Ineffective management is estimated to be costing UK businesses over £19 billion per year

The research applies to all organisations, regardless of size, sector or location. Unsurprisingly, strong leadership and management was a key factor in fostering innovation, unlocking the potential of the workforce and ensuring organisations have the right strategies to drive productivity and growth.

The research in to business leadership reveals some rather shocking, but not entirely surprising statistics. For instance:

  • Incompetence or bad management of company directors causes 56 per cent of corporate failures.
  • Nearly three quarters of organisations in England reported a deficit of management and leadership skills in 2012.
  • Best practice management development can result in a 23 per cent increase in organisational performance.

There is clear and compelling evidence to show that failings in our leadership and management skills are holding back the UK’s competitiveness. The UK Commission for Employment and Skills’ National Strategic Skills Audit 2010 found that good managers and leaders, and more specifically their management skills, are crucial to ensuring high performance working and business success.

The report highlighted a need for improved management skills across a wide range of sectors and cited this as a high priority issue for immediate action.
Quite simply, improving leadership and management skills is the key that will unlock the potential of UK businesses, allowing them to seize the opportunities available to them and achieve sustainable economic prosperity.

Kevin Young, managing director of Skillsoft EMEA said: “The findings in this report do not come as a surprise after the news that the UK’s economic output has fallen by 0.7 per cent in Q2 this year. Clearly, workplace training is being neglected, and this is the result.

“Managers are constantly faced with changing environments, but it is their role to adapt and guide staff through the storm. There is no real easy answer as to why the UK’s managers are performing well below the standard that we all expect, but it is essential that managers – at all levels – are engaged and encouraged to develop their skills. This will secure foundations that will ensure that businesses are in the position to evolve and adapt. As long as leaders and managers fail to meet the expected standards, the UK’s competitiveness and development will continue to be stifled.”

  Share:

Leave a Reply

*