and Regulatory Knowledge: Risk Assessment: Learn how to identify, assess, and mitigate risks in various business contexts. Regulatory Updates: Stay updated on relevant regulations and compliance requirements to ensure your business practices are aligned.
What questions could be included on a 360-degree survey that measure business acumen?
When creating a questionnaire to measure business acumen, be sure to include items that measure the understanding of business, gathering business information, business operations and efficiency. The questionnaire items on this page will measure these aspects of business acumen. These questions are grouped into different facets of business acumen. When creating a 360-degree or other performance assessment, try to select one or two items from each group. Questionnaire Items to Include
Understands Business EnterpriseUnderstands Business Enterprise focuses on comprehension and application of fundamental business principles, processes, and organizational dynamics. It highlights an individual's ability to grasp how the business operates, apply financial and market knowledge, understand challenges, and make sound decisions that influence organizational goals. This dimension emphasizes broad, integrated knowledge of the enterprise and its environment, including cross-functional and systemic awareness.
- Applies the knowledge of work processes to influence the achievement of business goals
- Understands and applies business and financial principles.
- Involves key stakeholders (employees, customers, investors, partners) in the planning process to gain diverse perspectives and buy-in.
- Understands business fundamentals and practices.
- Demonstrates an understanding of the hospital in its entirety and works to achieve results across disciplines, departments, and functions.
- Understands the "basics" as to how [Company] functions/operates.
- Uses sound business judgement when making decisions.
- Demonstrates an understanding of appropriate R&D, Area, and Market resources to utilize for specific needs
- Demonstrate sound commercial awareness
- Understands the challenges facing [Company]
- Understands and uses appropriate R&D & Area resources
- Demonstrates knowledge of the healthcare market and delivery systems in which we operate
Gathers Business InformationGathers Business Information centers on the active acquisition of data and insights to enhance decision-making and strategies. It focuses on collecting information about customers, market trends, competitors, and internal operations to align actions with business needs and opportunities. This dimension underscores the process of staying informed and seeking clarity to ensure decisions are based on accurate and relevant information.
- Asks the 'right' questions to size up or evaluate situations.
- Collects valuable customer insights to ensure our services meet their needs.
- Conducts thorough market research to understand industry trends, customer needs, and competitive landscapes.
- Gathers essential customer data to align our products with their expectations.
- Keeps informed of current income and expenses.
- Gathers important information from customers to make sure our products are relevant and useful.
- Seeks to better understand other areas of the company, including their operations, personnel, and output.
- Seeks clarity when new directions, procedures, or programs are introduced
- Keeps up to date with business/industry trends using non-Company's resources (newspapers, magazines, Internet)
- Keeps up to date with business/industry trends using non-Company's resources (newspapers, magazines, Internet) and shares this information with others
- Considers business models from outside the organization to help drive the market's success using different approaches
Thinking StrategicallyThinking Strategically focuses on the creation and execution of impactful strategies tailored to meet organizational needs and goals. It involves analyzing business cycles, forming partnerships, addressing critical problems, and aligning strategies with customer insights and constituent needs. This dimension emphasizes the operationalization of strategic plans to promote strengths, adjust to trends, and deliver measurable results.
- Implements long-term strategic solutions to critical problems.
- Creates unique strategies that impact the Company.
- Understands how strategic decisions impact constituents within the Company.
- Anticipates business cycles and trends and makes strategic adjustments in a timely manner.
- Develops strategic plans to promote business and organizational strengths.
- Engages in strategic alliances with valued partners.
- Meets with customers to gain insights into their core needs and how to strategically serve them.
- Formulates business strategies for addressing the Company's important needs.
Working Efficiently
- Able to align resources to meet the business needs of the company.
- Effectively develops and uses resources (people, time, money, supplies, equipment, and space) to improve organizational performance
- Establishes key performance indicators (KPIs) to measure progress and success.
- Takes action based on knowledge of what [Company] must do to win the marketplace
- Focuses on business strategies that will lead to success in the market place.
- Links personal goals to [Company] growth and productivity goals
- Weighs alternatives and selects practical solutions.
- Maintains a focus on the 'bottom line' and profitability.
Forward ThinkingForward Thinking emphasizes the visionary outlook and proactive consideration of future possibilities and trends. It centers on identifying emerging opportunities, risks, and challenges, while taking into account factors such as environmental, social, and governance (ESG) implications. Forward Thinking involves crafting plans that anticipate and prepare for long-term scenarios, leveraging trends and innovation to shape sustainable growth.
- Considers impact of actions on other areas of the organization.
- Views problems from a business perspective, opportunity, investment, risks, and anticipated results
- Considers environmental, social, and governance (ESG) factors to ensure the business is sustainable in the long run.
- Develops business plans that are forward looking.
- Identifies new business opportunities.
- Explores new directions/approaches for accomplishing job objectives
- Sees potential future business opportunities and challenges by keeping up to date with business/industry trends (e.g., 5-year forecast)
- Views problems as an opportunity.
Mission and Vision
- Exhibits behavior that is consistent with the vision, mission, and core values of the organization
- Establishes clear, long-term objectives that align with the company's vision and mission.
- Has a good understanding of business operations to more effectively align company services to meet the needs of its customers.
- Creates robust talent development programs through the identification of key skills gaps and future needs ensuring the company is able to meet its mission and vision.
- Is adept at recognizing new opportunities and fostering a culture of innovation ensuring the organization stays ahead of industry trends and continues to evolve.
- Questions validity of company direction when it does not meet the needs of the Area
- Considers external and internal environmental factors when providing advice and solutions to problems.
- Able to align resources to meet the business needs of [Company].
Information SharingInformation Sharing emphasizes the communication and dissemination of valuable insights across teams, departments, and stakeholders. This dimension ensures that individuals have access to relevant data, best practices, and resources, fostering collaboration, innovation, and understanding of the organization's goals and challenges. It centers on creating transparency and empowering others through the transfer of knowledge.
- Shares information among teams and departments.
- Ensures employees have easy access to relevant information.
- Shares information on best practices to facilitate business workflows and operations during times of transition and changes in personnel.
- Assists others in better understanding the company's operations, goals, and strategic challenges.
- Facilitates creativity and innovation in individuals by helping them understand different aspects of the business.
- Uses Company's communication tools (Email, Intranet, Social Media) to share ideas and best practices with others
- Encourages Area team to keep up with industry changes; makes recommendations regarding recent business publications/resources
- Encourages team to share best practices, challenges, and concerns, to drive help innovation and consistent district improvement
- Informs market team of available resources to provide information/developmental contacts for team
- Shares district ideas/recommendations with the rest of the market to drive market progress
- Shares ideas and methodologies with Area VP.
- Shares recommendations and plans with R&D, focusing on adapting to changes early within own area.
ImpactfulImpactful highlights the ability to drive organizational change, innovation, and results by adapting to external market dynamics, identifying opportunities, and removing barriers to success. This dimension revolves around decisiveness, adaptability, and leadership in taking proactive actions that influence broader organizational outcomes. It emphasizes being a catalyst for change and achieving measurable impacts that advance the company's objectives.
- Incorporates innovative approaches and being adaptable to change.
- Is a "change champion," even when change appears difficult or initially unfavorable
- Coach others to foster an environment which can adapt quickly and willingly to rapid change
- Presents a smart and professional image
- Acts decisively to a frequently changing and uncertain external market.
- Identifies and acts promptly to take advantage of potential market opportunities
- Recognizes constraints and works to remove barriers that may stand in the way of achieving organizational objectives
- Recognizes "change champions" early when new processes/programs are introduced and points these people out as role models for others to follow
- Take prompt action when opportunities arise
Supporting the CustomerSupporting the Customer means understanding and addressing customer needs and providing exceptional service. This dimension emphasizes relationship-building, responsiveness, and ensuring the alignment of products and services with customer expectations. It revolves around anticipating and resolving customer issues, ensuring satisfaction, and fostering long-term customer loyalty.
- Understands the critical business needs of the customer.
- Provides a high level of business services to customers.
- Recognizes the individual needs of customers.
- Anticipates customer's business needs.
- Thoroughly understands the business needs of the customer.
- Responds quickly to customer business inquiries.
- Effectively troubleshoots customer business issues.
- Converses with customers and clients to get a better insight into their business needs.
Financial Literacy
- Possesses a clear grasp of the company's financial indicators.
- Understands the financial metrics used by the department.
- Understands financial terminology, statements.
- Has a good understanding of liabilities and assets.
- Has an understanding of various asset classes and how to interpret balance sheets.
- Calculates return on investment (ROI) for various business projects.
- Understands the financial metrics used by the company.
- Understands the costs, profits, markets, and added value of issues.
- Able to correctly assess current/estimated valuations.
- Knows how to use financial information to make an impact on the organization.
- Understands cash flow procedures and statements.
Managing Risk
- Analyzes current business practices to make better informed decisions.
- Rewards risky ideas that may yield significant benefits to the business.
- Accurately perceives potential risks to the business.
- Prioritizes risks based on an understanding of their possible impact to the company.
- Anticipates the consequences to the business of different potential risk events.
- Creates a risk management strategy to meet the business needs of the organization.
- Uses risk management to make more effective business decisions.
- Recognizes the potential business impact of specific risks.
- Evaluates risks in terms of their business impact and likelihood of occurrence.
AnalyticalAnalytical: the interpretation and evaluation of data to generate insights and support informed decision-making. This dimension emphasizes logical reasoning, pattern recognition, and critical analysis to solve problems and develop strategies based on facts rather than intuition. It centers on processing and understanding complex information to inform business choices and actions.
- Can effectively interpret and analyze data.
- Understands complex issues and problems.
- Looks at business problems from a variety of perspectives.
- Bases decisions on business data rather than on intuition or hunches.
- Recognizes patterns and trends in the business.
- Fosters a critical analysis of events and issues.
- Describes and summarizes data.
- Able to decipher complex data making it easier to generate new insights.
- Recognizes trends in underlying data.
- Interprets data to make informed business decisions.
- Can effectively interpret and analyze market data.
Managing Change
- Sponsors and promotes business efficiency changes.
- Works cooperatively with others to implement business changes.
- Able to get department employees to accept new business workflows.
- Facilitates others in the development and implementation of changes to business operations.
- Facilitates business changes with minimal resistance.
- Assists others in understanding business changes.
Market Awareness
- Understands impacts of domestic & global market events & issues.
- Anticipates marketplace opportunities and supports speed to market.
- Periodically assesses the current market environment.
- Understands the dynamics of our industry.
- Understands our competitors and their strengths and weaknesses.
- Understands consumer behaviors and how they may change in the future.
Regulatory Knowledge
- Identifies potential regulatory risks and strategies to mitigate them.
- Maintains currency with laws, regulations, policies, procedures, trends, and developments.
- Is up-to-date with regulatory guidelines and policies.
- Aware of regulations that impact our business.
- Creates strategic plans that conform with regulations and industry guidelines.