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Two common causes of failure in the UK SME sector are under‐capitalisation and poor financial management skills. In theory the objective of the banking and accountancy professions should be the provision of external advisory services that enhance the management of the financial aspects of the business. Delivery of this objective could contribute to increasing small firm survival rates. A survey of South West SME firms reveals that although owner/managers see benefits in utilising the expertise of their accountants, banks are openly distrusted and there is a preference for minimising contact with the banking community. A parallel survey of accountants and bankers confirmed these attitudes and also indicated that accountants may reinforce the owner/manager behaviour to limit the quantity of financial information which is made available to the bank. If the banking and accounting segments of the UK financial services industry adopted a strategy of actively co‐operating with each other, the quality of external advice made available to smaller enterprises would be greatly enhanced.

This article has been withdrawn as it was published elsewhere and accidentally duplicated. The original article can be seen here: 10.1108/EUM0000000000235. When citing the article, please cite: Ian Chaston, (1993), “Managing for Total Training Quality”, Journal of European Industrial Training, Vol. 17 Iss: 5.

In the UK the fishing industry is said to be in the doldrums, owing to cheap imports, declining retail outlets and the fact that we Brits are pretty conservative in what fish we'll tolerate. Anyone for octopus? However, the US apparently presents a very different picture. There the desire for fresh fish food, prompted by the preoccupation with health, has led to supermarkets cashing‐in on the consumer's demand for fresh fish and seafoods. Ian Chaston thinks the US experience could teach the UK fish retailing industry a thing or two.

In both literature and policy documents, small and medium‐size enterprises (SMEs) are being advised to form networks as a route for acquiring the knowledge required to survive in rapidly changing and/or highly competitive markets. There is, however, only limited anecdotal evidence of the positive contribution that networks are a way of upgrading organisational learning and thereby enhancing the performance of small firms. Additionally, there appears to be minimal guidance available on how small firms might exploit networks as a route for improving their capabilities to acquire and utilise knowledge to enhance future performance. To acquire additional empirical data on these issues, a survey was undertaken to examine the learning style of small UK manufacturing firms participating in some form of cooperative relationship with other members of their market supply chain. Learning style in the survey was measured by seeking response to a scale which permits assessment of the degree to which the respondent firm is exhibiting a single‐ versus double‐loop learning style. A survey of small firms advisers to gain their view of the organisational competency was measured using a scale that identifies those areas of capability that have significant impact on the performance of small firms. Results indicate that firms involved in networks tend to adopt a double‐loop (or higher‐order) learning style, whereas non‐network firms mainly appear to be autonomous single‐loop learners. When compared with non‐network firms, respondent organisations who participate in networks tend to have a better developed, more formalised knowledge management system. Furthermore, small firm advisers perceive that the creation of a formalised knowledge management system is reflected by such firms exhibiting a higher level of organisational competence across some of the areas of marketing, HRM and information management. The implications of these findings are discussed in relation to how small firms might be assisted in becoming involved in learning networks as a path for improving their knowledge management capabilities. Some qualitative, illustrative examples of small business learning networks are provided. Additionally, proposals are presented on the need for further research.

Adopting an entrepreneurial orientation is accepted as strategy through which to improve the performance of small firms. The management of innovation literature indicates that firms seeking to survive in rapidly changing and/or highly competitive markets are being advised to consider participating in business networks. By combining these two concepts it is hypothesised that four different marketing styles may exist; namely conservative/transactional, conservative/network orientated, entrepreneurial/transactional and entrepreneurial/network orientated firms. A survey of small manufacturing firms was undertaken in an attempt to determine whether these four marketing styles exist. The survey revealed that high growth entrepreneurial firms tend to participate in business networks. Membership of a network confers the benefit of increasing the level of organisational learning. Additionally it was concluded that higher levels of competence were found for entrepreneurial/network orientated organisations. The implications of these findings are discussed in relation to Government small firms support policies.

In the late 1980s, the Danish Technological Institute received funding to determine whether structured networking might offer a concept for promoting survival and growth among small‐ and medium‐sized enterprises (SMEs). To overcome the frequent absence of a large firm‐type hub in the SME sector, the Institute evolved a five‐phase model in which an independent individual external to the potential network assumes the role of broker and is responsible for guiding an inter‐firm co‐operation process. Observation of a pilot initiative in the UK determined that the most critical event within the process model is the identification of a viable idea which can provide the basis for forming a new business network. A study to gain further understanding of the nature of any process gap within the methodology, which brokers have been advised to utilize, indicated that the technique of unstructured, open‐ended interviewing to gain an understanding of factors influencing the performance of firms is often not very effective. Details are provided here of a new, more structured audit tool. A preliminary qualitative evaluation of the new technique indicated this has significant potential for assisting the broker to rapidly identify a viable idea which can provide the basis for forming a new business network.

Over the last two decades the UK Government has massively expanded support for SME sector firms. Two important elements of this expansion have been the funding of intervention by commercial consultants and the provision of training schemes covering start‐ups, owner‐manager development and employee skills acquisition. Argues that a fresh approach is required which ensures embedding of the concept that firms should be more self‐responsible and continually strive to find ways of enhancing their performance. This view then permits one to posit the idea that the introduction of organisational learning into the SME sector is a highly attractive proposition. However, the majority of espoused theory is based on application of the concept in large firms moreover, there is very limited empirical research that supports the fundamental assumption that organisational learning contributes towards enhancing performance. Research to determine whether identifiable relationships exist between the performance of the firm, the learning mode of the organisation and organisational competence does not provide clear statistically significant relationships and further work is clearly needed. A grounded theory approach was adopted for developing an organisational learning programme for small firms. Preliminary results indicate the approach offers significant advantages over the classic, external intervention driven support models currently in common use among TECs and business links.

A project to determine employee development needs of Plymouth Polytechnic and Derriford Hospital NHS senior technicians revealed employer and employee variance in opinions over desired managerial competences. Job analysis through the use of time diaries permitted construction of a detailed description of current job roles for both organizations. This information was then used to research the views of senior technicians on how their performance could be enhanced through provision of an employee development programme. The study validated the capability of the time diary technique to generate detailed, quantitative information on job role activities. Variance in the training needs for the two organizations was identified. In the case of NHS technicians it was possible to define areas where provision of a new training scheme would be beneficial. Their counterparts in higher education revealed a much lower degree of interest in the provision of external assistance to develop further their managerial skills. Concludes that the Polytechnic would need to implement structural changes to the work environment before introducing any new training schemes for technical staff.

United Kingdom employers in recently privatized and public sector organizations are relying heavily on management training as an intervention mechanism to increase employee productivity. A survey of south‐west organizations confirmed this increase in training activity. Managers, however, did not feel participation in training had contributed towards improving their performance. Respondents felt their organizations should give higher priority to other actions such as increased staff resources and better internal communication systems. Presents an Organizational Performance Policy Matrix which permits employers to determine whether restructuring of managerial roles or training has the potential to increase productivity.

As employers have recognized the potential impact of training schemes to increase organizational productivity this had led to an expansion of competence development programmes. Although one could reasonably expect this increase to be accompanied by the introduction of sophisticated training evaluation systems this has not occurred. Traditional approaches such as direct assessment of employee knowledge, attitudes and skills are still prevalent. Proposes an alternative evaluation model which draws on concepts associated with total quality management. The evaluation is extended to cover assessment of: employee satisfaction; satisfaction of the employee′s superior; persons to whom the employee provides outputs; and the organization′s external customers. Describes application of the model during all phases of the training programme design through to delivery of training: Examines the implications of the model in organizations which have adopted total quality management.