KPMG in India in collaboration with All India Management Association (AIMA) has launched a report titled Management Capability Index India 2014 at AIMA’s 41st National Management Convention recently.
The Management Capability Index (MCI) is built on responses provided by over 500 senior leaders from across India, and elaborates on how organisations fare on 10 drivers of management capability: Visionary and strategic leadership, performance leadership, people leadership, financial management, innovation in products and services, organisation capability, application of technology and knowledge, external relationships, integrity and corporate governance, and organisation results and comparative performance. The survey respondents were asked to rate the questions for all given dimensions on a six-point like scale ranging from 0 to 5. Key findings of the index were:
Overview by organisation type
With a score of 75.4 per cent, foreign multi-nationals have adapted and evolved faster as compared to other types of organisations to the changing environment. Government establishments have a relatively larger scope for improvement with a score of 64 per cent. Small and medium-sized enterprises have a scope for development in financial management, external relationships and application of technology and knowledge.
Overview by industry type
The IT/ITes and media and telecommunications topped the chart with a score of 75 per cent. This is attributed to organisations’ relative strength in the dimensions of vision and strategy, people leadership, financial management, and innovation in products and services. Organisations dealing in retail and consumer goods stood lower with a score of 63 per cent.
Overview by employee strength
leaders from large-based organisations, with employee strength of more than 50,000, feel that their organisations are doing relatively well and scored around 74 per cent. Higher scores can be attributed to high maturity levels of organisation systems and process, along with guidelines.
Overview by revenue cap
Organisations with largest revenue cap, i.e more than 50,000 crore, stood at top of the ladder with a score of 73.4 per cent. The success could be attributed to well-defined structural processes.
The MCI measures and evaluates management capability across sectors, geographies, and organisation types. The findings of this report will help organisations benchmark their management practises and effectiveness against similar organisations. This report not only discusses the potential indicators of growth but also apprises the opportunities for further development.
“The MCI is a reflection of the holistic leadership and management capabilities required to run an organization across various sectors. It puts India at par with countries like Australia, New Zealand, Hong Kong and Malaysia who have done this exercise. The index gives us an opportunity to improve and we have the potential to fare much. Areas where we could significantly improve are organisational result and comparative performance, external relationships and application of technology and knowledge.” Richard Rekhy, CEO, KPMG in India said.