by Guest Author: Georgina Stamp
Growth is absolutely critical for the small to medium-sized business that wishes to survive and thrive in today’s competitive marketplace. However, this task can often prove difficult for a company that lacks a sufficiently developed executive management team. The traditional “mom and pop” enterprise may not require such internal oversight. However, growing operations frequently diversify until the need for individuals that can professionally manage various internal operations becomes readily apparent.
The Realization of a Problem
One of the first pitfalls that many businesses encounter is management’s hesitancy to relinquish control. Management may fear that a loss of control will equate to a more spurious approach and compromise existing operations. On the contrary, the natural evolution of a growing company involves the compartmentalization of responsibility. Only by delegating important responsibilities can an organization focus the right amount of effort into each area. A business owner can help bridge this executive gap through internal and external means.
Internal promotions and training are two of the most common approaches companies take to fill a newly created executive position. The advantage is that the person or persons will already have an innate working knowledge of the company and thus, require less orientation. Still, a business needs to clarify the new position. Businesses must provide ongoing training and orientation packages. Companies can even hold competitions internally to determine which individual may be the best for the future position.
Most importantly, companies need to assess and measure various metrics when choosing a candidate. These include the following:
- Interpersonal skills.
- Leadership abilities.
- Risk assessment.
- Product knowledge.
Finding a candidate who possesses the correct mix of these traits will help streamline the training process. It will also assure owners and executive management that they chose the correct person for the position.
Instead of promoting from within a growing business may instead choose to recruit from the outside and use a recruiting agency to spearhead this effort. The right recruiting entity will be extremely professional and skilled at recruiting individuals from a highly selective candidate pool.These executive headhunters provide experience and professionalism to companies attempting to fill certain positions. Because these companies only earn a commission once they fill a position, they focus on finding the best qualified candidate for the role.
In addition to headhunters, companies can bring in other firms temporarily to train employees for a certain role. For example, a medium-sized business recently created the finance manager position. The company may hire an external firm to help train this individual and instruct her on the relevant regulations. The outsourced firm can also ensure she possesses the skill set necessary to successfully handle her new role. Because these firms are experts in their field, the training process goes smoothly ending with an employee who has clear expectations and performance parameters.
A Clear Delegation of Responsibility
Both internal and external methods have one goal in common: to make absolutely certain that the most qualified individual fills a role. A company cognizant of such requirements can expect a more robust operational platform, a higher ROI and most importantly, a greater sense of interdepartmental accountability. All of these benefits help a business continue to grow in an increasingly competitive 21st century business environment.
Author: Georgina Stamp works in the interim management industry for Marble Hill Partners. Georgina understands that branching out responsibility and relinquishing some control isn’t easy but it is all part of the growth process.