SME's Way Forward

Many SMEs operate successfully from an operational and a financial perspective but sustainability needs innovation and professional discipline. There is always a gap in implementing ideas in a better way with improved planning and prioritising. Strategic Risk Consulting can improve their discipline in applying priorities and identifying planning schedules for projects and help them maintain focus on priorities on an ongoing basis.

SMEs make both cost and time savings as a result of an improved business planning and prioritising strategy. Timely implementation of projects can be crucial as it would result in significant direct and indirect cost savings. This will also allow SMEs to reach the market sooner than anticipated resulting in opening up of newer opportunities which they might miss otherwise.

In Strategic Risk Consulting, on-going communication and a high level of commitment is required. A broader comprehension of issues and a reality check on any proposed way forward or actions requires both communication and commitment. Assurance that SMEs are heading along the right track in a highly professional manner is provided.

To gain competitive edge, it is crucial for SMEs to utilise knowledge efficiently and to enhance their innovation potential. Managing Intellectual Capital and reporting it to customers and stakeholders systematically is becoming increasingly important for future-oriented organisations. Conventional balance sheets and controlling instruments have lost some of their value because Intellectual Capital, i.e. value-adding knowledge, internal processes and structures along with important relationships with customers and stakeholders are becoming more and more important. The systematic management of knowledge and innovation potential will help SMEs transform from traditional enterprises into "learning organisations".

Strategic Risk Consulting provides measures of a successful transformation such as process maturity, organizational benchmarks and best practices. Recommendations are made for implementing specific models, tools, and procedures that can most usefully be adapted by SMEs. Effective transformation is always purpose-driven. SMEs should bring change by introducing innovative products, services and processes. Innovative Financing, Innovative Designing, Using Innovative Materials, Innovative Approaches, teaming with Innovative People and striving for continuous improvement.

Strategic Risk Consulting starts with identifying and discussing crises, potential crises, or major opportunities in light of the market, organisational and competitive realities. Identifying and engaging a group with enough power to lead the change and getting the group to work together like a team is the second essential step. The third step is creating a vision to bring the change, developing strategies for achieving the objective and constantly communicating the new vision and strategies.

Get rid of obstacles, change the culture, systems or structures that undermine the change vision. Encourage risk taking and non-traditional ideas, activities, and actions. Hire, promote, and develop people who can implement the change vision. Generate short term wins and reward people who made the wins. Consolidate small wins for producing more change. Rejuvenate the process with new projects, themes, and change agents. Achieve better performance through customer and productivity oriented behavior, better leadership, and more effective management and ethical corporate governance processes. Develop means to ensure leadership development and succession.

So what's the message for SME leaders? Read on. . .

If fear stands between you and something you want to achieve, the only route is through it. As you approach your goal, your fear will diminish and your confidence will increase. Don't fear for making mistakes as they are opportunities for learning. Mistakes can also provide impetus to carry out a change you may have wanted to make for some time, but lacked the motivation to carry through. When you have made a mistake, think of the words of Walt Disney. "You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you."