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

Flanders

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

Some pictures …

Some pictures …