Small Firms are the front line of Management Skills Challenge
By Christopher Ward

In business how much impact does the skill of a manager have on the actual performance of the team?’

According to many commentators, not only is this skill the defining factor in the team’s success but, the smaller the team the greater the impact.

A recent article from the Institute of Leadership and Management highlighted research which found that the impact of a manager’s performance is felt most acutely in work units of fewer than ten people.

In groups of that size, it said, staff engagement with their task “soars or plummets depending on the manager.”

Therein lies one of the great ironies of the management skills challenge facing Wales as it seeks greater competitiveness.

Around £138m is spent in Wales each year on management and leadership development but smaller firms – particularly those employing under 10 people - are least likely to be involved.

So, while these firms - comprising 98% of all Welsh businesses - stand to gain most from boosting managerial skills, huge numbers of them just ignore the opportunity.

However before pointing any fingers, the learning provider network in Wales must examine itself and ask why such lack of engagement in something so important.

Is enough being done to make management and leadership training relevant, available and attractive to the proverbial tyre and exhaust bay in the Valleys?

If their management have the right skills, there’s no inherent reason why more businesses like these can’t move up the value chain, attract a broader customer base and generate more wealth and employment in its own locality.

However they will only go to the trouble and expense of acquiring the skills if learning is readily available and they believe it’s really going to make a difference to their business. That’s the challenge facing the provider network.

First they need to ensure they speak the same language as small owner-managers who are firmly focused upon turning a short term profit and keeping the show on the road. Theoretical management concepts need to be translated into practical and obvious business benefits.

Small businesses do not think like big businesses. Management learning must be adapted to their needs and, crucially, its delivery must become more flexible so those running small firms can take advantage without leaving damaging gaps in their daily business operations.

Many learning providers have gone some way towards such flexibility but take up among small firms indicates that it’s not enough. 

We must pursue this issue relentlessly. Enabling smaller firms to achieve their full potential is vital to the economy so, when it comes to Wales’ management skills challenge, this sector of business must be regarded as the front line.

Christopher Ward is chief executive of Wales Management Council.