4. Cutting Edge

Overview

Further cementing a focus on the long-term performance of the organisation, during this stage more HR attention is paid to internal factors and external macro trends which could affect the organisation, both now and in the future. HR needs to be scanning for, anticipating and responding to external opportunities and challenges in a timely way.

It is vital that the HR strategy remains closely aligned to the business strategy, facilitating the organisation’s long term goals. Likewise, the organisation’s vision and values need to be the golden thread through all practices and approaches, including reward. A total reward package is common, with attention focused on financial and nonfinancial rewards, including job enrichment and talent development.

Also in the established stage, all of our four case studies focused on career development and succession planning. And finally, at this stage of transition there is also a noticeable shift in our case study organisations from management training to leadership development.

Insight for Practice

From our case study research we suggest six insights which we believe are important to support the sustainable long-term performance of SMEs, with implications for practice. Under each insight we pose questions for you to consider – whatever stage of transition your organisation is in – about whether your current HR practices and approaches are contributing to the long-term performance of your organisation. And there is no one-size-fits-all solution, as the most appropriate courses of action will depend on your organisation’s individual situation.

As mentioned in the introduction to this report, we tested out our six key insights for practice both through our case study research and with local SMEs at various events and forums in Singapore (attended by more than 200 SMEs). The feedback from these local organisations was that the insights largely resonated with their experiences. However, we were careful to also remain open to any new and different findings, and we did uncover some subtle nuances to the insights, which we have incorporated into our explanations of them below.

1 – Anticipation is key: readiness and relevance will determine success

2 – Organisation values and purpose need to be the constant bedrock of the business

3 – Skilful alignment of people management insight with leaders’ aspirations is a critical HR challenge

4 – Simplicity of structure and purity of process preserves innovation and entrepreneurship

5 – Sustainable growth involves striking a balance between preservation and evolution

6 – Look beyond immediate operational issues and take the opportunity to lay the organisation’s cultural foundations for the future