Is it true that Australian managers don’t measure up?

Australia needs to improve its’ productivity if it is to enjoy another 26 years of growth. While investment in infrastructure, skills and technology will help, a new report issued by the Department of Industry, Innovation and Science has proven, unsurprisingly, that skills of management are a key driver in the performance of the individual firm.

The report developed management capability scores on the following areas:

  • Strategic Management Capability Score (SMC)
  • Supply Chain Management Capability Score (SCM)
  • Digital Management Capability Score (DMC)
  • Environmental Management Capability Score (EMC)
  • Overall Management Capability Score (OMC)
  • Structured Management Practice Score for Manufacturing (for comparison with US manufacturing firms)

This report received quite a bit of press, negatively comparing Australian managers with their US counterparts, however I think that there are some positives to read – especially about the positive effect of innovation and export in improving management capability.

Key findings:

Firms with some degree of foreign ownership tend to have higher scores of management capability than domestic-owned firms.

Firms that are innovation active display significantly higher management capability scores than those that are not.

There is a positive and significant association between management capabilities and labour productivity.

There is a positive and significant association between supply chain management and export performance.

However, the findings aren’t new to Ai Group, which is why we created the Business Improvement and Growth Hub, with 200+ Fact sheets, self-assessments, checklists and company case studies on the following topics:

  • Strategy & Planning
  • Productivity Improvement
  • Leadership and Culture
  • Growing Sales
  • International Business
  • Process Improvement and Lean
  • Sourcing, Supply Chains and Alliances
  • Innovation
  • Adopting New Technologies
  • Environment & Energy Management

See for yourself:

How would your management skills rate? Here is the questionnaire with weightings to self-assess your skills across all the key areas.

Contact Ai Group’s Business Improvement & Growth Hub:

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Having joined Ai Group in 2000, Louise has managed a number of trade-related projects including trade missions, business matching and the development of export-related training programs. Since 2009 she has led Ai Group's service delivery to our smaller associations, providing governance, policy and business development support, and is Executive Officer of the Australia Saudi Business Council and the Australian Russian Dialogue.

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