Australian Management Capability Index

Australian executives are international pacesetters in corporate governance and integrity but they are lagging behind their foreign counterparts in the innovation sector.

Those are just two of the many findings released in the 2012 Australian Management Capability Index – a ground-breaking and comprehensive survey commissioned by the Australian Institute of Management and released in March.

The AMCI was conducted in November last year and is the first management survey of its kind ever produced in Australia. It was completed by managers from 252 diverse organisations including not-forprofit organisations, government service departments and privately owned enterprise with the results tabulated to produce a national score. Australia's overall score of 71.1 compares favourably with New Zealand (69.9) and Singapore (69.2) but trails India (74.6) and Malaysia (72).

The AMCI was based on chief executive officers' and executive leaders' self-assessment across 10 key drivers that contribute to profitable growth in their business. It shows Australian business leaders rate themselves as being most capable in the area of integrity and corporate governance, which achieved a score of 85.7 and ranked well above the overall AMCI.

AIM Qld & NT Chief Executive Officer Vivienne Anthon FAIM said the AMCI would become an invaluable benchmark for years to come.

"I think it's vitally important that we benchmark our managerial capacity and be able to make comparisons to it into the future," Ms Anthon said.

"This isn't the answer to everything. It doesn't solve every problem but it makes us look at where we're at in comparison to other parts of the world and address our weaknesses and accentuate the positives." Other highlights for Australian enterprises were the areas of financial management (76.8) and external relationships (74.1) but the downside came in the organisati o n a l capability (66.2) and innovation – product and services categories (67.3) Alarmingly, and in spite of Australia's growing corporate presence in natural-resource starved regions of the globe like China and India, the lowest sub-category score came in the visionary and strategic leadership category (52.0).

Respondents were asked whether management demonstrates an international/ global perspective and has good understanding of global markets, and their self-assessment shows this is a priority area for marked improvement.

Ms Anthon attributed the low global perspective score to an element of complacency and said the scope for improvement was infinite.

"If we take our vast, untapped reserves of natural resources for granted, there could be long-lasting and damaging repercussions," Ms Anthon said.

"One of the reasons Australia held up though the financial crisis was because we are blessed with our natural resources. We need to improve vastly our score in visionary and strategic leadership going forward.

A snapshot of the 252 respondents by ownership type shows 41.3 per cent were proprietary limited followed by not-for-profit (22.6), government services (14.3) and public companies (13.1).

Businesses generating annual turnover of less than $50 million (66.4) outweighed organisations boasting turnover upward of $50 million and companies with less than 200 staff made up 65.8 of the survey response.

AIM National President Jim Walker FAIM thanked the state AIM divisions for their input and said the survey would become a vital measuring tool for years to come. "Their participation has given us wide reach into the management community in our endeavour to present a national snapshot of management capability," Mr Walker said.

"Our intention is to undertake this study periodically and we anticipate that over time more organisations will choose to participate as they recognise the value of the AMCI."

Download your copy of the Australian Management Capability Index, released February 2012.


Australian Management Capability Index

Download your copy of the Australian Management Capability Index [PDF]

More News and Press Releases