strategic management training in flanders - by karel van isacker
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Strategic Management Training
in Flanders, Main Findings Conference of STeP- Strategy Training e-Platform
project
(2013-1-TR1-LEO05-47550)
Presenter‘s name-Organisation name
www.step.ybu.edu.tr
Ankara, 14/09/2015
6.410.705 inhabitants (2014)
514.262 SMEs (2009 – FGOV.be)
› Represents 57% of all SMEs in Belgium
› Represent 99.4% of total Flemish businesses
› 37% increase in period 2000-2009
› Especially smaller SMEs (till 20 employees)
increasingly employ people (they are more
careful, so if they hire it is a positive signal).
› They offer over 40% of all local employment.
Flanders
Main industries which SMEs
dominate in Flanders
Sector Brussels Flanders Wallonia Belgium
Services incl.
tourism
42,035 185,860 79,837 307,732
% 42.7% 36.2% 33.5% 36.2%
Trade 18,873 98,948 47,240 165,061
% 19.2% 19.3% 19.8% 19.4%
Construction 9,993 65,264 30,291 105,548
% 10.2% 12.7% 12.7% 12.4%
Many SMEs start, but very high fail.
› Economic crisis hits these SMEs especially
hard
› 99% of bankruptcies in 2012 were SMEs
› Jan-May 2013: 5.139 bankruptcies (increase
of 12,5% compared to 2012). Loss of 9.923
jobs (10.127 jobs in 2012).
Barriers for SMEs
Economic situation, declining demand
Lack of vision, changing market
Mismanagement
Bad cash flow management
Lack of capital, less fluent credit from banks
Hesitation to lay off staff
Fraud
Bad/No payment by clients
Incapacity to work by owner, fire, theft, etc.
Bankruptcy mother company, sister company, holding
10 main reasons of bankruptcies
Majority has predefined strategy - Strategy often not known in company
Almost 75% indicates lack of resources to provide training
Motivation very diversified
Mostly legislation that forces them to invest in training
Lack of time and (financial) resources define why training is not given
Modular training preferred
Need for consultancy in some areas
External world is analysed but not really via formalised tools (very limited usage of tools)
Training requested mainly during working hours (in-house only 40%).
Preferred training providers: labour unions and external consultants
Main barriers faced (STeP
survey)
29 users (19 males, 10 females) › 27 (19 males, 8 females)
› 13 had set up own micro SME business
› 12 worked in family business
› 4 were planning to set up a business
› ALL were already working
16 sessions (last one being online assessment
2 waves: › December 2014 – May 2015: As part of own training
on social media usage in an entrepreneurial environment (social business strategy)
› September 2015: online sessions
Piloting of STeP
1. 4 hours - Module 1 – 2 + lunch
2. 4 hours - Module 3 + lunch
3. 4 hours - Module 4 + lunch
4. 4 hours - Module 5 + lunch
5. 4 hours - Module 6 + lunch
6. 4 hours - Module 7 + lunch
7. 4 hours - Module 8 + lunch
8. 4 hours - Module 9 + lunch
9. 4 hours - Module 10 + lunch
10. 4 hours - Module 11 + lunch
11. 4 hours - Exercises on Module 1-3 + lunch
12. 4 hours - Exercises on Module 3-6 + lunch
13. 5 hours - Exercises on Module 6-9 – presentation by young entrepreneur + lunch
14. 5 hours - Exercises on Module 9-10 – presentation by young entrepreneur + lunch
15. 4 hours - Self-evaluation session + lunch
16. Online sessions
Training sessions for modules
Online › Is considered a support tool for training when being
at home, to re-check course content.
› Attractive layout and design of course material scored very well.
Modules (1, 2, 3, 4, 7, 8, 9, 11 were main focus) › 2. Policies, Initiatives and Legal Framework on
Strategy Development
Subsidies are still largely unknown
EC project funding was of interest and resulted in co-project proposal writing with attendee as exercise
PRACTICAL information is crucial, so the Dutch version required more information, especially during the lessons
Main findings
Modules › 3. Components of Strategy Statement
Most important elements were the environment analysis, which they liked as a structured approach. They actually already do it, albeit unstructured.
Is the very basis of the course.
› 4. Environmental Analysis for SMEs
Porter’s 5 forces model was basis for teaching this module and worked quite well.
Examples from real life of life cycles of products AND companies were discussed.
Different theories were linked to this (threats and opportunities, SWOT, PESTEL) and explored.
SWOT analysis was best accepted “tool”.
Main findings
Modules › 5. Formulation of Strategy This chapter was the least liked. Not because of
the actual content, but due to the fact that the trainees could not really associate their companies with the different presented strategies. They are mostly related to issues by larger SMEs.
› 6. Strategy Implementation Training focused on the tables which were
clarifying and avoided using the rather complicated text.
Mintzberg’s triangle of management styles was used as basis to have the trainees provide examples of real life experiences (was also one of the session with the most amusement…).
Main findings
Modules › 7. Strategic Leadership
The “new wave” of young entrepreneurs really dug this module.
Examples were given by trainees where the different leadership styles occurred in their family businesses and leaded often to intergenerational conflicts:
Strategic Leaders vs. Visionary Leaders vs. Managerial Leaders
› 8. Business Ethics and Social Responsibility Strategy Blended social /commercial entrepreneurship is a core
element for our company as we point to the social impact a company can have.
Every trainee had as exercise to create a scoreboard and action plan of their own business .
A discussion on this topic formed the basis for a project proposal.
Main findings
Modules › 9. Social Business Strategy
This is the core training module for us.
Establishing a social media presence with focus on the way companies can interact with their clients.
Internet hypes (such as investing in click farm deals, etc.) were debunked, pointing also to FB logarithms that detect such fabricated likes.
Quality instead of quantity was the motto.
Involving social media in all activities where suitable.
An example was worked out for a transport company to create a social media presence. The company did apply it afterwards.
› 10. Measuring Organisational Performance Was considered too academic by the target group and
relevance for them was not clear due to their small size.
Main findings
Modules
› 11. Mentoring
The principle of mentoring as a way whereby a
“newbie” is supported by an “oldie” was
considered very appropriate to support
intergenerational transfer of knowledge and
skills.
3 companies already applied it and were then
asked to present the principle.
Main findings
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