The Holistic Integrated Management Model (HIMM) identifies the various levels of organisational capability and competencies required to build strong, growing and profitable organisations. Most SMEs experience these different levels as they progress through their organic growth phases. The model also demonstrates the interface and management dynamics within and between each level, which requires organisations and their people to gain the relevant competences that correspond to their growth stages and learning needs.

Overview of HIMM
An organisation comprises a conglomeration of people whose base productive unit is the individual worker. To produce optimal results, each individual must strive towards competency or personal mastery in his/her own work area and internalise his/her values, ethics and pride of work as part of the whole in general accountability.

The work unit may comprise one or more people. Several units would form a team, and with other groups will then form the third level which is the functional group or department. A combination of functions forms a division or business unit. Several business units then make-up the organisation.

The challenge for each SME is to understand the competence requirement at different stages of maturity, allowing it to select the training needed to meet the requirement. The following are 10 insights on the competences that SMEs must build:

Management Insight #1: You must be proficient in managing yourself and be competent in doing your job.

This level involves personal management. Each individual is a manager because, to be effective, one must manage a number of key resources well - time, money, roles and relationships. Self-help guru and author Stephen Covey prescribes habits for self-management: "Be Proactive" - take the initiative, just do it, "Begin With The End In Mind" - set goals and "First Things First" - set priorities. Author, Daniel Goldman advocates emotional intelligence, which implies self-competency or personal management. In short, you must manage yourself well - only then only can you manage others.

Therefore, individuals need to acquire management skills like effective verbal and written communication, presentation, time management and proficiency in relevant technologies. Individuals must also develop skill sets for solving problems, thinking generatively and managing relationships and inculcating ethics and integrity.

Management Insight #2: We have to work effectively with other people.

The unit and team management level concerns tasks best performed by a group of people. Workers and managers must learn to work effectively together, manage conflict resolution and encourage team learning. For individuals, development would include competences in inter-personal relationship, facilitation and negotiation.

Management Insight #3: To get results, we must form specialised functions.

At the functional management level, specialised functions are required. Workers must possess specific competences or domain knowledge like marketing, finance and logistics. Hence, training and development must equip individuals with the knowledge, skills, expertise and experience.

Management Insight #4: We must survive and prosper collectively as a business corporation.

At the corporate management level, there must be long-term strategic direction where the organisation (re)formulates its vision, mission, goals, values and action plan. This requires competency in dealing with competition through change management, innovation and new ideas; enterprise risk management; strategic business planning and business modelling. The organisation must become a learning entity and inculcate a culture of participatory management with shared values and knowledge sharing. The management style should be transformed from one of "command and control" to "enroll and enlist" to attract and retain the best talents.

Management Insight #5: We must understand the industry we are operating in.

At the industry management level, managers must understand trends within their industry and monitor new developments to ensure their organisation can evolve and adapt to changes. Managers must learn the science of strategic planning, change management and deal with sophisticated knowledge-based workers. Thus, training in identifying new opportunities, products and services, markets and innovations, including business models, is crucial.

Management Insight #6: The new economy is operating in a borderless world and firms are changing so fast in the global economy.

This level is about proficiency and dexterity in global management. The tough realities and economic impact of globalisation pose either a threat or opportunity, depending on how the organisation responds to global pressures. Managers must be exposed to new trends, developments and what some management experts call the "next practice" which takes over from "best practice".

Management Insight #7: Prepare for business success in this fast changing business environment.

Organisations must know their core competences and business intimately. They must innovate and develop people, build sustainable business models to survive and compete successfully in global markets. They must also explore strategic alliances to accommodate changing needs and customer demands. Management must watch for upcoming trends and changes and review their business model constantly.

Management Insight #8: Know the critical key success factor that you must invest in.

The critical key success factor for organisations in the knowledge economy is their human capital. Human capital development and management must now be a strategic function to support the strategic imperative of the organisation. Hence, managers must learn how to recruit, develop, manage, engage and retain high performers to drive the organisation's business for successful long-term sustainability.

Management Insight #9: Keep abreast of "best and next practice" and technology and know-how.

Rapid changes in business models and technologies could signify a threat or opportunity, depending on how ready the organisation is. Organisations that enable themselves through technology to facilitate supply chain management, customer relationship management, knowledge management and enterprise risk management are responsive to environmental changes. Therefore, there may be a need for organistions to re-invent themselves and stay relevant.

Management Insight #10: Contribute towards community development and betterment of society.

If organisations are growing well and generating profits, they should contribute to the community in which they operate.

Dr Wilson Tay is CEO of the Malaysian Institute of Management, the national management organisation of Malaysia. MIM invites companies and professional managers to be members. Contact MIM Membership Support and Outreach at (603) 2164 5255; fax (603) 2165 4681; e-mail: enquiries@mim.org.my or visit www.mim.org.my.