Note – HGFs can also be defined as: 20% plus turnover growth – 1500 in Scotland New cos create about 35% of jobs (70% of cos) Non HGFs create about 40%of jobs (30% of cos)
BIS (Dept. for Business, Innovation and Skills) reports that this is a view that is becoming increasingly widespread for the UK as a whole, and while the UK is mid-ranking in terms of the level of management and leadership skills it does rank behind the US and a number of other developed countries including Japan, Germany, Sweden and Canada. Although the evidence is generally consistent in suggesting that there is a problem with management and leadership skills amongst UK SMEs, there is still no definitive evidence. BIS is therefore commissioning a study to provide a definitive understanding of the impact of leadership and management skills on business performance. The research will have two phases: Desk research to explore , the nature and extent of deficiencies in management and leadership skills amongst UK A survey of SME’ s to assess management and leadership skills SE have been invite to participate in the research and are also in discussion to boost the survey of SME’s in Scotland. This research is due for completion in Dec 2013.
Scottish Enterprise’s policies_Hanna
Scottish Enterprise’s policies for
Leadership & Management
skills in High Growth Firms
Senior Director of Company Growth
Presentation will share….
• Scotland’s economic context - landscape for High Growth Firms
• SE’s research on High Growth Firms
– What we found….
– How that shaped our policies….
• Actions and policies to drive change….
• Evidence gaps and future research….
business with no employees
businesses with employees
340,000 Businesses in Scotland
Scotland’s business landscape 2012
Data on high growth firms in Scotland
• High growth firms (HGFs) achieve 20% + employment growth for three
consecutive years (OECD definition)
• 800 HGFs in Scotland
• Disproportionate impact
– HGFs 2.5% of job creating firms…creating about 20% of jobs
• HGF characteristics
– relatively small (80% have less than 50 employees)
– relatively well established (50% are 10 yrs + old)
– not high tech (85% are in non-high tech sectors)
SE’s HGF Research key findings….
• disproportionately contribute to the economy including job
creation, productivity, innovation and internationalisation
• more likely to be self critical with a passion for improvement
often demonstrated by a focus on operational excellence or
• periods of episodic growth often stimulated by trigger points
• mostly service sector, with few classed as ‘high tech’
• High technology HGFs are ‘market driven’ rather than
SE’s HGF Research key findings….
• Importance of leadership in facilitating growth in HGF’s AND
leadership skills are a core component of most of the other findings
• General characteristics of HGF leaders/management teams:
– high levels of human capital/skills;
– ‘big company’ and industry-relevant experience;
– high levels of entrepreneurial orientation and ambition;
– strong export orientation and ambition to become
– focus on opportunity-driven motivation
– focus on market-driven innovation
– a strong sales and marketing focus with close customer end-user
Policy Implications from HGF Research….
• Understanding key trigger points of growth - when best to
• Closeness to customers is crucial - how to support HGF’s to
innovate and build customer management skills
• Building Sales and Marketing expertise especially for
technology based firms
• Need to exploit fully Entrepreneurial talent and maximise
opportunities hidden in the corporate base
• Developing leadership and management ambition of potential
Focus on SE’s Leadership and Ambition policies….
Supports achievement of sustainable transformational business growth by….
• Help companies significantly scale their operations through Leadership, Strategy
and Structure (eg Companies of Scale to £100M+)
• Address Leadership skills at all stages of growth (High growth start-ups through
to Companies of Scale)
• Making policy connections – Leadership and Innovation; … and Entrepreneurship;
… and Low Carbon etc! – it isn’t stand alone
• Collaborative Framework for Action to support step change needed
• Benchmark ‘leadership competences ’ before and after interventions to see
patterns around impact on performance
Evidence gaps and research next steps….
• Evidence gaps – assess/measure leadership capacity, quantify links
between leadership and firm growth, measure benefits
• UK-wide research on management and leadership (due early 2014):
– measure levels leadership & management skills in UK SMEs
– assess impact of leadership and management skills on business
• Scottish Enterprise ‘leadership measurement framework’
– baseline supported firm leadership performance and monitor changes
– assess impacts of leadership on firm performance
– longitudinal PhD study of supported companies (over 3 years+)
Summary - What helps HGF’s grow?
Innovative Deep Customer
Invest in skills… ….as well as kit Global outlook