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 whistleblower directive is coming. But very few companies have taken care of it yet. This is shown by a recent PWC study. And it also confirms our impression in practice. But time is pressing: if the law is finally passed by parliament, all companies with 50 or more employees will be obliged to install a corresponding system. And the number of employees here is based on the European concept of employees – and this differs from the usual way of counting. Employees include everyone employed by the company without exception, including interns, mini-jobbers, and the management itself. This is important for determining whether thresholds are reached or not.
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.
More about HR Development.
*Source: Personio study “The Great Value Shift”, 2022
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.
Sooner or later, undesirable developments in a company become apparent in its earnings situation. Once there, it is usually only a matter of time before the company’s liquidity is also affected. So, if there are negative deviations in sales and/or earnings compared to corporate planning, if the results are below those of comparable companies or even negative, it is imperative to take countermeasures. Precisely because time is usually of the essence in such cases, it is crucial to proceed thoroughly and professionally.
We burn for medium-sized businesses – and for a delicious BBQ after work. That’s why we rounded off our consulting meeting with a joint barbecue evening among our colleagues. Food, view and atmosphere were perfect. THE MAK`ED TEAM meets every two months at one of our locations to exchange information and develop topics together. For the first time, the team met in our new premises in Nuremberg on August 11 and duly inaugurated them, including the roof terrace.
It is increasingly important for medium-sized companies to meet sustainability criteria and to make this visible. In the overall economic structure, they are always part of a larger supply chain and thus bound by the sustainability requirements of other stakeholders. Demands on SMEs also come from banks and insurance companies. This is because the ESG criteria that a company implements are playing an increasingly important role in the financial sector against the backdrop of sustainable finance and are important when lending to an SME. In addition, the expectations of customers and employees are becoming increasingly concrete. But how specifically does an SME go about thinking, acting, and deciding in terms of sustainability? The topic of sustainability is complex. There are 20 important sustainability criteria, which include, for example, “innovation and product management”, “resource management” or “employee rights”. Therefore, the key question is: Where is the topic of sustainability relevant in the company at all?
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.
There is no doubt that the global economy is currently facing major challenges and upheavals. But no matter how global trade and economic relations develop: For all companies with plans for growth, internationalization is on the agenda sooner or later. Opening up new markets is as exciting as it is challenging. A smart approach is the key here. We have already supported many companies in their internationalization and know the enormous opportunities. And also the hurdles.
