Management Capability Development Will Be Crucial For Successful Businesses

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Today, management capability assumes an imperative role, where organizations need to build management capabilities across the regions, business units and functions at every level. But challenges real their ugly head when delivering high quality and consistent development, scaling it and delivering it on requisite time frame.

Organisations are finding that even employees starting out in their careers need to be equipped  to think strategically to make effective decisions, and to inspire and influence those working in their teams & around them. Organisation that are adept at thriving in a dynamics environment are better positioned  to excel and reduce the gap between growing industry needs and international capabilities. "India today is the fastest growing talent markets in the world where organizations need to build management capabilities across all levels. Management capability  development  can help organizations achieve their strategic goals  at different stages as per the business value chain, and help ready their talent to lead through the changes and challenges ahead," states Vishalli Dongrie, partner and head, people & change advisory, KPMG India. In an effort to evaluate the management capability of organizations across sectors, KPMG in India in collaboration with the All India Management Association (AIMA) recently came out with 4th edition of KPMG AIMA survey titled 'Management Capability Development Index India report 2018. Management Capability Development Index (MCDI) is a measure of how CEOs and leaders in organization perceive their management capabilities – helping companies gauge their effectiveness and growth of their business performance. With over 500 participants across sizes and sectors – manufacturing, BFSI, TMT, Education, profession services, retail, construction, healthcare, mining and logistics, the report examines in detail 10 pillars of management capability and also attempts to highlight the level of maturity of companies across these key dimensions. The report also highlights the way forward to help organizations benchmark their management practices against the overall Indian business scenario and against businesses of similar nature. Overall MCDI perceptions have not been able to exceed 2011 over the last eight years; After a rise in 2016, the 2018 score has reduced indicating urgency felt by organisations to improve certain management capabilities in response to the volatile and swiftly changing paradigm. As per the report, integrity, trust & corporate governance along with external relationship are dimensions where participants across organisations have established confidence in capabilities. People leadership and organisational capabilities are dimensions where participants have expressed least confidence and highest urgencies vis-à-vis management capabilities. Banking and financial services (where budding organisations perceive their capabilities to be higher than rising and leading firms) and retail trade have the highest perception of capabilities. There is a vast difference of capability perception between budding and leading organisations in construction and professional services (leading organisations being more confident of their capabilities). North India based firms (fueled by high ratings from healthcare and technology) and west India based firms (fueled by high ratings from financial and professional services) were more confident of capabilities than south and east India based organizations, says the report.

The learning from the results of this survey are three-fold:

  1. Organisations must address the urgent need expressed to improve management capabilities around people leadership and self-development as well as organisational capabilities by embedding learning into the day to day lives of coworkers.
  2. Industries which are evolving from unorganised to organised must focus on fostering strategic and visionary industry leadership while industries further ahead in the evolution curve yet at the cusp of another transformation must learn to stay innovative and adaptable.
  3. There is a widespread call for management teams to improve performance feedback mechanisms & collaborative decision-making thereby displaying people leadership.

"Managing capabilities have been instrumental in transforming organisations. The report is aimed at helping organizations benchmark their management practices against the overall India business scenario as well as against businesses that are similar in nature. It gives an opportunity to an organisation to take a close look at its current performance, indentify the areas of importance, get potential indicators for growth & gain credible insights for making a positive impact to ones business practices," says TV Mohandas Pai, President, AIMA.    

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