Investing at the top

Unfortunately, that’s the best of the news from the latest annual IMD World Competitiveness Yearbook survey, released in May 2008.

It’s less comforting to know that 31 other countries rank ahead of New Zealand when it comes to the availability of competent managers.

These places include Chile, Hungary, Lithuania and Jordan.

A number of public and private interests has grouped together to try to rectify the situation.

The Management Focus project aims to help New Zealand businesses improve their management and leadership skills and reap the rewards.

Members include the NZ Institute of Management, Business New Zealand, New Zealand Trade and Enterprise, and the Ministry of Economic Development.

Management Focus is a national communications campaign designed to highlight the impact good managers and leaders have on company performance.

The project launched in 2007 with a website offering case studies and tools for assessing and improving management skills.

One year on, it is expanding to include ‘champions of management’ events, where attendees hear from inspirational leaders.

Employers and Manufacturers Association chief executive Paul Winter says most New Zealand businesses fall into the SME (small to medium enterprise) category.

By necessity, they spend the bulk of their time just getting on with the basics of running a business.

“With Management Focus, the intention is to remind people that, from time-to-time, they need to bring the management and leadership of their business into focus.

“They need to invest some time and energy in management and leadership and there will be a payback for their business from that investment,” says Winter.

“The general assessment of New Zealand’s management performance is average to below average.

“We have to look at what we can do to change that.”

Managing for growth

Capital Development Agency director Clare Nolan says her company works with more than 150 small start-ups a year.

She says management and leadership often becomes an issue when companies are looking to move to a new stage of growth.

“We need to offer more short, sharp opportunities for managers of SMEs to undertake training.

“They also need exposure to leaders who will help them understand the qualities of leadership and how to develop and utilise these qualities for the benefit of their business,” says Nolan.

Coll Electrical is profiled as a Management Focus case study.

Founder Pat Coll agrees there is a point where companies need to stop and focus on their company’s structure and management.

“Your business is constantly changing. When you hit 20- plus staff and a turnover of $3million to $4 million, it is time to look at things.

“You can get pretty comfortable if you’re making $1 million but you might not get past that or even hold on to that if you don’t check how things are working.”

In 2000, when Coll’s own company reached 20 staff, the Electrotechnology Industry Training Organisation (ETITO) offered him business planning and management consultancy.

It was delivered by Investors in People.

“We are still using the basic fundamentals of what we were taught,” says Coll.

“One of the biggest things was learning to deal with problems.

“[Now] if there’s a problem we face up to it, discuss it, deal with it and we can move on.”