For small and medium-sized enterprises (SMEs), management should not be overly refined or complex; it should be simple and efficient. Never manage a rabbit the way you would manage a camel. Additionally, some SMEs hire professional managers, but owners often worry about letting go of control, yet interfering can stifle the professional manager's effectiveness. Many SME owners are troubled by this dilemma.
For SMEs, the business is typically founded and developed by the owner, who often has a certain dependence on the owner. Owners also tend to view the enterprise as their entrepreneurial achievement. It is unrealistic to completely exclude the owner from management. The key is to determine the extent of the owner's involvement and how to grasp the essentials of business operations.
First, SME owners must focus on three key matters to lead effectively and grasp the lifeline of the enterprise.
Strategic Layout: Many SME owners find strategy daunting, thinking their company is too small to need it. However, as the saying goes, "One who does not plan for the long term will not succeed in the short term; one who does not plan for the whole will not succeed in a part." Strategic layout here does not mean creating a systematic, detailed strategic plan like large corporations, but rather having a long-term, holistic vision for the company's future. As the leader, the owner must "see the essence through phenomena and view the present from the future," deeply understand the industry's fundamental rules, anticipate future trends, objectively assess the company's resources and capabilities, and clearly think about and appropriately position the company's future industry positioning, business boundaries, market and product positioning, development goals, models, space, and strategic measures. This is essential for medium- and long-term development. Therefore, thinking about and grasping the company's strategic vision is the owner's primary task.
Product Management: Products are the weapons of SMEs and the foundation of their survival and growth. Many companies succeed due to strong product performance in the market, while others lack momentum because their products fail to sustain. R&D and innovation capabilities are often weaknesses for many companies; they intend to act but delay year after year, and R&D remains nominal.
Products are the key to success for all enterprises. As the owner most familiar with the industry and market, it is crucial to manage product development planning, clarify product management strategies, and drive the launch of strategic new products to ensure success. For example, Geili Consulting once served a pesticide company in Shandong with a scale of 1 billion yuan. Its chairman personally oversaw products and conducted a nationwide market inspection every year, ensuring the company's product and sales policies for the next 1-3 years were well-founded. This is a good practice for many companies to learn from.
- Key Account Marketing: Many SME owners are the company's top salesperson. They do this not to compete with sales staff for clients or commissions, but to deeply understand the market and secure the company's lifeline—key accounts. Many multinational company owners personally handle key accounts, so why not SME owners?
Second, SME owners must possess three key capabilities to operate the enterprise skillfully.
Business Model Innovation Capability: The business model is the engine that creates value. Without an appropriate business model, the owner's strategic vision is hard to implement. More importantly, times change, and customer needs evolve, so the business model must be developed and innovated continuously. This requires SMEs to have the capability to design and innovate business models, with owners playing a crucial role in driving such innovation.
Resource Integration Capability: In today's context, resources are not a problem; in fact, too many resources can become a problem. SME owners need to efficiently integrate relevant resources (such as supply chain, marketing, and R&D resources) according to their strategic development and operational requirements, to create the most competitive customer value and realize the strategic vision. Resource integration is the second key capability for SMEs.
Team Building Capability: For any enterprise, no matter how brilliant the strategy or advanced the business model, even with abundant resources, without a strong execution team, everything is in vain. As the leader of an SME, even if you have high overall competence and ability, if you lack a team with high execution that follows your thinking and pace, how can your enterprise develop?
Third, management supports operations. To operate the enterprise well, SME owners must focus on the following three key tasks from a management perspective:
Key Talent: Without people, the enterprise stops. Talent is the foundation of enterprise development. SME owners must be adept at managing the most important operational element—talent, especially the senior team, middle-level cadres, and business backbone. Owners should become excellent mentors and qualified HR managers, ensuring talent is layered and has a succession pipeline, ultimately forming a collective effect of enterprise talent.
Institutional Building: SME owners, especially those with big ambitions, should never think too highly of themselves or make the enterprise dependent on them. If that happens, it is a tragedy. For an enterprise to develop, it must not rely on rule by man but on rules and regulations, establishing a modern enterprise management system for healthy growth.
Performance Model: To lead the team forward, SME owners must be good at motivating, especially core and key talent, and must personally handle their incentives. Enhance the team's sense of honor and belonging, let team members treat the enterprise as their own career platform, fully release their energy, and achieve coordinated development with the enterprise. Without a performance model suited to the enterprise's characteristics, the enterprise will always be passive in incentive management.
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