As a third-generation entrepreneur, a former employee of a diverse set of organisations, and coach and consultant to many others, I have always been affected by the countless beliefs, practices, and strategies, by both large businesses and SMEs, that keep their organisations from achieving the success they yearn for.
And I’m sorry to say, that in this case, it’s often the SMEs (small and mid size companies) that particularly continue this struggle, for lack of insight or resources.
What’s worse, is that their limiting tendencies have a big grain of truth in them, but they are also surmountable, as other organisations have proven.
But the lack of knowledge, training, and support in rising to a higher level, has kept many struggling, and others, bankrupt.
In this post, we consider some of the major reasons that organisations today, but especially SMEs, fail to find their success and ways to overcome it.
So what is ailing?
1) The lack of TRUST in SMEs
You have heard this before but still, it’s not understood enough.
Regardless of culture, most people envy and aspire to be the few who have their own business, others working for them, and the benefits many imagine come with this, not the least of which they believe is a better quality of life.
Not only is this a struggle to attain as an entrepreneur, but many working folks criticise those who have gained it, despite their own aspirations.
And yet they are also true, as some who finally do attain this go on to exploit the very people who work for them and make this possible.
And yet there is the other side:
Business owners who have fought to establish themselves, struggling with workers who shirk their work, play the system, and fail to genuinely apply themselves to the job.
So who is right?
Both, I’m afraid to say.
The continuous distrust between “boss” and “employee” continues to this day and is one of the critical barriers to a truly successful business.
As mentioned, there are unfortunately too many cases on both sides to perpetuate this perspective. And yet, there are more ACTUAL cases of the contrary, but sadly what stands out is what disappoints us.
Still, this belief system is one of the key things preventing companies, especially SMEs, from creating the kind of circumstances and dynamics that are key for success.
Here’s the thing:
- Business owners have a perspective, strategy and vision that their employees rarely see, understand, and can empathise with. They need to make it work because if it fails, it is ultimately on their shoulders, their risk and cost.
- But employees also have their needs and concerns, and rightfully so, as they too have risks, families, and livelihoods, to uphold.
What lacks here so often is empathy, understanding, communication, transparency, and a shared and mutual commitment.
As long as we continue to think, believe and ACT, that the other is only out for themselves, there is no hope for a better professional future.
2) TRANSPARENCY and healthy COMMUNICATION, vital for SMEs
As already briefly mentioned, you cannot expect people to hear and understand you if they don’t know what you are dealing with. This goes for both sides.
- If SMEs leaders are not regularly communicating on the state of things and the plan for what’s to come, they cannot be surprised when their employees disengage.
- Likewise, if employees – at ALL LEVELS – have no way of feedbacking their needs, experiences, ideas, concerns, and solutions, we cannot hope to learn what is truly necessary for the business and its success, or expect the teams that support it to be truly invested, inspired, and engaged.
Too much transparency is neither necessary nor effective.
The very role and responsibility of leaders are to have to hold certain critical information.
They need to hold changes and budding developments in confidence until they are properly vetted to be communicated to their teams in a clear, organised, and all-around effective manner.
But key wins, changes, and developments need to be divulged as soon as possible.
Because, whether we like it or not, it will come out one way or another, and these informal leaks are rarely if ever healthy or favorable. At the very least they transmit the message that Management doesn’t value their Teams enough to share with them, be it true or not.
3) VISION and STRATEGY in SMEs: the meaningful path
What most employees yearn for is a clear, reasonable, inspiring and manageable path to work towards. Be it for their team, the company as a whole, or simply themselves.
How many times I have heard professionals struggle with the fact that the vision, mission, strategy, objectives, and values in their company are not clear, or simply non-existent?
But often times it even comes down to their very job descriptions, individual objectives, or rules of engagement.
They simply don’t know where they are going or why.
And what is painful about this is that establishing this is not heavy or costly work. Especially not with experts to guide you.
In just a few meaningful, engaged, and focused sessions, we can resolve this. Deeper work takes time but can also be spread over a reasonable period of time.
This level of uncertainty creates a lot of unnecessary fears and issues. Limiting a sense of security and meaning in the company.
Even if the organisation is undergoing changes, regular, concise, and relevant messages to the employees can help guide the way. Not only think, but how they also perceive, feel, and orient themselves to the tasks at hand.
There are reasons why most people do not launch into an entrepreneurship project. It’s because they do not want to bear the risk and effort. The responsibility and stress to create everything from scratch and going forward (I can tell you as I’ve coached many potentials).
And who can blame them!
Even as an entrepreneur myself, I think the excessive value placed on this professional lifestyle ignores the incredible value and service that “intrapreneurs” – dedicated, creative, entrepreneurial professionals WITHIN and organisation – have towards the success of today’s companies, inventions and human advancement overall.
But what they opt for in return is to follow a leader who IS willing to take such responsibility and risks.
What they need and want is an overall direction, insight, and support, in taking the organisation forward towards fulfilling its vision and mission. How it relates to the greater picture but also to their every day functioning. And leaders DO have a responsibility to provide that, yet many do not.
If you want to delve a little deeper into this, read our NEVBblog “3 Key reasons why your team is not involved.”
4) LOVE and Feedback
These two concepts are one and the same when healthily managed. But I separate them here for the purpose of clarification.
Yes, we all need insight as to where the organisation as a whole is going. We need it, even more, to help gauge our own contribution and performance.
- What are the key priorities and indicators of success in my job?
- So, what do I need to do it?
- What do you most care about?
- How can we regularly track and discuss this in a respectful, safe, and collaborative manner? That empowers us both.
Too often there are not the right just, equal, and intelligent tools to systematically address this. Not to mention the plethora of untrained managers who never learned how to do this in a truly effective manner.
And yet this is a KEY.
You’d be surprised how many people are actually open to hearing constructive criticism of their work. As long as it is respectfully given with the opportunity to have an open discussion.
And you should also know that many people in this world are never trained to properly RECEIVE feedback. Even when well given, as they have never learned how to separate their self-worth from performance on a given task.
As Brene Brown states, self-worth is being worthy of acceptance, love and appreciation as a person. Whether you can care for your plants or draft that proposal or answer that many phones is another. Needing to work on that doesn’t make you a worse person, just a skill you need to hone.
No one, ever, tells us that.
It is not so difficult to establish a culture of healthy and constructive feedbacking, in both directions, within a company.
In the beginning, it may be tough as people will not trust it. But if you are clear, open, positive, yet assertive in your messages, it will catch on.
Coherence, constancy, and patience are the key.
5) REWARD Behaviour for Success
But of course this is the last bit: Reward.
- Reward people for opening up and saying the important things.
- Reward extra effort, consideration, and participation.
- And Reward the behaviours that you know will make your organisation great – like INNOVATION!
We too often, sometimes without even realising it, react in ways that only make people shut down. Turn off, and despair.
Make this effort. And for those that rise up to this beautiful challenge, motivate them to empower it in others.
You as a leader are limited. But the sum total of the massive power of your teams is limitless. Guide them in what is the key to greatness in your organisation.
And contact us, with no charge, to discuss any questions or concerns you may have. It is our pleasure.
