Although we all know that large businesses have not had it easy during the recession, many small and medium-sized businesses have had an even tougher time. This sector employs 13 million people and represents over half of Britain's GDP, making its problems highly significant. Insolvency is an issue - figures from the UK Insolvency Service indicate that the number of companies going into administration overall increased 39% in the second quarter of 2009, compared to 2008, of which SMEs make up a large proportion.

Why have they felt the impact so intensely? There are several reasons. SMEs must work far harder to maintain cash-flow and have fewer financing options. They suffer a cascade effect as larger companies extend their payment terms. A survey by banking payment system provider BACS indicated in June 2009 that 66% of SMEs had experienced late payments, almost double the 2008 rate, with over £30bn still outstanding. Larger companies have become willing to fight for smaller pieces of business, and most SMEs have already reduced their headcount about as far as possible.

As SMEs tentatively hope that there is the prospect of growth and prosperity again, most must continue to fight to maintain business health, cope with daily pressures, compete better and manage more efficiently. That means re-examining their operating processes and the tools they use.

The old adage of working smarter, not harder, has never been so true. Unfortunately adages do not help in reality. Businesses need to understand how to work smarter. Asta Development has more than 20 years experience in helping businesses of all sizes do this and, in this and the last article in our series next month, offers a 7 point overview to working S.M.A.R.T.E.R. using project and resource management solutions.

S is for solutions ...
It is vital that businesses put the right solutions in place to deliver on their commitments dependably, efficiently and profitably. Many are turning to project and resource management solutions like Asta Teamplan because project management tools can help them to meet customers' expectations
Smaller businesses have one major advantage over their bigger rivals, and that is the ability to adapt faster to changing circumstances
and thus help to sustain precious customer relationships. They help to plan, manage and record work enabling managers to balance demands and resources. Companies often need a solution for managing several projects simultaneously, and some desktop solutions run out of steam when the picture becomes more complex. Make sure to choose the tool that can cope with your many and varied project needs not just now but for the foreseeable future.

M is for milestones ...
Identifying milestones has been a central pillar of project management since it first emerged as a discipline. Business gurus will encourage you to ensure that you set clear aims and goals, and a project management view of the world sees planning stages to reach milestones at the right time as equally critical. Project management software enables you to identify these critical crux-points in the processes of your own business. If you do not know these you cannot have visibility if a key milestone has been missed or is delayed. You cannot see the impact further down the line or plan what happens if a milestone is not met.

A is for agility ...
Smaller businesses have one major advantage over their bigger rivals, and that is the ability to adapt faster to changing circumstances. True business agility represents not just speed but cost-effective and efficient responses to changes in the business environment. Businesses cannot achieve real agility without accurate, current information and tools which help to predict changes and plan responses. Good project management practices and tools like Asta Teamplan provide full visibility over all projects and the use of material and human resources, enabling managers to ask themselves the ‘What if' questions, plan different decisions and responses, and then adapt fast when required.

R is for resources ...
SMEs must manage stretched and often expensive resources, which include human as well as physical, financial and material resources. People are often the most important resource, especially in consulting and other service based businesses. Scheduling work and deploying staff to maximum effect is vital. Project and resource management tools help to avoid duplication of effort and waste of valuable resources, and help you put the right people on the right jobs.

The dictionary definition of "smarter" in relation to businesses suggests that it means 'more astute' but the root also references sharp thinking and quick or prompt action. As we have indicated, SMEs have one major advantage over larger businesses in that they are often closer to the customer and able to respond faster to new scenarios. This is exactly what project and resource management tools are designed for, and they can be very effectively used by smaller businesses. SME leaders can benefit hugely from a clear view of their company, operations and resources, which provides actionable information that can easily be seen, shared and integrated into meaningful reports. Such tightening of management and operational practices will be a critical recovery factor.

Next month, we continue to explore different aspects of how a project management approach can help you to work smarter, by examining T for time, E for efficiency and R for reporting.

For more information please visit www.astadev.com