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3. One Method to Increase Business Acumen
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Summary – One Method to Increase Business Acumen
Two Ways To Increase Business Acumen
1. Linear – This method is through continuous improvement. By continually reading, researching, listening podcasts, etc. Generally, developing your knowledge and experience.
2. Non-Linear – This is building skill-sets that can drive performance and deliver outcomes. For example, the ability to engage with people, good communication, and accountability.
Increasing business acumen is about making better choices or decisions. One method we use is mental models. Research by Charles Duhigg discovered that people who use mental models are more productive. The mental model provides context and a framework to make a decision. Another example of using mental models is Charlie Munger. Charlie is renowned for his ability to use a model to make a decision.
- Context for the problem or situation
- Provides clarity in communication or common language
- Enables to reduce the issue into bite-size pieces that makes it easier to respond
- Can provide more certainty
- Reduces stress by having a framework
- Increases discipline
With the mental model will come ‘rules of thumb’. This provides a method of measuring outcomes from the decision made.
One of The Models We Use
One of the models we use is called the L.A.S.E.R. model.
- L – Look, Listen, Learn – This enables us to understand the cultural context of your organisation & key industry challenges.
- A – Analyse – Using the information collected at the previous stage and different analysis models, we analyse where a business is now and where they want to be. Now we are ready to work on how the business can get there.
- S – Strategise – Develop a strategy based on the previous step that will guide the next phase of execution.
- E – Execute – Taking action and measuring based on the strategy.
- R – Review – A critical and sometimes overlooked step of strategic execution.
This is not necessarily a linear model. The steps are integrated and directly related with each other.