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What business acumen is and 9 ways to develop it

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What is business acumen, and why is it important?

Business acumen skills.

How to develop business acumen

How to showcase your business acumen skills

What drives profitability for your company? What metrics are top-of-mind for your company leaders? What is going to make or break the success of this quarter for your team or department? How does your manager set priorities?

Depending on the type of work you do, you might not know all the answers. But maybe these questions ring a bell. 

For instance, maybe you remember hearing something similar at an all-hands meeting. Or maybe you’ve never even thought about them.

The answers to these questions are examples of business acumen. And anyone who wants to be a leader in an organization has to get comfortable with these types of concerns. 

Let’s explore what business acumen really means, what skills are required to have it, and how you can begin to develop business acumen today.

Business acumen is someone’s ability to understand and handle business situations. It is the collection of both general and organization-specific knowledge about how things get done and why. It is a key characteristic of leadership and shows up in the questions someone asks and the decisions they make.

However, business acumen isn’t just about understanding business issues in general. It also involves understanding your particular business and making decisions that create a positive impact in your organization.

Having business acumen will improve your business instincts. When you’re empowered to make decisions or experiment with different approaches, business acumen allows you to guide your team to where they can have the most impact. You help them focus on the things that matter most for the company.

When a company’s business acumen is improved, everyone in the organization receives the benefits.

People tend to think of business acumen as a desirable attribute in employees who are more technically aligned, or with a specialized skill set. For example, a software engineer with business acumen has different opportunities than one who lacks an understanding of the business, even if they possess similar technical skills. 

Business acumen typically addresses questions such as:

• How does your organization make a profit? 
• What drives the decisions behind the business strategy? 
• How do companies budget and plan? 
• Which of your potential projects is most likely to be a priority beyond your department?
• How do you garner buy-in ?

Developing business acumen can help give you the knowledge you need to have a long and successful career.

Having this knowledge is even more important when companies are:

• Becoming more agile 
• Utilizing distributed leadership
• Making crucial decisions
• Experimenting and taking risks to gain useful information

At a bare minimum, a team leader should have some business acumen. Otherwise, it is unlikely employees will feel empowered. Without acumen, a leader doesn’t have the necessary tools to help move the organization forward in a good direction.

Business acumen is currently in high demand. According to a study by Cisco, 93% of IT and business executives have a talent gap that prevents business transformation. 42% say business acumen is their biggest skill gap . No other skill gap reaches those numbers. 

What skills can help leaders build business acumen? 

It’s more than just business knowledge. Here are eight skills that contribute to someone’s business acumen.

1. Strategic thinking and problem-solving

Coming up with effective plans designed to reach company goals is a key component of business acumen. Strategic planning and problem-solving contribute to this ability.

You also need to know how to prioritize according to a variety of situations. Not all priorities will be the same at all times. Leaders need to use their strategic thinking to figure it out on the go.

They must also be able to adapt and solve problems creatively . Adapting to change is necessary for an organization to thrive in any market. Previous solutions may not always get a team the same results. But someone with business acumen can think on their feet.

2. Leadership

Someone with business acumen should also possess strong leadership skills and characteristics . They can inspire others to meet the needs of the organization.

A capable leader can prioritize and adapt those priorities to keep the focus on what matters most, even amid change.

3. Comfort with the numbers

It’s important to understand processes and financial metrics like budgeting, forecasting, profit and loss, and reporting, just to name a few. Being comfortable with these numbers helps someone take the pulse of an organization. 

It’s also important to know the basics of reading a P&L, balance sheet, and cash flow statement.

Other important number factors to know about include:

• How a company drives its cash flow
• The basics of operations in your company and which parts are the biggest levers of performance and growth
• What is unique about your operations
• What affects the bottom line

4. Communication and influence

Communication is a crucial skill that makes up business acumen. It’s important to know how to communicate effectively with others to help everyone function more effectively.

Someone with business acumen also understands what matters to different audiences and stakeholders. They know how to communicate a compelling vision and explain the why behind it.

These communication skills can be used to develop relationships in your project or team to create better outcomes. 

5. Marketing

Someone with business savvy knows their target audience. But they should also understand how to discover who that target audience is.

They also know how to come up with key marketing angles to attract that audience. In addition, they need to know KPIs to track and measure growth.

This doesn’t mean you need to be a marketing expert to have business acumen. But having a grasp on the basics is part of building acumen skills.

6. Analytical capabilities

Analytical capabilities are key to business acumen. These can include:

• Collecting and analyzing information
• Connecting the dots between data points
• Understand a problem from different angles
• Understanding what information is rare and valuable and the limitations of what is available

7. Understanding the market

Understanding your market is not the same as having marketing skills.

It involves understanding the industry you work in and what the marketplace looks like. For instance, someone who understands the market knows how to do a competitive analysis, how to track and follow industry trends, and ultimately how to pivot when the market demands.

8. Context and situational awareness

Someone with business acumen knows how their actions affect the organization they work for in a variety of situations. They have the emotional intelligence to understand how team members feel about a given situation and are equipped to handle it accordingly.

This is a form of self-awareness . It’s difficult to understand how your actions affect an organization without any self-awareness to begin with. 

How to develop business acumen 

Because business acumen is in high demand in the workforce, people who have it can make a big difference for their organization.

Here is how someone in your organization can develop business acumen and become an asset for their team and the company at large.

1. Dig into the financial side of the business

It’s important to become financially literate in the business sense. But this doesn’t happen on its own. 

Even someone who is naturally good with numbers won’t automatically understand a company’s financial side without digging into it.

Some examples of how someone can improve their financial literacy in an organization include:

• Tracking important metrics over time
• Getting insight from business intelligence data
• Looking at financial statements
• Asking for help if there are metrics you don’t understand

2. Get a mentor

Anyone who wants to grow their skills in a given industry should find someone willing to mentor them .

This person should have the strong business acumen skills you want to develop.

Mentors can provide a much-needed perspective that someone on their own cannot access. Their deeper knowledge and experience in the organization give them an advantage that they can pass on to their mentee. However, with reverse mentoring, the mentor is not always the senior member in this exchange. Young employees have a valuable perspective and set of experiences they can convey to their older peers.

3. Study the business model

Studying the company’s business model can help an employee learn about areas of business they don’t know much about yet.

It can also help them understand growth strategies used by the business.

For instance, how does the supply chain work? How does the company handle its human resource management?

Understanding the business model can help someone use their big picture thinking skills. 

4. Stay up to date with industry trends

Business acumen isn’t an evergreen skill. Anyone who wants to develop and upkeep business acumen should stay up to date with industry trends.

Some ways to do this include:

• Following business leaders on social media
• Subscribing to newsletters in your industry
• Keeping up with business news

If you want to build more business acumen, start doing your research and make a habit of it. Those who want to encourage others in their organization to develop business acumen can encourage them to develop this habit, as well.

5. Understand the customers

Anyone who wants to know more about a business should talk to customers when they can.

Talking directly to customers is the best way to get their perspective on the organization you work for. It’s also a great way to collect their feedback and improve business performance.

Study customer satisfaction with your organization’s Net Promoter Score (NPS) and Customer Satisfaction Score (CSAT). Customer data doesn’t give you the customer’s unique perspective, but it does provide the big picture of who the customers are.

6. Sign up for a business class

Taking a business class can be a more structured way to develop competencies that help improve business acumen.

Reading a quick overview book like The 10-Day MBA can also help people jumpstart the process of building business acumen.

Do you want to support business acumen development in your organization? Make sure to invest in professional development courses for your employees. When building business acumen, self-driven learning is key.

7. Become more comfortable taking calculated risks

Practicing business acumen requires taking risks. No risk means no reward.

It can feel uncomfortable at first to take risks. Encourage people in your organization to take smaller risks first if this scares them. 

8. Learn how to fail

If you want to achieve success, you’ll have to encounter failure along the way . 

Learn how to make “good failures.” Good failures aren’t based on sloppiness or failing to ask for help. Instead, they’re designed to help you and others learn as much as possible.

Learn how to pick yourself up after your failures. If you can learn from them and move on, you’re already steps ahead.

9. Invest in coaching

A coach can help people speed up the process of developing their business acumen.

Should someone get a coach if they already have a mentor? You can benefit from getting both . 

Consider bringing in skilled coaches to help people in your organization build their business acumen, even if there’s already a healthy culture of mentorship .

If you’re someone who’s developed business acumen skills over the years, how you showcase them matters almost just as much as how you use them. Showcasing your business acumen can help organizations understand your worth.

This is true whether you’re planning your career in the same organization or if you’re looking for opportunities elsewhere.

Include specific skills in your resume. For example, add analytical skills if you have them.

Give examples of how you’ve used those skills in the past to succeed in a previous position.

You should also be prepared to talk about business considerations (of your former employer and your prospective one) relative to the role you want. For example, if you’re trying to join a SaaS company as a marketer, be ready to talk about how content and demand might drive users.

Develop business acumen and become an asset to your organization 

If you see yourself evolving as a leader in an organization, it’s crucial that you develop business acumen sooner rather than later.

But you don’t have to figure it out alone. Coaches at BetterUp can help you awaken your potential and become the leader with the necessary business acumen to make transformational decisions. Try out a custom demo to get started.

Invest in your career

Get your promotion. Make your career change. Build the future you dream about. And do it faster with a world-class BetterUp Coach by your side.

Maggie Wooll, MBA

Maggie Wooll is a researcher, author, and speaker focused on the evolving future of work. Formerly the lead researcher at the Deloitte Center for the Edge, she holds a Bachelor of Science in Education from Princeton University and an MBA from the University of Virginia Darden School of Business. Maggie is passionate about creating better work and greater opportunities for all.

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The Complete Guide to Business Acumen Training

Updated: October 02, 2023

Published: November 14, 2022

Business leaders need a diverse skill set to elevate their organizations and solve challenges in the workplace. Business acumen training can help your team build this tool kit.

In this article, we’ll explore the fundamentals of business acumen training. That includes who should participate in this training, the benefits of these programs, and the different types of courses available. Let’s dive in.

What is business acumen training?

Business acumen training explains the mechanics of running a business. Training topics include interpreting financial documents, using data to inform business decisions, and leading a workforce. You’ll also learn how to explain these complex concepts to others on your team.

Business acumen training is designed to help you understand how the whole organization functions — breaking beyond the silo of your specific role or department. After training is complete, you should be able to hold your own during meetings across the organization.

Almost all business acumen courses cover the same fundamentals, like working with financials. Training built for your specific company should explore additional topics specific to your business.

Think of business acumen training as a way to turn employees into leaders and strengthen your organization.

The Benefits of Business Acumen Training

Business acumen training can be helpful as you advance through the ranks of your organization. That’s especially true if you are new to a role or have not had a formal business education. Here are just a few of the most important benefits you can expect.

1. Business acumen training leads to versatility.

If employees understand how your organization runs, they will be more versatile. This can be especially helpful in sales.

While prospects should be able to find information on your website and other resources, your sales team needs to take a consultative approach. Business acumen training can teach your sales reps how to better understand your prospects. As a result, your team will be more equipped to understand customers’ desires and pain points.

This aspect of business acumen training helps employees understand the sale from both ends of the transaction.

2. Business acumen training improves collaboration.

Business acumen training can help team members understand how their decisions affect the rest of the organization — both now and in the future. After training is complete, your team should be able to understand colleagues across departments, increasing collaboration.

Better collaboration means team members are on the same page and their efforts synergize rather than cannibalize each other.

3. Proper business acumen training leads to proactivity.

While you can’t plan for everything, teams should seek to be as proactive as possible and prepare for the future. However, in many businesses, decision-making tends to be reactionary.

Staying ahead of the curve can make or break an organization. Business acumen training can make that a standard, not just an ideal. After training is complete, employees will more frequently make decisions with the future in mind.

Who needs business acumen training?

While every employee might benefit, savvy leaders will focus business acumen training efforts on key players. This is especially true when implementing business acumen training for the first time.

Here are a few types of employees that benefit the most from training.

Start with your sales team. These reps need to understand what your prospects want and what they don’t. Business acumen training can help salespeople understand how to turn prospects into customers.

Anyone on the technical side of your business can also benefit from business acumen training. Often, technical professionals are siloed within their departments. Business acumen training gives these employees the perspective they need to make informed decisions. This can be especially true of your product teams.

Of course, other team members can benefit from business acumen training. These are just two of the most important groups you should start with. Your organization is unique, so only you can determine who needs training.

How to Deliver Business Acumen Training

Business acumen training takes many forms — from workshops to online courses to mentorship programs. There’s no one-size-fits-all approach. To pick the right program, consider the strengths and weaknesses of your team.

Here are three common approaches to business acumen training.

1. Strategy Workshops

If you’re looking to train a large group of your employees, consider strategy workshops. These sessions are guided by an instructor, often including slides and other supplemental materials.

Workshops can give the same knowledge to different groups in your business. If you’re looking to unite different departments under one strategy, this may be a successful training technique.

Your business will run smoothly when every employee follows the same strategy. As a result, your employees are more likely to work toward the same goal with fewer miscommunications and bottlenecks.

Best for: Achieving alignment in a large group setting.

2. Business Simulations

Business simulations are hands-on, interactive training experiences. During these sessions, teams will work through a hypothetical business scenario to put their learnings to the test. This can be especially helpful when building a business plan or assessing financials.

Business simulations bring textbook business concepts to life, giving your team the closest thing to hands-on experience.

Remember to pair your simulations with more formal learning sessions. Concepts should be introduced and explained before being put into practice.

3. Manager Rotations

A versatile employee is a high-value employee. One of the best ways to create versatile employees is to rotate your managers. Rotating managers can provide key team members with insight into the entire organization if done correctly. The time and money invested can pay off when you end up with managers who know your business inside and out.

Business Acumen Training Courses

Still not sure where to start? Consider a business acumen training course. These programs range from marketing to web design and everything in between.

Here are a few useful business acumen training courses from HubSpot to get you started. The best part? They’re all free! Consider these topics before wading into the deep end.

Customer Support

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Every person in your business needs to know how to deliver an excellent customer experience. While not every role interacts with customers directly, everyone should have the skills if the occasion arises.

HubSpot Academy features a free course that covers these customer support skills. This course can help any team member deliver world-class customer service, from managing time to analyzing specific cases.

Competitive Strategy

Contending with changes in your industry and clientele isn’t easy. Competition adds an even more complex angle to this challenge. So what can you do to retain your position in the market?

Well, HubSpot offers a course that teaches you how to create a competitive strategy . You’ll learn how to take crucial steps to build a powerful advantage.

Revenue Operations

Whether it’s right now or far in the future, you’ll want to scale your business. One of the best ways to do that is to optimize your revenue operations.

HubSpot’s free Revenue Operations Certification Course can help. This program will distill the knowledge you need to make beneficial changes in your business.

Critical Thinking

The best problem-solving happens in conjunction with critical thinking. There are no exceptions, and every team member should have critical thinking skills. But how can you teach that skill?

Here’s the good news: you don’t have to. This HubSpot course teaches critical thinking and ties it to problem-solving. This is important, if not essential, for everyone in your organization. Without critical thinking, problems can remain unsolved for any amount of time.

Building a Business Acumen Training Program

By now, you should have a good idea of what business acumen training is and what it takes. So what will you do next?

Pick a few business acumen training courses that will benefit your sales team. Start here to teach your reps the ins and outs of your organization. Then, scale your program to other departments. Soon, you’ll be on your way to a collaborative organization.

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Understanding Business Acumen

How to develop your business instincts.

By the Mind Tools Content Team

In an era of political uncertainty, fluctuating markets and technological disruption, ‘business acumen’ is becoming an increasingly important leadership quality. But what exactly does it mean, and how can it be developed in organizations?

What Is It?

Business acumen is defined as “ keenness and speed in understanding and deciding on a business situation ”.

Broadly speaking, it can be broken down into three components: market awareness, strategic perspective, and financial understanding .

People who display business acumen are often described as having ‘ a head for business ’ or ‘ good business instincts ’. When faced with decisions, they assess the available options, weigh them against long-term objectives, and settle on an appropriate course of action. They rarely make mistakes, but know how to react if something goes wrong, quickly taking steps to resolve the issue.

At face value, it can seem like these people are innately talented, or that their actions result from a ‘ gut feeling ’ of how to respond in different situations. While there’s no denying that some individuals are better suited to particular roles than others, many of the behaviors associated with business acumen can be learned over time.

Market Awareness

One of the key elements of business acumen is an understanding of the market in which you and your clients operate. By keeping track of competitor activity, as well as trends in the economic and political environment, you’ll be in a better position to identify the risks and opportunities that lie ahead. From a sales perspective, it’s also important to know exactly how your organization's products and services are being used and the need that they fulfill . Indeed, research has shown that commercial awareness is a significant factor in determining an organization’s ability to win new clients and retain existing ones.

Whether it comes to crossing items off on your to-do list, attending meetings, or clearing out your inbox, the day-to-day demands of organizational life often make it difficult to step back and consider the big picture . Make a point of scheduling a little time each week for catching up on industry news by reading blogs, chatting with colleagues, or even attending a conference.

Where possible, seek out opportunities to engage with customers directly . If you identify a team member who you feel lacks market awareness, consider involving them in discussions with clients, or asking them to assist the sales team in preparing a pitch to potential customers.

Strategic Perspective

Another key aspect of business acumen is the ability to see how individual actions contribute to broader strategic goals . Developing a sound understanding of the purpose of every department, and how they interconnect, can help ensure your actions and decisions not only meet the needs of your team, but the overarching priorities of the organization. It’s often the case that individuals will be highly proficient in their respective fields, but lack a more general appreciation of the role they play in making the organization a success. Developing strategic awareness within your team can help prevent the formation of ‘ silos ’, which are harmful to organizational morale and productivity.

• How well do you understand the function of each department in your organization?
• Could you or your team members benefit from learning more about other parts of the business?

If so, interdepartmental projects and secondments can help you and your team to develop strategic awareness. If these options are unavailable or impractical, consider approaching a colleague who works in an area you know little about . Ask if you can have a chat to them about what their particular section does, or even ask if you can attend a meeting in their department. When a new start joins your team, arrange for them to meet with representatives from each department.

Financial Understanding

The final component of business acumen is an understanding of the way money flows through organizations, and the financial metrics used to measure performance. When it comes to making decisions, you need to analyze the ‘ business case ’ for a particular course of action. Having a firm grasp of the numbers allows you not only to maximize potential returns from new initiatives, it will increase your own value within the organization .

According to data from the Corporate Research Forum, the best way to improve your financial understanding is through practical, hands-on experience . [1]

Although many organizations will be reluctant to delegate financial responsibility to anyone below a senior-management level, there are other means of developing commercial acumen. For instance, ask if your organization runs any course on financial management. Or ask someone who deals with budgets and forecasts to explain some of the key terms and processes to you. You might also consider giving one of your team members control over the budget of a small, low-risk project. This will allow them to develop their understanding of financial management, and their responsibilities can be increased as they gain experience.

Business acumen is not an innate quality. Rather, it is a skillset and mindset that is learned over time, and maintained through continuous improvement. By developing your market, strategic and financial awareness, you can make well informed decisions and increase the value you bring to your organization.

[1] Corporate Research Forum, ‘Developing Commercial Acumen for the HR Function’ (16 May 2003). Available at: http://www.crforum.co.uk/research-and-resources/developing-commercial-acumen-for-the-hr-function-2/ (accessed July 28, 2023).

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Business acumen: definition and examples

12 min read · Updated on October 23, 2023

Business acumen is the key to progressing into a leadership position

If you're looking to become a leader in a company, business acumen is a fundamental prerequisite. In this article, we explore the meaning of business acumen, examples of skills required to develop it, ways to improve your understanding of business, and interview questions related to business acumen.

What is business acumen and why is it important?

Business acumen is the ability to understand a business situation and make a decision that leads to a successful outcome. Typically, business acumen is instrumental in improving a company's financial performance.

Someone with sound business acumen is a safe pair of hands and a strong leader. They are often integral to company growth, as they understand how organisations are run and achieve success. This is because they know how every company makes money, how their specific company makes money, and how their customers make money.

Business acumen goes beyond a general awareness of business issues. It involves using business sense within a specific organisation to offer sound reasoning and make decisions that will positively impact the company. As a result, when individuals are hired that possess business acumen, everyone in the organisation benefits. 

Business acumen is developed through experiences in the working world. These experiences impart learning and knowledge and give people the confidence to make sound, logical decisions that help companies to meet their goals. 

As a desirable trait in all employees, possessing business acumen can lead to a long and successful career.

9 examples of business acumen skills

Business savviness runs deeper than just business knowledge. Many skills can help leaders in an organisation develop their business acumen. Here are nine skills to focus on:

1. Strategic thinking

Strategic thinking is a core part of the business acumen skill set. It's a process whereby you consider various factors and variables, goals and objectives, and develop a clear action plan.

From a business acumen perspective, it's about planning effectively and weighing risks and possibilities to ensure the company reaches its goals.

2. Problem-solving

Problem-solving goes hand-in-hand with strategic thinking. The strategist decides which problems need addressing and the problem solver devises solutions. 

Those with good business acumen can problem-solve during the planning and implementation phases, often developing contingencies and other measures as part of the plans to ensure that risk is managed effectively.

A good problem solver is adaptable and can implement strategic and creative thinking to devise the right course of action. 

3. Analytical thinking

Analytical skills are a crucial part of business acumen. When you flex your analytical capabilities, you gain knowledge, solutions, or ideas about a topic or problem.

Analytical capabilities include:

Identifying an issue

Segmenting the issues into manageable chunks

Gathering legitimate and relevant information from different sources

Assessing cause and effect relationships

Devising solutions

4. Financial literacy

Being comfortable with financial processes and metrics is a crucial skill. Financial literacy is non-negotiable as you progress in an organisation and are accountable for a department's success. 

If you are financially literate, you have a solid understanding of:

The company's growth drivers, profitability, and cash flow

The company's financial statements

The company's key performance indicators

What affects the company's bottom line

You may not be directly responsible for profit and loss statements, budgeting, or forecasting, but having financial understanding and knowing how to use it to think strategically and take appropriate action is an imperative part of business acumen.

5. Commercial awareness

Someone with business acumen understands how the company makes money and its customers' needs and pain points, and is aware of the industry and marketplace. 

With this commercial awareness comes various abilities, such as conducting competitor analysis, identifying and monitoring industry trends, and adapting to market demand.

6. Risk management

Risk management is a fundamental part of business acumen, as it plays a critical role in safeguarding company assets and financial stability. If you can identify and mitigate potential risks and take well-calculated risks, the company can avert financial losses and make financial gains. 

Risk management also extends to protecting the company's reputation. If you understand how to comply with regulations and legal obligations, you can ensure the company operates within the proper boundaries. This fosters an environment of ethical business conduct, helps to maintain customer trust, and contributes to long-term success and sustainability.

7. Leadership

Leadership skills are an essential part of business acumen. Strong leaders take accountability for the performance of their team. They treat employees with fairness and empathy, have a vision that inspires staff, and are confident in their decisions. In short, capable leaders are imperative if a company wants to succeed.

8. Emotional intelligence

Those with business acumen also need a high degree of emotional intelligence. They can recognise, interpret, and regulate their own emotions, as well as other people's. As a result of this self-awareness, they understand that business decisions and situations can affect how team members feel and can manage responses accordingly. 

9. Communication

If you communicate effectively , your team will function more effectively. Of course, no two people are the same, so someone with business acumen can change their communication style to converse in the best way, depending on the person or situation. Strong communication skills can empower staff and generate desirable business outcomes.

9 ways to develop strong business acumen 

Many people believe that business acumen is a skill reserved for those in leadership. While senior leaders certainly have business acumen, you must develop this skill set before pursuing a managerial role. 

To develop and strengthen your business acumen:

1. Get to know the business model

Understanding the business model is critical to deepening your knowledge of the company's inner workings and polishing your business acumen. This involves learning:

How the business makes money

Capital implications

Supply chains

The business lifecycle

Talent acquisition

Marketing objectives and positioning strategy

Customer segmentation

Products and pricing

Strive to gain a comprehensive knowledge of the organisation by getting acquainted with unfamiliar business areas. Also familiarise yourself with the company's growth strategies and the reasoning behind them, to complete your picture of the business model.

2. Understand the financials

Knowing key metrics and processes is a way to develop business acumen.

First, start with the standard values across all businesses, such as customer lifetime value and net income. Then, consider the metrics that are unique to departments and how they are used to evaluate the department's contribution to the bottom line. Dig into business intelligence to understand what numbers are essential to the business and seek support from knowledgeable employees who can explain the data points.

3. Listen to customers

If you want to understand more about your company's goals, speaking with customers to gain their perspective and understand their motivations and pain points can help you to assess how your business's solutions can help.

Sometimes, you can communicate with customers directly and gain qualitative insights. But this is challenging, as you'd need to speak with many people and it may be outside your role. However, some teams in the company may already have this insight.

Collecting and analysing customer data is another avenue, and the easiest way to obtain this is via your organisation's CRM. Again, contact the relevant teams for insights if this falls outside your remit. 

4. Study competitors

Going hand-in-hand with listening to customers is gaining competitor insights, which is vital for developing business acumen. Assessing competitor performance against the business can provide basic benchmarking, highlighting the company's strengths, weaknesses, opportunities, and threats in the market. 

You'll better understand effective business practices if you can scrutinise competitors' strategies and performance. Combine this with assessing market dynamics and anticipating industry trends, and you're unstoppable. These activities enhance your strategic thinking and help you to navigate the business landscape with excellent insight and proficiency. 

5. Stay educated and informed

You can only source so much knowledge off your own back, but there are many ways to stay  informed. One option is to follow prominent business leaders in your industry via their blogs and social media channels. Another is to sign up for industry newsletters and visit industry online publications regularly for the latest insights.

6. Consider a mentor or coach

A mentor or a coach is a surefire way to develop your business acumen, but there's a clear difference between the two roles. 

A mentor shares their knowledge and relevant experiences to inspire and help you grow. Suppose your mentor is a senior person in an organisation or has leadership experience in a well-established business. In that case, they can pass their experiences onto their mentees in a personal and tailored way.

Conversely, a coach provides specific guidance related to your goals, to help you attain them. They possess robust business acumen and can guide you along suitable stepping stones and measure your performance.

7. Take a professional development course

A professional development course is a structured way to enhance your business acumen. This could be a good option if you respond well to active learning. A professional development course usually involves in-person or online training, workshops, lectures, and seminars. 

In addition to learning about business acumen and being assessed on it, a professional development course often results in a certificate, which can help to expand your job opportunities in the future and give you a competitive advantage.

8. Develop a growth mindset

Embracing a growth mindset is instrumental in cultivating business acumen. A growth mindset , a concept championed by Carol Dweck, is the belief that a person's most basic abilities can be developed through dedication and hard work. In short, if you believe you can and actively strive to be your best, you will.

In the context of business acumen, a growth mindset is about learning to fail, taking on challenges, and having confidence. A growth mindset fosters a range of sought-after soft skills , like adaptability, resilience, and a proactive approach to problem-solving, which contributes to developing business acumen.

9. Drive your personal brand

Business acumen isn't just about knowing how a business is run or how customers behave. It's also about how you act and are perceived in a business setting. A professional personal brand is a way to develop your business acumen. It won't necessarily broaden your knowledge, but will let others know that you mean business.

Your personal brand in a workplace setting should be tied to business values and be authentic to you, too. Ensure it's consistently reflected in your interactions, from emails to how you conduct yourself in meetings. Leverage your social media and online presence, too. X (formerly known as Twitter) and LinkedIn are the key places for this. Consistently demonstrate your expertise and share knowledge by actively participating in conversations.

How to add business acumen skills to your CV

As business acumen incorporates a range of soft and hard skills, the best way to describe this quality on your CV is by highlighting achievements demonstrating several relevant capabilities. For example, you could draw on successes relating to managing business issues and scenarios, or ways you contributed to a company's goals and bottom line.

You can add examples of your business acumen competencies, supported by facts and statistics , to your employment history section. If you're applying for a leadership or executive position where business acumen is a fundamental requirement, you can also reference business acumen traits in your key skills section. They may include:

Strategic planning

Problem-solving 

Analytical thinking

Influencing

Financial literacy

Commercial awareness

Emotional intelligence

To impress the prospective employer and increase your chances of an interview, review the job description closely and research the company's history and growth strategies to identify priority business acumen traits to list on your CV.

For example, if the job description states that the ideal candidate is “a creative strategist with the ability to influence and engage stakeholders at all levels,” and your research reveals that the company has ambitious growth plans, prioritise including successes which demonstrate your strategic thinking, problem-solving, and communication skills on your CV. These skills could be of more value to the prospective employer than your financial literacy, for example.

Business acumen interview questions

If you're looking for a management position , you may be asked business acumen questions during the interview. The interviewer wants to get a sense of how much you understand business, plus how you would act in a given situation that may impact the business beyond your role.

These business acumen interview questions give you an idea of what you may be asked:

How would you rate your business acumen?

Can you explain what business acumen means?

Give me an example of how you've used your business acumen in the workplace.

Tell me about a time when you've used your knowledge of the organisation to get an idea approved.

What basics would you need to consider if you were responsible for starting a new department from scratch?

Recall an occasion when you had to explain your department's losses.

What role does corporate culture play in the success of a company?

How have you participated in planning processes?

Have you ever performed a cost-benefit analysis? Tell me about it.

Have you ever been over budget? Why? How did you handle this?

What would you do if the budget you proposed was rejected by upper management?

What is the difference between profit and cash flow?

What does a company's financial department typically do?

How to answer “how would you rate your business acumen?”

The interview question “how would you rate your business acumen?” is a broad behavioural interview question. The interviewer is looking to get a sense of your self-awareness, as well as your business savviness and how that could be of value to the organisation.

The key thing to do is to strike a balance between highlighting your abilities and minor limitations with a proposed solution of how you could close the knowledge gaps.

Once you've assessed your strengths and weaknesses in line with the job requirements, form your answer using the STAR approach to tell a concise, persuasive story that will satisfy your interviewer.

Business acumen is an essential skill set, especially if you have your career sights set on a leadership position. Check that you're emphasising your business acumen clearly by submitting your CV for a free review .

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WHAT IS BUSINESS ACUMEN?

By kevin cope.

BUSINESS ACUMEN DEFINITION

Business acumen is keen, fundamental, street-smart insight into how your business operates and how it makes money and sustains profitable growth, now and in the future.

HAVE YOU EVER FOUND YOURSELF IN ONE OF THESE SITUATIONS?​

You’re talking with a senior leader of your company and wish you could say something really insightful to show your knowledge of the business, but your brain goes numb and you can’t come up with anything meaningful.

You’re attending a meeting with managers or financial types and as they start reviewing financial statements, you get lost. You hope no one discovers the smile on your face or the nod of your head hides the gap in your knowledge. You can’t see what the numbers have to do with what you have to get done today or this week.

Your CEO wants everyone to work harder to meet the company’s overall financial objectives. Your manager asks for ideas from the team, but you’re struggling to see how improving your job performance will impact the company’s revenue or stock price.

You’ve got a great idea for a weekend business that you and a friend or your spouse could start up to bring in some extra money, but you don’t know how much money you would need to get started or how to handle financial matters once you do. You just don’t want to be like all those other start-ups that flop.

If you’ve experienced moments like these, you certainly are not alone. In fact, you’re a member of a fairly large group—businesspeople who struggle to understand how the moving parts of a company work together to make it successful and how financial metrics like profit margin, cash flow, and stock price reflect how well each of those moving parts is doing its job.

The solution to your confusion is developing your  business acumen — your ability to see the big picture.

DEFINING BUSINESS ACUMEN WITHIN YOUR CAREER

Years ago a colleague of mine was consulting with a group of senior NASA managers at Cape 

Canaveral. He tried to explain, in simple terms, an organizational change strategy. The managers seemed confused. In an effort to clarify, he said, “Please don’t make this more complicated than it is. It’s not rocket science.” To which they sincerely answered, “We wish it were. We’d understand it better!”

Many people, even those with jobs that others think of as incredibly complex, view their business much like rocket science: a lot of complexity, hard-to-understand data and formulas, communications in a language that barely resembles English. Yet most of them wish they could more clearly understand the business of their business and how to help their companies perform better. What they are wishing for is business acumen .

In 2002, after ten years as an executive with FranklinCovey, consulting with and teaching for dozens of organizational clients, I founded my own training and consulting firm, Acumen Learning. We created and began delivering the Building Business Acumen® seminar. Over the last ten years, we have expanded and deepened the initial course. Our focus became the practical application of business acumen training to help people—at all levels, in any company, in any industry—become more effective in their current jobs and more successful in their future careers.

After working with more than one hundred thousand participants in more than thirty countries, including many clients in the Fortune 500 and eighteen of the Fortune 50, the primary lesson we’ve learned is that businesspeople want to become more effective and valuable, to secure their seat at the table and influence decisions, to impact company performance. They want to use their full potential to help their business make money and sustain profitable growth.

LEARN MORE ABOUT BUSINESS ACUMEN

If employees don’t know how their companies make money (and research suggests that most don't), how can they be trusted to set the right priorities and implement the right initiatives? They can’t! New York Times best-selling authors Kevin Cope and Stephen M. R. Covey founded the world’s leading business acumen training organization, Acumen Learning, to teach professionals about the business of their businesses. Since 2002, more than 500,000 business leaders in more than 35 countries and 23 of the Fortune 50 have counted on Acumen Learning to drive their business results through customized trainings.

SEEING THE BIG PICTURE: BUSINESS ACUMEN TO BUILD YOUR CREDIBILITY, CAREER, AND COMPANY

Robert was an excellent call center supervisor… or so he thought. He was dedicated to saving the company money because he was worried that they would outsource the call center to an overseas operation. He rarely recommended employees for recognition or raises. If his team presented ideas about new software or equipment that could improve productivity, he would listen but never take them to management for consideration. And he constantly harped on the importance of getting through calls as quickly as possible and up-selling customers as much as possible. He was fanatical about doing his job well.

Robert didn’t realize that his narrow focus on cost control and “doing his job well” ignored the big picture of how his company made money and sustained profitability. He wasn’t connecting the dots between his efforts, customer relations, and future sales revenue. Or the huge cost of employee turnover the company was incurring every time one of his employees left to go somewhere with better pay and a stronger focus on serving customers. He failed to consider the impact he had on efficiency, profits, and morale by refusing to raise his team’s ideas with management.

Ultimately, Robert was viewed by senior management as “a serviceable supervisor in need of development; not likely management material.” While he wasn’t let go, his performance reviews were never stellar and he could tell that he was being sidelined, but he didn’t understand why. Robert missed out on seeing the big picture of his main job: to contribute to building a company experiencing long-term, sustainable, profitable growth.

So many of us fall into the same trap. Like Robert, over time, we tend to become more specialized and get very good at focusing on the specific parts of our jobs, so much so that we fail to see the big picture – how what we do fits into the overall picture of helping the company make money, achieve its strategic objectives, and be profitable.

Some of us decide to get degrees in management, hoping to get that big-picture perspective. But while management education provides excellent training in areas such as accounting, marketing, or finance, students can graduate without an overall knowledge of how a business runs successfully.

Their knowledge of the key drivers of business and how they work together can be fragmented, disjointed from the reality of daily operations. And as with Robert’s managers, many leaders assume that their teams have a much stronger grasp of the big picture of how their companies grow profitably—greater business acumen —than they actually do, so few take the time to do on-the-job training to deepen that knowledge.

Do you think you’re better off than Robert? That you wouldn’t have made the same mistakes? Now’s your chance to prove it. Take the Big Picture Quick Quiz shown here. The questions were not picked at random; they are the result of research and interviews with hundreds of executives and CEOs from dozens of different industries. They reflect the areas of performance that senior leaders have on their minds and want employees to have on theirs.

BIG PICTURE QUIZ

We’ve administered the Big Picture Quick Quiz to over sixty thousand people. On average, people 

know the answer to fewer than two of the questions.

These questions focus on the overall business, not the operations of your department or division. I suspect that you might be more familiar with some of the performance measures for your immediate team. But your senior management team wants the entire business to be profitable, not just a single unit. They want all employees to understand and better contribute to how the entire company makes money.

The problem is that while we understand our jobs, the big picture seems too complex to grasp. Complexity is an underlying challenge in any business, regardless of size, industry, or stage of development. Large companies, especially, have many moving parts—departments and divisions (always reorganizing), product lines (always changing), layers of management, competitive realities, unclear decision-making processes, regulatory pressure, shifting budgets, new strategies. A small problem within any single element might produce a ripple effect throughout the organization, requiring major repairs. But without knowing the true source of the difficulty (which is not always readily identifiable), we might “fix” the wrong thing as we tinker with the business.

Developing business acumen helps us cut through this complexity, get a bird’s eye view of a business, and understand our specialized roles within it. Simplifying complexity and broadening our understanding of the business enables us to fix present problems, prevent new ones, and take advantage of opportunities to grow.

How do we simplify the complex? By looking at the key drivers that make all the parts of a business run.

The 5 Key Drivers of Any Business

When you break down even the largest, most complex multinational company—like Walmart, Apple, Toyota, or Boeing—into its most fundamental elements, you’ll find the same drivers that power your business, or any business. What are those drivers?

How did we distill it down to these five? We we used the core financial statements—the statement of cash flows (cash), the income statement (profit), and the balance sheet (assets)—as the foundation. These are the statements every company uses to judge its current strength and its future prospects. The fourth driver, growth, is reflected in all of these statements and for public companies is an important objective for shareholders. And the fifth driver is quite simple: Without good employees providing value to paying customers, the other four drivers cease to exist.

The 5 Key Drivers will help you understand and visualize how even the most complicated business can be analyzed and improved. Like the 26 characters of the English alphabet, the 5 Key Drivers combine in a multitude of ways to form the foundation of organization, products, market position, financing, human resources, and every other strategy or decision in a company. Leaders must set and achieve goals and obtain results in these five areas in order to achieve the most important objective for any company: long-term, sustainable profitability to support its mission.

You’ve probably heard of these essential elements, but you may not really understand their full importance and interdependence in creating success. While each driver is unique, it is also completely dependent on all of the other drivers. You cannot affect one without influencing the performance of another. Leaders have to take the connections between the drivers into account as they make their decisions, or they risk becoming overly focused on one driver and running an idea into the ground.

Your ability to understand these relationships and affect these drivers through your decisions and actions can increase your own ability to contribute to the long-term profitability and growth of your company.

LEARN MORE ABOUT BUSINESS ACUMEN TRAINING FOR YOUR CAREER

If you want to be more visible and valued, demonstrate that you understand how your department or unit fits into the big picture of the overall business.

If you want to influence the thinking and decisions of your supervisor or manager, address the topics that senior leaders, including your boss, are concerned about. Communicate your ideas and proposals in language that he or she understands. If you want to be seen as a major contributor, show that you understand the relationships among the key drivers of your overall business—not just how your department works.

If you want to be a more effective leader, better able to engage your team, link your team’s actions 

with the overall needs and strategic goals of the company.

Keep in mind, even your managers might not be as knowledgeable in some of these areas as you think. While they may be functionally brilliant, they may not see the big picture. But I encourage you to ask questions and be willing to act on the answers. You’ll be recognized as a contributor, somebody who demonstrates business acumen through savvy questions and effective actions.

If you are an individual looking to build your business acumen , check out our  best selling book  and interactive  online learning course . If you are interested company-wide training, check out our customized business acumen training programs.

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The Definitive Guide to Developing Strong Business Acumen

Business acumen is a crucial ability in the fast-paced business world, with the power to significantly affect both your career path and the success of your company. However, developing this skill requires a specific combination of abilities and a deliberate approach to decision-making; it goes beyond simple intuition or an illusive feeling of commercial sharpness. 

What Is Business Acumen?

Business acumen represents the art of making judicious and well-informed business decisions by meticulously weighing a myriad of factors to attain the optimal outcome in a given scenario. It transcends the confines of executive roles or leadership positions, extending its reach to everyday contexts, where it can augment efficiency and fortify problem-solving acumen within any professional capacity.

Cultivating business acumen yields a trove of advantages, not only propelling personal development but also catapulting one’s career to loftier heights. Professionals who boast robust business acumen frequently garner recognition and admiration in their respective fields. To underscore the pivotal role of this skill, we can draw inspiration from iconic figures in the world of business, such as Steve Jobs, who left an indelible mark through their exemplary business acumen throughout their illustrious careers.

What are the 6 Key Skills of Business Acumen?

Strong business acumen is characterised by specific qualities that enable individuals to make effective decisions in the corporate world. Here are some of these skills:

1. Masterful Focus

The ability to focus is paramount to achieving success for both your team and your business. In a world filled with distractions, mastering this skill involves discerning the critical elements that truly impact your business’s growth. For instance, if your goal is to boost website traffic, it requires concentrating on factors like search engine optimisation (SEO) rather than becoming entangled in the intricacies of website layout and design.

2. Comprehensive Understanding of Consequences

A vital component of sharpening your business acumen is grasping the repercussions of the decisions you make. Every choice in business carries trade-offs, often making decisions a challenging task. Yet, when you can meticulously weigh the potential outcomes of each alternative, you can select the path that yields maximum benefits while minimising drawbacks.

3. Proficiency in Problem-Solving

Another integral aspect of business acumen is the capacity to apply your knowledge to resolve business challenges. This entails gathering pertinent information about a situation, evaluating available solutions, and employing your comprehension of consequences to select the course of action most likely to fulfil your objectives. In cases where plans deviate, your adaptability allows you to swiftly make the necessary adjustments.

4. Astute Stakeholder Recognition

Every business boasts a diverse set of stakeholders. While customers are intrinsic stakeholders in your company’s decision-making process, the scope of stakeholders can extend to employees, partners, or investors, depending on your business’s nature. Balancing the distinct needs of these stakeholders can be a complex undertaking. Part of exercising business acumen involves understanding the objectives of each stakeholder within your organisation, allowing you to factor their interests into your decision-making process.

5. Effective Communication Skills

Business acumen also encompasses the ability to communicate effectively. It involves not only conveying your ideas and decisions clearly but also listening attentively to understand the viewpoints of others. Effective communication fosters collaboration, resolves conflicts, and ensures that everyone involved comprehends the reasoning behind your choices.

6. Financial Literacy

An essential facet of business acumen is a thorough understanding of financial metrics and concepts. This includes grasping key financial indicators such as profit margins, cash flow, and return on investment (ROI). Financial literacy enables you to interpret financial reports accurately, make informed financial decisions, and contribute to the financial health and sustainability of your business.

Strategies to Strengthen Your Business Acumen

Now that we have outlined the essential skills associated with business acumen, let us explore strategies to help you develop and reinforce these competencies:

1. Master the Business Model

Achieving robust business acumen hinges on your ability to comprehend your company’s intricate business model. This extends beyond a basic grasp of revenue generation and necessitates a deep dive into various facets of the business. Comprehend the company’s present business objectives and strategies, understanding the rationale behind each choice.

2. Grasp Financial Metrics

Comprehending financial metrics forms the bedrock of business acumen. Familiarity with key financial indicators and the underlying mechanisms that impact your company’s fiscal health is essential for making informed decisions. While certain metrics, such as net income and customer lifetime value, are universal, others may be unique to your business model or specific department.

Consistently track vital financial metrics, providing measurable data for decision-making. Seek guidance from colleagues well-versed in your company’s financial data, or consider finding a mentor within the organisation.

3. Stay Updated

Education plays a pivotal role in cultivating business acumen. Recognise that not all skills can be acquired solely through on-the-job experience, especially for entrepreneurs who lack the structured environment of a larger organization. Seeking knowledge independently is vital. Consider enrolling in industry-relevant courses or delving into business literature. The choice of educational pursuits should align with your current skill level and specific industry requirements.

Stay updated with industry developments and events by monitoring business news and specialised sources. Follow influential industry leaders via their blogs or social media channels to glean insights and thought processes.

4. Listen to Your Customers

Listening to your customers is arguably the most crucial aspect of developing business acumen. Understanding their motivations and challenges enables you to assess how your company’s products or services address their needs effectively. This customer-centric insight informs decision-making and aligns your offerings with their expectations.

Utilise qualitative research by directly conversing with customers to grasp their perspectives on your offerings. Employ quantitative research methods, such as CRM software, to gather unbiased and extensive data on customer behaviour and preferences.

FAQs on Business Acumen

Here are some commonly asked questions on business acumen:

What exactly is business acumen in human resources?

Business acumen is a knack for grasping a company’s goals, objectives and vision and establishing procedures, policies and activities that are aligned with them to best serve and push the organization forward.

What are the advantages of having excellent business acumen?

Individuals with strong business acumen can often lead and manage teams or show the potential to be successful leaders. They may demonstrate these skills by inspiring others, setting and achieving objectives, making wise judgments and delegating work to increase efficiency.

How does business acumen training help?

Training in business acumen increases teamwork. Training may assist team members in comprehending how their actions influence the rest of the company now and in the years to come. 

How can you display business acumen in an interview?

Explain how your abilities help the organization you work for and how you are an addition to the company and your team during a job interview. Describe your abilities and the influence they have had on your job.

 What are the benefits of developing a strong business acumen?

Developing strong business acumen is a continuous journey that yields substantial benefits. As you build this critical skill, you will notice improvements in your decision-making, increased adaptability in navigating unexpected challenges and a higher rate of successful outcomes.

Approach your personal development with dedication and consistency, analysing business problems methodically and making informed decisions. By doing so, you will cultivate robust business acumen that can propel your career or business to new heights.

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How to Build Business Acumen Skills [Examples and Definition]

By benjamin miller.

“Develop business acumen skills.”

That’s a terrific goal for the new year. If you’re exposed to the worlds of management, startups, or business in general, you’re likely familiar with the definition of business acumen.

Business acumen is an all-encompassing term that speaks to one’s business competence and ability. Many professionals desire this attribute, but very few truly obtain it.

What does it take to develop strong business acumen? Is it an innate ability or something you can learn along your career journey? Fortunately for many, it’s more of the latter.

That is, anyone can develop strong business acumen skills with the appropriate practice, real-world experience, and top-quality educational programs . In this post, we’ll dive into what it takes to develop strong business acumen skills in 2022. Let’s first start with the definition of business acumen.

Business Acumen Definition: What Is The Definition of Business Acumen?

What is the definition of business acumen? Let’s define business acumen as the competency required to succeed in business. You can measure business acumen by the ability to understand various business situations, make smart decisions, and ultimately lead initiatives that drive business success. 

Business acumen is largely about having the requisite “hard skills” in your business toolbox, but it’s just as much about the softer skills — like intuition, judgment, and instinct. That is, one with strong business acumen must have a wide breadth of business knowledge, but also a good “feel” for the product, the market, and the customer.

What Are Some Business Acumen Skills?

Business acumen skills are any skills that serve to strengthen one’s overall business knowledge. These skills make up the main pillars of any holistic business education. Take the following list, for example, which covers the skills learned in brunchwork’s Business Intensive mini-MBA course:

• Strategy & Finance

• Web Development

• Communication & Presentation

• Sales & Influence

• Customer Research

• Marketing

Business Acumen Examples:

Under each of the core skills exists a number of granular specialties that can be learned. With enough study and practice, you can develop strong business acumen skills:

Business Acumen Skill Example: Pricing

For example, take Pricing. A Pricing expert would claim skills like how to leverage various pricing models, packaging, and competitive landscape analysis. From there, they’d be able to identify when and how to put those skills and competencies to use.

Business Acumen Skill Example: Marketing

As another example, consider Marketing. A Marketing expert would claim skills like lead generation, copywriting, paid ad campaign management, and more. As with any business acumen skill, it’s all about understanding the best or most likely to succeed initiatives worth pursuing.

Business Acumen Meaning

There are plenty of business acumen skills one can learn. As I previously mentioned, there’s also a “feel” one must develop, which typically requires practice in real-world scenarios. That’s largely what makes business acumen such an intriguing topic, and it’s why there is more meaning to this idea than just a set of skills. One must be disciplined in their intuition and judgment to truly have strong business acumen. 

The takeaway here is that reading a textbook isn’t sufficient! To understand this “intuition” side of the coin, consider that there are nearly unlimited decisions one can make when running a business. Having the ability to make one great decision over dozens of others is often where true business acumen is revealed. What’s the best way to allocate limited resources? Where might a marketing team get the best bang for its buck? How might a sales team get creative with closing more deals? Answering these questions sometimes revolves around a “hunch” just as much as it revolves around data or hard skills.

For the ideal environment to learn business acumen skills and develop business acumen intuition, a structured educational experience makes both possible. Look no further than a top mini-MBA course that specializes in both: Business Intensive by brunchwork.

How To Build Business Acumen Skills

The Business Intensive experience was designed specifically for those looking to not only learn new business skills but to put those skills to use in real-world environments. This is made possible by the “flipped classroom” approach, which focuses less on lectures and textbooks, and more on collaboration, discussion, and immersive learning. 

Business Intensive promises to teach students a proven approach for validating, prototyping, modeling, marketing, selling, and presenting business concepts. But it’s not all by the book. For example, students have the chance to refine and test a business concept as one of the course projects. For students looking to develop the “intuition” side of their business acumen, these co-learning projects provide consistent opportunities to do so:

• Refine and test a business concept

• Run a market sizing, revenue growth, and competitor analysis

• Deliver a high-caliber presentation

• Analyze financial reports and models

• Develop a brand strategy

• Build a no-code website

• Conduct user interviews

• Develop and execute a marketing and sales plan

• Pitch a business idea with conviction and charisma

This 7-week mini-MBA program has been named by Forbes as one of the best MBA programs . And it costs less than $2,000 — a tiny fraction of the cost of traditional MBA programs. Weekly guest speakers include high profile business leaders, like former Presidential Candidate Andrew Yang, PayPal Founding COO David Sacks, Ellevest Co-founder, and CEO Sallie Krawcheck, and Peloton Co-founder, Graham Stanton.

Business Acumen Skills Are A Life-Long Pursuit

Like anything else in life, business acumen takes practice, and most of all, patience. When talking about such a broad-reaching concept, it’s important to remember that it doesn’t happen overnight. Fortunately, in 2022 and beyond, there are some great ways to accelerate the process.

Even today’s most well-known CEOs and executives are still learning and adding to their business acumen. It’s not quite like a higher education degree, where you work for it until one day, you officially have it. Rather, we all have some level of business acumen to build on top of already — and none of us will ever be done building.

Building Business Acumen

Aug 07, 2014

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Building Business Acumen. Building Business Acumen. What is Business Acumen?. …the ability to make good business decisions in a timely manner with an understanding of how the decision should impact the business. 3. Business is Tough!. Only 5-10% of business start-ups survive past 5 years.

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Presentation Transcript

Building Business Acumen Building Business Acumen

What is Business Acumen? …the ability to make good business decisions in a timely manner with an understanding of how the decision should impact the business. 3

Business is Tough! • Only 5-10% of business start-ups survive past 5 years. • 14% of CEOs lose their job every year. • Booz & Co. • 70% of merger and acquisition activity do not live • up to expectation. Wall Street Journal 2007 5

Business Acumen Every business must focus on fivebusinessdrivers. • If they do, they will be successful. • If they don’t, they’ll fail. 4

Defining Cash Definition What is required to grow and maintain the business. Measures Cash – the bills and coins in the register, petty cash, and cash in the bank. Also includes cash equivalents, like CD’s and other highly liquid investments, that easily convert into cash within 90 days. Cash Flow – The cash generation from core business activities calculated from the difference between the cash that flows into and out of the business in a given period of time (month, quarter, annual) 8

Cash & Cash Flow Pay off debt Invest it Spend it Save it 9

How to Obtain Cash ProCon • Earn it • Cash from Operations • Sell Assets • Cash from Investing • Borrow it • Cash from Financing No Cost Immediate Immediate Time Reduce Assets Cost (Interest) Can a company have too much Cash? How much is too much/little? 9

How Much Cash? • A company should have sufficient cash to cover… • their interest • expenses • capital expenditures • take advantage of opportunities • plus a little for emergencies Top Uses of Cash for Corporations • Dividend Pay-outs • Stock Buy-backs • Mergers & Acquisitions (M&A) • Research & Development (R&D) • Capital Expenditures (CAPEX) • Cash Balance Increase 9

Benchmark Cash S&P 500 Average 6% 24% 9% 5% 18% 33%

Cash Review Define Cash Driver What is required to grow and maintain the business. 2. Measures of Cash 1. Cash – easily converted in 90 days or less to cash. 2. Cash Flow – Difference of cash in and cash out over a given period of time. 3. Importance of Cash Driver - Sufficient to run business - Enhance shareholder value - Improve attractiveness to suppliers and customers. Benchmark the numbers 200820092010 Revenue $762 M $565 M $584 M Cash $34 M $49 M $140 M 9

Defining Profit Definition What is left over after you have subtracted expenses. Can be expressed in dollars ($) or percent (%). Measures Gross Profit / Gross Profit Margin – Profit after Cost of Goods Sold (COGS) have been subtracted from sales. Earnings Before Interest Tax Depreciation & Amortization (EBITDA) – Reflects controllable earnings. Net Profit / Net Profit Margin – Profit after all expenses have been subtracted from sales. 10

Sale Price: $1.00 Water - $ .04 Label - $ .10COGS Bottle & cap - $ .11 Packaging (Direct Labor) - $ .15 Total: ($ .40) $1.00 - $.40 = $.60 = 60% Gross Profit Rent - $ .03 Salaries, Gen, Admin. - $ .10 Marketing - $ .07 Shipping - $ .15 Total: ($.35) $1.00 - $.40 - $.35 = $.25 = 25% EBITDA Depreciation / Amorit. - $.02 Interest & Tax - $.12 Total: ($.14) $1.00- $.40 - $.35 - $.14 = $ .11 = 11% Net Profit Life Spring Artesian Water

High Profit Companies 24% 33% 32.7%

Low Profit Companies 7.9% 3.9% 1.4%

Benchmark Profit S&P 500 Average Net Margin 11% 11

Profit Review Define Profit Driver What is left over after you have subtracted expenses. Can be expressed in dollars ($) or percent (%). 2. Measures of Profit 1. EBITDA (Margin) – subtract COGS & SG&A 2. Net Profit (Margin) – subtract all expenses 3. Importance of Profit Driver - Net Profit is one of the most important #’s for the business. - Indicates price strength - Identifies ability to manage costs Benchmark the numbers 200820092010 EBITDA $39 M $70 M $80 M Net Profit 1.5% 9.0% 11.4% 11

Defining Assets Definition What we have and how well we use what we have. Asset Strength – the ability to remain viable during ups and downs in the marketplace. Asset Utilization – the ability to efficiently and effectively use assets to generate profits. Measures Return on Assets (ROA) – Percent value of Net Profit to Total Assets. Revenue per Employee - Company efficiency measure that reflects employee count and revenues. 12

Benchmark Assets S&P 500 Average ROA 6% 13

Assets Review Define Asset Driver What we have and how well we use what we have. 2. Measures of Asset 1. ROA – Percent value of Net Profit to Total Assets. 2. Revenue per Employee – Company efficiency measure that reflects employee count and revenues. 3. Importance of Asset Driver - Demonstrates ability to work smarter rather than harder. - Indicates company invests in “right” assets - Indication of execution & efficiency Benchmark the numbers 200820092010 Rev./Employee $378k $354k $352k 13

Defining Growth Definition The ability to increase year over year, quarter over quarter, and/or month over month. “In today’s business world, no growth means lagging behind in a world that grows every day…” “Investors expect it, employees are energized by it, customers are generally attracted to it and executives are measured by it.” Measures Revenue Growth – Top-line Sales/Revenues increase. EBITDA Growth – ‘Controllable’ Profit increase. Net Profit Growth – Bottom-line / Profit increase. 14

Facing Rapid Decline • Best & brightest leave first. • Productivity goes down. • Morale goes down. • Costs are cut, which limits ability to grow, • company becomes less profitable. Studies Show: It usually takes 4 or 5 years for the company to recover.

Facing Rapid Growth • Attracts/Retains the best & brightest! • Productivity goes up = more profit = more • cash = more ability to grow! • Morale is high. • You have the ability to grow in your career! • Growth gets more time & attention than any of the 5 elements in a public company.

Growth in Action “Our brilliance is not retail. It’s our IT!”

Benchmark Growth 15

Growth Review Define Growth Driver The ability to increase year over year, quarter over quarter, and/or month over month. 2. Measures of Growth 1. Revenue Growth – Top-line Sales/Revenues increase. 2. Net Income Growth – Bottom-line / Profit increase. 3. Cost of Capital – Opportunity cost of funds deployed in an investment. Define Growth Driver The ability to increase year over year, quarter over quarter, and/or month over month. 2. Measures of Growth 1. Revenue Growth – Top-line Sales/Revenues increase. 2. EBITDA – ‘Controllable’ Profits increase 3. Net Profit Growth – Bottom-line / Profit increase. Benchmark the numbers 20092010 Sales Growth -25.9% 3.4% EBITDA Growth 78.34% 14.24% Net Profit Growth 363.09% 30.05% 3. Importance of Growth Driver “Investors expect it, employees are energized by it, customers are generally attracted to it and executives are measured by it.” 15

Defining People Definition The External Customer, Vendor/Re-seller, or Internal Customer that has the ability to impact the success of the business. Measures Expressions of Interest (EOI) – The number of times a visitor clicks on a listing. Net Promoter Score (NPS) – Customer Care Satisfaction score. 16

Failing to Anticipate Customer What companies have failed to anticipate customer expectations? What were the results? What limits companies from anticipating their customers’ wants and needs?

Benchmark People Our NPS – 2011 73%. 2010 Net Promoter Scores – USAA = 81%, Apple = 78%, Facebook = 65%, Google = 63% 17

People Review Define People Driver The External Customer, Vendor/Re-seller, or Internal Customer that has the ability to impact the success of the business.. 2. Measures of People 1. Expressions of Interest (EOI) – The number of times a visitor clicks on a listing. 2. Net Promoter Score (NPS) – Customer Care Satisfaction score. Importance of People Driver - Without People, then what happens? - Anticipate and then exceed expectations. - Customer service is for everyone; Internal, External, Vendors. Benchmark the numbers 200820092010 EOI 236.3M 261.9M 285.5M NPS 62% 71% 77% 17

5 Business Drivers Can you ignore any of these over time and still be successful? Can our clients ignore any of these over time and still be successful? 18

Demystifying the Annual Report The Annual Report & Financial Statements Letter to the Share Holders: Identify which drivers are being focused on. Understand the strategic goal(s) Financial Statements: Identify the equation. Recognize the purpose of the statement. Locate the key numbers/measures. How do I impact each statement? CAN YOU READ THIS? 21

Letter to the Share Holders 22

Equation: Revenue – Expenses = Profit Purpose: Identify Profitability Total Revenue Top-line Cost of Revenue - Cost of Goods Sold (COGS) Gross Margin $60,650 / $123,018 = 49.3% Operating Profit Operating Income EBIT Net Margin $12,535 / $123,018 = 10.2% Net Profit Net Income Bottom-line 24

Equation: Assets = Liabilities + Equity Purpose: Financial Strength Most Liquid Least Liquid (1yr.) Current Ratio Current Assets / Current Liabilities 24,334 / 36,705 = .663 Equity Ratio Total Equity / Total Assets $101,900 / $268,752 = 38% 26

Equation: Cash from Operations +/- Cash from Investing +/- Cash from Financing = Net Change in Cash Purpose: Cash Management Earn It (Core Business) Sell Assets Borrow It 28

140 584 66 66 584 11.38 584 503 80.37 584 1658 .352 565 584 3.4 66 51 30.0 80.37 70.35 14.2 285.5 77% 35

Locating Financial Information • Web Sites: • www.nasdaq.com • www.reuters.com • www.yahoo.com • www.finance.google.com • www.hoovers.com • www.smartmoney.com 55

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Business Acumen

Table of Contents

What is business acumen.

Business acumen refers to a person’s ability to make sound judgments and quick decisions in various business scenarios. It’s a combination of general and organization-specific business knowledge, intuition, common sense, and soft skills like communication.

People with strong business acumen understand business issues, react to them in a competent manner, stay flexible and adaptable during transitionary periods, and deliver valuable insights that help their organizations achieve their goals.

Particularly when they’re filling a leadership position, employers always prefer candidates with business acumen because it means they’re more likely to “get it.” They’ll onboard quickly, make informed decisions, identify and solve problems, and drive the company toward success.

• Business knowledge
• Business savvy
• Business sense
• Business skills

Importance of Business Acumen

From a business standpoint, having a business-oriented is crucial. When your team can quickly grasp complex situations and make strategic decisions that benefit the organization, you’ll grow a lot more quickly.

Moreover, business-savvy employees can help drive organizational change and innovation. They have the ability to think critically and creatively, which is vital for businesses looking to stay ahead in a rapidly evolving market. They can also communicate their ideas effectively and persuade others to see the value in their plans.

At the individual level, employees who can make sound business decisions end up more successful in their careers. Their understanding of the bigger picture and their ability to contribute valuable insights make them highly sought after by employers. They are also more adaptable and able to take on new challenges, making them better positioned to approach both their personal and professional lives.

Since business acumen is partially defined at the organizational level, it’s also a huge factor in whether a particular employee is a good culture fit at your company. If everyone but one or two people in the organization share a collective understanding, those who don’t will have trouble fitting in and performing their best.

The best communication happens when everyone’s speaking the same “language.” So, hiring employees who demonstrate their business knowledge puts you at a higher chance of building a team that lasts.

Characteristics of Business Acumen

Financially astute.

There’s a difference between business finance and personal finance. Someone with business acumen is well-versed in the former and knows how to make decisions that benefit the organization financially.

Someone with business financial literacy would have the skills to:

• Comprehend financial statements and turn them into useful insights
• Speak intelligently about revenue, profits, losses, and company-specific financial metrics
• Use financial data to forecast future trends and direction
• Identify trends in financial data
• Analyze the impact of various decisions on company finances

Even if an employee isn’t a member of the finance operations team, they’re still working for a company. So, the organization’s finances affect them and their activities directly contribute to company financial performance in some way.

When the CFO presents a new budget or goes over the company’s numbers during a town hall, someone who doesn’t share the same understanding of business won’t be able to apply that information to their role. Over time, this can cause a breakdown in communication and decision-making.

Strategically Inclined

Strategic thinking is a critical business skill that is less easily taught than many of the others. It requires employees to look beyond day-to-day operations and consider the bigger picture.

People with the ability to think strategically take calculated steps toward their overarching goals. They:

• Drive product innovation and differentiation. By thinking one step ahead, employees with business acumen can identify gaps in the market or come up with new ways to improve existing products. They can also recognize opportunities for diversification and expansion.
• Identify opportunities. Strategic thinkers have an eagle eye for opportunities, often spotting them before they become obvious to the competition. They can also seize opportunities during times of uncertainty and use them to their advantage.
• Mitigate risks. Having the analytical skills to identify and assess potential risks is a valuable asset for any business. Strategic thinkers use common sense and critical thinking to decide in real-time whether an idea seems like it would work or not.

Some people are naturally more inclined to think strategically than others, but it’s a skill that can be developed with practice and experience.

Customer-Centric

At the heart of every successful business is its customers. Someone who understands their customers on a deep level can create products or services that align with their needs and wants, leading to high customer satisfaction and loyalty.

Employees with strong business acumen are highly attuned to their customers’ needs and can use that knowledge to drive product innovation, marketing strategies, and customer service initiatives. They also understand the importance of building lasting relationships with clients to achieve long-term success for the company.

Problem-Solver

The ability to identify and resolve issues is a must-have for any employee. Whether it’s a financial hurdle, a production setback, or an internal conflict, someone with strong business skills can come up with creative solutions that benefit the organization.

Problem solvers are also able to think critically and analyze situations from multiple angles to determine the best course of action. They are adaptable and can quickly pivot when faced with unexpected challenges.

Particularly in sales roles, a little natural curiosity goes a long way. When using a consultative selling approach like MEDDIC or the SPICED framework , you have to dive into each prospect’s situation in-depth.

Some will be happy to talk with you or your reps. But it’s ultimately up to you to get all the information out of them. To do that, you need to ask follow-up questions to dig deeper. Someone with business acumen keeps the conversation going.

Curiosity is valuable in other roles as well. Curious people tend to dive more into their roles, learn the newest techniques, and educate themselves on all sorts of things that can help them relate to others and perform better at their jobs.

Strong Leadership and Communication Skills

Strong communication skills are among the most essential for business professionals. Without the ability to effectively convey ideas and information, it’s difficult to succeed in any role. Someone with business acumen knows how to communicate clearly and concisely, whether it’s in writing or verbally.

Communication skills include:

• Negotiation
• Active listening
• Presentation skills
• Public speaking
• Conflict resolution
• Team-building
• Emotional intelligence

They can also tailor their communication style to different audiences, from colleagues and superiors to clients and stakeholders. This skill is especially valuable for leaders who need to inspire and motivate their teams.

Business leaders also need to possess strong leadership skills in order to guide and manage their teams effectively. They are able to delegate tasks, provide clear expectations, and maintain a positive work environment. They lead by example and are seen as trustworthy and capable by their colleagues.

Business Acumen Examples

To help you understand the concept of business acumen, here’s an example using a hypothetical B2B SaaS startup:

Priya and Alex are co-founders of InvenTrack Pro, which offers inventory management solutions. After an impressive launch, they hit a plateau in customer acquisition around the 6-month mark. As soon as they realized this, they analyzed customer usage data and feedback, then realized their platform’s user experience was too complex for non-tech-savvy clients in small businesses.

To address this, they rolled out a simplified interface, created an onboarding webinar series, and developed a set of intuitive tutorials. In future sales outreach, ease of use was one of their main talking points. Within weeks, they signed on more new clients than ever before.

Prior to the rollout, they let all their team members know the goals and objectives behind their new strategy. They had everyone use the product and live with what it was like to be a small business owner using the solution. That way, they could all relate better to their prospects and clients.

Priya and Alex’s ability to identify a problem, analyze data, and come up with creative solutions demonstrates their strong business acumen. They also used their customer-centric approach to understand their target market better and tailor their sales tactics accordingly. As leaders of the company, they also effectively communicated the changes to their team and ensured everyone was on board with the new strategy.

How to Develop Business Acumen

Although some characteristics of business acumen can’t be taught, there are plenty of ways to enhance your business skills through education.

Through universities, targeted programs, and online courses, you can learn:

• Public speaking and presentation skills
• Basics of business strategy
• Financial literacy
• Negotiation tactics
• Leadership techniques
• Analytical thinking

Your textbook won’t prepare you for every situation. But having a strong foundation in these areas can help you make more informed decisions and communicate effectively with colleagues, clients, and stakeholders.

Free Online Resources

YouTube, Coursera, and Udemy are great places to start learning more about business. Websites like Harvard Business Review and Entrepreneur also offer valuable insights and business tips from industry experts. The more you read and watch content on these platforms, the smarter and more business savvy you’ll get.

Social Media and Forums

LinkedIn and Twitter are fantastic sources of business information. The best thing about these platforms is you can follow creators in the space you eventually want to be in.

Social media creators are generally very candid about their business model, strategies, how much they’re making, how they’re investing, and tons of other valuable insights. When you read all their content and follow along their journey, you’ll pick up a lot of what they’re putting down along the way.

To fully envelop yourself in the world of business, you can actively participate in Reddit discussions, join Discord/Patreon/Telegram communities, and subscribe to business newsletters.

Practical Experience

Any business owner will tell you it’s best to learn by doing. There are tons of ways you can sharpen your personal business acumen:

• Start a simple business yourself (e.g., freelancing, opening a small Etsy shop).
• Work a corporate job (particularly in sales, marketing, and/or product).
• Help friends or family with their businesses.
• Volunteer at a non-profit.

By immersing yourself in different business environments, you’ll develop more tangible skills than school can ever teach you. You’ll also learn what not to do by learning from others’ mistakes. Plus, it’s an opportunity to network and learn from experienced professionals in your industry.

Mentors can save you years of trial and error. They’re more established individuals who have been through the ups and downs of business. Many successful entrepreneurs and businesspeople seek guidance from a mentor to develop their business acumen.

Ideally, your mentor should only be a few steps ahead of you. The founder and CEO of a 500-person software company that just closed its Series B probably doesn’t have time to talk to you. But the Account Executive who went to college with your close friend might be up for giving you some training and helpful sales/business tips.

Cross-Training

Cross-training is a popular practice in big corporations. It allows employees to gain exposure to different departments and roles within the company, giving them a more well-rounded perspective of how the business operates.

You can also cross-train yourself. Volunteer for projects outside of your job description or shadow colleagues from different departments. Or, start a side hustle.

Stay On Top of Competitors and Industry Developments

You can learn a lot about business by seeing how other businesses operate. Keep an eye on your competitors and industry developments to see what strategies they’re implementing, what mistakes they’re making, and how they’re adapting to changes in the market.

Read news articles, follow industry blogs, attend conferences and networking events. The more you understand about your industry and the business landscape, the better you can develop your own business acumen.

People Also Ask

Is business acumen a skill or knowledge.

Business acumen is a combination between knowledge and skill. The ‘knowledge’ part describes the information and understanding you have about business principles, strategies, and trends. The ‘skill’ part is the ability to apply that knowledge in real-world scenarios.

What are the key elements of business acumen?

The key elements of business acumen include critical thinking, financial literacy, analytical skills, decision-making abilities, and adaptability. It also involves being customer-centric, having a strategic mindset, strong communication skills, and the ability to identify and solve problems.

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• Preferences

How to Improve your Business Acumen - PowerPoint PPT Presentation

How to Improve your Business Acumen

Ability to use one's understanding of organizational politics. across ... study: mapping the future new workplace learning and performance competencies. ... – powerpoint ppt presentation.

• Thorough insight into organization
• Comprehensive understanding of the organizations operations
• Ability to apply and interpret financial data
• Correct use of business terminology
• Identify the priorities of the organization
• Creating a value proposition
• Advancing the learning and performance agenda of the organization
• Increase knowledge of the organizations business model,
• strategic plan, and competitive position in the marketplace
• Know how the business leverages core competencies for
• growth and profitability
• Know what the value statement is to external customers
• Develop knowledge of the organizations structure, systems,
• functions, and business processes
• Be familiar with planning processes and decision-making
• Know the information management systems
• Understand how products and services are developed, sold,
• and delivered to customers
• Know the financial goals of the organization
• Understand financial data and how it relates to business
• success measures
• Ability to interpret balance sheets, graphs, charts, tables, etc.
• Ability to perform quantitative calculations in building a
• business case, preparing budgets, evaluating the impact of a
• program, and determining return-on-investment (ROI).
• Ability to translate business jargon into business terminology that
• stakeholders and customers will understand and respect
• Know and speak the language of the organization
• Thorough knowledge of the needs and expectations of
• Ability to track changes in the needs and expectations of
• Determining links between internal demands and external
• Understand the business priorities of internal clients and how
• the organization can assist them with achieving greater
• Determine link between business needs and particular solutions
• Document how particular solutions achieve results
• Identify outcomes that result from implemented solutions
• Ability to create a compelling business case
• Insight into how decisions are made within the organizational
• Know how power is exercised
• Ability to use ones understanding of organizational politics
• across business units and key decision-makers
• Identify key stakeholders and their priorities
• Ability to present and successfully defend learning and
• performance solutions
• Lack of understanding of basic business terminology
• Overuse of buzzwords
• Incorrect use of return-on-investment (ROI) speak
• Failure to understand what key stakeholders definitions of ROI
• Unconditional love or inflexible use of one specific approach,
• method, idea, or product.
• Increase understanding of financial terminology and organizational
• performance metrics
• Work at the pace of the organization
• Understand the financial picture of the organization
• Enroll in a finance course
• Practice reviewing and interpreting financial data such as departmental
• financial statements, balance sheets, etc.
• Develop and monitor a personal budget and ask internal experts for feedback
• Observe the strategies of colleagues who make successful financial
• Partner with a financial manager to gain insight
• Ask a financially savvy colleague for tips and feedback
• Volunteer for cross-training opportunities
• Work with clients collaboratively to identify and communicate
• progress of a particular plan
• Earn the right to be included in financial business-planning
• Administer an ROI analysis for an idea you want to implement
• Present the analysis to senior leaders.
• Understand the organizations financial goals, profit margins, and
• how they measure against the competition
• Read industry specific publications to track trends
• Know your customers
• Take on leadership roles
• Attend professional conferences
• Network with industry professionals
• Volunteer to manage the finances of a community organization
• Volunteer to work on a community project that involves
• significant business activity
• Review the financial health of a community organization and
• provide feedback for improvements
• Promotes teamwork
• Fosters knowledge sharing environment
• Gain understanding of how your department contributes to
• organizational objectives
• Ability to see how your actions make a difference
• Aligns your goals with those of the organization
• Significantly increases chances for upward mobility
• Increases motivation to learn
• Creates comfort engaging in business or company specific
• discussions
• Without strong business acumen, workplace learning and performance professionals are merely transactional service providers who can be easily purchased in the marketplace. Tom Thivierge, Director of Succession Planning for General Motors
• Have a thorough understanding of the organization
• Know how the organization operates and generates income
• Know your competitors
• Engage in intelligent risk-taking
• Become an innovative thinker
• Think like the owner
• Familiarize yourself with the history of the organization
• Get involved
• Ask to learn how to interpret important documents
• Know the mission statement
• Identify ways you can contribute to the mission
• Lead task forces
• Attend training offered
• Know the strategic plan
• Know your departments business plan
• Continually look for ways to develop yourself
• Ask customers how your organization measures up to competitors
• Obtain and review the competitions promotional literature
• Use information about competition to look for ways for your
• organization to gain the competitive advantage
• Stay current with industry changes
• Join professional associations
• Make decisions that involve risks
• View mistakes as opportunities to learn
• Expect setbacks
• Take initiative
• Know the difference between a healthy risk and a foolish chance
• Foster a creative environment
• Look for new ways to improve old routines
• Have faith in your capabilities
• Identify ways to empower yourself
• Never assume that an idea wont work just because its never
• been tried before
• Suspend critical judgment of ideas
• Bemthal, Paul R., Karen Colteryahn, Patty Davis, Jennifer Naughon, William J. Rothwell, and Rich Wellins. ASTD 2004 Competency Study Mapping the Future New Workplace Learning and Performance Competencies. Alexandria, VA ASTD Press, 2004.
• Encouraging Entrepreneurial Thinking. Motivational Magic Resource Database. October 17, 2008. http//www.motivationalmagic.com/library/ebo oks/motivation/McGraw-Hill20-20Briefcase20Books 20-20Motivating20Employees.pdf
• Entrepreneurship. Penn State University. October 22, 2008. http//www.mne.psu.edu/lamancusa /Entrepn/Module1/Lecture/Entre.doc
• Green, Raymond D. Beyond Financial Literacy The Importance of Business Acumen Training for Managers and Employees. Paradigm Learning. October 22, 2008. http//paradigmlearning.com/docu ments/WP_Business20Acumen.pdf
• Stern, Barry and Bob Walters. Build Your Business Acumen Workplace learning and performance professionals need to think and talk like their internal customers. Heres how. June 2005. American Society for Training Development. October 17, 2008. http//www.astd.org /NR/rdonlyres/7EA68B02-ED44-4DAE-B5B4-041A4056C349 /12335/Business_building.pdf

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• Acumen Pharmaceuticals-stock
• News for Acumen Pharmaceuticals

Acumen Pharmaceuticals Presents First Comprehensive Clinical and Biomarker Data for Sabirnetug (ACU193) at American Academy of Neurology 2024 Annual Meeting

• Presentation and poster include deeper data insights on sabirnetug safety profile, target engagement and fluid biomarker changes
• Presentation to be featured during AAN Emerging Science Session
• Company on track to initiate Phase 2 trial evaluating sabirnetug in first half of 2024

CHARLOTTESVILLE, Va., April 16, 2024 (GLOBE NEWSWIRE) -- Acumen Pharmaceuticals, Inc. (NASDAQ: ABOS), a clinical-stage biopharmaceutical company developing a novel therapeutic that targets toxic soluble amyloid beta oligomers (AβOs) for the treatment of Alzheimer’s disease (AD), will present the comprehensive clinical and biomarker results from its positive Phase 1 INTERCEPT-AD study of sabirnetug (ACU193) in early AD during an Emerging Science Session at the American Academy of Neurology (AAN) 2024 Annual Meeting in Denver on April 16, 2024. The results build upon Acumen’s prior presentations at the AD/PD™ 2024 Annual Meeting and positive topline data first announced in July 2023 and will be presented together for the first time with expanded analysis.

A platform presentation, titled “A phase 1 study, INTERCEPT-AD, of ACU193: safety, target engagement, and biomarker changes,” will take place on Tuesday, April 16, from 6:06-6:12 PM MDT within the ES2 – Emerging Science 2 track at the Colorado Convention Center, Bluebird 1A, followed by a poster presentation with more in-depth results from 6:25-7:00 PM MDT.

Sabirnetug is the first humanized monoclonal antibody to clinically demonstrate selective target engagement of AβOs, a soluble and highly toxic form of Aβ that accumulates early in AD and is an early and persistent trigger of synaptic dysfunction and neurodegeneration. Acumen is developing sabirnetug as a potential best-in-class antibody treatment for early AD.

“For the first time, we’re presenting a comprehensive set of safety, biomarker and target engagement data from INTERCEPT-AD, which continue to support sabirnetug’s mechanism and potential to offer differentiated safety and efficacy as a next-generation treatment for people with early Alzheimer’s disease,” said Eric Siemers, M.D., Chief Medical Officer of Acumen and presenting author. “The results of this robust Phase 1 trial give us hope that sabirnetug could have a safety and efficacy profile that could make it an attractive option for a large number of patients. We look forward to applying insights learned from INTERCEPT-AD as we embark upon our ALTITUDE-AD Phase 2 trial for sabirnetug.”

Sabirnetug Demonstrated Favorable Safety and Tolerability Profile

The poster outlines that sabirnetug demonstrated a favorable safety and tolerability profile in participants with early AD with a relatively low incidence of ARIA-E. There were four cases of asymptomatic ARIA-E and one symptomatic case among 48 participants who were treated with sabirnetug. Notably, none of the six participants who were APOE Ɛ4 homozygotes experienced ARIA-E despite making up 13% of all participants in the study. This contrasts with other studies of amyloid-targeting monoclonal antibodies where approximately 30 to 40 percent of participants who are APOE Ɛ4 homozygotes experienced ARIA-E.

Target Engagement

Sabirnetug target engagement with AβOs in cerebrospinal fluid (CSF) increased in a dose-dependent manner in both single and multiple ascending dose groups. Central target engagement approached the maximum at the highest doses of sabirnetug administered. The results suggest that at these dose levels, ACU193 concentrations approached saturation of AβOs, and suggests active removal of target from the brain.

Sabirnetug Associated with Changes in CSF and Plasma Biomarkers Indicating Downstream Effects on Amyloid, pTau Species, and Synaptic Markers After Three Administrations

Sabirnetug treatment also changed a number of CSF biomarkers in the multiple ascending dose cohorts, which are indicative of amyloid pathology (Aβ42/40 ratio), tau pathology (pTau181, pTau217), and synaptic injury (neurogranin, VAMP2). Sabirnetug significantly lowered CSF neurogranin (-13.9%), VAMP2 (-8.1%) and pTau181 (-13.0%) concentrations and numerically increased Aβ42/40 after three administrations of sabirnetug at 60 mg/kg once every 4 weeks (Q4W). Sabirnetug target engagement with AβOs was significantly correlated with reduction of CSF neurogranin. Additionally, plasma biomarkers for neuroinflammation (GFAP) and tau pathology (pTau181, pTau217) were lower in the 10 mg/kg Q4W and 60 mg/kg Q4W groups compared to placebo. Furthermore, nearly all patients treated with sabirnetug in the high dose multiple-ascending dose cohorts showed reductions in plaque load after three doses at 63 or 70 days. These results support sabirnetug’s proposed mechanism of action and intended target engagement of synaptotoxic AβOs.

A copy of the poster and presentation will be available following the conference in the Investors section of the Company's website at www.acumenpharm.com.

Acumen Remains On Track to Initiate Additional Clinical Studies of Sabirnetug

Acumen remains on track to initiate the ALTITUDE-AD placebo-controlled Phase 2 trial of sabirnetug in the first half of 2024. Based on safety, target engagement and biomarker data from the INTERCEPT-AD trial, Acumen has determined sabirnetug doses of 35 mg/kg Q4W and 50 mg/kg Q4W in ALTITUDE-AD. This study will also evaluate long-term changes in clinical cognitive outcomes, biomarkers, and safety over 18 months.

Acumen also plans to initiate a Phase 1 bioavailability study to support a subcutaneous dosing option of sabirnetug in mid-2024, as announced in November 2023.

About Sabirnetug (ACU193)

Sabirnetug (ACU193) is a humanized monoclonal antibody (mAb) discovered and developed based on its selectivity for soluble AβOs, which are a highly toxic and pathogenic form of Aβ, relative to Aβ monomers and amyloid plaques. Soluble AβOs have been observed to be potent neurotoxins that bind to neurons, inhibit synaptic function and induce neurodegeneration. By selectively targeting toxic soluble AβOs, sabirnetug aims to directly address a growing body of evidence indicating that soluble AβOs are an early and persistent underlying cause of the neurodegenerative process in Alzheimer’s disease. Sabirnetug has been granted Fast Track designation for the treatment of early Alzheimer’s disease by the U.S. Food and Drug Administration.

About INTERCEPT-AD 

INTERCEPT-AD was a Phase 1, U.S.-based, multi-center, randomized, double-blind, placebo-controlled clinical trial evaluating the safety and tolerability, and establishing clinical proof of mechanism, of sabirnetug in patients with early Alzheimer’s disease (AD). Sixty-five individuals with early AD (mild cognitive impairment or mild dementia due to AD) enrolled in this first-in-human study of sabirnetug. The INTERCEPT-AD study consisted of single-ascending-dose (SAD) and multiple-ascending-dose (MAD) cohorts and was designed to evaluate the safety, tolerability, pharmacokinetics (PK), and target engagement of intravenous doses of sabirnetug. More information can be found on www.clinicaltrials.gov, NCT identifier NCT04931459.  About Acumen Pharmaceuticals, Inc.

Acumen, headquartered in Charlottesville, VA, with additional offices in Indianapolis, IN and Newton, MA, is a clinical-stage biopharmaceutical company developing a novel therapeutic that targets toxic soluble amyloid beta oligomers (AβOs) for the treatment of Alzheimer’s disease (AD). Acumen’s scientific founders pioneered research on AβOs, which a growing body of evidence indicates are early and persistent triggers of Alzheimer’s disease pathology. Acumen is currently focused on advancing its investigational product candidate, sabirnetug (ACU193), a humanized monoclonal antibody that selectively targets toxic soluble AβOs, following positive results in INTERCEPT-AD, a Phase 1 clinical trial involving early Alzheimer’s disease patients. For more information, visit www.acumenpharm.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Any statement describing Acumen’s goals, expectations, financial or other projections, intentions or beliefs is a forward-looking statement and should be considered an at-risk statement. Words such as “potential,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements include statements concerning the therapeutic potential of Acumen’s product candidate, sabirnetug (ACU193), and Acumen’s preparations with respect to its plans to initiate a Phase 2 study. These statements are based upon the current beliefs and expectations of Acumen’s management, and are subject to certain factors, risks and uncertainties, particularly those inherent in the process of discovering, developing and commercializing safe and effective human therapeutics. Such risks may be amplified by the impacts of geopolitical events and macroeconomic conditions, such as rising inflation and interest rates, supply disruptions and uncertainty of credit and financial markets. These and other risks concerning Acumen’s programs are described in additional detail in Acumen’s filings with the Securities and Exchange Commission (“SEC”), including in Acumen’s most recent Annual Report on Form 10-K, and in subsequent filings with the SEC. Copies of these and other documents are available from Acumen. Additional information will be made available in other filings that Acumen makes from time to time with the SEC. These forward-looking statements speak only as of the date hereof, and Acumen expressly disclaims any obligation to update or revise any forward-looking statement, except as otherwise required by law, whether, as a result of new information, future events or otherwise.

Investors: Alex Braun [email protected]

Media: Jon Yu ICR Westwicke  [email protected]

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