Surprisingly, Great Britain has a low productivity problem!
The Chartered Management Institute (CMI) outlines that there is a low productivity problem in Britain.
‘Research from the Centre for Economic Performance at the London School of Economics proves that with the country scoring just 3.03 out of five for management best practice, behind the US (3.31), Japan (3.23), Germany (3.21) and Canada (3.14)’.Source: CMI
But why does this problem prevail? What is the root of the problem?
CMI’s research reveals that four out of five managers in Great Britain are ‘accidental’ managers (2.4 million people in leadership positions) that lack sufficient training or underperforming. In the article ‘The curse of the accidental manager CMI describes how ‘accidental’ managers are created. They are workers who excel in their positions therefore, they are rewarded with the managerial role without the necessary training. Several views about accidental managers have been expressed at CMI Midlands Regional Conference and awards at the ICC Birmingham. It is worth taking a look at what several managers think about the curse of accidental managers.
According to CMI’s Management Manifesto published in 2017, research reveals that effective management can benefit any organisation. Moreover, productivity and performance increase if managers undertake the necessary training. Furthermore, organisations that apply leadership development programmes are 32% more productive and have 23% better results.
CMI’s chief executive Ann Francke emphasizes on training and practice to achieve efficient management.
“The principles of management are stunningly simple, yet so few get it right. Being a good manager is about training and practice. A natural runner may have a talent for running, but they won’t win a race or complete a marathon without practice and training. The same is true for a good manager.”Ann Francke, Chief Executive Officer, CMI
There are many managers who believe training is not necessary and fail to deliver outcomes as they find it hard to act according to their role. Others believe that hard work is enough and it can potentially help them overcome their deficiencies. Finally, some are unwillingly accepting managerial roles.
‘poor management is estimated to cost the UK £84bn in lost productivity a year – £9bn more than the £75bn that the Institute for Fiscal Studies has estimated could be lost every year by 2030 if the UK left the single market.’Source: CMI
CMI emphasizes on the government’s Apprenticeship Levy that is a funding scheme that may actually serve as a solution to the ‘accidental’ management problem. Funding from the scheme can be used by employers, to fund their apprentices.
CMI provides graduate students that join apprenticeship schemes with the Chartered Manager Degree status. In this respect CMI has worked closely with 40 Universities, colleges and several businesses and provides the Chartered Manager Degree Apprenticeship. The apprenticeship aims to help on the one hand students to get experience and training and on the other hand, employers to benefit from the government’s Apprenticeship levy.
Universities UK has said that the Chartered Manager Degree Apprenticeship could become the most popular of the new degree-level apprenticeships and could account for over a third (36%) of all new apprenticeships next year.Source: CMI
This new breed of professional fully-trained managers are hope for businesses all over Britain as they are expected to play a pivotal role to the increase of productivity that has been a huge problem for years.