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December 2005 Issue

Staff Functions Critical To Small Business Success; Need To Develop Proactive Internal Consulting

Increasingly, internal and external factors are affecting small businesses, causing them to be buffeted to an extent unknown a decade ago.

In this environment, it is becoming more important each year that the key support functions need to transform themselves into proactive consultative entities.

Experts agree that many HR groups have been able to make the transition from a traditional compliance-oriented functional organization into or more consultative and value added component of the business process.  For many others, including MIS, purchasing, accounting, finance and other staff roles there has been less success, according to leading management experts.

For many within these departments, this process of being more consultative requires learning new skills and taking risks including redefining relationships with bosses and core business leaders.

Managers Wear Multiple Hats

Within a small business, the managers responsible for these functions often wear other hats as well.  This multi-prong responsibility sometimes creates conflicts and prevents managers from doing their best.

In addition, in handling staff functions as independent providers rather than consultants, the friction generated erects a barrier with other departments that can impact the overall success of the organization.

Failure by today's business executives to understand the consultative side of these functions can be fatal according to internal consulting expert Kevin Herring. Claims Herring, those who fail to make the necessary changes often wake up to find themselves outsourced.

According to Peter Drucker, the late management guru, understanding the interlocking roles of functional areas is critical to developing an expanding organization.

As Drucker often pointed out, “support functions often act as the anchor on new processes or can, if properly motivated, provide the fuel and glue to drive new successes.”

With the “flattening” of organizational structures brought about by new technologies and business practices, the need for more communications, team approaches to solving corporate issues and to integrate functions, has grown significantly.

Recent Study Highlights Needs

A recent study by www.HRsolutionsonline.com indicates that this process of imparting the consultative approach to functional areas is increasingly becoming more important.  Among the key drivers for this approach is the need for organizations to more swiftly react to changes in the marketplace, financial pressures to improve employee productivity and the changing nature of the workforce.
This latter point, where employees want to know the “why” of a particular activity as well as the “how” is transforming the business landscape.

There is also more active involvement by employees in the overall management of the organization with IT programs that “wire” employees into the company process giving them more knowledge of what is happening as well as a methodology to provide input.

New Manual Available

Henning's new book, The "Practical Guide for Internal Consultants: Using Your Expertise to Build Business Capacity" is the first book created to provide key concepts, steps and examples to enable readers to function as value-adding internal consultants.

Henning's other book, "The Future of Staff Groups" is now in its second printing and provides a foundation for practices outlined in the new volume.

Together, the two books describe what it takes to consult to the core business to resolve issues of cost, quality, profitability, cycle time, and customer satisfaction. They are available for purchase at Ascent Management Consulting: http://www.ascentmgt.com.

Both staff and operation functions need to realize that an integrated small business can be much more effective in dealing with change and new challenges.

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