ARE COMPANIES OVERLED AND UNDERMANAGED?
We have seen many recent examples of companies being led, very badly, by highly paid Chief Executives
For example, BP Chief Tony Hayward has made several negative comments which had a direct influence on the company’s share price.
Also, let’s not forget the now infamous Fred Goodwin of RBS notoriety. One of the key pieces of feedback from these recent experiences is that our leaders are not properly trained to operate in their industries.
Business leaders are often paid multi million pound packages and recent events have proved that some of these leaders are just not qualified to deal with difficult situations.
So what’s the answer?
There is a strong argument for our top companies to invest and support a highly trained management team with the skills, training, qualification and sector experience to steer our major organisations through both prosperous and difficult times.
With this approach, maybe we could have averted some of the corporate horror stories that have emerged over the last 18 months
This is of course a very brief insight into this subject but a valid conversational topic in the world of commercial management and leadership
Matthew Clayton AIBC
Ambassador - The Institute of Business Consulting and Chartered Management Institute
9th July 2010
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Comments
Hi Matthew,
I recently saw an article (and need to paraphrase as I can't recall the exact detail) where a representative of the CIPD suggested the public sector (which instantly makes it a massive, sweeping statement) is quanitatively overmanaged but qualitatively undermanaged.
Again, I think you're suggestion of quality management training (and dare I say continuous professional development) would be the order of the day!
When talking with managers recently, I've been amazed by the number of people who see management training and continuous development as a VERY low or insignificant priority for them.
I think there needs to be a wider assessment and discussion about the impact badly trained or ill equipped managers are having on UK Plc (not sector specific because I can't lift a brush that broad!!!) and for these people to realise that, like any other profession, it requires commitment and dedication to continuous development and updating of knowledge; skills and strategies.
I wholeheartedly back the call for management qualifications to become a necessity when recruiting into management positions. It's the only way to drive up standards across all sectors and push the subject further up personal agendas. CIPD membership is almost a pre-requisite in the HR field and it certainly hasn't detrimented the field.
Colin - Ambassador for the CMI
I've just finished running a session with a Level 7 Diploma group and one issue is becoming more and more apparent with my public sector managers, namely that they have realised they are having to micro-manage as well to drive effective change through and deliver real results.
The previous over-led, policy driven, macro-management approach where only generalised 'targets' had to be satisfied no longer works when resources are minimal and tangible results have to be delivered.
But how many managers can demonstrate that they have the skills to manage at all levels and are prepared to develop them either initially or continuously. Given that only 1 in 4 managers have an accredited qualification, the ones on our courses are relieved they did the CMI course and not the 'in-house' unaccredited leadership (macro-management only?) programmes they were encouraged to join!
I don't disagree with the observations of the commentators in general.
However, using the original blog article as a point of reference I would imagine if we knew the development profile of the individuals cited that there would be evidence of considerable leadership and management development.
I agree with Colin's observations regarding a wider assessment and discussion but see this as more than simply individuals who need to engage in this process but rather a wider change in institutional mindset.
Dealing with complexity and uncertainty ( and there is plenty of that present and on the horizon) requires more than a managerial approach and a recent blog I (humbly) initiated, to my mind, links, to an extent, with Colin's views regarding wider assessment and discussion as a necessary precursor to change.
http://www.managers.org.uk/practical-support/management-community/blogs/tame-or-wicked-%E2%80%93-how-will-you-approach-challenges-ahead
Perhaps some of this also links in with Nigel Girling's work that seems to have generated considerable discussion on the site.
http://www.managers.org.uk/practical-support/management-community/blogs/thoughts-leaders-leadership-vision-inspiration-and-perf
John, CMI Ambassador