This month our very own MD, Campbell Ritchie was interviewed for an article in Small Business Update (Issue 77, May 2010) on developing effective leadership structures in SME’s. We have taken the opportunity to share the article in this edition of our newsletter.

Appointing a strong management team means getting the right blend of skills, personalities and connections. You won’t be looking for people to run whole departments, but when you make changes to your management team it’s a key strategic decision. Naomi Marks finds out how to get it right

With small firms now focusing on growth after two tough years, many business owners are reviewing their management structure. This may involve an internal reshuffle or fresh recruitment; either way, it is essential to appoint people who can work together in the interests of your business.

“If you look at high-performing teams and what distinguishes them, it’s fairly straightforward,” says Campbell Ritchie, managing director of human resources outsourcing company HR Advantage. “The team members all know what they should be doing and all have the same objectives. They have flair and endeavour, and they trust in each other.”

Before you embark on any kind of management restructure or recruitment, make sure you are doing it for the right reasons and you have clear goals in mind. “If you’re going to recruit additional managers, it should be because you need the extra resources, not because you cannot cope with doing everything yourself anymore,” Ritchie emphasises. “Managers are expensive, so you have to see a route to growth and profitability on the back of hiring them.”

You should also be clear about the skills, experience and personal qualities you are looking for, and think about how they will work with what you already have. Ritchie himself believes good managers have a number of qualities in common; the best managers, he says, are good at planning and delivering, communicating and relationship-building, innovating and decision making.

But where do you find these people? Filling management positions using specialist agencies is effective, but can be costly. Press advertising can be worthwhile in the right publications and word-of-mouth recommendation via industry networks can be helpful, although this can tend to produce a narrow pool of candidates. Many firms nowadays maximise their reach cost-effectively by using online job boards and social networking.

Once you have narrowed down applicants, use the interview process to test for the abilities you are looking for. “Asking someone to do a presentation, for example, will help you get an idea of how they approach a particular problem, the thought processes they go through and how they communicate,” Ritchie notes.

“Importantly, you need a clear idea of the skills and abilities the manager you are after should have,” he continues. “They may be the world’s best motivator, but if they haven’t got the technical skills at the level you’re looking for then they’re not going to be able to do what you want.”

You should consider internal candidates, too. “If you only ever give the big jobs to people from outside, you don’t give out the right message to your employees,” warns Ritchie.

He also points out that members of the management team do not have to be full-time permanent employees. “There are many options for small businesses to tap into specialist skills in bite-size chunks, for example, by using professionals from outsourcing providers such as HR Advantage or self employed experts who prefer part-time jobs,” suggests Ritchie. “The important thing is that they all act as part of a team and help drive the company forward.”

A special offer:
Senior HR professionals employed by HR Advantage act as the senior HR professional in a growing number of small, medium and large scale organisations for both short term and continuing assignments. Our part time ‘always on’ solution gives the ideal combination of expertise, flexibility and real value for money. Appoint one of our senior team into your team in the next three months and receive a 10% discount on your first six months support.

For more information on our Senior Level HR Services, please contact Campbell at campbell@hradvantage.co.uk or on 01494 478806.