Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Just how capable are New Zealand managers?

For Immediate Release
November 4, 2003

Just how capable are New Zealand managers?
The New Zealand Institute of Management’s global research initiative

The New Zealand Institute of Management has created the NZIM Management Capability Index. In management research terms it is a world first. It could become a global executive performance benchmark. Other countries, including Singapore, Australia, USA and United Kingdom have already indicated interest in adopting the methodology. And the first set of research findings were released today and are based on a survey of 403 chief executives and managing directors from around the country.

The Index suggests that New Zealand managers are performing at only two thirds of their potential. So when it comes to measuring Kiwi managers’ capability “there is considerable opportunity for improvement”, says Doug Matheson, NZIM’s immediate past national chairman and architect of the Index.

NZIM is working on plans to help New Zealand enterprise lift its management performance. Like the Chartered Institute of Management (CIM) in Britain, NZIM believes that improved individual management capability is the best way to lift a country’s total economic performance. The British Government has got behind a CIM initiative to raise management standards in the UK.

NZIM decided to establish a capability index and create a yardstick against which to measure progress once its management skills programme gets started. “We need to know where we stand,” says Mr Matheson. “It is difficult to make a point without compelling evidence to support the case. This research will also help us identify the best ways forward and simultaneously help organisations identify their management weak spots and chart their future progress.”

Until now no other country currently has measured management capability. The United States-based Baldrige Performance Excellence programme is the most used international performance measurement system, but it doesn’t measure management practice and competence or management capability. And while organisations such as IMD International and the World Economic Forum survey and rank countries in terms of their economic environment, these surveys do not focus on individual managers.

Because this is the first time management capability has been measured there are no trends to consider or compare the findings with. NZIM’s Index is based on eight major drivers of management capability. “These drivers deliver profitable business growth, or the equivalent in non-commercial organisations,” says Mr Matheson.
The drivers, and the weightings they are given in compiling the Index include:

1. Visionary and strategic leadership with a weighting of 15%
2. Performance leadership (10%)
3. People leadership (10%)
4. Financial management (10%)
5. Organisation capability (5%)
6. Technology and knowledge (5%)
7. External relations (5%)
8. Innovation – products and services (10%)

A ninth collective category, ‘results and comparative performance’, gets a 30% weighting.
New Zealand managers rank their ‘financial management’ capability highest at 74.42 on a scale of 100. The ‘organisation capability’ rates lowest at 62.63.
In descending order after ‘financial management’ the Index ranks ‘external relationships’ 72.79; ‘performance leadership’ 69.11; ‘application of technology and knowledge’ 67.15; ‘visionary and strategic leadership’ 65.27; ‘people leadership’ 64.94; ‘innovation – products and services’ 63.69; ‘results and comparative performance’ 63.75 and last ‘organisation capability’. These rankings give an overall capability index of 66.23. This positions New Zealand organizations in terms of the scale just above “being practised across most of the organization most of the time” but below” being practised consistently across the organization with improvements being made” and well below the top of the scale which says “fully practised throughout the organization. Continually refined and improved as “the way things are done around here”.

“The overall assessment of ‘results and comparative performance’ is low at 63.75 percent of potential,” says Matheson. “Clearly organisations are not reaching their potential.”

NZIM believes the Index will help organisations benchmark themselves against other New Zealand enterprises. As other countries adopt the Index it will be possible to create an international comparison and benchmark.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news