Building a strong management team as an SME: how do you go about it?
April 2025 - As an SME entrepreneur, there comes a time when you can no longer manage everything yourself. As your business grows, it becomes increasingly important to structure and delegate tasks.
A good management team helps you work more efficiently, make strategic decisions and prepare your company for further growth. But how do you build a management team that really adds value?
When is a management team needed?
In the early stages of your business, you are probably the driving force behind everything. But once your business grows and multiple teams or departments emerge, communication becomes more complex and it becomes more difficult to be everywhere at once. Many SMEs find that around the 15-20 employee mark, a management structure becomes necessary. This is the time to appoint a core management team to support you in day-to-day management and long-term vision.
A strong management team not only ensures a better division of tasks, but also gives you the space to focus on strategy and innovation. Moreover, it helps your employees to further develop themselves and use their talents in the best possible way.
Internal promotion or external recruitment?
When assembling your management team, you are faced with an important choice: will you let existing employees advance or will you look externally for experienced forces? Both options have their advantages.
· Internal promotion offers the advantage that employees already know the company culture well and are often highly committed. However, it is crucial that you check carefully whether they have the right skills and leadership capabilities. A talent analysis or assessment can help to objectively identify their potential.
· External recruitment can be interesting if you lack specific expertise within your team. New people bring fresh ideas and experience, but it is important to ensure a good cultural fit and smooth integration within the existing team.
How to choose the right managers?
The success of your management team depends on the right composition. Think carefully about what competences you need and what responsibilities you want to share. A balanced mix of operational and strategic profiles is essential. In addition, you need to ensure that managers are not only individually strong, but also work well together and complement each other.
When selecting managers, it is wise to look beyond experience and qualifications. Leadership, communication skills and the ability to motivate people are equally important.
The importance of a complementary team
A management team works best when its members complement each other. Make sure you have a mix of different expertise, leadership styles and personalities. This ensures that your organisation remains agile and that decisions are viewed from various perspectives. In addition, it is crucial that team members are aligned in terms of company objectives and culture.
Five key takeaways:
Timing is crucial: start with a management team when your business grows and the structure becomes more complex.
Internal promotion versus external hiring: both have their advantages - choose consciously based on competences and cultural fit.
Clear division of roles: make sure each manager has a specific responsibility and that there are no overlaps.
Complementary team: combine different expertise and personalities for a strong and balanced management.
Focus on collaboration: a management team should not only be strategically strong, but also well-matched.
A well-built management team not only gives your company more structure, but also ensures a more efficient operation and a solid foundation for further growth. By thinking about this strategically and choosing the right people, you will build a successful future for your SME.
