Business acumen – definition and meaning
Business acumen is a gift. It is a skill that gives people the ability to make good judgments. It also allows them to take quick decisions in business situations. Put simply, people with business acumen make commercially successful decisions.
Experts say that business acumen is not an innate skill. In other words, we can learn it. However, some individuals develop the skill more rapidly and easily than others.
Some people, who have lived in a commercial environment all their lives, are lucky. However, those who did not, acquire business acumen later in life.
The modern English word ‘acumen’ with its current meaning emerged in the 16th century. It comes from Latin ‘acumen’ which means ‘a point, sting,’ which came from ‘acuere’ which means ‘to sharpen.’
Hence, the modern term refers to a person with a shrewd and sharp mind.
According to the FT Lexicon, business acumen is:
“Keenness and speed in understanding and deciding on a business situation. In practice, people with business acumen are thought of as having business ‘sense’ or business ‘smarts’.”
Business acumen – acute commercial vision
People with this skill have the ability to obtain the most important and relevant data about a situation instantly. They can concentrate on the key goals and rapidly identify the best options available. In other words, they can see the best way forward and choose the right course of action.
Furthermore, people with business acumen put their visions and decisions into practice to complete the job.
People with this skill can rapidly spot changes that they need to make. They also make the necessary adjustments in their businesses while pushing forward at the same time.
They have an innate ability to see the ‘big picture’ in their organization and how the key drivers in their business are inter-related. In other words, they can see how all the components work together to produce profitable growth.
Business acumen equals success
Individuals with business acumen are more often right in their assessments and choices than wrong. Others admire them for their accurate decisions and overall business success.
According to Dr. Raymond R. Reilly, from the University of Michigan, and Dr. Gregory P. Reilly, from the University of Connecticut:
– People with business acumen have an acute perception of the dimensions of business issues.
– They can make sense of seemingly complex situations, as well as uncertain futures,
– They have an awareness of how a choice may affect all the stakeholders.
– Their ability to make decisions quickly is admirable.
– They can adapt if situations demand flexibility.
“Acumen is housed in the mind, and those with it are able to use it effectively, without necessarily relying on organizational support or detailed business case development,” Drs. R. R. Reilly and G. P. Reilly wrote.
Most people develop the skill while working. They absorb the necessary attributes by being observant, thoughtful, and gaining insight from knowledgeable mentors.
Business acumen – notable quotes
Robin S. Sharma, a Canadian writer, famous speaker and a former Litigation lawyer, once said:
“I believe we can accelerate our acumen, performance, and success by leveraging our associations and spending time with people better than us.”
Sophia Amoruso, who owns and founded Nasty Gal, a company that sells clothing, shoes, and accessories for young women, said:
“Creativity and business acumen don’t always go hand in hand.”
Dame Anita Roddick (1942-2007), who founded The Body Shop, said:
“I started The Body Shop in 1976 simply to create a livelihood for myself and my two daughters, while my husband, Gordon, was trekking across the Americas.”
“I had no training or experience, and my only business acumen was Gordon’s advice to take sales of £300 a week.”
“Nobody talks of entrepreneurship as survival, but that’s exactly what it is and what nurtures creative thinking.”