Financial Acuity Student’s name Course
FINACIAL ACUITY Financial acuity refers to the needed skills required to make good judgment and quick decisions that concern financial issues in an organization. These skills are acquired through learning or gaining experience from an organization. The skills once acquired helps in positive operation and growth of companies or organizations especially when it comes to dealing with companies’ financial management, competitors and establishing the cost-effectiveness of bringing a new product in the market. Lack of financial acumen in an organization is shown when the organization is unable to make sound decisions to help it survive critical times leading to collapse. Different articles by different authors play an important role in helping the researcher to understand financial acuity. These different articles presented similar understanding of financial acuity from different perspectives. An article named “3 Financial Acumen Skills You Don’t Want to Ignore”, for example, put into detail the significant and varied skills in financial acuity that people interested in running a successful organization based on profits must have. These skills include, financial skills which aim at strengthening important financial literacy metrics and concepts such as budgeting, reporting, forecasting and adhering to compliances. The second line of skills is the business skills. These skills enables people in the organization sharpen their abilities to keep the organization in order and work efficiently by managing resources and costs, focusing on quality and understanding trends in technology. The last category of skills is the global skills. They entail analyzing both local and global markets, untangling competitive intelligence, comprehending the importance of governance and developing a good corporate strategy. (AMA Staff, 2019) Another article that explains financial acuity is “The importance of financial acumen in staff”. The article states that financial acumen must be created throughout the organization. Every employee must understand all that makes money for the organization for it to be a successful organization. It also states that untrained employees on financial acuity tend to make poor decisions. The article finally explains on ideas of how to introduce financial acuity in an organization. One important idea is that an organization should have training sessions for all department managers and after that the managers are assigned the tasks of speaking to the employees about financial acuity. Another highlighted idea is where staff members receive weekly e-newsletters on tips of improving financial acuity. (McGarvie, 2019) The last article is “Linking Financial Acumen to Business Performance”. This article shows that attainment of financial acumen relies on a number of factors. These factors include the experience gained while in job and the continuous learning. It states that learning begins in the university and once employed, an employee also undergoes through specialized training that address specific training needs. The article conclude by stating that, for an organization to be successful, employees must have an understanding of what brings about profits in an organization. (Vorbach, 2017) Financial acuity therefore is an important tool in any organization. All successful businesses employ financial acuity. For employees to make sound decision in their workplaces, financial acumen must come into play. To conclude with, financial acuity makes everyone in the organization understand how it makes money and what it entails in the decision making process. (Lund, 2019)
References AMA Staff. (2019). 3 Financial Acumen Skills You Dont Want to Ignore. AMA Articles. Lund, D. (2019). Why Financial Acumen is Important To Your Hospitality Career. INDUSTRY UPDATE. McGarvie. (2019). The importance of financial acumen in staff. ICAEW. Vorbach, P. (2017). Linking Financial Acumen to Business Performance. AG.