Two Case Studies on Business Acumen to Help You Grow

Entrepreneurs are frequently obliged to acquire their own business acumen. They are hands-on with their enterprises and must make all of the decisions, whether good or bad, as they go. Either they learn from their errors or they fail.

Managers and employees in a company have quite different perspectives.

They aren't active in every element of the organization, and they generally make choices in their respective areas of responsibility. They must study in another way since identifying the links is difficult.

Books and seminars might be beneficial. However, business acumen is best learned by experience. Learners must be able to examine circumstances, ask questions, debate difficulties with other students, explore alternatives, make mistakes, and observe the outcomes.

Many firms have discovered that simulations, which mimic reality and allow learners to explore in a safe environment, are one of the greatest methods to conduct this type of experiential learning. Here are the experiences of two firms that used business simulators to teach their employees.

Cable Communications by Comcast

Comcast's NorthCentral Division - one of the country's largest entertainment, information, and communications companies, specializing in cable television, high-speed Internet, and telephone service - set out to ensure that managers and employees across the company had the financial acumen they needed to make sound decisions.

This requirement was clearly confirmed in a company-wide poll, particularly among supervisors of staff who had direct contact with consumers.

If a client calls with a service issue, for example, frontline personnel and their managers might credit the customer's account to try to remedy the situation. Although this may be exactly what the scenario calls for, Comcast discovered that employees making these judgments didn't always grasp that a $10 credit may require more than $100 in sales to break even.

Similarly, a service technician's visit to a customer's house may cost $50 out of pocket, but the firm may need to sell an extra $500 in services to pay the cost.

Mark Fortin, senior vice president of finance for Comcast's NorthCentral Division, adds, "The lack of financial acumen among supervisors and employees was mainly understood." "Almost 75% of the company's workforce is on the front lines, either as contact center agents or field technicians. They've been schooled to be good at what they do, but financial literacy isn't usually emphasized in their education."

Human resource officials at Comcast felt that a more basic approach to business acumen development was required. This method, however, would have to be quick, interesting, and job-relevant. The executives decided to add a high-energy, personalized learning experience to their already extensive Comcast University management program, which would cover the "basics" while also dealing directly with Comcast language, concepts, and strategic imperatives.

Learners made decisions regarding items, procedures, pricing, and more as they engaged, and they witnessed how those decisions affected their financial performance. In the end, they were able to make more informed daily decisions.

"The high cost of sales in our organization stands out for the frontline leaders, field technicians, and call center supervisors and managers who attend," says Sophia Alexander, the division's senior manager of curriculum and metrics. "It's like a bell goes off in their heads when they understand how much it takes us to earn the money we need to run the organization."

Supervisors and managers are not required to attend the learning session. According to Jan Underhill, senior manager of leadership development for the NorthCentral Division, there is an implicit expectation that they will engage in business acumen training as well as other Comcast University core programs. This expectation, along with the fact that management remuneration is now related to hitting particular financial targets, has maintained attendance high.

Senior executive assistance has also been crucial in generating interest and raising awareness about financial literacy. "It's a lot simpler to get individuals to join up when senior executives like Mark Fortin are enthusiastic supporters of the program," Underhill adds.

The response has been overwhelmingly positive. Level 1 feedback on the exploration learning-based business acumen workshops, for example, has averaged 4.5 on a 5-point scale. That the program has outperformed expectations. Better still, according to Sophia Alexander, NorthCentral Division senior manager of curriculum and metrics, is concrete evidence that the new ideas and knowledge have made an impact. For instance:

• Financial literacy has grown by at least 25% as a result of the business acumen training, according to participant self-evaluations.

• The participants' ability to use fundamental financial words and ideas on the job improved by 20% after the training.

• Nearly half of the supervisory participants said they use their business acumen knowledge in their regular discussions with coworkers and colleagues.

"Some people, particularly in large corporations, get the impression that there is an open checkbook. They believe I am not the owner of the firm. It isn't my issue. The bills will be paid by someone. However, in today's atmosphere, when some extremely major corporations are in crisis, everyone must contribute to the solution. Business acumen training for managers and staff benefits both the organization and the workforce. To some level, it's about self-preservation "Fortin opined.

The Classroom Advantage

These two organizations decided to use a classroom-based simulation taught by instructors on-site to improve the business acumen of managers and staff. They determined that there were substantial benefits to discussing this issue in a "live" session where they could utilize the power of:

SHARED KNOWLEDGE AND EXPERIENCE: Participants contribute their own concerns and insights to the discussion.

TEAMWORK: As they learn, learners collaborate, make decisions together, and rely on one another.

COMPETITIVE FUN: Small groups "play" against one another in a competitive setting.

COMPANY-SPECIFIC DISCUSSIONS: The learners' shared interest in their own company's financial and strategic concerns allows for more in-depth analysis and debate, as well as a meaningful "link" between the learning simulation and reality.

LEARNING MOTIVATION AND COMFORT: Learners who are unfamiliar with the subject of finance find themselves playing a game in the safety of a group setting.

Final thought

Although businesses have a variety of educational options for developing business acumen, classroom-based training that brings together groups of conscious learners may assist guarantee that learning takes place and that linkages to the business are established in ways that motivate action back on the job.