Business acumen is the sharpest sense of what is expected from us in any given business situation. It is a principle that is based on practicality. It is the ability to think and act quickly. If we are able to keep this principle then we are likely to make the best decisions possible. Business acumen is also keenness and swiftness in dealing with and understanding a complicated “business scenario” in a likely to result in a positive way. In addition, business acumen has also become a vehicle for enhancing leadership development and overall financial performance.
Business acumen can be defined as the skill in making the best possible decision within a business situation by drawing on one’s individual resources, knowledge base, skills, experience and expertise, and other intangibles that are required for a unique solution to problems. There are many ways to measure business sense. For example Business literacy, which includes logical reasoning, problem-solving and decision-making, is one way of gauging business sense.
On the other hand, business acumen can also be measured by looking at how successful an organization is in meeting its objectives. The effectiveness of the management styles and their effectiveness in implementing plans and budgets is another way of measuring business model acumen. And finally, as Albert Einstein said, “A problem worth solving is worth fighting for.” That, indeed, is a valuable lesson in the art of making the right decisions.