The Human Side of Strategy in Growing SMEs

One of the most interesting parts of my work as a business owner / Non-Executive HR Director is stepping into different organisations and observing how strategy shows up day to day. Not in the business plan or a board report, but in conversations, decisions and behaviours.

What becomes clear very quickly is that strategic impact isn’t driven by structure alone. It’s shaped by a small number of very human capabilities that influence how people think and then act.

From what I see repeatedly, four stand out:

  • Creativity – the ability to look at challenges differently and find new ways forward
  • Decisiveness – moving from insight to action with confidence and clarity
  • Storytelling – helping people understand where the business is going and why it matters
  • Seeing the bigger picture – connecting individual roles to wider business outcomes

When these capabilities are intentionally developed, strategy feels alive. Decisions happen faster. Alignment improves. People know how their contribution fits.

This is where HR has a powerful opportunity to evolve.

Beyond process and policy (which still matter), HR can act as the architect of these strategic capabilities, embedding them through leadership development, culture, behavioural expectations and ways of working. It’s also why many business owners choose outsourced HR/non exec support; not for more frameworks, but for space to step back and work with someone who has no pre-conceived ideas about the business and what might or might not be possible.

If your organisation is full of capable people and big ambition, the next strategic shift may simply be enabling your people to think, decide and lead more effectively.

If you’re reading this and this resonates, the next step doesn’t need to be big or disruptive. The most effective actions are often simple, but intentional.

Here’s what I’d suggest:

Step back from structure and look at capability, instead of asking:

Do we have the right roles?

Do we have the right policies?

Ask:

How well do our leaders make decisions?

How comfortable are we with challenges and new ideas?

Can our people clearly articulate where we’re going and why?

Do teams understand how their work connects to the bigger picture?

The answers will reveal far more about your strategic health than an org chart ever will and from here you simply need to start the conversation, with honest insight, an external perspective and a clear view of where people capability will either enable or limit growth.

If you would like to discuss any of this further or discover how our team can aid you then please drop us a line at [email protected] or call and speak with one of our HR partners on 01484 680098