This reminds me that we tried at Stirling some years ago to forge links between large companies and their small business suppliers and sub-contractors. It was a follow on from the programmes on Quality Management that I mounted in collaboration with John Dalrymple.

The idea was to get large companies to second upcoming junior managers or older managers due to retire to their small business suppliers to take up functional managerial roles(not consultancy) for one or two years to assist in company growth and development. These managers could take up the financial function, the operations function or the marketing function, exporting function or any other functional role in which the small business might lack skill and expertise.

We asked a number of companies to get involved and received some positive response, but could not get the LEC/Training Agency to support our role financially in mounting such a programme. The idea was developed during the early 90's downturn - not as recessionary as the present time - we believed that the large companies had a vested interest in supporting their small business suppliers. A sort of mutual admiration society - especially when large companies were considering single sourcing of their supplies.

It strikes me that such a programme would fit very well at the present time when many small businesses are really struggling to survive, especially when it is argued that many large companies are flush with cash, just not investing for growth until signs of real growth in the economy, both nationally and globally develop more strongly. Small companies are being encouraged to explore global (non-EU) markets in order to grow their businesses - big company expertise in this area could assist such small companies.

We argued that for the large companies the secondment of young developing managers would provide real, coal face experience in a small business as part of their development. And for the older managers approaching retirement something to provide a vehicle in which their experience could be really beneficial to a small business. The large companies would pay he salaries of the secondees. Our role would be to provide these secondees with an orientation programme so that they would have a detailed "feel" for small business operations prior to the secondment. There would be an opportunity for the older managers to take a more permanent role with their host small businesses if appropriate. For the large companies the prospect of having suppliers who are strong, established businesses would be a substantial benefit. Like Rockwool, there would also be the possibility that the younger seconded managers might seek to follow a career with the small business. However, as John suggests such a development could be seen as beneficial and not a negative situation.

It strikes me that such a programme would be highly desirable in the present economic climate. But, as always finding funding streams is always a problem.

There is considerable interest in the U.S. in building stronger supply chain relationships as a way to improve the profitability of companies. Duke University has published some interesting work for North Carolina. While it does not necessarily engage in a training program for executives in supplier firms, it does promote a better understanding of the linkages need up and down the supply chain.  These programs are especially importat in nonmetro areas where small firms, in some case, are facing tougher competition during the current global recession. Also important, however, is to understand the difficulties that SMEs are having in recruiting workers with the qualifications and skills needed. This occurs even in areas with relatively high unemployment. Working more closely with personnel in supplying companies and/or educational institutions could help alleviate this situation. Quality management programs have emphasized setting standards with vendors and customers alike for a long time so this issue is not really new but may be more important in the current economic times..