Thursday 26 January 2012

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