Plenty of improvement possible for NZ managers

New Zealand's managers are performing at only two-thirds of their potential according to new research.

In its first round of research, the Institute of Management's capability index found that the 403 New Zealand chief executives and managing directors surveyed collectively scored only 62.63 out of 100.

Former institute chairman and the architect of the index Doug Matheson said the survey showed there was "considerable opportunity for improvement".

The institute said improved individual management capability was the best way to lift a country's total economic performance.

It established a capability index to measure the progress of those who take part in its management skills programme.

"We need to know where we stand," Mr Matheson said.

"This research will also help us identify the best ways forward and simultaneously help organisations identify their management weak spots and chart their future progress," Mr Matheson said.

The index is based on eight major "drivers" of profitable business growth: vision strategic, performance and people leadership, financial management, organisational capability, technology, external relations and innovation.

New Zealand managers rank their financial management capability highest at 74.42 on a scale of 100. Organisation capability rates lowest at 62.63.

Until now no other country has measured management capability. The US-based Baldrige Performance Excellence programme is the most-used international performance measurement system, but it doesn't measure management practice and competence or management capability.

- NZPA