Management 2020 The Commission on the Future of Management and Leadership July 2014 Management 2020, CMI, July 2014

In 2013, the All-Party Parliamentary Group on Management (APPGM) decided to investigate how management and leadership in the UK will need to change by 2020 to deliver sustainable economic growth. The Commission on the Future of Management and Leadership was created with the Chartered Management Institute (CMI) to pursue that inquiry, bringing together members of both Houses of Parliament, across the main parties, with leaders from a wide range of sectors. The Commission considered evidence from academic experts, vibrant entrepreneurs, up-and-coming young managers and world-renowned business leaders alike. Background Management 2020, CMI, July 2014

The challenges we face › Poor management and low productivity in the UK › New ways of working by Generation Y › Lack of management training › Technology › Globalisation › Long-term sustainability Management 2020, CMI, July 2014

Management NEW MANAGERS NEEDED BY 2020 Pathways to progress Management 2020, CMI, July 2014

Management 2020 Purpose: What social benefits does the organisation exist to achieve and how are its leaders held accountable for these aims? People: How does the organisation prepare managers and leaders at all levels? Potential : How does the organisation support the next generation of managers and leaders? Key areas of good practice were distilled. Management 2020, CMI, July 2014

The 2020 Benchmarking Tool We surveyed managers (split amongst CMI members and non members) asking them to score out of 10 on each indicator. The results are on the graph above. Management 2020, CMI, July 2014

Purpose ›‘CEO is rewarded for delivering value to all stakeholders’ – only 37% overall in the UK ›‘Feedback mechanisms exist to escalate bad news’ 51% overall in the UK ›Size matters: ›36% of SMEs define and publish their commitment to employees versus 58% of large organisations The problem Management 2020, CMI, July 2014

Paul Polman chief executive, Unilever “Our model is built on a total value chain approach, on growing our business, reducing our environmental impact, reaching a billion people with health and well-being programmes and moving our whole business to sustainable sourcing. We do this on the basis of common purpose.” Management 2020, CMI, July 2014

purpose ›Define long-term goals ›Track annual progress towards the overall purpose ›Reward CEOs and top team on the basis of value they deliver to all stakeholders The solution Management 2020, CMI, July 2014

people ›Management training is too little and too late – only 23% of organisations in the UK are good/very good at training new managers in management and leadership ›Mentoring and coaching is very limited ›SMEs better at learning from mistakes The problem Management 2020, CMI, July 2014

people ›Train all staff being promoted into management ›Use mentoring and coaching ›Support off-the-job development opportunities ›Assess people on their behaviours, not just results ›Learn from mistakes, encourage risk-taking & innovation ›Champion diversity The solution Management 2020, CMI, July 2014

potential ›Weakest area – average score 5.2 ›Key failing: recruitment of young people and school leavers ›Only 17% are good/very good at setting targets to focus on recruitment of young people The problem Management 2020, CMI, July 2014

KIM WINSER OBE Founder, Winser London “Every division of the company adds to the existing talent with university leavers, school leavers, or career-break women wanting to get back into business.” Management 2020, CMI, July 2014

potential ›Offer work placements for young people ›Set targets and report on work with schools, colleges and HE ›Set targets to focus recruitment on young people ›Support others in the supply chain and local community ›Collaborate across sectors - exchange people & ideas ›Support management apprenticeships The solution Management 2020, CMI, July 2014

The management 2020 benchmarking tool Benchmark your organisation against 3 key areas: ›Purpose ›People ›Potential See how your organisation compares to the UK average Management 2020, CMI, July 2014