Reaping the rewards: report shows that management development works

Citation

(2005), "Reaping the rewards: report shows that management development works", Women in Management Review, Vol. 20 No. 4. https://doi.org/10.1108/wimr.2005.05320dab.005

Reaping the rewards: report shows that management development works

Reaping the rewards: report shows that management development works

Keywords: Management development, Careers, United Kingdom

A report published in the UK recently by the Chartered Management Institute, and supported by the Learning and Skills Council and others, provides new evidence of the links between organisational performance and investment in Management and Leadership Development (MLD).

Called “Management Development Works: the Evidence”, it offers a unique insight into changing patterns of MLD across organisations of all sizes, over an eight-year period.

The research, which is based on detailed interviews with 1,000 managers, revealed:

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  improved business performance when development is linked to business strategy;

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  a significant shift in the priority given to management development by employers;

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  a change in attitude towards what makes a good manager and how development should be delivered; and

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  trends amongst organisations towards active talent management and fast-tracking high potential managers.

The report shows managers claiming a significant rise in the impact MLD has on their organisations. Asked the extent to which they agreed that MLD developed managers to meet business needs, a high rating of seven out of ten was given. Managers also suggested that when MLD is linked to specific skills that address business needs, organisational productivity levels climb.

The findings indicate that many employers are now taking more responsibility at a senior level for employee development within organisations. In 2004, 51 percent of CEOs or Boards were directly responsible for initiating MLD policy, compared to 43 percent in 1996. Senior involvement in implementation remains high at 24 percent, an increase from 15 percent in 1996.

For the first time since the start of the survey, the belief that “leaders are born, not made” has been eclipsed. Managers are now expressing the view that on-the-job experience is more valuable than natural ability. The report also reveals that line managers are now focusing on job-related development, such as in-house MLD and job-specific qualifications. This highlights the need for both HR managers and providers to make sure learning opportunities are connected to relevant workplace experiences.

UK organisations have also recognised the need for sustained development programmes. Almost half (45 percent) allocate a specific budget for management training and 49 percent of managers claim their employer now has a written policy on management development, compared to 37 percent in 2000.

Almost 90 percent of organisations claim to have regular appraisals to establish training requirements and more than half (57 percent) admit to “talent management” by selecting high-potential managers for intensive development. The report also shows that the skills most sought after are managing people, leadership and meeting customer needs. Looking forward, managers are looking to develop skills including the management of change and risk and the ability to facilitate organisational learning.

“Learning and development has often been conducted with the implicit belief that it is beneficial. However, this research project provides positive evidence of the value of management development and shows that organisations which base MLD on strategic business needs clearly benefit from performance improvements,” says Mary Chapman, chief executive of the Chartered Management Institute.

Alastair Reid, Partnership Manager, DTI Achieving Best Practice in Your Business, said “This research shows organisations that training and development makes good business sense. DTI Achieving Best Practice aims to show businesses what works in other organisations and to encourage them to focus on improving productivity by learning from others. The most successful businesses take management development seriously, creating a culture of continuous learning and development, and we would urge others to do the same.”

For further information contact Mike Petrook/Gemma Bird – Tel.: +44 (0)20 7497 0496; outside office hours: +44 (0)7931 302 877; web site: http://www.managers.org.uk