medium sized businesses
(SMES) are usually owner-managed or subsidiaries of larger organisations. They
often face significant challenges during times of transition.
From Solo to Team
key transition is from a single individual to a small team
whose members each take full responsibility for specific functions
within the business.
businesses, the management structure effectively equates to
one individual who
does “everything,” i.e. their
involvement is required in every key process within the business.
When the business grows and the volume of work increases, that
individual may become a bottleneck, slowing down
work flow. This will tend to create a “headless chicken” approach
of running urgently from one crisis to another, neglecting
one area to fix another, thereby creating a vicious circle.
there are many examples of successful businesses that operate
in this fashion, it is likely that this approach will
create a ceiling to the amount of activity and therefore growth
that can occur.
the business that is completely dependent on one individual
is in a dangerous
position. This approach can
mean that some preventative measures are overlooked, for example,
planning for disasters (computer backups,
access to key documents,
etc) and lack of succession planning in the event of illness.
Finally, for an owner manager, the pressure of running such
a business may be unpleasant, without providing time to enjoy
our Leadership Facilitation or Management and Delegation packages
from coaches who have successfully run businesses in
their career is a vital investment. To implement a change to
team-running requires a change in focus, whilst still ensuring
the business remains profitable.
Coaching provides a space where these issues can be planned, implemented
and changed where necessary.
Once the team has been formed, individual and team coaching
enables a fast-tracking of effective performance. Small businesses
need to be fully operational under the new team to build on
From Team to Board
a medium-sized business which has implemented a leadership structure,
finance, delivery, sales and other functions
delegated to key individuals, the next transition is
to a large business. If the structure is not changed, once there
are, say, 100 employees, the existing structure may begin to
break down as in the case above.
The next step is to implement a corporate structure. This effectively
means that each key individual must now embrace the leadership
and technical requirements of a corporate role.
cost of running a corporate structure, especially if external
capital is required, is such that the business must
be large and profitable enough to sustain these additional costs.
However, if the process is not undertaken soon enough the business
will be at risk without the internal controls and forecasting
that are required to run a larger vehicle successfully.
of the leader and individuals within the management team will
greatly assist throughout this transition process. It
will deliver a change of focus from management to leadership
and also provide core skills that are needed at this level. It
may also help individuals to decide if this new role really
is suited to them. Other key people in the organisation will
also benefit from management coaching and revenue coaching.