Technical skills aren’t enough to become a great leader. If you want to move into management, you need to understand the business side of things. Business acumen is about knowing how your company works and how to make decisions that drive success.

Here’s how you can start building it:

1. Learn How Your Company Makes Money

You can’t lead if you don’t understand how the business runs.

• Study your company’s business model—how it earns revenue and controls costs.
• Understand customer needs and why they choose your company over competitors.
• Ask leaders how your work impacts the company’s bottom line.

When you see the bigger picture, your technical work will have more impact.

2. Build Cross-Functional Relationships

Leadership is about connecting the dots across departments.

• Join meetings with teams like sales, marketing, or finance.
• Collaborate on projects that involve multiple departments, like launching a new product.
• Ask other teams how their work ties into business goals.

Working with different teams gives you a broader view of how the company operates.

3. Learn Business Basics

You don’t need an MBA, but you do need to speak the language of business.

• Understand key metrics like revenue, profit margins, and ROI.
• Learn about costs—fixed, variable, and cost of goods sold.
• Study how businesses set goals and measure success with tools like SWOT analysis.

Use books, online courses, or your company’s training resources to get started.

4. Follow Industry Trends

Business acumen isn’t just internal—it’s about knowing what’s happening in your industry.

• Read trade publications and follow industry news.
• Track competitors to see how they’re innovating or growing.
• Stay updated on new technologies that impact your field, like automation or AI.

Understanding the bigger market helps you think strategically and stay ahead.

5. Volunteer for Strategic Projects

The fastest way to learn is by doing.

• Lead cost-saving initiatives to improve efficiency.
• Get involved in product development to see how ideas turn into revenue.
• Help with budgeting or resource planning in your department.

These projects teach you how business decisions get made and give you hands-on experience.

6. Find a Mentor

Learn from someone who’s already mastered business acumen.

• Identify leaders who successfully moved from technical roles to management.
• Ask for advice on how they developed their skills.
• Watch how they think, communicate, and make decisions.

A mentor can give you insights you won’t get on your own.

7. Think Like a Business Leader

Shift your mindset to see the big picture.

• Ask “why” questions: Why is this project important to the company?
• Balance trade-offs: Think about costs, timelines, and customer impact—not just technical details.
• Propose ideas that align with business goals, not just technical solutions.

The more you think like a leader, the more others will see you as one.

Business Acumen: The Missing Skill for Engineers

Business acumen bridges the gap between being a technical expert and a strategic leader. Learn how your company operates, connect with other teams, and get involved in business-focused projects.

Start today. Build the skills that will set you apart as a future engineering manager.