ARTICLE: When your SME business grows up OR your ready to take step back: Appointing a General Manager
When a small/medium business is going from strength to strength, evolving as it grows, the business owner must also evolve to keep up.
They might be strong in product knowledge, operations and/or sales 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, a possible 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 the appointment of a GM will immediately allow the SME business owner to step away from the business. You will need to invest time, knowledge and energy into this person to eliminate the risk of them not working out and causing disruption.
To avoid these pitfalls when the time comes, here are some of the most effective ways you can ensure you recruit a valuable GM:
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.
Carefully scope the role. Create a job description with the help of a trusted adviser that understands SMEs and their unique dynamics - Document the role, responsibilities and performance measures.
Update the Organisation Chart - show the new GM position reporting to the MD/Founding Owner and carefully consider who will report to the GM. Consider how you will communicate this with your lead team and the timing of it.
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.
Invest time in coaching and integrating the GM to close any ‘gaps’ in knowledge, experience or skills, and seek comprehensive feedback on how the GM is handling the role and aligning with the MD/Founding Owner. Structured meetings with a mutual party (e.g. your trusted adviser) can often create more open and honest feedback resulting in a more seamless transition.
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.