Exam Solution Manual for Commercial Awareness Essentials
Key Competencies for Comp Professionals - Answers Financial Management, HR Management, Resource
Management
Financial Management Competencies - Answers 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 - Answers 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 - Answers 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 - Answers The ability to tie the key competencies together, distill key
messages and make impactful decisions
Business acumen skills and behaviors - Answers 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 - Answers Demonstrate influencing and negotiation skills, be
an expert with data, navigate regulatory challenges
The importance of business acumen - Answers Contributions to organizational success, engaging with
executive leadership, self improvement and career development
Contributions to organizational success - Answers Understand the financial and strategic context of your
organization, influence the organizations bottom line and financial results
Engaging with executive leadership - Answers 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 - Answers 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 - Answers Purpose is reflected in mission, vision, values, strategy,
profit model
Mission - Answers The intention or purpose of the business, answers why are we in business?
Vision - Answers What organization wants for the future, who we are and where we are heading
Values - Answers 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 - Answers 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 - Answers Plan for how organization generates revenue, why customers are willing to pay
Competitive strategy - Answers Broad framework of principles that guide day to day decisions affecting
business.
Primary focus of competitive strategy - Answers Operational excellence, product/service leadership,
customer intimacy
Operational excellence - Answers Price/cost-based strategy, combo of price, quality, dependability, ease
of purchase, minimizing Waze, rewarding efficiency
Product/service leadership - Answers Innovation based strategy, product development, market
exploitation, best products, better ideas, commercialize faster
Customer intimacy - Answers Solution-based strategy, creating results for customers by building bonds
to build loyalty
