The other day I dove into the latest issue of Chief Learning Officer, one of the publications that I read on a regular basis, and was pleasantly surprised to see an article on the need for business acumen training in organizations: “Building Better Business Acumen,” by Ted Prince. As you may know from following our blog, the need for business acumen and critical thinking in organizations is something we have been focused on and continue to discuss with our clients.
As I read the article, I found myself nodding my head as the author framed the issue: as a result of coming through our latest economic cycle, having business acumen is a key competency for effective leaders.
I began to nod even more, and smile a bit, as the author rightly pointed out that if we were to look back two or three years ago when companies were doing well, we would not have heard of business acumen as a need in organizations – and leadership development programs focused on interpersonal skills, emotional intelligence, and to some extent decision making. All in all I was in agreement.
The article then framed the desired outcome for a business acumen program, and to my disappointment, each of the desired outcomes was tied to finance and financial outcomes. True, finance is an extremely important aspect of the organization. Profits are what fuel growth and opportunities in the organization, however true business acumen involves having an understanding of all aspects of the enterprise.
How can a manager or employee who has gone through a business acumen program focused almost exclusively on finance have appreciation for human resources, marketing, operations, or IT? (All important parts of the ecosystem of the enterprise, no?)
I agree wholeheartedly that there is a need for business acumen training in organizations. And I believe that a solid understanding and grounding in finance is a component of that, but until organizations focus on providing programs and interventions that cover the total enterprise, a true cross functional understanding will not emerge.
It is easy for L&D professionals to gravitate to a solution that only teaches finance and financial impacts, and you will gain some street cred……but true street cred will come from addressing the holistic enterprise of which finance and financial results are one part of the ecosystem.
How are you addressing this in your organizations? I would love to hear from you. If you would like to know more about our thoughts, just ask.
Author: Sean Stowers is the Director of Learning Services for Pearson Learning Solutions. He works with corporate and association clients to design and develop engaging solutions for their employees, candidates or members. Prior to joining Pearson Learning Solutions, Sean was a business development manager with Pearson’s FT Knowledge business, which was a leading provider of training solutions to the financial services industry. He also spent 4 years at IBM in their Learning Services Division. If you have questions or comments regarding this post, you can email Sean at sean.stowers@pearson.com.