Mastery Level
Strategic Acumen

Because Change Happens

Strategic acumen involves anticipating and responding to changes in the business environment. Leaders and individual contributors need to ensure the company can adapt and thrive in the face of uncertainty. Strategic acumen requires a forward-thinking mindset and the ability to make decisions that align with long-term goals.

Who Needs Strategic Acumen?

Senior leaders
Executives
Engineers
Strategic planners
Individual Contributors
Sales people selling to the C-suite

Business acumen training for supervisors, managers & individual contributors - Better Collaboration and Communication!

Better Business Acumen
→ Better Business Results

Michelin Manager Prevents a Cash Flow Crisis

Simulation insights lead to fast action during a supplier strike.

A few days after attending a strategic-level Income|Outcome workshop, a Michelin plant manager faced unexpected news: a key brake supplier to General Motors, Michelin’s largest customer, was about to go on strike.

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Thanks to the workshop, the manager immediately recalled a key scenario from the game board: unsold tires piling up in Finished Goods Inventory and no cash coming in from Receivables.

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Rather than risk a cash flow bottleneck, the manager took action:

Selling off tires quickly to reduce inventory.
Adjusting production schedules to prevent overproduction and preserve cash reserves.

Without the workshop, the manager admitted, they would have kept producing tires, piling them up unsold and leading to inevitable cash flow problems.

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What Happened Here?

Insight: The manager applied cash flow awareness from the workshop to real-world events.

Action: They sold off inventory and adjusted production schedules to protect cash flow.

Result:

Avoided a cash flow crisis.
Demonstrated the real-time impact of financial acumen in a fast-moving situation.

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→ A rapid and appropriate response to an unexpected event is a Better Business Result!

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The Program

Senior managers and executives at Michelin participated in a strategically challenging three-day program: Managing a Global Business. Teams were so engaged that they often held planning meetings as late as 11 p.m. to refine their strategies for the next day.

While the workshop did not specifically address supply chain disruptions or strikes, it heightened participants' awareness of potential risks. One manager, inspired by the simulation, vividly envisioned tires piling up on his game board and warehouses filling up due to a strike. This flash of insight led him to take immediate action.

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Better Business Decisions at Michelin

In 1996, Michelin North America began using Income|Outcome across the organization to build financial acumen and improve strategic decision-making among its employees. The program was integrated into various business units, helping teams align financial goals with operational strategies and identify opportunities for cost savings and revenue growth.

Almost 30 years later Michelin North America continues to run the simulation, and continues to generate ongoing tales of 'business bravado'.

Finish the Tale!

Let’s work together!

Key components of
Strategic Acumen

Financial statements
Disruptive Technologies
Cost Structures
The need to monitor industry trends (it will change!)
The need to manage separately for cash and profit
Strategic Opportunities and Financial Constraints
Working capital and inventory build-up
ROA, ROI, and other metrics for management
Planning with budgets and cash flow forecasts
KPIs used at your company to gauge performance
Planning and Analysis tools: Unit cost analysis, Break-even analysis, Income Statement analysis
How & Why market conditions dominate business decisions

Ratio Analysis

Ratio analysis is often presented with formulas and numbers, but in the Income|Outcome simulation, ratios overlay the game board. This approach highlights the connection between the income statement and balance sheet, offering a holistic business view and useful contextual insights.

Key Financial Ratios Overlay the Game Board
The Income|Outcome 'triangle' visually illustrates the use, importance, and inter-relationships of key financial ratios, enhancing understanding.

The Visual Finance app view:

The Cash Conversion Cycle

The Cash Conversion Cycle takes into account how much time the company needs to sell its Inventory, how much time it takes to collect Receivables, and how much time it has to pay its bills (Payables). A lower number is preferred.

Income Statement Analysis

Income Statement Analysis compares companies using ratios throughout the income statement, revealing the largest gaps - which are the ‘easiest areas for improvement’. This approach provides insights beyond raw numbers, enabling meaningful comparisons regardless of company size. In the game, teams analyze income statements to evaluate profitability, efficiency, and market position, focusing on ratios like profit margins and operating costs to determine which strategies drive better financial outcomes.

Debt to Equity

The Debt to Equity ratio shows the balance between borrowed funds and owner equity, indicating how much risk a company carries. Within the game, a lower ratio may offer stability, but a well-managed, higher ratio can fuel growth through leveraged investments. Teams must decide how much debt to take on for expansion without tipping the scales too far. Mastering this balance allows players to drive growth while managing financial risk, making the Debt to Equity Ratio a valuable measure of strategy and resilience.

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Working Capital

Working Capital represents the cash available for day-to-day operations, calculated as current assets minus current liabilities. In the game, managing working capital is key to ensuring liquidity—without it, a business can’t fund growth or respond to unforeseen expenses. Teams must carefully balance cash flow with operational needs, using their working capital to avoid liquidity crunches and sustain smooth operations, all while preparing for future opportunities.

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Income|Outcome® Strategic Acumen Solution

Developing strategic acumen isn’t just about knowing the right answers—it’s about asking the right questions, especially when the stakes are high and the future is uncertain. Our Finance & Strategy workshop gives senior leaders and executives the tools they need to steer the ship through turbulent waters, ensuring the company stays on course.

Finance & Strategy

2-2.5 days
In-Person

Our Finance & Strategy workshop helps senior leaders and executives develop strategic planning and decision-making skills. It’s an immersive experience, requiring teams to analyze market conditions, make strategic decisions, and understand financial implications (and that is before we introduce unexpected change!). The simulation covers real-world scenarios, ensuring participants are better equipped for effective decision-making.

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What was your greatest "Aha! I got it" moment?

"Be more considerate/patient with others in their roles"

Scott W, CFO - Industrial Infrastructure

Business Acumen
Mastery

Strategic acumen is a necessity in today’s unpredictable business environment. Our workshops prepare your team to think strategically and act decisively in a fast-changing business environment.

Equip leaders with strategic acumen skills they need. Contact us to explore our 'strategy immersion' workshops.