As part of a customized business simulation project I am working on, I had the opportunity to interview a group of senior leaders about what they think emerging leaders should know about business acumen. I started the process by getting the usual answers such as, “Understand a P&L,” “Manage Cash Flow,” and “Know how to get a good return on invested capital.”

One answer made me smile and think, “I’d like them to know about the anatomy of an invoice.” I’ve been developing business acumen programs for several decades and I’ve never heard this so of course I needed to dive in and ask the SME to further expand.

“I want these emerging leaders to be able to think backward from the sending of an invoice to understand the value map of our company so they know how we work and how we make money. I want them to understand that an invoice isn’t something the Accounting team sends, it’s the representation of the business acumen of our company.”

It was an intriguing idea and one that we were able to quantify for the program. I am pleased to share the highlights of this interesting concept.

A recent shared post called “The Real Skills Your CEO Wants Everyone to Know” received many nice comments from colleagues and business leaders. We also collected quite a few direct messages sharing alternative ideas and suggestions for additional content and insight into the business acumen skills that the C-suite hopes employees at all levels to possess.

Originally, we wrote a follow-on post that outlined a list of skills that we see a CFO desires, but we once again received feedback asking us to combine both posts together so our readers can have all the information in one spot.

We always appreciate feedback so we decided to combine the posts into one. The one post can be accessed by clicking below. We thank our loyal readers for their guidance, enthusiasm and insights. We hope you enjoy the new complete post that now focuses on the business acumen skills that both the CEO and CFO desire.

Click here.

Don't Just Check the Box

This post is not about the skills suggested by your competency vendor who built their competencies database in 1983. In their tired and out of date view, Business Acumen is defined as things such “Understanding the Business,” “Financial Literacy/Quantitative Acumen,” and “Focusing on Customers.”

While many CEOs, CFOs, and HR professionals and leaders may think this is great and “check off” a big box on their “competency to-do list” with a bunch of online videos, these words are meaningless and out of context today and beyond. Over the past year, we have been working with leaders of large global companies through our business simulations and virtual learning journeys to re-define their approach to talent development in several areas including Business Acumen.

I am pleased to share some of the deep insights we have gathered and what the real Business Acumen Skills CEOs and CFOs want everyone in their organizations to know from a practical… and more importantly… applicable way that impacts the ability to compete and achieve business results.

First, we will start with the CEO and then move to the CFO.

Just when we think the “next normal” is in sight, it shifts by another 3 months. Or was that 6 months? We all have complex questions and simple questions like, when will we go back to the office?

“Oh, in 3 months…”

“Definitely in 6 months, after the summer.”

“Most likely January 2022.”

“Back to the office, what office?”

The current and near-term business environment is as volatile as it has ever been. It certainly is competing with the crash of 1929 and the depression of the 1930s. And, because of this and the fear of what could happen next, organizations are desperate to have employees with strong Business Acumen skills and competencies. Leaders at all levels of any business need their employees to be able to understand strategy, set strategy, execute strategy through operational decisions, lead people to execute the right strategies, and to understand and drive financial performance and the metrics that matter.

It is still hard for me to believe that my beloved Philadelphia Eagles won the Super Bowl just 3 short years ago. It seems like a distant memory for so many reasons…

As plans are now underway for the 2021 NFL season, the Philadelphia Eagles organization is in a state of total chaos and they are about to trade their franchise quarterback, who not coincidently isn’t on speaking terms with the key members of his Front Office including the General Manager who accomplished the near impossible to bring him to the team through trades and other maneuvers.