The press releases are piling up: small and medium-sized companies are increasingly experiencing economic difficulties – many have concrete closure plans and are implementing them. The offers for sale are increasing. Energy shock, brittle supply chains, shortage of skilled workers and inflation are the reasons. Price increases are not only hitting their own profit and loss statements, they are also causing customers to hold back and lower sales. An analysis by the information service provider CRIF sees an increased risk of insolvency for around 300,000 companies in Germany. That is around 10% of the companies in Germany. The industries that are particularly energy-intensive have already shown significant increases in insolvency cases. This situation calls for attention and caution.
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The planning of a company succession, the sale of the company or the departure of a shareholder: The company valuation can become relevant for very different reasons. Basically, the company value is an important criterion when a company is up for succession. The company value provides important guidance at all stages of the succession process: If an entrepreneur knows the company value at an early stage and if it turns out to be lower than desired, he may have sufficient time until the time of the planned sale to take suitable measures to increase the value. If the entrepreneur is weighing up various succession options, the company valuation is an important factor in the decision-making process. For example, in order to clarify whether the sum would be sufficient as retirement provision. Or to ensure fair distribution within the family succession. Or to discuss what tax effects an internal family succession would have. When it comes to a concrete sale, the company valuation is a critical decision-making basis for the negotiation talks.
In many medium-sized family businesses, a succession is due in the foreseeable future. In most cases, the company is to remain in family ownership. But not all daughters and sons are talented entrepreneurs. Or simply no one wants to do it. Then an external manager can be appointed.
When an external manager takes over the management of a family business, there are many challenges – for both sides. At the same time, the cooperation also holds many opportunities: External managers can professionalize the company with their experience and bring fresh momentum into the business. For the collaboration to succeed, a systematic approach is advisable – starting with the onboarding phase. Read more
The corporate world is changing dynamically and with it the challenges for leadership and management. Managers are constantly confronted with new tasks as a result of the permanent changes. In order to successfully cope with change, focused further development is essential. Structured development of executives is best achieved using an individually designed development model. It ensures that leaders are best equipped for current and future business tasks and challenges.
Systematic development of executives in medium-sized companies is currently the exception rather than the rule. Leadership development therefore offers many companies a great, previously untapped opportunity to strengthen their team, find new talent and successfully move the company forward even in phases of major change.
Supervisors play a Key Role in Employee Retention
The structured development of managers is an important basis for the company’s future – and for staff retention. According to a recent Personio study*, 46% of employees in small and medium-sized companies across Europe are planning to change jobs in the near future. One of the most important reasons cited for this is a lack of appreciation. Leadership style, social skills, empathy and corporate culture are key factors in determining how much employees identify with the company and feel comfortable there. This means that supervisors play a particularly important role in the onboarding process.
Success is no coincidence
Reflecting on oneself, deepening one’s own competencies, learning, networking, motivating … In times of such rapid and major changes, a modern manager is characterized above all by the willingness and ability to develop further. This applies to younger managers as well as to experienced ones. The concrete design of the personal development model depends on many individual factors such as the management level, the area of responsibility or the personal experience values. A younger manager who wants to prepare optimally for taking on greater management responsibility will set completely different priorities in his development model than an experienced manager who wants to drive major change processes in the company. The earlier a development model for leadership and management is implemented at all levels, the more promising the results. After all, developing leaders systematically takes time and is an ongoing process.
Leadership Development with Structure, Empathy and 360° View
How can a manager be developed in a goal-oriented manner? When implementing the development model, it is important to look at the individual framework conditions, corporate culture and goals and link them to the internal guidelines for managers. For this purpose, we develop an agile development model. First, the initial situation is analysed and relevant competencies as well as strengths and weaknesses of the executives are identified. On this basis, development areas and goals are defined, and an individual leadership development model is elaborated. The development model is tailored to the individual starting situation of the executive in order to ensure optimal learning and successful transfer to practice. It will initially be launched as a pilot project and, after the test phase, will be successively implemented as a professional infrastructure in the form of coaching, training, and learning-on-the-job elements. Managers can thus achieve their individual development goals in a targeted and efficient manner. The training effects are permanently evaluated and assessed to ensure the best possible development results.
THE MAK`ED TEAM sees leadership development as an essential part of successful business development. We develop agile leadership development models that are easy to implement and focused. Executives benefit from our high level of expertise in corporate business and our interdisciplinary, experienced team.
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*Source: Personio study “The Great Value Shift”, 2022
Orders cannot be accepted because production does not create enough output? The complaint rate is increasing? The company is in a tight financial situation because too much liquidity is tied up in the entire production process?
Many medium-sized manufacturing companies are currently in a challenging situation. Weaknesses in the structures and processes of production thus become even more apparent. Of course, no production is perfect. If it is viewed and optimized according to the principles of lean management, significant improvement results can be achieved. Lean Production creates a customer-oriented, lean, and resource-efficient production process and strengthens the competitive position. Lean Production aims to avoid waste at all levels in production processes, to ensure good quality, to keep delivery times short and costs low.
One comes, one goes – and if one doesn’t go, one is too many. This statement already says a lot about why succession in family businesses is demanding. It takes a successor who is willing to take on responsibility and it takes an entrepreneur who is willing to put responsibility in the hands of his successor. The path to succession is crucial because it involves answering many questions. Systematically addressing the issue of succession in the company at an early stage ensures success – even if the result will most likely be different than expected.
Ever thought of setting up a “bank”? That can be a smart move for medium-sized companies, too! There is a long tradition of companies setting up their own “bank” in the form of a lump-sum funded provident fund (pdUK). Legally, of course, it is not a “bank” in this case, but from a business point of view it is. This is why the pdUK is also known as the “entrepreneur’s bank” and was initially an instrument of large-scale industry for company pension schemes. But this model can also make sense for SMEs with 10 or more employees. If a company decides to set up its “own bank”, this brings many advantages for the workforce – and for the company itself. That’s why it’s becoming increasingly popular among small and medium-sized businesses.
As hosts, we look back on a successful “Event & Dialogue” 2022 and on a varied evening with inspiring exchanges and exciting discussions. It was an all-around successful event last Wednesday, July 20, with owners of medium-sized companies and HR professionals. After getting to know each other and the opening speech by Martin Auer, Managing Partner of THE MAK`ED TEAM, on the topic of “HR: Digitalization in Practice”, Claudia Weber from Deinzerconsult moved on to the agile salon method.
No question about it! In economically uncertain times, many companies are susceptible to crises. Now is the time to take special care in risk management. In times of energy crisis, Ukraine conflict and supply bottlenecks, very few companies know what tomorrow will bring and drive on sight. However, anticipating the development of one’s company is crucial, especially in volatile times, in order to recognize crisis indicators in good time and largely avoid a crisis that could threaten the company’s existence. The StaRUG has made this a corporate duty. The Stabilization and Restructuring Framework Act, which came into force on January 1, 2021, aims to protect companies from insolvency and support them in a restructuring process through various instruments. Permanent planning and transparent risk management are mandatory components in the entrepreneurial toolbox. This enables management to assess how the company is developing at any time and to identify crisis indicators before the crisis makes big waves.
The world of work is changing dramatically and is challenging HR managers. Whether it’s the shortage of skilled workers, succession management or digitalization: there’s a lack of personnel here, a lack of sufficient skills there. These dynamics have led to an increasing professionalization of HR management. State-of-the-art planning of personnel requirements forms an important and valid basis here.
