In our non-stop, 24/7, “always on” business world, it is easy to forget or worse yet, not pay attention 
to some of the very basic elements of Business Acumen that make our volatile, uncertain, complex, and ambiguous worlds function even if at times it’s not in the most efficient ways.
As part of Advantexe’s ongoing research into the skills and tools of Business Acumen, Business Leadership, and Strategic Business Selling, I have identified 5 fundamental Business Acumen “Don’t Forgets” for your review and thoughts.
A Business Acumen “Don’t Forget” is defined as a foundational element of knowledge that sometimes can be overlooked or forgotten when we engage in everyday business and everyday life. In other words, when we fight to survive the 15,000 messages, emails and other pieces of information we are bombarded with it’s easy to forget the basics.
For each of the 5, I present a definition, example, and take-away application.
It’s not always just about price…
One of the major impacts of the global economy is that markets evolve a lot quicker and products/services become “commoditized” faster than ever before. The temptation of many organizations is to simply cave in to market pressures and cut prices to “remain competitive.” Business Acumen Don’t Forget #1 is that cutting price because everyone else is doing it is lazy and potentially very counterproductive in terms of meeting business goals, objectives, and executing your strategy. So what are you supposed to do instead of cutting prices? Present the full value proposition to the right customers who understand and value other factors such as quality, customer service, supply chain security, and unique expertise.
Capital in business organizations isn’t free
Everyone working in a business organization utilizes capital to do their work. Capital is simply defined as the money (cash) that is used to run the business and execute the strategy. For example, you are in the Research & Development department and have requested a budget of $20,000,000 to investigate a new technology that can be turned into a new product. The critical Business Acumen Don’t Forget #2 is that capital is not free; there is a cost to the capital so therefore the decisions you make to use that capital must provide a return over and above the cost of the capital. Think of it this way; your organization could take that same $20,000,000 and put it in the bank and generate a 5% interest return. Your goal as a leader is to make sure your use of that capital is much more than 5%!
Innovation starts every market
There is a natural cycle to every business market. It starts with an innovation or new idea for a product/service. Competitors come in and quickly follow and push the innovation to higher levels of performance. As markets mature, they become commoditized and as volumes go up, prices go down (see Business Acumen Don’t Forget #1). Business Acumen Don’t Forget #3 is that every market starts with unique innovation that some customers are willing to pay for. Markets don’t start with a low price, they don’t start with intense customer service supporting a product that doesn’t exist yet, and a market doesn’t start with great marketing and sales before there is an innovative product/service to sell.
Trust still matters
No matter how small the business world now seems, and no matter how automated processes such as marketing, sales, and customer service can become, people still drive the business. If people are driving the business, relationships are important and relationships are based on the foundation of trust. Business Acumen Don’t Forget #4 is trust still matters. Trust is a process of mutual respect and admiration where business professionals can count on each other to make commitments and deliver those commitments.
You needs seeds to grow food
The last idea that I present in this post may seem unusual and out of place. However I think there is relevance both conceptually and metaphorically. Business Acumen Don’t Forget #5 is that you need seeds to grow food. Food doesn’t magically appear; it is a sophisticated process that has to be well managed and planned to be successful. Corn, soy, wheat, and many other staples of the global diet all start with seeds. Seeds are the foundation and future of the world as we know it and a greater appreciation of organizations that invest in the science, technology and vision of feeding the world is in order and can’t be forgotten. There are also seeds in business; ideas, innovation, capital, and trust are the seeds of success from a business acumen perspective.
