It is better to start with final conclusion of the article which is, if the only source of the intellect in any company is the owner then we are talking about a “small” company no matter how big it is financially or physically. Even though the business has expanded its size and financial figures, the real question is that, is this “big company” an advanced company or not?
If internal tensions and the level of stress within the company, dependance on some people including the owner, financial debt, faults and mistakes, customer dissatisfaction are increasing while a company is growing; If the “intangible assets” like brand, know-how, management system are not developing while physical investments are increasing, and the owner is feeling sick at hearth then we are definitely referring to a grown up but not advance company.
It is the company intellect in a micro, small and medium sized enterprise (MSME) that transform growth into development. There are a quite number of sources of company intellect of which, the intellect of the owner is the most important for MSMEs. Hence the importance of the owner intellect should be set in its place. The first thing to mention is to avoid the unconscious use of institutionalization subject since it underestimates the intellect of the owner. When a company is established, the intellect of the owner constitutes the majority of the company intellect. In time, even though there is development in the intellect of the owner, the growth rate of the business is much faster than it. And it should be kept in mind that, the need for company intellect increases in growing businesses even in a greater rate than the growth rate of the company. This means that the relative importance of the intellect of the owner decreases in a company growing but advancing at the same time.
What is the company intellect, then? Can we take hold it of our hands? Can we see it? While the company management is a hard work occupation, it can be eased by tiny and smart touches but with long term vision. Here are some examples of company intellect for you to hold it of your hands and to see it: If there are sales targets set in a company, it is an indication of mediocre company intellect. If the same company go for more advanced sales targeting by refining the target system with dividing it to the months or periods, to customer groups (even to individual customers) and to product/service groups then the company is developed to an intellectual company. And further this company has analyzed the product/service groups for their profitability and set sales targets to increase the average profitability and supported these targets with appropriate marketing plans then we may be talking about a “genius” MSME. The example given may be extended for the production system; a chart for production planning, forms to follow up production, and excel table for tracking the production costs, efficiency analysis system of the production; or transforming sales targets to estimated cost-income tables and then estimated cash-flow tables by taking collection risks into consideration and going further to make investments plans by looking up medium term cash-flow analysis (instead of spontaneous decisions). In these cases, we may be talking about rather smart MSME.
The examples given above represent for instances of taking company intellect hold of or seeing it and taking the abstract subject into real world. The multiplier effect of the MSME owner’s intellect will go up with the addition of intelligence cells as explained in the examples. We are proud of the intellectual level of our entrepreneurs in the country. What happens if the owner’s intellect is not transformed into company intellect parallel to the growth of MSMEs? The result is simple and it is substantial increase in the risk level of the company. There may be different end results to be mentioned depending on the point of view whether from the optimistic or pessimistic approach. There may be a slowing down in the growth rate of the company with an optimistic approach while, an instant destruction somewhere in time may happen by the fast and uncontrolled growth from the pessimistic approach.
We shall uptie the company intellect subject with a resemblance: There is a physical limit in the size of the brain and in using the capacity of it. If you only grow in torso (human body) with no growth in the brain size and capability, then the body starts to experience problems for using the organs and make decisions. And even if the body enlarges more, let’s say, to the size of an elephant then the standard brain will not be sufficient to control the torso and the life of the giant creature will eventually end (there is a hostile environment over there such as predator enemies, natural conditions, drought, etc.). There is nothing to do in this example. But here is the good news: An MSME is not destined to retain within the boundaries of the owner while growing. Company intellect can be advanced by small additions while the intellect of the owner is still at the center of it. These small additions may come from the staff, managers, management system. The examples are given above at the beginning of this article.
Advancing in the company intellect during growth periods of an MSME will bring healthy and strong growth which is the sustainable growth for the long term. The growth rate of an MSME will further increase with an increase in the value added of the company by the growth in the company intellect. This would be another issue on the way to getting bigger and an international company.
