Business Acumen - Competency

Q: Q_2

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.

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.

Organizational Skills

Business Acumen
Strategic Focus
Strategic Insight
Entrepreneurship
Company
Organizational Fluency
Fiscal Management
Planning
Vision
Global Perspective

What is Business Acumen?
Why is Business Acumen important in the workplace?
What are key aspects of Business Acumen?
How can I improve my Business Acumen?
Questionnaire Items to Include

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)

Performance Assessments that include Business Acumen:
Assessment 1 (5-point scale; IDP Comments)
Assessment 2 (3-point scale with Comments)
Assessment 3 (Manager Assessment; 360-Feedback)
Assessment 4 (3-point scale; Rating Limits)
Assessment 5 (3-point scale; Rating Limits)
Assessment 6 (5-point scale with Comments)
Assessment 7 (Comment Boxes Only; IDP)
Assessment 8 (Comment Boxes Only)
Assessment 9 (3-point scale with Letter Grade)
Assessment 10 (360-Feedback; Bonus/Merit Pay)
Assessment 11 (Core Values & Job Competencies)
Assessment 12 (4-point scale; 6 Comment Boxes)

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 Enterprise

Applies the knowledge of work processes to influence the achievement of business goals
Involves key stakeholders (employees, customers, investors, partners) in the planning process to gain diverse perspectives and buy-in.
Understands and applies business and financial principles.
Understands business fundamentals and practices.
Understands and uses appropriate R&D & Area resources
Uses sound business judgement when making decisions.
Demonstrates knowledge of the healthcare market and delivery systems in which we operate
Demonstrates an understanding of appropriate R&D, Area, and Market resources to utilize for specific needs
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.
Understands the challenges facing [Company]
Demonstrate sound commercial awareness

Gathers Business Information

Asks the 'right' questions to size up or evaluate situations.
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.
Collects valuable customer insights to ensure our services meet their needs.
Conducts thorough market research to understand industry trends, customer needs, and competitive landscapes.
Keeps up to date with business/industry trends using non-Company's resources (newspapers, magazines, Internet) and shares this information with others
Keeps up to date with business/industry trends using non-Company's resources (newspapers, magazines, Internet)
Seeks clarity when new directions, procedures, or programs are introduced
Considers business models from outside the organization to help drive the market's success using different approaches

Thinking Strategically

Formulates business strategies for addressing the Company's important needs.
Meets with customers to gain insights into their core needs and how to strategically serve them.
Engages in strategic alliances with valued partners.
Develops strategic plans to promote business and organizational strengths.
Implements long-term strategic solutions to critical problems.
Creates unique strategies that impact the Company.
Anticipates business cycles and trends and makes strategic adjustments in a timely manner.
Understands how strategic decisions impact constituents within the Company.

Working Efficiently

Effectively develops and uses resources (people, time, money, supplies, equipment, and space) to improve organizational performance
Able to align resources to meet the business needs of the company.
Establishes key performance indicators (KPIs) to measure progress and success.
Weighs alternatives and selects practical solutions.
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
Maintains a focus on the 'bottom line' and profitability.

Forward Thinking

Considers impact of actions on other areas of the organization.
Identifies new business opportunities.
Views problems from a business perspective, opportunity, investment, risks, and anticipated results
Develops business plans that are forward looking.
Considers environmental, social, and governance (ESG) factors to ensure the business is sustainable in the long run.
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
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.
Has a good understanding of business operations to more effectively align company services to meet the needs of its customers.
Establishes clear, long-term objectives that align with the company's vision and mission.
Considers external and internal environmental factors when providing advice and solutions to problems.
Able to align resources to meet the business needs of [Company].
Questions validity of company direction when it does not meet the needs of the Area

Information Sharing

Facilitates creativity and innovation in individuals by helping them understand different aspects of the business.
Shares information among teams and departments.
Ensures employees have easy access to relevant information.
Assists others in better understanding the company's operations, goals, and strategic challenges.
Shares information on best practices to facilitate business workflows and operations during times of transition and changes in personnel.
Shares district ideas/recommendations with the rest of the market to drive market progress
Informs market team of available resources to provide information/developmental contacts for team
Encourages team to share best practices, challenges, and concerns, to drive help innovation and consistent district improvement
Uses Company's communication tools (Email, Intranet, Social Media) to share ideas and best practices with others
Shares ideas and methodologies with Area VP.
Shares recommendations and plans with R&D, focusing on adapting to changes early within own area.
Encourages Area team to keep up with industry changes; makes recommendations regarding recent business publications/resources

Impactful

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
Identifies and acts promptly to take advantage of potential market opportunities
Presents a smart and professional image
Acts decisively to a frequently changing and uncertain external market.
Take prompt action when opportunities arise
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

Supporting the Customer

Recognizes the individual needs of customers.
Converses with customers and clients to get a better insight into their business needs.
Provides a high level of business services to customers.
Anticipates customer's business needs.
Thoroughly understands the business needs of the customer.
Responds quickly to customer business inquiries.
Understands the critical business needs of the customer.
Effectively troubleshoots customer business issues.

Financial Literacy

Calculates return on investment (ROI) for various business projects.
Has an understanding of various asset classes and how to interpret balance sheets.
Understands financial terminology, statements.
Understands the financial metrics used by the company.
Knows how to use financial information to make an impact on the organization.
Understands the costs, profits, markets, and added value of issues.
Has a good understanding of liabilities and assets.
Understands cash flow procedures and statements.
Able to correctly assess current/estimated valuations.
Understands the financial metrics used by the department.
Possesses a clear grasp of the company's financial indicators.

Managing Risk

Evaluates risks in terms of their business impact and likelihood of occurrence.
Accurately perceives potential risks to the business.
Creates a risk management strategy to meet the business needs of the organization.
Anticipates the consequences to the business of different potential risk events.
Rewards risky ideas that may yield significant benefits to the business.
Recognizes the potential business impact of specific risks.
Uses risk management to make more effective business decisions.
Analyzes current business practices to make better informed decisions.
Prioritizes risks based on an understanding of their possible impact to the company.

Analytical

Understands complex issues and problems.
Recognizes trends in underlying data.
Can effectively interpret and analyze market data.
Interprets data to make informed business decisions.
Fosters a critical analysis of events and issues.
Can effectively interpret and analyze data.
Bases decisions on business data rather than on intuition or hunches.
Recognizes patterns and trends in the business.
Describes and summarizes data.
Able to decipher complex data making it easier to generate new insights.
Looks at business problems from a variety of perspectives.

Managing Change

Facilitates others in the development and implementation of changes to business operations.
Able to get department employees to accept new business workflows.
Works cooperatively with others to implement business changes.
Facilitates business changes with minimal resistance.
Assists others in understanding business changes.
Sponsors and promotes business efficiency changes.

Market Awareness

Understands our competitors and their strengths and weaknesses.
Understands the dynamics of our industry.
Understands impacts of domestic & global market events & issues.
Anticipates marketplace opportunities and supports speed to market.
Understands consumer behaviors and how they may change in the future.
Periodically assesses the current market environment.

Regulatory Knowledge

Identifies potential regulatory risks and strategies to mitigate them.
Aware of regulations that impact our business.
Creates strategic plans that conform with regulations and industry guidelines.
Maintains currency with laws, regulations, policies, procedures, trends, and developments.
Is up-to-date with regulatory guidelines and policies.