Business Acumen is about understanding the big picture of how a company operates and how L&D can drive its success. It involves recognizing how business goals, strategies, and challenges are interconnected and aligning learning initiatives to directly support organizational performance. L&D professionals with strong business acumen can make informed decisions that contribute to the company’s long-term growth and competitiveness.

Internally, business acumen requires a deep understanding of the company’s business model, financial drivers, and how departments work together. This includes knowing how the organization creates value, prioritizes its goals, and manages processes and technologies to improve performance. L&D professionals must also understand the priorities of different teams and align learning programs to help these teams achieve their objectives within the company’s broader strategy.

Externally, business acumen includes staying informed about key industry trends, market dynamics, and the competitive landscape. It also involves knowing the company’s end customers—their needs, preferences, and behaviors—by understanding their demographic and psychographic characteristics. With this knowledge, L&D professionals can design learning experiences that address both internal priorities and external demands, ensuring that their work delivers value across the board.