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Succession Planning in Small and Medium-Sized Enterprises

Succession education in small and medium-sized enterprises (SMEs) is critical to ensure the sustainable growth and continuity of the enterprise. Smooth business succession from management to successors is essential to protect the value of the company and pursue new possibilities.

Traditionally, succession within the family has been the norm for small and medium-sized enterprises in Japan, but increasingly talented individuals are taking over as managers through MBOs, third-party succession, and other means. Successor education is time-consuming and is necessary to draw up a long-term growth strategy of five years or more.

Therefore, it is important to establish an appropriate education plan, taking into consideration the period between the decision on the successor and the actual handover. Succession planning in SMEs is important to ensure organizational continuity and growth strategies. Below are five specific methods of succession planning.

1. use of external training organizations:. Identify potential successors early on and involve them in training programs. Provide opportunities for potential candidates to learn management's thinking and culture firsthand.

2. internal on-the-job training Assigning employees to work in the field to gain experience and to multiple departments will help them develop a broad perspective. It is important to enrich their experience by assigning them to new business divisions.

3. tough business experience:. Tough experiences will help them develop their judgment. Consider setting up a subsidiary or sending them to a fast-growing venture company.

4. Work experience at other companies. Have employees acquire knowledge and skills through a combination of in-house work and outside seminars. Provide training in a planned manner to coincide with future business succession.

5. guidance by predecessors:. Guidance by management is effective. It directly conveys management's thinking and judgment, and supports the growth of successors.

By combining these methods, SMEs can achieve succession planning.

2024年02月27日

Many companies falsely tell new employees that they should take on challenges without fear of failure

When hiring new employees, many companies They want new employees to "take on challenges without fear of failure.

In general, this is to

1. growth and learning

2. innovation and competitiveness

3. teamwork and trust

4. leadership development

5. building a positive organizational culture

The purpose of the program is supposed to be to "build a positive organizational culture," among others. However, in reality, none of the companies are praised when a new employee joins the company and fails. The first priority is to learn the job. New employees do not have the opportunity to try new things, and failures are treated as mistakes. Companies are well aware of the above, The companies are aware of the above and intentionally omit the phrase "when the new employee has grown up enough". The sinister part is that they intentionally omit the phrase "when you have grown up enough. New employees who join a company with a willingness to take on new challenges Despairing of the status quo and are shaped by the corporate culture, and by the time they grow old, they are By the time they are old enough, they have become employees who wait for instructions.

We should conduct our hiring activities with the true intention of "We are looking for employees who are easy to deal with. and abolish the false business of recruiting consultants who deceive new employees.

2024年02月12日

Initiatives required of business successors

The following efforts are required of business successors who will succeed to the business in the future

 

1. acquisition of basic knowledge: Successors need to acquire explicit knowledge of business strategy, financial management, risk management, legal issues, human resource management, marketing, public relations, customer service, technological innovation, etc.

2. use of experts: Successors can acquire the tacit knowledge necessary for business success through the advice of experts (e.g., lawyers, accountants, tax accountants, financial advisors, management consultants).

3. human networking: Business successors can acquire tacit knowledge about business management through interaction with senior managers, managers of other companies in the same industry, and government support organizations in the community.

4. Continuous learning: It is important for business successors to continuously collect explicit knowledge about the business, identify trends, and learn about other companies' case studies.

2024年01月17日

Importance of Marketing Research for SMEs in Rural Areas

In general, marketing research has the following advantages for small and medium enterprises (SMEs) in rural areas where the market size is small

 

1. understanding of market needs: Marketing research helps to understand market needs and trends, which can then be used for the development of products and services. This can then be used to develop products and services.

 

2.Gather information about your competitors: Marketing research allows you to gather information about your competitors' products, services, and sales strategies, which can be used to differentiate and sell your products and services. This can help you differentiate your products and services and improve your sales strategy.

 

3. attract new customers: Marketing research can help you understand the needs and preferences of new customers. This allows you to offer products and services that will attract new customers.

 

4. improve satisfaction of existing customers: Marketing research can help you understand the needs and dissatisfactions of your existing customers, so that you can offer products and services that will attract new customers. This can lead to increased customer satisfaction.

 

5. to promote sales: By conducting marketing research, you can gather information that will lead to sales promotions. This can improve promotional strategies.

 

However, many local SMEs do not conduct marketing research. The reasons cited for this are lack of funds, capacity, and knowledge, and as a result, product-out approaches are prevalent. Initiatives that ignore market needs because they seem to sell on a whim, because they are socially significant, or because they make use of a local specialty will surely fail.

 

Unlike large corporations, small and medium-sized enterprises do not have the management resources to manufacture product products and to conduct trial and error.

 

Therefore, there is a strong need for managers to earnestly learn about and engage in marketing research. Managers who cannot learn should leave immediately.

2024年01月14日

The Need for High-Value-Added Products in SMEs

The reason why high value-added products are important for SMEs is to remain competitive.

To counter inflation and cope with shrinking demand, SMEs will be required to develop and offer products incorporating more advanced technology and design to the market in FY2024 and beyond.

SMEs can differentiate themselves from competitors by offering products that meet customer needs.

In addition, while high value-added products are more expensive to produce, they tend to have higher profit margins. Therefore, SMEs can increase their revenues by developing and selling high value-added products.

However, in order to develop high value-added products, it is necessary to secure and train personnel with more advanced skills and designs. Therefore, SMEs need to focus on recruitment and training.

2024年01月11日
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