Those SME Challenges: How we can start meeting them. (Part 2.)

The second aspect of the Owner/Manager’s challenges is, in effect … 

Empowering Managers’ Decision Making.

If we have selected the right kind of manager, then we must let them manage. After all, isn’t that why they were hired in the first place? They are there to make sure things are working (and improving) so the Owner can focus on the big picture — the direction of the company itself.

However, it is also true that managers cannot function in a vacuum, so it is important to ensure we clarify what the Key Results Areas (KRAs) are for their domain. These will most likely fall under a number of the following important elements: Budget, Controls, Quality, Revenues, Timeliness and Staff Satisfaction.

Temptations Must be Avoided!

What temptations?

First: telling them what their targets are.

This must be avoided. Far better if we ask them to assess where their area stands in each of the KRAs then highlight what they think needs attention.

Second: telling them how to go about achieving their targets.

Instead, we ask them to prioritise the list and build an action plan for each of the one or two most important ones.

Third: forcing them to undertake too many plans in an unreasonably short time.

This will likely lead to a “scattergun” approach where they are trying to keep too many plates spinning. Having to rush things all too often leads to mistakes and under-performance that in turn create frustration.

Of course targets and timeliness are important, so we cannot afford to be too lax. On the other hand, trying to work under unreasonable pressure — especially when combined with an uncaring and demanding Owner — will quickly turn the manager’s thinking to “do I really have to put up with this any more?”

… And attrition. (And they will take your best workers with them.)

Fourth: closely following their every step.

Yes, we do need to know how things are going. We must be made aware if things are not going well but there are ways of doing this is a positive and constructive manner that creates teamwork and commitment.

For example, we should encourage them to consider a way of monitoring how things are going so they get an early warning if it is not progressing the way they expected. This will enable a re-think of the strategy before it is too late.

You will notice the wording of that last paragraph. It is for their satisfaction that they are on-target.

Now if we add to this the question: “is there any support needed from me to help you succeed?” we will be indicating our willingness to be supportive as needed and that we are as committed to their results as they are.

Similarly, we can request a very brief monthly update on progress but on the understanding that, if things are not going as well as they want and they are lost for ideas, they can immediately seek a discussion with us to see if a solution can be found. 

I am pleased to announce this article has also been published by EmployWise on their Blog: http://www.employwise.com/hr-best-practices/299-sme-challenges-how-we-can-start-meeting-them-part-2.html

Those SME Challenges: How we can start meeting them. (Part 1.)

 Let’s start at the beginning.

 If we seek high performance, low maintenance leaders, the first stage is really getting the right person in place whether we are promoting or recruiting for such positions.

... And, in a large percentage of cases, this is all too frequently where things begin to go wrong.

In the nascent stage of their businesses, many entrepreneurs bring in people they know and whose performance they trust. The only problem with this is the fact that the stock of such people is limited and insufficient to continue fuelling growth. But how many entrepreneurs learnt how to recruit/select effectively? In terms of promotion, they make the same mistake as many other companies, both large and small — giving the baton to the best performer, or the person with the greatest knowledge, or the one who has been with the organisation the longest. When it comes to recruitment, they rely on the same old “favourites” of skills, knowledge, qualifications and experience, added which is whether they seem O.K. and presented themselves well at interview. Based on this, they get handed the baton.

Now the crucial question. What percentage of the new incumbents drop that baton? It is certainly far higher than is helpful to staff morale, customer service, productivity, and attrition, let alone the sanity of the Owner/Manager.

I regularly find what companies look for, and what they actually need for high performance in the role, are poles apart.

Understandably, effective leaders are difficult to find but it does help if we know what we should really be seeking in candidates, whether they be internal or external. This strong focus is vital to enable more right choices.

What should HR and Business Leader be looking for?

Unfortunately, the CV is not likely to tell us much, even if there are statements about being a manager and responsible for so many people and whatever processes. I am not saying this is fabricated. It can be quite true but it does not in any way confirm they lead people forward and whose direct reports enjoy working with them towards great results. They merely had the title but not necessarily behaved as a leader.

The word “behaved” was purposely used and emphasised to illustrate a fact: a significant amount of a leader’s success relies upon behavioural strengths, contributing, in most cases, more than skills, knowledge, qualifications and experience.

What are the behaviours leadership demands?

Different kinds of role will require different mixes of strengths and, although the tools can assist us in setting these and measuring them in candidates, the very simplified and broad brush strokes of what we train interviewers to focus upon for leaders are as follows:

• A strong need to take charge, set direction, and face (non-technical) challenges. Sees the “big picture”, goal oriented and makes things happen.
• If a strategic approach is needed, then an analytical, thinker and planner.
• Who does not rush into things too quickly, taking a little time to reflect before acting. Can take a degree of pressure and deadlines.
• Decisive and independent, leaving detail to others and requires little supervision.

Then the “learnt” behaviours:

• Maturity and judgement.
• Stability and persistence.
• Attitudes and beliefs. (We are not judging a person’s beliefs, merely ensuring they will be comfortable adopting the values the company upholds.)
• Self-motivation. 

Finally: Aptitude and speed of thought.

The interview.

The interviews need to be pleasant, not a “grilling” of the candidates. Questioning must be in-depth — it is too tempting to accept the first answer given and also to assume what the interviewee means, as opposed to ensuring we establish what they do mean.

I am pleased to announce this article has also been published by EmployWise on their Blog:

http://www.employwise.com/hr-best-practices/287-sme-challenges-how-we-can-start-meeting-them-part-i.html

Indian HR needs to learn to be professional?

I have been disappointed by HR in general and given to believe I am in the minority. I was both relieved and saddened to find I am far from alone. 

This TOI article underlines some important aspects to consider... 

"No one is free from sin, right? So, what are the cardinal sins prevailing in the HR domain? We unveil the seven lethal ones."

http://www.itsmyascent.com/web/itsmyascent/career-advice/-/asset_publisher/W3x7/content/the-7-deadly-hr-sins-your-say

Some Challenges SME Owners Face.

SME owners generally face a host of operating problems and the few I will touch upon here, I am sure, will fall far short of a complete list. However, they are some of the major challenges I have come across whilst working with or talking to owner-managers.

One major issue is really due to the results of several others: there always seem to be 1,001 things to sort out as far as operations are concerned. As a result, it becomes very difficult to find the time to focus on the “big picture” and to lead the organisation forward.

Why is this? What are some of the underlying situations that create it?

They find it difficult, if not impossible, to rely on managers to deal with things on their own. Too many of them resort to procrastination rather than dealing with situations head-on. Alternatively, decisions are made that just do not make sense and can actually make things worse rather than better. Failing either of these, some managers will refer every single thing for decision, however minor, instead of making the decision themselves within their authority level.

Problems, sometimes significant ones, are “kept under the carpet”, hidden from the owner, either in the vain hope that he will not notice or that the issue will somehow sort itself out if we wait long enough. Of course, neither of these wishes is generally granted and the owner is now forced to wade in, take personal command, and spend time to get things sorted out at “shop floor” level.

From these kinds of situation, the owner learns to keep a constant watchful eye on everyone and on everything that is happening — or not happening — so they can catch the problems early and solve them before it is too late. The larger the organisation, the greater the time needed to monitor and manage it properly to ensure quality and delivery schedules are met and there are no cost overruns. Customers have to be satisfied and profits need to be made.

Finally, add to this the owners’ own statements that they “cannot get good people” and we can understand their feeling of being trapped in a never-ending circle of fire-fighting just to keep the business on its feet, let alone trying to build it into something bigger and better.

In effect, the owner is managing almost everything because the managers aren’t managing. Due to the constant pressures, owners are unable to find the time to think more deeply and broadly about solutions that can, and will, make significant changes for the better.


 
I am pleased to announce this article has also been published by EmployWise on their Blog: http://www.employwise.com/hr-best-practices/278-challenges-sme-owners-face.html