When a small business is going from strength to strength, evolving as it grows, the small business owner must also evolve to keep up.
 
They might be strong in product knowledge, customer service and identifying opportunities within their market. But, to keep up with the demands of a larger business, the SME business owner needs to also think about staff management, financial management, marketing and sales management, and systems development - areas which may sit outside their wheelhouse.  
 
If your business is currently going through this and you recognise that you're being stretched beyond capacity, the wisest course of action is to consider appointing a General Manager.
 
It's such a critical position that the recruitment of the first GM will probably be the most challenging in the history of the business.
 
Even with capable, high-quality candidates, it is unreasonable to expect that:

• a GM will be able to slot straight into the role without any time investment from the SME owner,
• the GM will manage the whole business on their own,
• the business will grow quickly and easily cover the cost of the GM, or
• the appointment of a GM will immediately allow the SME business owner to step away from the business without any loss to revenue or profits.

 
To avoid these pitfalls when the time comes, here are some of the most effective ways you can ensure you recruit a valuable GM:

1. Recruit from within - Consider if an existing manager could make the transition into the GM role. Consider potential and whether some education and mentoring could bridge a gap in knowledge.
2. Create a Job Description Form (JDF) - Document the role, responsibilities and performance measures.
3. Update the Organisation Chart - show the new GM position reporting to the MD and carefully consider who will report to the GM (6 maximum).
4. Consider recruiting the new GM into a manager role first (in the field of their greatest strength) with a plan to promote them to GM after 1-2 years.  This will provide a ‘trial period’ before fully handing over the ‘keys’ to the business.
5. Invest time in coaching the GM to close any ‘gaps’ in knowledge, experience or skills, and seek comprehensive feedback on how the GM is handling the role.
6. Be rigorously fair and honest with the GM – they should be of the caliber to receive robust feedback and it will help with the development of the role and the business.

 
If this is where you are at, and you'd like guidance from someone who has led many businesses through this same transition, I'd love to offer my assistance. Send me an email with your questions: bruce@genesisba.com.au. 

Guest post
 
A few years back, I was working in administration for a medium-sized company that was growing rapidly.
 
As we accumulated more and more work, the processes that suited our company in the beginning began unravelling at the seams.
 
Our management team had already anticipated that a change was needed if we were to grow efficiently and effectively.
 
One of the things we so desperately needed was a way to keep track of our expanding library of documentation. So, we decided to implement a document control system.
 
In theory, the company was doing the right thing - establishing a good system so that we could increase efficiency and productivity.
 
However, when it came time to actually start, the management team fell into some common traps which made implementation of this new system almost impossible.
 
As the nominated systems manager, I saw it all firsthand and I want to use my experience to warn other business managers about some common mistakes companies make when implementing new systems.
 
If you want to implement business systems that work, don't do the following:
 
- Don't cut the systems manager out of meetings that discuss system development.
The person on the front line needs to be able to know the process inside and out, understand the decisions that have been made, and hear the common problems that managers want to be able to overcome. If that person is left out of the communication loop, you are expecting them to create and implement a system with only half the information that they need.
 
- Don't try to get too many people involved in the decision making process.
It's essential to have a management team that cares about what different departments need from business systems, but when managers can't see eye-to-eye, there can be more wheel-spinning than action. There should be one executive decision-maker (might be the MD or similar) who is committed to prioritising growth and moving the company forward together.
 
- Don't try and recreate what hasn't worked in the past.
Good systems solve problems. If you are overhauling your old system, it's most likely because it's no longer effective. Get clear on the issues that you had with the previous system and come into any planning meetings focussed on the problems that need to be solved by a new system.
 
Are you planning an overhaul of your business systems? Do you want to learn how your business can make a seamless transition and keep growing?
 
If you’d like to talk more about the best way to implement new business systems,  ask to discuss this topic with me the next time we meet, or send me an email: bruce@genesisba.com.au.