Contact
Its an exciting time for a SME in the UK. A new era appears to be upon us, levelling the playing field with the prime contractors and major multi nationals, particularly in the field of Portfolio, Programme and Project management.
Author: Martin Paver Director at i3Works
Experienced professionals are joining forces to provide a blend of capability tailored to the assignment, competing head on with larger organisations who often deploy their bench strength. Historically, it’s been a challenge for SMEs to access the larger opportunities, but the market is opening up with the help of Government policies that are actively promoting the involvement of SMEs and enabling them to access work that was previously unavailable to them.
Organisations are also recognising the importance of suppliers being invested in the successful outcome of a contract. Many SMEs are personally invested; they have often grown their business from a small acorn, have a personal connection with the majority of their staff and have a passion for their business. They have small overheads and work hard to ensure that their company remains at the forefront of thinking in their chosen discipline. They are often unshackled by the processes and constraints that tend to be a product of increasing organisational governance and control.
It is without doubt that the larger organisations have a head start, but these advantages often come with a higher price tag. The constraints on the public purse combined with a downturn in the oil and gas sector are providing the incentive for large clients to re-examine the relative value delivered by different parts of the supply chain.
Is this a short term phenomenon created by the demanding market conditions or the shape of things to come? As large clients engage with SMEs they will develop their own views and establish systems and processes to mitigate and manage any risks. But the perceived disadvantages of SMEs are being unmasked, disqualified and eroded. The market will undoubtedly evolve further, where agility, flexibility and innovation will be a key attribute for longer term success. The SMEs may have the edge on this too.
There is some middle ground where large multi nationals work in collaboration with SMEs but for this to endure it has to be a partnership. Dominant suppliers often embed SMEs to make up the numbers, hit government SME targets and provide boots on the ground, rather than offering a longer term mutually beneficial arrangement. This uneven balance of power will drive behaviours in the market and further rapid evolution.
It is, of course informative that some of the more innovative tier 1 suppliers are embracing SME’s, contrary to seeing them as a threat. They recognise that by exploiting and harnessing the agility that SME’s bring to their supply chains, it presents a very attractive proposition to HM Government, notwithstanding the fact it also puts a big ‘tick’ in the SME box during the Pre Qualification Questionnaire (PQQ) process. These tier 1 suppliers deserve praise, support and set the bar for others to follow. Adopting a partnering approach with their SME supply chain elevates them further again in the eyes of HMG.
