Business Acumen for New Managers – The Basics to Master

Business Acumen for New Managers

Business Acumen for New Managers is an Underdeveloped Core Competency
Year after year, line leaders want to improve business acumen for new managers so they can make better, faster and more informed decisions. Unfortunately, most new managers get a failing grade when it comes to basic business acumen.

Current Managers Get Failing Grades for Business Acumen
Harvard Business School decided to test the business acumen for new managers  to see how much they knew about the business terms and financial workings of the companies that they worked for. We suspect that even Harvard was surprised at the low scores on the exam. The 300 managers tested received an average of only 38%.

How Would You Rate Your New Managers?
How well do you think you would do with your new manager training in terms of business acumen basics?

Three Business Acumen Basics for New Managers
Here are a few questions for new managers (and their bosses) to ponder:

1.  Reading and Interpreting Basic Financial Statements
How well can you decipher the relevance and implications of the numbers on your company’s financial report? Can you define COGS? How does it affect the bottom line? Does it matter whether cash flow originates from operations or investments?

2.  Leverage Points
What factors have the greatest impact on a company’s available cash: timeliness of invoice payment, rising profits, increasing retained earnings or higher accounts receivable?  What are the financial metrics that are most aligned with your business strategy and the goals of your team?  What warning signs should you and your team keep an eye on?

3.  Cash Flow
Why do analysts and investors care so much about free cash flow and what does the term mean?

The Bottom Line
Are your new managers up on the business acumen basics? If not, it is high time to get some management training in business finance basics so you can follow and contribute to the conversations at the right level. Without knowledge of finance basics, you are unlikely to advance much further than your current level in the organization or know how to make the right decisions.

To learn more about improving the performance of your managers, download The Six Management Best Practices that Make the Difference Between Effective and Extraordinary

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The LSA Global team was very receptive and flexible to our needs every step of the way. Their staff and facilitator demonstrated attention to detail, responsiveness, and professional courtesy. The participants were thrilled with the outcome and rated the communication skills workshop and the facilitator as ‘Excellent’. I’d highly recommend working with the LSA Global team to meet your professional development needs.

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FRDP Leader

Intuit

LSA is an instrumental training outsourcing partner in helping us to build management capacity and strategically invest in our people. Their flexibility, depth, and breadth of expertise allows us to deliver top quality solutions that are directly tied to key business plans. Their ability to custom design, deliver, and evaluate our Management Curriculum has been excellent. They are true business partners and a pleasure to work with.

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Vice President, Human Resources

Hyperion

I had been working with LSA for many years with my prior company. Currently, I’m with a company who hadn’t done much basic management skills training. After identifying and presenting a program recently, our managers are excited and talking in the halls about the great experience. LSA saves us time in delivering the right training for our needs.

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HR Director

We have been able to utilize LSA’s extensive network of top-notch resources to leverage our investment in employee development. The result has been the cost effective and highly efficient delivery of quality educational and management training programs.

Steve Feller
Vice President, Human Resources

We recently contacted LSA Global to assist us with a unique training request. We gave LSA a very short deadline and LSA custom designed a training program to meet our exact requirements within the limited time allotted to them. We found their facilitator to be well versed in the subject matter and very credible; the design provided practical and valuable information to our team of managers. I highly recommend LSA Global, particularly in the area of management training.

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We consider LSA our true business partner in the areas of Learning and Organizational Development. From Strategic Planning to Presentation Skills and Management Training, they continue to provide excellent value and extremely high quality solutions – not just one time events. I recommend them to anyone looking to drive true business results.

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Firmware Engineering Supervisor

I continue to be impressed by the level of leadership development and management expertise and quality of advice and facilitation that LSA has to offer. What a smart and client-centric group of great people who really know how to help leaders attract, engage, develop and retain top talent.

Tracy Esposito
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Each program is preceded by an assessment of the participants. The course is then designed to fit the specific parameters and needs of the group. The highly interactive delivery is provided by recognized experts in their fields. On the spot coaching is provided during the program and each participant receives individual follow-up after the course. Courses can be delivered in-person or virtually. Given the nature of Cisco’s business and the way we operate, these remote workshops are a must for anyone who joins our company. Their work is eye opening. Great content and fantastic delivery.

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We signed up with LSA early on–as their 22nd Member! Since then, our organization’s learning needs have increased and decreased and increased again with the changing times. The beauty of the LSA business model is its flexibility…when we needed to supplement our own internal resources, we used LSA services knowing that we could depend on the outstanding quality of the leadership development and management training programs they provide.

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HR Manager

I have worked with other training companies and found it to be more of a seller/buyer relationship than one of matching the right expertise to our business issues. That’s what LSA does – ask the hard questions, listen, and understand our business needs. We receive the benefit of their expertise from assistance with personal development plans to enhancing team performance, to looking at enterprise-wide challenges. It’s all about helping our business succeed as we grow. Right now, LSA is providing great ideas, a fresh approach, and valuable guidance as we develop our management team and accelerate our client relationship management results.

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