BUSINESS ACUMEN QUESTIONS WITH
VERIFIED ANSWERS BY EXPERTS
v Key Competencies for Comp Professionals - Financial Management, HR Management, Resource
Management
Financial Management Competencies - 1. funding
2. ROI of programs
3. budget for programs
4. cost benefit thinking
5. expendetures
6. Cost effective approaches
7. procurement & contracting
8. performance plans
HR Management Competencies - 1. Assess current and future staffing needs based on goals and budget.
2. Ensure staff are selected, developed, appraised and rewarded
3. Take corrective action
4. Understand basic org design principles
Resource Management Competencies - 1. Determine sources and collect data to facilitate decisions
2. Partner with internal staff and external consult/vendors
3. Use efficient and cost effective approaches to integrate technology
What sets apart top performers - The ability to tie the key competencies together, distill key messages
and make impactful decisions
Business acumen skills and behaviors - 1. Mission, vision, values. Understanding the purpose of your
organization, how it creates value, how it makes money
2. Business strategy. Understandings your customers competition and competitive advantage
3. Organizational culture. Understanding the culture and subcultures of the organization
4. HR strategy. Ability to speak about your area of expertise and collaborate with others
Business acumen for the comp professional - Demonstrate influencing and negotiation skills, be an
expert with data, navigate regulatory challenges
, The importance of business acumen - Contributions to organizational success, engaging with executive
leadership, self improvement and career development
Contributions to organizational success - Understand the financial and strategic context of your
organization, influence the organizations bottom line and financial results
Engaging with executive leadership - Represent the perspective of your area of expertise and articulate
its role in business outcomes, align with the company's mission and financial priorities
Self-improvement and career development - Better understand connections between you and wider org
opportunities for cooperative value creation, understand business disciplines and what is critical to their
success, Display confidence and decisiveness, be a better leader, inspire and excite others
Why organizations are in business - Purpose is reflected in mission, vision, values, strategy, profit model
Mission - The intention or purpose of the business, answers why are we in business?
Vision - What organization wants for the future, who we are and where we are heading
Values - Guiding principles and or beliefs, how we work and who we are. What kind of organization we
want to create in pursuit of our vision
Strategy - Goals directions to achieve goals and policies to support. How we are going to compete and
achieve our mission and what makes us different
Profit model - Plan for how organization generates revenue, why customers are willing to pay
Competitive strategy - Broad framework of principles that guide day to day decisions affecting business.
Primary focus of competitive strategy - Operational excellence, product/service leadership, customer
intimacy
Operational excellence - Price/cost-based strategy, combo of price, quality, dependability, ease of
purchase, minimizing Waze, rewarding efficiency
Product/service leadership - Innovation based strategy, product development, market exploitation, best
products, better ideas, commercialize faster
Customer intimacy - Solution-based strategy, creating results for customers by building bonds to build
loyalty
Market position - Star: high market share high growth potential, use cash, sustained growth, high profit
Question mark: low market share hi market growth, use cash ability to generate profit is unknown
because low market share
Dog: Low market share low market growth, uses cash from other segments
Cash cow: hi market share low market growth, cash used to develop businesses and other segments,
such as question mark's
Business life cycle - Start up, growth, mature, decline
VERIFIED ANSWERS BY EXPERTS
v Key Competencies for Comp Professionals - Financial Management, HR Management, Resource
Management
Financial Management Competencies - 1. funding
2. ROI of programs
3. budget for programs
4. cost benefit thinking
5. expendetures
6. Cost effective approaches
7. procurement & contracting
8. performance plans
HR Management Competencies - 1. Assess current and future staffing needs based on goals and budget.
2. Ensure staff are selected, developed, appraised and rewarded
3. Take corrective action
4. Understand basic org design principles
Resource Management Competencies - 1. Determine sources and collect data to facilitate decisions
2. Partner with internal staff and external consult/vendors
3. Use efficient and cost effective approaches to integrate technology
What sets apart top performers - The ability to tie the key competencies together, distill key messages
and make impactful decisions
Business acumen skills and behaviors - 1. Mission, vision, values. Understanding the purpose of your
organization, how it creates value, how it makes money
2. Business strategy. Understandings your customers competition and competitive advantage
3. Organizational culture. Understanding the culture and subcultures of the organization
4. HR strategy. Ability to speak about your area of expertise and collaborate with others
Business acumen for the comp professional - Demonstrate influencing and negotiation skills, be an
expert with data, navigate regulatory challenges
, The importance of business acumen - Contributions to organizational success, engaging with executive
leadership, self improvement and career development
Contributions to organizational success - Understand the financial and strategic context of your
organization, influence the organizations bottom line and financial results
Engaging with executive leadership - Represent the perspective of your area of expertise and articulate
its role in business outcomes, align with the company's mission and financial priorities
Self-improvement and career development - Better understand connections between you and wider org
opportunities for cooperative value creation, understand business disciplines and what is critical to their
success, Display confidence and decisiveness, be a better leader, inspire and excite others
Why organizations are in business - Purpose is reflected in mission, vision, values, strategy, profit model
Mission - The intention or purpose of the business, answers why are we in business?
Vision - What organization wants for the future, who we are and where we are heading
Values - Guiding principles and or beliefs, how we work and who we are. What kind of organization we
want to create in pursuit of our vision
Strategy - Goals directions to achieve goals and policies to support. How we are going to compete and
achieve our mission and what makes us different
Profit model - Plan for how organization generates revenue, why customers are willing to pay
Competitive strategy - Broad framework of principles that guide day to day decisions affecting business.
Primary focus of competitive strategy - Operational excellence, product/service leadership, customer
intimacy
Operational excellence - Price/cost-based strategy, combo of price, quality, dependability, ease of
purchase, minimizing Waze, rewarding efficiency
Product/service leadership - Innovation based strategy, product development, market exploitation, best
products, better ideas, commercialize faster
Customer intimacy - Solution-based strategy, creating results for customers by building bonds to build
loyalty
Market position - Star: high market share high growth potential, use cash, sustained growth, high profit
Question mark: low market share hi market growth, use cash ability to generate profit is unknown
because low market share
Dog: Low market share low market growth, uses cash from other segments
Cash cow: hi market share low market growth, cash used to develop businesses and other segments,
such as question mark's
Business life cycle - Start up, growth, mature, decline
