Commercial awareness is a broad, yet critical skillset

Engineering is essentially about problem solving and multi-tasking, and that means finding new ways to apply existing knowledge. This is where lateral thinking, creativity, strategy and innovation come in – which area also key commercial skills.

According to Harvard Business the demand for engineering professionals continues to rise.

In a recent study by BLS “The data shows that engineers need various soft skills in addition to their highly technical knowledge in order to stay competitive and advance their career.

As with many professions, there’s more that goes into building a successful engineering career than just technical know-how; there’s a business side of engineering as well. As engineers advance to senior positions, they acquire responsibilities like managing teams, projects, and budgets. To reach those positions and perform their duties effectively, they need to have a strong set of business skills.”

IMechE’s recent research and consultancy partnership with Loughborough University discovered that engineers of the future will need to be multi-faceted, understanding the engineering imperative whilst fully embracing and helping manage their customers commercial proposition.

The LinkedIn 2020 emerging jobs report states that “engineering roles across the board are still seeing tremendous growth. More than 50% of this year’s list was made up of roles related to engineering or development, with the emerging field of robotics appearing for the first time”.

But engineers shouldn’t become complacent. Whilst we can acknowledge that increasing self-awareness and developing leadership and management skills are now a must, as Harvard mentions, the requirement for combining these with commercial awareness and business skills are also a crucial factor in your success.

Commercial awareness is a broad, yet critical skillset

According to TargetJobsUK, the number one graduate skill recruiters now want is business or commercial acumen.

At a basic level, commercial awareness translates to having a good grasp of your industry; its trends, market influences and competitors. As your career progresses, you’ll need to understand the impact of financial reports, use accounting tools and recognise what can affect profitability. You’ll be required to negotiate and influence a range of stakeholders, manage projects and teams, have an understanding of the sales process, risk awareness, and cost estimating and IP, amongst other areas.

It’s your ability to understand what makes a business or organisation successful.

Engineering is essentially about problem solving and multi-tasking, and that means finding new ways to apply existing knowledge. This is where lateral thinking, creativity, strategy and innovation come in – which area also key commercial skills.

As the job market shifts, employers are looking for multi-faceted talent

“The role of line manager/team leader has become increasingly critical, and requires a different mix of skills (both technical and communication skills)” - An Assessment of Skill Needs in Engineering led by THE INSTITUTE FOR EMPLOYMENT STUDIES

It’s no longer enough to take a basic communication skills or leadership/management course and hope that you can get by in the new economy. High-level communication and core commercial skills are the new currency and in this series, we aim to educate and empower you to remain at the forefront of your industry - and gain a competitive advantage in your chosen field.

Each month, for the next six months, we will focus on one key commercial area, giving you tips and insight to help propel you forwards.

Actionable Tips:

• Spend some time on business and industry websites. The Financial Times, Business Insider and industry-specific sites are great sources for business knowledge and are more interesting than they sound!
• TV programmes such as Dragons Den and The Apprentice can help you learn about business, commercial challenges and how to overcome them.
• Attend trade shows, subscribe to industry publications and join associations. They provide a wealth of information. Visit the IMechE library, where a range of leading-edge business books and journals are at your disposal.

Recommended reading:

• Risk Savvy by Gerd Gigerenzer 'Powerful, engaging, with welcome touches of humour' Financial Times

  In this age of big data we often trust that expert analysis is accurate. But, as risk expert Gigerenzer reveals in his latest book, most of us often misunderstand statistics, leaving us misinformed and vulnerable to exploitation. In Risk Savvy, he gives us an essential guide to the science of good decision making, showing how ordinary people can make better decisions for their money, their health, careers and families – and delivers a surprising conclusion.

• Business Adventures by John Brooks - “Financial journalism at its liveliest and best”.

  What do the $350 million Ford Motor Company disaster known as the Edsel, the fast and incredible rise of Xerox, and the unbelievable scandals at General Electric and Texas Gulf Sulphur have in common? Each is an example of an organisation that became defined by a moment of notoriety; fascinating accounts and key insights that illuminate the intricacies of corporate life.

To find out more about how you can improve your business and commercial skills, visit: imeche.org/training/business-and-commercial.