Business Acumen is Key to Success

Success in the rapidly changing healthcare environment requires an understanding of all aspects of business ie having commercial acumen. From pharmaceuticals and medical technologies through to aged and community care we all operate within a business environment. The principles of business introduce a discipline into organisations and it is this discipline that delivers value to customers.

In this article I’d like to share my thoughts on how to increase the appreciation and understanding of key business concepts; and to suggest a range of questions to be asked - during internal meetings, with colleagues and during strategic planning sessions.

1. CUSTOMER FOCUS

Without customers organisations would not achieve commercial success. Understanding customers at the granular level is key. An organisation's customer base can change very quickly. Ask "Who are our customers? What are their needs, wants, desires? What are their motivators? How are they segmented? What are their pain points? How do we provide solutions? How much do our customers value what we offer? How much are they willing to pay for this? Are we delivering what our customers need? Who are our future customers? What will they want? To what extent are we aligning our business to the needs of our future customers?" Understanding customers results in commercial success.

Ask "Who are our customers? What are their needs, wants, desires?"

2. STAYING UP-TO-DATE

Commercial acumen equates to enhanced knowledge, and effective navigation within the commercial arena involves understanding current and emerging issues. Staying up-to-date increases competitive edge. Ask “How do we stay current? What are the key issues facing our sector? What are the current economic issues? What blogs or news feeds are useful? What email alerts should I set up? Which organisations should I follow? What conferences should I be attending? Seek out new knowledge, new ways of working, new ways of thinking.

Ask “How do we stay current? What are the key issues facing our sector?"

3. COMPETITOR KNOWLEDGE

Commercial success is about growing market share - both expanding a market and taking market share from competitors. Ask "Who are our competitors? What do they do differently? How can we do it better? Who will our future competitors be? Who are the likely new entrants? What will they be offering? How can we compete? What will it take?" Competitor analysis enhances knowledge, and it is the discipline of analysis which results in improved products and services.

Ask "Who are our competitors? What do they do differently?"

4. FINANCES

Commercial success means making money. Understanding how this happens is commercial acumen. Ask "How does our organisation make money? What are the revenue streams? How are they protected? What's the top line (sales)? What's the bottom line (profit)? How does everyone’s actions contribute to the top line? How do these actions contribute to the bottom line?". Understanding the principles of sales, profit and cash is key to being commercially astute.

Ask "How does our organisation make money? How does everyone’s actions contribute to the top line?"

5. BUSINESS PLANNING

Having a plan and following it brings commercial success. Ask "What is our business planning process? What input do we need? And from whom? What key metrics do we use to track success? How do we analyse data? What dashboards do we use? From the data how do we derive insight? How do we make data-driven decisions?" Dedicated time to the business planning process will deliver sustained results and will enhance operational excellence and competitive positioning.

Ask "What key metrics do we use to track success?"

6. RISK MANAGEMENT

Business is about balancing risk with opportunity. Exposure to too much risk may threaten organisational survival. Not realising opportunities stunts growth. Ask "What risks or threats face our organisation? What potential impact will this have? What are we doing about it?" What are our risk management plans? How are these plans executed and by whom?". Commercial success requires taking risks.

Ask "What risks or threats face our organisation? What potential impact will this have?"

7. GOVERNMENT

The commercial world can change very quickly, especially when new financial or regulatory measures are introduced by government. Ask "What impact will changes in government policy have on our organisation? What are we doing about it? How connected are we with key decision makers? Key influencers?" Effectively navigating and influencing government policy brings commercial success.

Ask "What impact will changes in government policy have on our organisation?"

8. NEGOTIATION

Negotiated outcomes are central to commercial success. Parties outline value propositions, discuss positions and seek win-win solutions. Ask “With whom do we need to negotiate? And for what reason? What are the desired outcomes? What is our walk-away position?” Success in the commercial world requires effective negotiation.

Ask “With whom do we need to negotiate? And for what reason?"

9. TECHNOLOGY

People who are commercially astute understand the benefits of technology and embrace technological leadership. Ask "How does technology impact our organisation? What improvements could be implemented? What are our future plans?" Technology drives change and change is needed to strengthen competitive positioning. Understanding technology enhances commercial insight.

Ask "How does technology impact our organisation?"

10. COMMERCIAL OPPORTUNITIES

Seeing the 'big picture', spotting opportunities, and mobilising resources is how commercially astute people get results. Ask "What opportunities face our organisation? What are we doing about them? Now and in the future". Getting results, sustained results, is commercial acumen.

Ask "What opportunities face our organisation? What are we doing?"

Business acumen enhances both personal and organisational success. Having commercial acumen means understanding the broader world of business; being knowledgeable about current and possible future policies, practices, and trends; appreciating the impact of competitive forces; and having an awareness of how business strategies can enhance success.

Business acumen enhances both personal and organisational success.

For further discussion phone us on:

Sydney (02) 8877 8777

Melbourne (03) 9938 7100

Or for additional insights go to one of our specialised websites:

Healthcare Professionals Group

Health & Aged Care Professionals

Pharmaceutical & Medical Professionals

Rural & Remote Healthcare Professionals