Blog 3 of 6: Human Resource and Capacity Management
This is the third in a series of six blogs that draws on our extensive research involving 75 medium-sized businesses and 1500 leaders. This research has identified six key challenges that these businesses must address to succeed.
42% of businesses indicated that they lacked adequate staff capability and expertise in essential roles. They found it challenging to recruit and retain qualified staff and were unable to identify crucial training and growth opportunities. This shortfall in capacity presents challenges in managing workloads and obstructs the scaling efforts of businesses. Here are five concepts that help mitigate these challenges and allow business to sustainably grow and succeed:
Vision for Growth: Provide Clarity and Inspire Confidence
A clear vision for growth isn't just a roadmap; it's a beacon that guides and motivates the entire workforce. organisations should articulate their growth plans with clarity and continuously to ensure that every team member understands their role in this journey. Providing clarity not only aligns efforts but also builds confidence across the organisation, empowering employees to commit to shared goals.
Structured Growth Through Predictive Planning
Incrementalist people capability growth can lead to as many problems as stagnation. Strategic organisations use data-driven insights to forecast their capability needs (people, equipment and infrastructure) and phase their growth accordingly. This proactive approach to planning helps in anticipating future growth challenges and aligning potential resource requirements to meet these demands smoothly. By structuring growth, companies can integrate new capabilities and talents without disrupting their core operations. If you have forecasted the revenue growth for three years, what does the future structure look like to deliver it?
Proactive Talent Management and Development
The most successful businesses are those that view their employees as long-term investments. By proactively managing talent, companies can identify potential leaders early and provide them with the development opportunities necessary to grow within the organisation. Tailored development plans not only prepare employees for future roles but also demonstrate a commitment to their professional growth, increasing engagement and retention. Create pathways and then manage talent to grow in your business. Have an annual talent conference looking at performance and potential.
Invest Ahead in Key Capabilities
Forward-thinking companies invest in key capabilities before the timing becomes critical. This could mean adopting new technologies, undergoing strategic upskilling, or making critical hires slightly ahead of demand. Early investments in these areas ensure that the organisation remains competitive and adaptive, ready to meet future challenges head-on. It is similar to when the business took a punt as a start-up, now you have to invest to get through this level of complexity – or deliberately stay under it.
Iterative Review for Continuous Improvement
It should go without saying, adaptability is crucial in today’s fast-paced market. organisations should regularly review and iterate their structures (as part of adapting strategy) to remain aligned with their long-term objectives. This ongoing process allows businesses to stay flexible, making adjustments based on internal feedback and external market changes or shifts to refocus capabilities to the right areas. Continuously optimising resources and processes ensures that the company can swiftly respond to new opportunities and challenges.
Contributed by Greg Allnutt MNZM, Partner