Business acumen is keenness and quickness in understanding and dealing with a business situation in a manner that is likely to lead to a good outcome.[1]
The term “business acumen” can be broken down literally as a composite of its two component words: Business literacy is defined in SHRM’s Business Literacy Glossary as “the knowledge and understanding of the financial, accounting, marketing and operational functions of an organization.”[2] The Oxford English Dictionary defines acumen as “the ability to make good judgments and quick decisions”.[3]
Given these textbook definitions, a strictly literal definition would be “keenness and quickness in understanding and dealing with a business situation.”
Additionally, business acumen has emerged as a vehicle for improving financial performance and leadership development.[4] Consequently, several different types of strategies have developed around improving business acumen.
