What is the Business Benefit?
The biggest benefits at an organisational level are firstly, the ability of each individual to make decisions that align with the organisation’s objectives and secondly, to take the required action. These two factors generate increases in organisational effectiveness and efficiency.
Individuals are able to make appropriate decisions because:
- They see the bigger picture and understand how each part of the organisation fits together.
- They have the skills to deal with complexity and uncertainty. They can process the available relevant information and have the confidence to reach a conclusion.
Individuals who possess business acumen will take actions for the benefit of the organisation. For example:
- Decisions will be made to ensure the best return for any effort expended. This might be a financial investment or the application of man hours to a problem. These actions will influence top-line revenue growth.
- Individuals will have the knowledge to be able to bridge the communication gap within the organisation, by translating the decisions made at higher levels into understandable policies and procedures for their teams.
- When faced with a complex issue where no solution appears ideal, they will have the skill to analyse the information they do have, the confidence to make rational assumptions to fill in the gaps, and the courage to make a decision. As such the organisation will avoid long periods of inactivity and uncertainty and will have the chance to grab future opportunities – maybe before the competitors.
Organisations populated by individuals with strong business acumen will have a shared understanding of the opportunities and threats facing the organisation and will be able to come up with a logical and coordinated response. Every individual’s actions and decisions will be strategically aligned with those of the organisation.
Business acumen in action 3 examples:
Mary’s company is the market leader in a large financial services industry. As a manager her revenue targets are constantly increasing, while the market is tighter and tighter. It is clear to her that part of the problem is that as the market for new business has shrunk, her consultants are chasing every piece of new business without really assessing whether it would be good for the company. Her finance team reckons it takes 10 hours to put together a proposal, and with a win rate of only 20 per cent the current approach is not cost effective and makes many of the consultants unprofitable.
In this scenario, Mary has a crucial role to play as a middle manager in translating the organisation’s overall goal into action. Her ability to see the bigger picture, and the impact of her team’s behaviour on the organisation’s success is the first step in helping the organisation to succeed. The next step is for her to decide how she can communicate the cause-effect relationship to her team and influence their behaviour for the benefit of all.
Jason is a first line manager in a regional transport company. Driving to work this morning he heard on the radio that the Rapid bus company has just gone into receivership. Jason is local to the area and knows that the service provides vital links for children going to school and college in the local town, and for many older people without cars. His first job this morning will be to call his friend Bill and get the contact name of Xavier, one of his team mates at the local rugby club. Xavier works for the local council and was involved in the tendering process for the transport contracts. He will know whether it would be appropriate for Jason to submit a proposal to take over from the Rapid bus company.
In this scenario Jason is using information gained through the local media and his personal network of contacts to create a potential business opportunity for the organisation: a “win win” situation. If Jason pulls if off, it will be good for his own career and also the performance of the organisation.
Georgina works for the borough council where she manages a team that books the public on to speed awareness courses when they have been caught for speeding. Her team is falling behind with course bookings due to the steady increase in offences. While off duty at her tennis club she hears James telling Yvonne how he booked a course on the internet and then received a letter giving him another date (which wasn’t convenient for him) because his first choice had not been processed quickly enough. He phoned to agree another date and paid the fee required, only to receive a phone call later that day chasing him for the fee for the date he had cancelled. He was told the booking and payment systems were separate, with a delay in people operating the latter being advised about changes to the former. When Georgina got back to work she recommended a review of processes and systems which resulted in a significant improvement in efficiency, a reduction in complaints, and an elimination of work backlogs.
In this scenario Georgina’s awareness used information gained while participating in a social off-duty activity to improve the publics experience when dealing with the Council’s and save the Council and the tax payer costs.
Design & Facilitation
Tackle your specific issues with a bespoke business simulation game. We use our expertise in the design process to work with you to ensure you have an effective solution that really improves performance.
Ethics
Create a culture where personal and organisational values can be aligned to create a sustainable and successful organisation. Make the ethical dilemmas embodied in the decision making process explicit, create a healthy conversation and develop the skills required to take appropriate action.
