Barbies, baches and boating are no recipe for executive success in the workplace, discovers Helen Frances
KEY POINTS:
The "school report card" for New Zealand management right now would probably read fair to good, reports David Chapman, New Zealand Institute of Management (NZIM) National chief executive.
"To be honest we could do better. There's still a predominance of the barbecue, bach and boat culture," says Chapman.
New Zealand has been found wanting in various measurements of the management department. These include OECD ratings and others conducted at home.
"On all indices of the Management Excellence Awards, the Management Excellence Foundation found that big companies have been plateauing," says Chapman.
"The irony is that in this country we have about 300,000 small businesses but larger companies employ many more people, on an 80:20 ratio."
NZIM's research into management capability tells the same story. The institute's Capability Index asks senior managers to rate their enterprises in areas such as leadership, financial management, organisational capability, technology, innovation, external relationships and results.
"Over six years we've found [the index] has been going quietly backwards in a number of areas and certainly hasn't been growing. We believe this means managers have not really been developing their own or their organisation's potential."
Comparisons NZIM is making with other countries so far place New Zealand on a par with Hong Kong.
"India is top and this could be to do with a culturally optimistic view of life. New Zealand has a bit of conservatism and the tall poppy syndrome is alive and well here. We are stronger than the others in the financial management area, which is what you would expect."
While he is upbeat about the success stories that come to light through anecdotes and various awards, Chapman identifies areas for improvement, which are being addressed by major players in public and private sectors.
"Soft skills are a more important aspect of management than they used to be. Managers need to be more skilled at handling people with the new mix of [generations and cultures] in the workplace."
He has seen a shift back to hierarchical from flatter structures that have broad bands of command.
"What I call the belts and braces philosophy took over where people got nervous about not trusting their staff and people making mistakes, instead of adopting a 'let's learn from our mistakes' attitude.
"We have to give people space, let them manage. Hierarchical structures certainly don't suit the mix of Generations X and Y, baby boomers and older people."
Other parts of the management equation are team approaches to problem solving and project management.
"Teams are in vogue and most problems are tackled by putting together a special group of people for a time, then they disperse and others form. The team culture cuts across a flat structure a bit and certainly compensates a bit for the move back to the hierarchical model. Managers need to know how to get the best out of people through this way of working. It's not necessarily self-evident."
Leading players in the management arena, in both public and private sectors, advocate personal development plans for business owners and managers to help to get enterprises up to speed.
"We need to help managers access the resources that are available,' says Chapman.
Examples include assessment tools, coaching and mentoring, information on websites, awards and motivational management events.
Grafton Consulting Group, in Auckland, is in the business of providing such resources. The firm is a development and HR consultancy that works across a variety of industries with large to small enterprises, including corporates, not-for-profits and government departments.
Liz Jepson, HR consultant with Grafton, observes that managers have often grown up through an organisation with little investment in their development, although she says a growing number of organisations recognise the need for high quality, accessible leadership and management development programmes.
"We've noticed a marked increase in development-type psychometric assessment which looks at individuals within their organisations," says Jepson.
"So there's probably more of a drive towards upskilling leadership and management skills of individuals.
"Over the past 18 months we've seen a marked increase in leadership pre-development, 360 survey work, so companies are certainly interested in drawing the line in the sand as to where and how their managers rate."
But the brain drain from New Zealand does take its toll.
"Good talent, aspiring managers and leaders are attracted offshore, reducing the talent pool left here. This isn't necessarily all bad if these up-and-coming managers gain quality experience overseas and return to take up leadership roles in New Zealand, but at present we don't see this happening extensively," says Jepson.
Loyalty as a value is reappearing and is evident in the many successful companies Grafton Consulting Group works with.
"This comes with an organisation being clear about what it wants to achieve and what success looks like; when the leaders and managers recognise that people are the key ingredient, and they respect, value, encourage and develop them appropriately," says Jepson.
Managers without adequate training often find this the hardest part.
"It takes effort and dedication. Given the expectations an organisation can have of management, [staff development] can conflict with what managers see as their day-to-day priorities."
She says successful companies also understand how career development relates to job satisfaction and retention of quality people.
"It enables organisations to perform better in their marketplace and equips employees to find employment if the company relocates or moves offshore."
So where does the gold of successful managerial practice gleam? Inspiring role models shine every year in the NZIM/Eagle Technology Young Executive of the Year, held for managers 35 years and under. The 2008 awards are under way and winners will be announced later this year.
Mason Pratt, managing director of Provoke Solutions, was named NZIM/Eagle Technology Young Executive of the Year in 2007 and Jo Tarlton, general manager of Eco Maintenance, won the Northern Region section.
"One of the reasons I received the award was the success of Provoke," says Pratt, who was praised by judges for his strength of character, passion, humility and business acumen.
"My style is to lead by example and create an inclusive culture, also not being afraid to look at succession planning as a way forward. I think one of the biggest problems we face in terms of leadership [in all industries] is that we're not gearing up and developing our leaders of tomorrow right now."
Pratt believes the rhetoric around attracting and retaining Generation Y is based on the distinct differences between baby boomers, Generations X and Y - in terms of the career development they want, the transparency they expect in organisations and the speed at which many climb the corporate ladder and move around the world.
"Loyalty is a hard value to instil," he says. "Perhaps one of the edges I've got is being a little closer in age to Gen Y. Being a Gen X and people-centric by nature, I am genuinely interested in what people have to offer, what motivates them, and what they are trying to get out of life, not only at work but beyond."
Employees at Provoke Solutions have individually tailored career plans for progression through the company. While he values staff and does his best to retain them, Pratt is not "too precious" about people leaving, as they inevitably do.
"Hopefully I've done my job in terms of grooming them, developing their skills and preparing them better for what the corporate world might have to offer."
Jo Tarlton, general manager of Eco Maintenance, was responsible for turning around the financial position of the company, increasing profitability 200 per cent within two years. Turnover was increased by 50 per cent and has improved further.
"I introduced strategic planning into our organisation to give us better focus and direction," says Tarlton. "Throughout our organisation we encourage a culture of development and opportunity. We have created a structure for staff where they see potential and possibilities for personal growth."
Another managerial skill is in recruiting people that the company needs.
"We try to identify individuals who are willing to learn and use their initiative. We also have systems to capture ideas for improvement from staff and a manager dedicated to business improvement."
