Every organisation has its own distinct characteristics, yet certain leadership trends consistently emerge, especially when comparing the needs of agile SMEs with those of larger, more established corporations.
Here, Jerome Bull explores the unique priorities and considerations involved in hiring senior leaders for smaller businesses. He also provides insights on how to effectively identify and appoint the right talent based on an SME’s specific structure and dynamics.
The unique needs of SMEs
Despite their critical role, however, the distinct differences between SMEs and larger companies are often underestimated. One key area in which these differences become evident is in the capability requirements and expectations of leaders in these companies.
Larger businesses usually operate within defined structures, processes, and systems that guide decision-making and establish clear ways of working. In contrast, SMEs tend to be more fluid and informal, offering greater agility and responsiveness but presenting challenges in terms of leadership protocols, which are less rigidly defined.
As a result, SME leaders typically need to be more agile and responsive, with the ability to thrive without established leadership protocols – often relying more on relationships than hierarchical authority. For SMEs seeking to appoint senior leaders, this requires careful consideration and a tailored approach.
Understanding the context
At NSCG, we have been supporting the appointment of senior leaders across various sectors and ownership structures for over 40 years.
In our work with SMEs, we’ve recognised the critical importance of investing time to deeply understand the organisation – its history, purpose, and culture. We achieve this by immersing ourselves within the business and engaging closely with key stakeholders, such as Board and ELT members, before initiating the search process.
This process allows us to uncover the unique features of the business and identify the key levers for change. This ‘cultural audit’ also helps reveal essential success factors such as leadership philosophy and behavioural traits.
Working in partnership
Ongoing collaboration is also key to the process.
For example, we work closely with the hiring organisation to clearly define their needs. Many SMEs grow organically, adding resources as they scale, and welcome organisational design advice.
This often extends to support such as the creation of job profiles detailing role purpose, deliverables and key accountabilities. In fact at NSCG we have a proprietary modelling system, Blueprint, to facilitate this.
We also work hand-in-hand with the hiring company throughout the process. This acts as a form of quality assurance but also enables opportunities to share insights and intelligence both ways and to continually revisit the brief and requirement. The search process is iterative and benefits from regular check-ins and collaboration to ensure alignment around expectations.
The assessment process
Assessing potential hires for their suitability is obviously a crucial aspect of the process, but it requires more than just traditional interviews.
At NSCG, we have a dedicated in-house team of Occupational Psychologists who specialise in evaluating executive-level capabilities. These assessment experts employ a combination of psychometrics, feedback interviews, and simulation exercises to uncover role-related data on candidates that is often difficult to access through traditional interviews.
Their focus is on understanding key factors such as interpersonal characteristics, leadership and influencing styles, and adaptability. In some cases, we also profile members of the existing leadership team to assess compatibility and team dynamics. Overall, this enables the hiring company to make better judgements about suitability and culture fit.
Onboarding
Senior leadership recruitment doesn’t stop when the appointment is made. In fact, that is just the starting point on ensuring a successful long-term hire.
Our experience has highlighted the benefit that SMEs and new hires gain from early integration support following the appointment. We therefore often continue working with hiring organisations after the appointee is in place, providing structured coaching through our team of expert in-house Career Coaches.
By treating recruitment as an ongoing process, SMEs can better align expectations around deliverables and help accelerate the new leader’s early impact.
Getting the hire right
SMEs have distinctly different leadership needs compared to large corporations. Partnering with human capital experts who truly understand and appreciate these unique differences is essential.
By working with partners who take the time to deeply understand a business’s culture and structure, and align that knowledge with a tailored, end-to-end selection process, SMEs can secure the right leadership to drive their success.
Want to learn more about how we can help you find the right leaders to power your business? Request a call here.