AROUND 170 companies spring up every hour in Britain. With a combined workforce of more than 10 million people that represents a lot of new challenges in people management.

Glasgow company Esteem has, for the last 10 years, been helping such companies develop the right skills to take business forward. The IIP accredited company - which specialises in training and consultancy work - has two key areas of expertise.

''Our IT side specialises in the Microsoft product which we customise to a company's processes,'' said Esteem's managing director, Trudy MacKenzie. ''Instead of just installing the products, we apply them directly to the business and design training programmes to go with them which meet company needs.''

The second strand of Esteem - organisational development - undertakes long-term cultural change projects. One of its biggest clients, material management company Howco - based in Cumbernauld but with operations in the US and Singapore - has been working with Esteem to realise its full potential.

''The company is growing at the moment and needed to have its people and IT expand with it,'' said MacKenzie. ''We've been working with them since January 1997 on a cultural change project hand in hand with IT development.

''Having two sides to Esteem means we can apply both IT and organisational development to progress our clients' business. Technology can drive organisational development, so having these two sides to the business has proved successful.''

In 1997, Esteem's approach to organisational change was further developed when it was contracted by Scottish Enterprise to devise a guide for small businesses to develop and grow. ''Building a Better Business'' was born, a format which is now nationally marketed by IIP UK. Esteem presents its business development strategy in workshops throughout the UK.

''Our mission is to encourage small firms in Britain TO achieve continuous and sustained growth,'' said MacKenzie. ''Building a Better Business is a step-by-step guide to success for organisations with up to 200 employees.

''It's designed to engender growth by encouraging companies to develop their most valuable resources - the individuals who work for them. The programme is made up of eight flexible modules and the approach taken enables business owners and managers to make their own decisions on how and when to deal with the issues that concern them most.

''It also supports self-evaluation - vital for improvement - and helps the business manager recognise that to develop and grow they need to take an honest view of what it is they do well and how and where they must improve.''

At the helm of a small company herself, MacKenzie was ideally placed to recognise the common problems that can hinder business development. Esteem was the first small company in Glasgow to receive IIP accreditation.

''Building a Better Business came as a result of our own experience,'' she said. ''Four years into running my own business, I was at a point where everything was happening at once. I knew that in order to grow certain things needed to be put in place and I just wasn't getting round to them.''

She approached the GDA after reading a leaflet on IIP. Once the wheels were in motion, the first stage was diagnostic testing. Using 23 indicators, several gaps in the company were identified.

''We set up a project team,'' said MacKenzie. ''With the help of an outside consultant, we put the process in place. It was straightforward. We had quite a lot already in place, so we got through it all in about six months.

''It gave us focus. We'll receive re-recognition in September, six years after our original accreditation - using the IIP framework has given us a method for continuous improvement.''

These improvements are what has enabled Esteem and its 15 staff to manage a range of clients and maintain company growth. MacKenzie injected Esteem's business success and its steps toward IIP accreditation into Building a Better Business so small firms can enjoy the same benefits she has through IIP.

''This is the goal - they don't need huge resources or a complex infrastructure,'' she said. ''Building a Better Business doesn't have technical jargon or require a huge understanding of human resource development. A small company can implement this and achieve the same IIP accreditation as larger companies.''