The business benefits of management and leadership development. February 2012 The Business Benefits...

The business benefits of management and

leadership development.February 2012

The Business Benefits of Management & Leadership Development, CMI, Feb 2012


The Business Benefits of Management and Leadership Development

Research based on: Survey of 4496 people Includes 302 CEOs and 550 HR

managers Focus groups One to one interviews Literature review Case study interviews

Carried out in partnership with the HR consultancy Penna, written by researchers at Henley Business School


The link between MLD and Organisational Performance: “chain of impact”


The scale of the problem.

“Nearly half of UK line managers are ineffective.”

36%43%

Highly effective

Effective

Ineffective or highly ineffective

21%

...How effective is your line manager?Source: The Business Benefits of Management and Leadership Development, CMI, 2012


Good management gets growth & productivity.

Investment in MLDleads to:

Organisational People

23%Increasein performance

32%Increasein performance


Relationship between organisational performance and management effectiveness


Key differences between low and high performing organisations

• Average annual spend on MLD: £1,414 per manager

• High performing organisations spend 36% more than low performing ones (£1,738 compared to £1,275)

• However they also do more to assess and integrate MLD – it is not just about financial commitment. Critical factors– CEO/senior management commitment – Aligned HR practices (performance management, competency

frameworks, succession planning)– Alignment between HR and business strategy– Positive attitudes to MLD: committed, not sceptical– Evaluation of MLD


Stronger MLD environment correlates with higher performance


Employee engagement and organisational performance are linked.


Effectiveness by management position


Top five reasons for investing in MLD (HR Directors and CEOs)


Top 4 competencies developed by professional management qualifications


Conclusions & Recommendations

• High performing organisations’ top managers show commitment to MLD

• Effective line managers achieve high employee engagement

• High performing organisations spend more on MLD

• MLD has a bigger organisational impact when aligned with organisational and HR strategy

• High performing organisations evaluate MLD to a greater degree

• Accredited learning and qualifications are rated as the most effective by individual managers and meet employers’ need for competence

• On-the-job development is the most prevalent form of MLD

The business benefits of management and leadership development. February 2012 The Business Benefits...

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