The Commission on the Future of Management and Leadership – founded by the All-Party Parliamentary Group on Management and the
Chartered Management Institute(
CMI) – warns that “myopic management” is a millstone around the neck of the economy and is threatening the UK’s global competitiveness.
The Commission’s
report– Management 2020: leadership to unlock long-term growth – brings together interviews and expert testimony from more than 60 individuals and organisations, plus data from a new CMI survey of over 2,000 business leaders and managers.
57% of business leaders surveyed admit their organisation performs poorly or could do better on key measures.
The Commission concludes that short-sighted, short-termist behaviour is squeezing out the long-term, visionary approach needed to achieve real growth.
It is calling for employers to learn from the way that leading companies focus on three key areas: purpose, people and potential.
Barry Sheerman MP, Commission Co-Chair and Chair of the All-Party Parliamentary Group on Management, says: “We’ve got to do better at developing young people’s potential. First, employability needs to be embedded in education, with managers providing more chances to gain real-life experience about the workplace.
“Second, government should work with partners to help build exchange networks, helping employers to set up work placements and share ideas with each other and with schools, colleges and universities. We heard from many employers who can see the damage that’s being done by youth employment and it’s clear that we can do more to train, nurture and mentor the management stars of the future.
“Encouraging employers to report on how they’re fulfilling their social purpose and developing their people will help them focus on management and the work that’s required to achieve sustainable growth in the long-term.”
According to the
report, 37% of managers say their CEO is rewarded for delivering value to all stakeholders, rather than solely on meeting narrow financial targets.
71% of the leaders surveyed by
CMIconfess they could do better at training first-time managers, or don’t train them at all. This could leave 150,000 employees a year taking on management roles without adequate preparation.
64% confirm that their employer does not report on how their organisation is working with schools, colleges or universities, or does so poorly.
Peter Ayliffe,
CMIPresident and co-chair of the Commission, said: “We’re faced with a ticking time bomb of myopic management in this country, with widespread under-investment in the next generation of leaders. We’ve got some brilliantly managed organisations in the UK, but there are simply not enough of them.
“Unless all of us responsible for leading businesses, public services and charities acknowledge that we are at a tipping point and commit to being part of a Better Managed Britain, the nation's sustainable long-term growth opportunities will not be fulfilled. Without a genuine focus on the three critical areas of purpose, people and potential, we cannot hope to build a sustainable economy – nor a cohesive and prosperous society from which everyone benefits."
The
reportalso includes key recommendations for government. It focuses in particular on how the education system and employers can work together to help young people develop the skills needed to become the leaders of the future.