Talent development – lessons from M-Clubs Barnaby Wharton 11 June 2013

What we will cover ●Future Champions and M-Clubs ●What did we learn? ●What can we do? ●Discussion

Future Champions ●2011 report “Future Champions” ●MSBs are a vital, but under-acknowledged part of the economy ●Generate ambition and confidence ●Support the scale-up of internal capabilities ●Access to growth capital ●Size of the prize: £20bn by 2020

●Peer to peer networks led by the CBI and partners ●Generate ambition and confidence ●Give MSBs a common identity ●Support the scale-up of internal capabilities ●Meetings facilitated by expert partners on issues that matter to your business –Access to growth capital –Increase export capabilities –Unlock growth through leadership development M-Clubs – what are they?

What did we learn?

Growing pains ●Move from informal, personal relations with management to formal, structured relations ●Rapid growth journey may not have a clear destination, but need to keep staff on board ●Existing systems may not reflect new reality, communicating change is challenging ●Great leaders of small businesses may not make great managers (and vice versa). Business growth New structures and systems Managers need new skills But do not have time or knowledge to develop them

Finding and keeping the right talent ●MSBs find themselves competing with multi-nationals and large companies for the best talent. People are drawn to working for the ‘big guns’ ●HRM strategies need to become more sophisticated to deal with a complex workforce: –They need to grow their own – and keep it. –Encouraging career aspirations with managing expectations is difficult –Develop a ‘career map’ and how staff will navigate it; give staff opportunities to stretch themselves and value long-term careers –Some are happy in post and do not want to progress. But they have to recognise the need for development. Objectives and development frameworks should reflect behaviour, as well as the job. –You might need to help other navigate around ‘bed blockers’ –Use a competency and values framework for interview – make sure they are not just a technical fit, but also cultural fit, otherwise they might not last.

Embedding the right values ●In small companies the values are driven by the owner/founder, but as the company grows, it needs to take the workforce with it –How to embed values and make them meaningful? –How to engage the staff in the development of values, make them theirs –Make ‘living the values’ part of the performance process – not just what staff do, but how they do it ●Competency frameworks need to reflect everyday life. ●Communal values are an important part of any aspiration business, but they have to carry the workforce with you

Summary ●Growth is challenging ●Requires new skills and expertise at the top of the organisation ●Recognising the need for development and training is the first step ●Be flexible and innovative in how you develop people – career navigation, not paths ●Recognise the long-term benefits of management and leadership training ●The right values help identify talent and bring team together ●M-Clubs are valued as a way of sharing ideas

What can we do?

Business to business ●M-Clubs! ●Peer to peer learning and networks ●Supply chain support Funding ●Training vouchers, Employer Ownership of Skills ●Tax incentives – NICs credits

The challenge for business schools Giving managers the capabilities for growth: ●Courses that are accessible –Online, flexible ●Courses that clearly meet the needs of MSBs –Practice, not theory ●Engagement with the local business community – not just the usual suspects –Accreditation that requires it? ●Graduates that consider MSB careers – and are equipped for them! –Selling courses, outcome and careers