Government development of managers must be 'a priority'

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Ruth Spellman, chief executive of the Chartered Management Institute, speaks to ePolitix.com about the CMI manifesto for a 'Better Managed Britain'.

Question: Could you outline what the manifesto for a 'Better Managed Britain' is?

Ruth Spellman: The manifesto is CMI's vision of the action needed from government, employers and managers to transform our managerial and leadership skills base. We want government to pledge to make development of effective managers a priority and to lead by example, by supporting professional management and leadership in the public sector.

We're asking employers to pledge to develop professional managers and leaders in their organisations and foster a culture of competence and accountability, while managers themselves need to demonstrate professionalism at work and commit to continuous professional development.

We have some great leaders and managers, but unfortunately there is still underperformance. The UK invests less in management and development than many of our competitors; so, for example, Germany spends four times as much as we do.

Yet the quality of our management and leadership will determine how well we respond to the economic, social and political challenges facing Britain, whether it's improving employee engagement, develop our talent fostering innovation and business growth, reducing our environmental impact or delivering world-class public services.

The sad truth is that UK managers are no longer regarded as professional, competent and accountable, which means we need a radical new approach.

What current challenges do managers face? What makes a good manager?

Times are tough and now more than ever, the quality of the UK's management and leadership is critical. Clearly, survival is an imperative. In our most recent Economic Outlook report, 82 per cent of managers are still reporting that their organisations are being negatively effected by the recession.

Worryingly, 65 per cent of managers reported that morale has worsened as a result, with 42 per cent reporting a deterioration in employee engagement. We've also seen the reputation of management shaken by high-profile cases, whether you're looking at mismanagement in the banks, or in the public sector, such as Stafford Hospital, where mismanagement was blamed for high mortality rates. So there's a fundamental need for a better recognition of what managers do and how they make a positive contribution to our economy and society.

A good manager has a particular set of skills. Good managers are those that lead people, manage change, meet customer needs, manage information, knowledge and resources and finally manage themselves. With the world of work continually changing, we need more managers with these professional skills and a commitment to continued professional development to keep skills up to date.

The manifesto says: 'At best, only one manager in five holds a professional qualification.' Why is this and how can it be combated?

The UK invests less in our managers than many of our global competitors and it shows in lower levels of productivity and employee engagement. We don't have a strong culture of professionalism when it comes to our managers. Employers are often guilty of promoting people who are good in one role and simply assuming that they will also be a good manager, without giving them adequate support and developing their skills.

Our latest survey of managers actually found that 68 per cent of those questioned confessed to being ‘accidental' managers – they did not aspire to occupy management roles at the start of their career. The research also showed that 47 per cent of workers have left jobs due to bad management and 50 per cent believe that they could do a better job than their current manager.

Changing this situation will need a joint effort from individual managers and employers to professionalise the workforce. It's also clear from CMI research that managers in all sectors of the economy remain convinced that fiscal support for investment in skills should be a government priority.

That's why we've said that tax breaks for employers investing in professional, accredited training should be common ground between the political parties and a key part of any Budget that seeks a Better Managed Britain. Empowering employers and employees, by giving them financial control over the funding of their training and skills development, will ensure money is directed to where it's most needed and has the greatest impact. It will also help ensure the training provision is demand-led, rather than distorted by supply-side interventions. Longer-term, tax breaks will help deliver improvements in management and leadership, generating an economic return to business.

The manifesto calls for government backing for a Youth Academy for Management and Leadership. What would this entail?

There are currently 4.8 million managers in the UK, a number set to grow to 5.7 million by 2017. To meet this demand, we need to raise ambition and draw on a wider talent pool. Young people are going to be key to this and they need the opportunity to develop management and leadership skills while in education.

Around 2,000 young people are already taking CMI qualifications in team leading and we are talking to partners about how we can expand it more widely. This is why our manifesto calls for government to back the development of a Youth Academy for Management and Leadership.

How can government improve management in the public sector?

It is important to remember that Britain's leadership and managerial deficit is not just confined to the private sector. One in five of the UK workforce are employed in the public sector and the state needs to lead by example in nurturing management and leadership skills.

The quality of leadership remains a major concern, particularly when the sector is facing major challenges, whether it's the pressure to deliver reform and improve services or to achieve efficiency cuts in the context of shrinking budgets. So there's a resounding need for competent and accountable managers to overcome these challenges.

Government needs to be committed to developing professional management and leadership skills throughout the public sector. They also have a responsibility to highlight and promote those public sector organisations which have achieved success through improving and developing their managers and leaders and to help share best practice.

How can government make the role of managers easier? Is more or less intervention needed?

A majority of Britain's managers believe that government action can make a difference to recovery from the recession. The key question is what form that action takes and whether it is sensitive to the real needs of business. Sixty per cent of managers surveyed in our Economic Outlook report agree that regulatory reform is a priority, while a little over half would like to see business taxes cut.

Yet in the long-run, support for improving management and leadership skills will help us develop managers who have the ability to do their jobs more effectively, to the benefit of us all. Some 82 per cent would like to see fiscal support for investment in skills. We really need a radical new approach to management and leadership.