Leadership and Management Advisory Panel

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Leadership and Management Advisory Panel

• Michael Davis

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Panels remit

• Origins from CEML
• Established by the DTI and DfES in 2005
• Offer strategic advice on leadership and
  management
• Provide to Government an annual assessment of the
  progress being made to improve UKs leadership
  and management capability

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What is the challenge

• 10 15 of our productivity gap can be explained
  by differences in management practices between
  the UK and US
• Just one UK company makes the top 20 of the
  worlds most innovative companies as judged by
  1,000 senior executives from around the world
• The UK has a disproportionate bias in its SME
  stock of small businesses compared to Germany and
  the US
• UK managers are, relative to the US, slow in the
  adoption of best practice techniques and
  performance gaps in management practice are
  particularly evident at lower and middle
  management levels
• When compared to Europe a recent study showed
  that the UK spent less per manager on management
  development than any other country
• There are a disproportionately high number of
  managers in small firms with low or no
  qualifications
• According to a recent poll almost one in three
  employees would swap their manager if they could

There is no single ticket challenge which acts
as a rallying call to improve leadership and
management performance in the UK.

• There is no single ticket challenge which acts
  as a rallying call to improve leadership and
  management performance in the UK.

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Its not all bad

• Over the last 10 years we have seen a steady rise
  in the qualification levels of managers, with a
  halving of the proportion without qualifications
• There is continuing growth in students studying
  business and management in higher education
• In 2005 the UK had 10 of the top 20 Business
  Schools in Europe according to the annual
  business school MBA rankings of the Financial
  Times.

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Bring forward the future

• Are we developing leaders and managers capable
  of succeeding in this rapidly changing landscape?

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Bring forward the future

• The labour cost differenceTotal hourly
  compensation manufacturing (wages
  supplementary benefits)

Source Top Class Competitors, Stephane Garelli
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Bring forward the future
Labour productivity (PPP)Estimates GDP (PPP)
per person employed per hour US
Source Top Class Competitors, Stephane Garelli
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Bring forward the future
Worlds ten biggest economiesUnited States100
GDP (market exchange rate) GDP (market
exchange rate) 2005 GDP (PPP) 2005
forecast 2040
Source The Economist A survey of the world
economy
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History of complacency

• "Indeed let us be frank about it - most of our
  people have never had it so good."
• Harold MacMillan, 1957

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History of complacency

• UK comparative economic performance 19501973

Source British Economic Performance 1945-1975,
B.W.E Alford
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Employers to lead

• It is about taking the energy too frequently
  expended on blaming others and, as employers,
  accepting our responsibilities in developing all
  leaders and managers because it is in our
  interests to do so.
• P1. Leading employers should drive the
  development of a UK wide programme that promotes
  leading practice in leadership and management
  development.

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Employers to lead

• In the future we see that talented individuals
  will be in short supply, seeing their careers as
  truly global.
• P2. We need a national award which raises the
  profile of those employers who offer truly
  outstanding leadership and has real currency to
  prospective employees.

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Employers to lead

• we must bring an end to the position where
  employers see the skills for the job and the
  relevant qualification as somehow different.
• P3. The Sector Skills Councils are responsible
  for understanding and articulating the leadership
  and management needs of each sector and to work
  with the supply side to ensure that training and
  qualifications meet employer needs.

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Learning opportunities that are fit for the future

• Despite the increased take up of leadership and
  management learning and the expansion of
  institutes- what evidence is there that these are
  making a substantive difference to our collective
  leadership and management performance?
• P4. There is a plethora of initiatives,
  approaches and institutions for leadership and
  management in the UK, we need determined
  leadership to champion what works and to drive
  improvements in curricula development and
  delivery, particularly at intermediate management
  levels.

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Learning opportunities that are fit for the future

• we remain concerned with how Business Schools
  can better engage and co-ordinate demand from
  SMEs.
• P5. We need a new economy between HE and SMEs to
  ensure that HE is able and incentivised to engage
  with SMEs in providing customised leadership and
  management learning opportunities, particularly
  at Level 4 and above.

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Incentives and support to act

• Our proposal is to restate the importance of
  informal learning and the need for intelligent
  signposting.
• P6. All business support providers and brokers
  (for example, within Train to Gain) should be
  proactive in their knowledge and signposting to
  quality leadership and management development
  opportunities.

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Incentives and support to act

• We are concerned that the positive achievements
  of the Leadership and Management Programme will
  become lost as other policy priorities march on.
• P7. We are greatly encouraged by the current LSC
  leadership and management programme for SMEs. It
  should be extended to organisations of 10 and,
  in line with Train to Gain, focus on hard to
  reach businesses.

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Incentives and support to act

• Our belief is that the current and future UK
  workforce is populated with individuals who want
  to succeed, to progress and achieve. There is
  demand for leadership and management, but from a
  perspective we dont often see.
• P8. For individuals, we need far more innovative
  approaches of engagement supported by using
  proposals for Individual Learning Accounts to
  specifically incentivise first level 3 management
  qualifications for adults.

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• What next?

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There is no clarity of opinion
V
Source Hard Facts, Dangerous Half-Truths Total
Nonsense, J Pfeffer R Sutton
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Emerging Priority from the Panel

• There is a plethora of initiatives, approaches
  and institutions for leadership and management in
  the UK, we need determined leadership to champion
  what works and to drive improvements in curricula
  development and delivery, particularly at
  intermediate management levels.