A learning Project impacting on business performance.

Based on the wheel of growth the external coach assists the owner/manager to define a learning project which one the one hand will have a measurable short to medium term business impact and on the other hand is well suited to improve growth capabilities.

Past projects have focussed for example on such topics such as improving competitor analysis, implementing an idea competition for new products and services, expanding to new markets, improving internal organisation, creating a continuous improvement process, developing a participative strategy process, establishing a second management level etc.

The development of growth capabilities starts with the identification of the actual relevant challenges faced by an enterprise during the process of growth. In practical terms, the coach assists the manager/owner to define a learning project. The manager/owner selects members of a project team considering in particular competence development potentials and needs (e.g. preparing staff for middle management position, learning cooperation across units, preparing technical staff for sales support). In a briefing session the project is handed over to the team. Subsequently the owner/manager acts as client of the team. This requires the owner/manager to trust in the team and not to interfere (which is also a learning process for the owner/manager).

The team supported by the coach develops a project plan containing not only the business objectives but also detailed learning objectives for the team as a whole and for individual members. Often a competence matrix (cf. North and Kumta 2014) is used to visualise current and desired competence distribution of the team. After approval by the manager owner the project is carried-out step by step which is supported by the coach.

There are regular meetings scheduled with the “client”, the team organises its self- learning and, if necessary, task related training is provided by the coach.

The “growth coach” acts as process consultant following Schein´s (1999) concept of building a helping relationship. By understanding that the consultant/coach can only help the clients to solve their problems consultation becomes a matter of establishing a supportive relationship in which the client is guided to understand the need and opportunities for change. The growth coach is to facilitate the project and the learning process, ensure communication between project team and manager/owner and periodically reflect with team and manger/owner on the process.

Many owners/managers of SMEs have mixed feelings of employing external consultants and normally would expect an expert consultant to solve their “technical” problems. Therefore the growth coach has often to overcome resistance to process coaching in SMEs and cautiously support a cultural change. In order to train “growth coaches” a 20 hour training course is offered for participants with consultancy and coaching experience. In order to qualify for a certificate as growth coach candidates have to successfully accompany a “Learning to grow” project and submit a report to the originators of the methodology. Coaches are invited to participate in a supervision process.

Experience exchange and peer pressure in a SME network is integral part of the Learning to Grow methodology. Usually a “Learning to grow” network consists of 7-10 SMEs in a region who are not competitors. One rationale of the network is to act as a pacemaker to ensure that projects at firm level keep track. Furthermore the network agrees on training needs and runs joint training sessions ( p.e. on topics such as project management, internal organisation, effective team work, active sales management). During the usually 6 months project duration three “Learning to grow” workshops are carried-out, were SMEs share their project advances and difficulties and in each session focus on a relevant topic from the wheel of growth ( p.e. delegation and empowerment of employees). There is always time for networking between project teams which in some cases leads to intensive bilateral interaction.

4

Triple value: Results of Learning to grow projects

This methodology puts in evidence the effectiveness of project based learning to sustain and develop growth capabilities of SMEs. Aligning learning of teams with

business challenges creates measurable short or mid-term results as well enhances organizational capabilities to sustain growth.

During the development process of the methodology periodic interviews and reflection sessions were carried-out by the researchers with manger/owners, project teams and consultants acting as growth coaches. A number of case studies were written to document the project process at firm level (RKW Deutschland 2012). In the Basque (Spanish) SME Learning to grow network storytelling was used to create evidence on results achieved UGGASA (2013). In the mean time a standard questionnaire is in place, one for manager/owners and another for project teams to evaluate results of the project, which has been applied in two Learning to grow networks so far.

These evaluations demonstrate that there is a triple benefit of the learning projects. Firstly, projects let to significant business results (e.g. conquering new markets, adding new services to products, improving processes, productivity and quality). This is relatively easy to measure related to the “business objectives” of the project.

Secondly, learning projects have contributed to enhance organisational capabilities amongst which are improved team work, better problem solving, enhanced communication, freeing of owner-manager from daily routine tasks, development of leadership capabilities of middle managers as well as entrepreneurial thinking of employees. The learning projects have also raised the awareness about the unused potentials of employees. While at the beginning of the project some manager/owners stated “I doubt that my people are able and qualified to carry-out such a project”, in the reflection session at the end of the project the same managers/owners stated: “I was not aware what my people are able to do” or “I have learned to trust in the capabilities of my people”. The demonstration what teams are able to achieve let also to a different communication and delegation behaviour. Asked about the effects of the project team performance at the end of a 6months learning journey the 9 owner/managers of the Basque Learning to grow consortium (UGGASA 2013) particularly valued the increased capacity to reflect, self-organise and orientation towards firm objectives. The perception of project results by 46 members of 7 projects teams of SMEs in lower Saxonia (Hardwig 2012) is shown in figure 4. More than fifty percent of the respondents agreed that there had been a substantial improvement of internal communication and that new processes, procedures, structures had been introduced ensuring a better use of employee potentials thus rendering the organization more flexible and adaptable to change.

A third benefit of the Learning to grow methodology is derived by creating a network of participating firms allowing exchange of experiences with the methodology, for discussing solutions to similar problems ( for example internal communication, delegation of responsibilities, improving sales) and pooling resources for training on topics of mutual interest. The joint workshops were seen as an important pacemaker and exerted peer pressure to advance in the in-company projects.

As the workshops usually are hosted by one of the participating enterprises this gives also a chance to get to know the host and establish business links. While in Germany there is a long tradition of SME cooperation, in Spain or Latin America SMEs tend not to cooperate. Therefore in these countries the barrier to open itself and share insights with other SMEs still needs to be overcome.

Figure 4: Perceived changes by project team members (basis: 46 members of 7 projects teams of SMEs in lower Saxonia, 100% = 46 answers, Hardwig 2012)

5

Conclusions

There is an abundance of programmes worldwide aiming at an improvement of SME performance by providing external advice. Programmes vary widely in their approaches and effectiveness. The experience with currently about 70 projects demonstrates that the

Learning to grow methodology is an effective way of developing capabilities relevant to sustain growth in SMEs. Combining business objectives with a learning journey addresses the desire of owner/mangers for measurable short or midterm business results and introducing changes of attitudes and behaviours towards a more participative management. Employees gain confidence in their capabilities and learn how to evaluate and develop their competencies.

The mayor challenge resides in ensuring continuity after the end of the first Learning to grow project in the firm. Usually the cost of the external coach is funded by a regional development agency or other SME assistance programme. Once the first project is over SMEs would need to continue either by themselves or pay for the coach and organize between themselves to continue the Learning to grow network. While a significant number of SMEs continued work with their coach to support implementation of the first project or start a second one, the majority of firms who participated in a funded Learning to grow initiative have not continued with an external coach even though they expressed their satisfaction with project results. This is a common phenomenon of SME assistance programmes.

Therefore, in recent Learning to grow initiatives emphasis is put on the training of internal coaches who will execute a first project with an external coach and then should be able to run a second project without or only a minimum of external assistance.

Furthermore, an evaluation is planned to assess if changes initiated in a Learning to grow project have taken root in the participating SMEs. Based on occasional contacts we know that instruments like the project charter or the competence matrix are used on a regular basis in a number of firms.

Our vision is that Learning to grow projects become a routine exercise to sustain change in turbulent environments.

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