Institute of Leadership & Management

The leadership
and management
talent pipeline
The leadership and management talent pipeline
2
The leadership and management talent pipeline
Contents
lntrccuct|cn O1
Lxecut|ve summery O2
Key reseerch nc|ngs O4
Ccnc|us|cns enc 14
reccmmencet|cns
Methccc|cgy 1o


01
Menegement prect|ces enc ceve|cpment mcce|s neec
tc |eep up w|th the pece c chenge, cr we r|s| hev|ng
e wcr||ng pcpu|et|cn thet |s |||-equ|ppec tc meet the
|eecersh|p che||enges eheec.
^cccrc|ng tc e repcrt rcm the 0K Ccmm|ss|cn cr
Lmp|cyment enc S||||s (0KCLS)
:
, 0K emp|cyers w|||
neec tc heve |cent|ec, recru|tec enc ceve|cpec en
ecc|t|cne| z.z m||||cn new menegers between zoo/ enc
zo:/. 1hey prec|ct thet cver :. m||||cn menegers ere
neecec tc rep|ece thcse ret|r|ng rcm the wcr|p|ece,
wh||e mcre then o.8 m||||cn w||| be requ|rec tc menege
the |ncrees|ng number c pecp|e be|ng emp|cyec
net|cne||y. 1h|s presents bcth e che||enge enc en
cppcrtun|ty cr 0K bus|ness.
Our reseerch shcws there |s en urgent neec tc |mprcve
s||||s enc tre|n|ng tc ensure e strcng supp|y c new
|eecersh|p enc meneger|e| te|ent. 1he Depertment
cr 8us|ness, lnncvet|cn & S||||s (8lS) hes h|gh||ghtec
the re|et|ve|y wee| percrmence c 0K menegement
es e cr|t|ce| |ssue thet |mpects c|rect|y cn cur net|cne|
ccmpet|t|veness, enc ergues thet eccress|ng th|s
wee|ness w||| be v|te| |n ce||ver|ng e suste|neb|e
eccncm|c reccvery.
1here |s e c|eer enc ccmpe|||ng ||n| between best
prect|ce |eecersh|p enc menegement enc cvere||
bus|ness percrmence. ^s gure : |||ustretes, the tcp
s|x ccuntr|es |n the wcr|c cr mccern menegement
prect|ces ere |cent|ce| |n crcer tc thcse ||stec cr h|gh
prccuct|v|ty
z
. l 0K p|c |s tc ccmpete successu||y
enc ce||ver the eccncm|c grcwth requ|rec tc creete
e hee|thy enc prcspercus scc|ety, |t neecs tc |mprcve
the supp|y c wcr|c-c|ess |eecers enc menegers.
1 S||||s cr Jcbs. 1ccey enc 1cmcrrcw (0KCLS. 2O1O)
2 l|chc|es 8|ccm, lenete Lemcs, M|ngxuen Q|, lenee||e Secun & Jchn Ven
leenen (Centre cr Lccncm|c lercrmence, LSL), Ccnstre|nts cn Deve|cp|ng
0K Menegement lrect|ces, 8lS leseerch leper b8. 2O11
Introduction
1he wcr|c we ||ve |n tccey |s very c|nerent tc the wcr|c
we |nheb|tec just e ew cececes egc. ^ rep|c|y cheng|ng
wcr|crce, g|cbe||set|cn, the r|se c the |ncw|ecge eccncmy
enc technc|cg|ce| ecvences, tcgether w|th the g|cbe| eccncm|c
ccwnturn, pcse e whc|e new set c che||enges cr z:st century
|eecers enc menegers.
Figure 1: Relationship between best practice in
leadership and management and international
business performance
Score
US
Japan
Germany
Sweden
Canada
UK
Italy
France
Australia
Mexico
Poland
Ireland
New Zealand
Portugal
Chile
Argentina
Greece
China
Brazil
India
2.4 2.6 2.8 3.0 3.2 3.4
Best management practices Key
High productivity
The leadership and management talent pipeline
02
Executive summary
1c ccmpete successu||y cn the g|cbe| stege, 0K p|c neecs e
steecy streem c menegement te|ent cepeb|e c ce||ver|ng strcng
eccncm|c grcwth. Creet|ng these |eecers enc menegers shcu|c
be the tcp pr|cr|ty cr 0K bus|ness enc requ|res e u||y unct|cn|ng
menegement te|ent p|pe||ne.
Introduction
ln Merch zo:z, lLM set cut tc uncerstenc the stete c
the 0Ks menegement te|ent p|pe||ne enc where |t ccu|c
be |mprcvec. We ccmm|ss|cnec |ncepencent reseerch
w|th /o 0K crgen|set|cns ecrcss the pub||c enc
pr|vete sectcrs tc |cent|y the che||enges they ece |n
recru|t|ng enc ceve|cp|ng s||||ec |eecers enc menegers.
8y te|ent p|pe||ne, we meen e jc|nec-up epprcech tc
|eecersh|p ceve|cpment thet eneb|es e cw c s||||ec
enc cepeb|e |nc|v|cue|s thrcugh en crgen|set|cn. ^
te|ent p|en, meenwh||e, |s the meens by wh|ch e te|ent
p|pe||ne |s |mp|ementec, enc |nvc|ves cen|ng, trec||ng
enc ceve|cp|ng the |eecersh|p enc menegement s||||s
enc |ncw|ecge requ|rec tc ensure the uture neecs c
e bus|ness ere met.
Key ndings
Pipeline deciencies
Mcst crgen|set|cns |ec| e unct|cne| te|ent p|pe||ne,
w|th meny hev|ng nc te|ent p|en et e||. ln the|r
current stete, te|ent p|pe||nes ere e|||ng tc eneb|e
the ceve|cpment enc cw c menegement s||||s
thrcughcut en crgen|set|cn, enc menegement
cepeb|||ty enc success|cn p|enn|ng ere e mejcr wcrry
cr 0K emp|cyers. c respcncents expressec
ccncern thet |cw |eve|s c menegement s||||s ere hev|ng
e c|rect |mpect cn the|r bus|ness ech|ev|ng |ts gce|s.
Reliance on external recruitment
0K crgen|set|cns ere heev||y re||ent cn externe|
recru|tment cr menegement vecenc|es, espec|e||y
et sen|cr |eve|s. 1h|s |s cr|ven |n |erge pert by
shcrtccm|ngs |n |nterne| |eecersh|p enc menegement
ceve|cpment. On|y c meneger|e| vecenc|es
ere ||ec |nterne||y, w|th the prcpcrt|cn c these
eppc|ntments cecrees|ng the h|gher up ycu |cc|,
gc|ng rcm 6: et rcnt-||ne menegement |eve| ccwn
tc 8 cr m|cc|e menegement enc tc just o cr
sen|cr menegement. ^t upper menegement |eve|s |n
pert|cu|er, emp|cyers ere strugg||ng tc nc su|teb|e
|nterne| cenc|cetes.
^t the seme t|me, e|mcst he| (u/) c emp|cyers c|te
the |ec| c |nterne| sten cepeb|||ty es the s|ng|e b|ggest
berr|er tc ensur|ng en enect|ve p|pe||ne c |eecers
enc menegers. ^nc w|thcut the necessery s||||s enc
cepeb|||t|es eve||eb|e |nterne||y, the cyc|e c externe|
recru|tment cen |mpect upcn 0K bus|nesses see||ng tc
bu||c the|r uture cperet|cns.
Recruiting the wrong skills?
8eycnc e ccre set c s||||s, the cr|ter|e cr recru|tment
very huge|y between jun|cr enc sen|cr menegement
|eve|s. Oen, rst ||ne menegers ere recru|tec cn the
bes|s c techn|ce| s|||| enc |ncw|ecge, but wh||e these
s||||s ere ceemec useu| cr jun|cr menegers, they
beccme |ess |mpcrtent |n sen|cr menegement, when
streteg|c enc nenc|e| s||||s beccme cruc|e|. Lmp|cyers
recru|t|ng |n th|s wey ere |||e|y tc enc up w|th teems
|ec by expert ncv|ces techn|ce| experts w|th |cw
ewereness enc pccr |eecersh|p enc menegement s||||s,
whc strugg|e tc set|sy the |mmec|ete requ|rements c
rst ||ne menegement enc ere |||-equ|ppec tc prcgress
|ntc sen|cr pcs|t|cns.
03
ln ect, cur reseerch cunc thet rst ||ne menegers
rece|ve very ||tt|e tre|n|ng. On|y :8 c emp|cyers
expect cenc|cetes tc heve rece|vec menegement
tre|n|ng pr|cr tc be|ng eppc|ntec tc e menegement
pcs|t|cn. 1h|s meens the vest mejcr|ty c rst ||ne
menegers ere expectec tc |eern cn the jcb w|th nc
suppcrt, creet|ng e s|n| cr sw|m scener|c.
^ shcrtege c scer |eecersh|p enc menegement s||||s
e|sc presents e pert|cu|er che||enge tc 0K emp|cyers.
Orgen|set|cns ccns|stent|y strugg|e tc nc menegers et
every |eve| whc ere emct|cne||y |nte|||gent, |nsp|ret|cne|
enc creet|ve ettr|butes wh|ch ere ccns|cerec cr|t|ce|
cr z:st century menegement es bus|nesses ecept tc
c|vers|ty, ccmp|ex|ty enc chenge.
Poor talent planning
Desp|te these cec|ts enc cec|enc|es, cn|y / c
emp|cyers heve e p|en |n p|ece tc ensure they heve e
pcc| c |eecers enc menegers thet ere su|teb|y s||||ec tc
|| uture vecenc|es.
Mcst c thcse crgen|set|cns thet cc heve e te|ent p|en
e|sc heve e grecuete recru|tment prcgremme, enc
e grecuete recru|tment prcgremme meens e h|gher
prcpcrt|cn c menegers be|ng recru|tec |nterne||y
et every menegement |eve|. 1herecre, e jc|nec-up
epprcech tc grecuete recru|tment |s e re||eb|e |nc|cetcr
thet en crgen|set|cn |s ccusec cn te|ent, enc echeres
tc gccc prect|ce when |t ccmes tc |eecersh|p enc
menegement ceve|cpment.
Recommendations
legerc|ess c en crgen|set|cns s|ze enc sectcr, e
te|ent p|en |s cr|t|ce| tc he|p|ng emp|cyers metch s||||s
ceve|cpment w|th |nterne| neecs. 1hey eneb|e the
|ntrccuct|cn c s||||s enc |ncw|ecge becre pecp|e te|e
up the respcns|b|||ty cr superv|s|ng cthers, enc |s the
rst step tc |mp|ement|ng e unct|cn|ng te|ent p|pe||ne.
Deve|cp|ng the ccre s||||s c ccmmun|cet|cn, pecp|e
menegement, crgen|set|cn enc p|enn|ng w||| prepere
emp|cyees cr menegement enc ess|st them |n
the|r cey-tc-cey wcr|. lcr sen|cr |eecers, nenc|e|
ecumen enc streteg|c th|n||ng succen|y beccme mcre
|mpcrtent. Smert crgen|set|cns w||| ceve|cp these
s||||s |n the|r menegers es they prcgress, neget|ng the
cver-re||ence cn externe| recru|tment et sen|cr |eve|s.
1hey shcu|c e|sc |cc| beycnc the|r |mmec|ete neecs
enc se|ect pecp|e cr menegement rc|es whc heve the
pctent|e| tc ceve|cp |n the |cnger term.
The leadership and management talent pipeline
04
Key research ndings
Our reseerch shcws there |s ree| ceuse cr ccncern
et the current stete c the 0Ks |eecersh|p te|ent pcc|
enc menegement ceve|cpment p|pe||ne.
Stagnating pools and leaky pipelines
We cunc thet mcst crgen|set|cns |ec| e unct|cne|
te|ent p|pe||ne, w|th meny hev|ng nc te|ent p|en et
e||, enc thet menegement cepeb|||ty enc success|cn
p|enn|ng ere e mejcr wcrry cr 0K emp|cyers. ^n
cverwhe|m|ng c respcncents expressec ccncern
thet |cw |eve|s c menegement s||||s ere hev|ng e c|rect
|mpect cn the|r bus|ness ech|ev|ng |ts gce|s.
When we c|g ceeper, we see th|s cec|t |s the resu|t
c e |ec| c te|ent stretegy enc bec|y ccnstructec enc
me|nte|nec te|ent p|pe||nes, wh|ch ere current|y e|||ng
tc eneb|e the ceve|cpment enc cw c menegement
enc |eecersh|p s||||s thrcughcut en crgen|set|cn.
Lack of internal talent
Our reseerch revee|s thet cvere|| cn|y c
meneger|e| vecenc|es ere ||ec |nterne||y. lurthermcre,
the prcpcrt|cn c these eppc|ntments cecreeses the
h|gher up ycu |cc| |n terms c recru|tment neecs,
gc|ng rcm 6: et rst ||ne menegement |eve|, ccwn
tc 8 cr m|cc|e menegement, tc o cr sen|cr
menegement. 1h|s trenc suggests thet, et upper
menegement |eve|s, crgen|set|cns ere strugg||ng tc
|cent|y su|teb|e |nterne| cenc|cetes w|th the r|ght m|x
c s||||s enc ettr|butes, ceus|ng them tc |cc| externe||y
tc meet the|r cwn wcr|crce requ|rements.
When e p|pe||ne |s wcr||ng we||, |eecersh|p s||||s |ter
up thrcugh e bus|ness v|e tre|n|ng enc |nvestment
rcm rst ||ne menegement cnwercs. 1h|s prccess
shcu|c g|ve emp|cyers ccncence |n the te|ent
ccm|ng thrcugh the ren|s enc eneb|e them tc me|e
the mejcr|ty c meneger|e| eppc|ntments |nterne||y.
cwever, the zo:: 0KCLS Lmp|cyer S||||s Survey
|cent|es menegement es e pert|cu|er|y herc-tc-||
cccupet|cn, w|th : c e|| vecenc|es ettr|butec tc
s||||s shcrteges.
1he ect thet he| c e|| sen|cr menegers enc twc cut
c ve rcnt-||ne menegers ere recru|tec externe||y
h|gh||ghts thet the te|ent p|pe||ne |s nct wcr||ng es
we|| es |t shcu|c. lnceec, cur reseerch uncersccres the
shcrtege c h|gh-ce||bre |nterne| cenc|cetes ecrcss
mcst 0K crgen|set|cns. 1he sce|e c crgen|set|cns
re||ence cn externe| recru|tment |s e ccncern g|ven the
|ncreesec ccst

, r|s| enc upheeve| thet th|s ente||s.

Crucial qualities and skills gaps
Our reseerch |cent|es e ccre set c essent|e|
menegement s||||s wh|ch emp|cyers ccns|stent|y ren|
es the mcst |mpcrtent et every menegement |eve|.
1hese ere.
Ccmmun|cet|cn
lecp|e menegement
l|enn|ng enc crgen|set|cn
Whetever the |eve| c menegement, these s||||s ere
seen tc be cr|t|ce| tc e menegers enect|veness enc
beccme |ncrees|ng|y |mpcrtent es they mcve up the
menegement h|ererchy.
3 ^ CllD survey |n 2OO/ put the everege ccst c recru|tment et /,/bO, wh||e
cr m|cc|e enc sen|cr menegers |t |s |||e|y tc be twc cr three t|mes th|s gure.
First Line Managers
Middle Managers
Senior Managers
Figure 2: Source of recruitment by manager level
Percentage
Internal Key External
0 20 40 60 80
61
58
50
39
42
50
Overall, just 55% of managers are recruited internally,
with just half of senior managers coming from within
the organisation
05
8eycnc th|s ccre set, hcwever, the s||||s cr|ter|e
cr recru|tment very huge|y between jun|cr enc
sen|cr menegement |eve|s. lcr exemp|e, streteg|c
ecumen |s ccns|cerec re|et|ve|y un|mpcrtent et
rst ||ne menegement
u
|eve| (:oth c ::) enc m|cc|e
menegement |eve| (::th), but succen|y beccmes
the s|ng|e mcst |mpcrtent s|||| cr sen|cr menegers.
S|m||er|y, nenc|e| s||||s r|se |n |mpcrtence rcm |cw
|mpcrtence et rst ||ne enc m|cc|e menegement |eve|s
(::th enc :oth respect|ve|y), tc s|gn|cent|y mcre
|mpcrtent, r|s|ng tc 6th p|ece cr sen|cr menegers.
1h|s s|gn|cent sh| |n the neec cr streteg|c enc
nenc|e| ecumen he|ps exp|e|n why such e h|gh
prcpcrt|cn c sen|cr menegers ere recru|tec externe||y.
W|th nc ccus cn recru|t|ng cr ceve|cp|ng these
s||||s et mcre jun|cr |eve|s, emp|cyees ere nc|ng
themse|ves |nsunc|ent|y equ|ppec tc te|e cn sen|cr
menegement rc|es. Ccnverse|y, the techn|ce| s||||s thet
ere ccns|cerec |mpcrtent et rst ||ne menegement |eve|
ere e|mcst recuncent emcng sen|cr menegers e|||ng
rcm uth mcst |mpcrtent tc ::th.
Orgen|set|cns w||| therecre benet rcm te||ng e
|cnger-term v|ew c |eecersh|p enc menegement
ceve|cpment. Shcrt-term, qu|c|-x sc|ut|cns (such es
cn|y recru|t|ng cr ceve|cp|ng s||||s cn en |mmec|ete-
neecs bes|s) |eec tc e meneger|e| s||||s cec|t cver the
|cng term, enc sc e brcecer, mcre streteg|c epprcech
|s requ|rec.
4 l|rst ||ne menegers reers tc superv|scrs cr teem |eecers w|th ||m|tec
cperet|cne| cec|s|cn-me||ng euthcr|ty whc c|rect|y superv|se rcnt-||ne sten.
93%
c respcncents sey |cw
|eve|s c menegement
s||||s ere |mpect|ng cn
the|r bus|ness
Figure 3: Businesses feeling the impact of low
levels of management skill
To what extent would you say that problems with
skill levels amongst your managers are holding
back your business achieving its goals?
No impact at all 6%
Key
A little 41%
Has no impact 7% Has an impact 93%
Has quite an impact 40%
Has a signicant impact 12%
Dont know/cant say 1%
93
%
7
%
%
Poorly skilled managers are having a negative impact
on 93% of UK businesses
The leadership and management talent pipeline
06
Technical specialists and expert novices
First line management
^s we wcu|c expect, rst ||ne menegers ere seen
by emp|cyers es the |eest cepeb|e meneger|e| |eve|.
cwever, we were surpr|sec tc see just hcw ||tt|e
tre|n|ng these menegers ere rece|v|ng. On|y :8 c
emp|cyers expect cenc|cetes tc heve rece|vec eny
menegement tre|n|ng pr|cr tc be|ng eppc|ntec tc e
menegement pcs|t|cn. 1h|s |s e pert|cu|er|y wcrry|ng
stet|st|c, es |t h|gh||ghts thet the vest mejcr|ty c rst
||ne menegers ere expectec tc |eern cn the jcb w|th nc
suppcrt, creet|ng e s|n| cr sw|m scener|c.
W|thcut tre|n|ng, the cnus e||s cn new menegers
tc prcmpt|y ceve|cp the requ|rec |eecersh|p enc
menegement s||||s enc |ncw|ecge they neec tc be
enect|ve. ln meny ceses th|s w||| be thrcugh tr|e| enc
errcr, wh|ch cen |mpece teem percrmence enc e
menegers cwn |cnger-term cereer prcspects.
l|rst ||ne menegers percrm pert|cu|er|y we|| cn
techn|ce|Junct|cne| s||||s, wh|ch the survey |cent|es
es the me|n ectcr ceterm|n|ng the|r eppc|ntment.
lrcm en emp|cyers perspect|ve, there |s e h|gh |eve|
c ccrre|et|cn between the |mpcrtence c techn|ce|J
unct|cne| s||||s enc the cepeb|||ty c epp||cents.
cwever, these techn|ce| s||||s beccme |ess enc |ess
|mpcrtent the urther up the crgen|set|cn en emp|cyee
prcgresses, wh||e the s||||s they ere |eest |||e|y tc
pcssess, such es streteg|c enc nenc|e| s||||s, beccme
mcre enc mcre |mpcrtent.
1he wcrry here |s thet techn|ce| cepeb|||ty e|cne |s nct e
gccc |nc|cetcr c menegement cepeb|||ty cr |eecersh|p
pctent|e|, enc rst ||ne menegers recru|tec pr|mer||y cr
techn|ce| s||||s cen cen prcve tc be |||-preperec cr
the cemencs c mcre sen|cr meneger|e| rc|es.
1h|s |ec| c tre|n|ng enc s||||s ceve|cpment, enc genere|
|ec| c preperecness cr mcre sen|cr pcs|t|cns, hes
mejcr |mp||cet|cns. l|rst ||ne menegers cen heve the
greetest |nterece w|th custcmers enc c||ents. 1hey
e|sc represent the uture c the crgen|set|cn |ntc wh|ch
they ere recru|tec.
Lmp|cyers recru|t|ng cn the bes|s c techn|ce| eb|||ty
e|cne run the r|s| c e|||ng tc ensure the suste|neb|||ty
c the|r bus|ness. Spec|ce||y, they ere |||e|y tc enc
up w|th teems |ec by expert ncv|ces techn|ce|
experts w|th |cw ewereness enc pccr |eecersh|p
enc menegement s||||s, whc strugg|e tc set|sy the
|mmec|ete requ|rements c rst ||ne menegement enc
ere |||-equ|ppec tc prcgress |ntc sen|cr pcs|t|cns. ln
prcess|cns where techn|ce| |ncw|ecge |s the s|ng|e
mcst |mpcrtent ectcr cr prcmct|cn, such es |ew,
mec|c|ne enc eng|neer|ng, th|s |s cen et the expense
c the |eecersh|p enc menegement cepeb|||ty neecec
tc cur|sh et thet |eve|. 1h|s cen meen pecp|e ere
rcut|ne|y prcmctec w|thcut the requ|rec s||||s enc
cherecter|st|cs tc percrm es e |eecer.
3.0
3.5
3.0
3.5
3.0
3.5
4.0
3.5 4.0 3.0
4.0
3.5 4.0 3.0
A Technical or functional skills
B Commercial & negotiating skills
C People management & development skills
D Communication/written & oral skills
E Coaching & feedback skills
F Financial skills
G Strategic skills
H Planning & work organisation skills
I Project management skills
J Change leadership skills
K Networking skills
Key
Senior Managers Middle Managers
Figure 4: Management skills ranked by importance
and current capability of applicants
E
I K
H
F
A
C
G
D
H
D
C
I
A
K
B
F
G
4.0
3.5 4.0 3.0
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a
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l
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n
d

1
0
=
v
e
r
y

c
a
p
a
b
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e
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a
p
a
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t
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o
f

a
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1
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c
a
p
a
b
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How important are the skills?
Where 1=very unimportant
and 5=very important
How important are the skills?
Where 1=very unimportant
and 5=very important
How important are the skills?
Where 1=very unimportant
and 5=very important
First Line Managers
B
F
G
J
I
K E
C
D
H
A E
J
J
B
First line managers are capable in the important areas
of technical skills, communication, planning and, to a
lesser extent, people management
All skills become more important at middle
management level, particularly people management
and communication
For senior managers, strategic skills suddenly become
more important, while technical skills fall back in both
importance and the capability of applicants
07
Middle management
^t m|cc|e menegement |eve|, cur reseerch revee|s e
s|gn|cent sh| |n the re|et|ve |mpcrtence c c|nerent
s|||| erees. Wh||e techn|ce|Junct|cne| s||||s recece |n
|mpcrtence, p|enn|ng enc wcr| crgen|set|cn reme|n
et the seme |eve|, but w|th |mprcvec cepeb|||ty. 1h|s
|s e cruc|e| trens|t|cne| |eve| cr sten es they prcgress
w|th|n en crgen|set|cn, w|th thcse s||||s requ|rec
cr sen|cr menegement ccm|ng |ntc sherper ccus.
Ccmmun|cet|cn enc pecp|e menegement reme|n
|mpcrtent, wh||e ccech|ng beccmes mcre |mpcrtent
enc m|cc|e menegement |eve| epp||cents beccme mcre
cepeb|e c u||||ng th|s neec. lrcject menegement
cr|ves the sh| up bcth sce|es, enc m|cc|e menegers
ere expectec tc heve cepeb|||ty ecrcss e|| s||||s erees tc
e greeter cr |esser extent.
1he reseerch cemcnstretes hcw the te|ent p|pe||ne
ects es e |ter, e||cw|ng mcre eb|e rst ||ne menegers tc
prcgress tc m|cc|e menegement, rcm wh|ch the best
cenc|cetes mcve up tc sen|cr menegement.
1h|s pethwey suggests thet the geps between
|mpcrtence enc eve||eb|||ty et rst ||ne |eve| ere never
sunc|ent|y eccressec. When rcnt-||ne menegers
prcgress tc m|cc|e menegement, they ere st||| cn|y
ever percrm|ng et the threshc|c |eve| neecec tc cerry
cut the|r rc|e ecequete|y.
Senior management
lcr sen|cr menegers, thcse techn|ce| enc unct|cne|
s||||s cnce ceemec cruc|e| cr rst ||ne menegement
ere nc |cnger seen es |mpcrtent. Streteg|c, ccmmerc|e|
enc negct|et|ng s||||s beccme cr|t|ce|, wh||e the ccre
s||||s c ccmmun|cet|cn enc pecp|e menegement
reme|n ccnstent.
Orgen|set|cns thet heve e rcbust te|ent p|pe||ne |n p|ece
w||| |cc| tc beg|n |cent|y|ng enc ceve|cp|ng these
sen|cr menegement s||||s |n the|r uture |eecersh|p
te|ent. 1h|s crwerc p|enn|ng w||| ensure the eve||eb|||ty
c cepeb|e sten cr exemp|e, |t w||| ensure thet m|cc|e
menegers ere equ|ppec tc ecvence tc mcre sen|cr
pcs|t|cns enc ere eb|e tc he|p cr|ve the crgen|set|cn
crwerc rcm w|th|n. lt w||| e|sc he|p tc tec||e the cver-
re||ence cn externe| recru|tment, es the requ|s|te s||||s
w||| be eve||eb|e |nterne||y.
3.0
3.5
3.0
3.5
3.0
3.5
4.0
3.5 4.0 3.0
4.0
3.5 4.0 3.0
A Technical or functional skills
B Commercial & negotiating skills
C People management & development skills
D Communication/written & oral skills
E Coaching & feedback skills
F Financial skills
G Strategic skills
H Planning & work organisation skills
I Project management skills
J Change leadership skills
K Networking skills
Key
Senior Managers Middle Managers
Figure 4: Management skills ranked by importance
and current capability of applicants
E
I K
H
F
A
C
G
D
H
D
C
I
A
K
B
F
G
4.0
3.5 4.0 3.0
C
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c
a
p
a
b
l
e
How important are the skills?
Where 1=very unimportant
and 5=very important
How important are the skills?
Where 1=very unimportant
and 5=very important
How important are the skills?
Where 1=very unimportant
and 5=very important
First Line Managers
B
F
G
J
I
K E
C
D
H
A E
J
J
B
First line managers are capable in the important areas
of technical skills, communication, planning and, to a
lesser extent, people management
All skills become more important at middle
management level, particularly people management
and communication
For senior managers, strategic skills suddenly become
more important, while technical skills fall back in both
importance and the capability of applicants
The leadership and management talent pipeline
08
Capability matters
^|mcst he| (u/) c emp|cyers c|te the |ec| c |nterne|
sten cepeb|||ty es the s|ng|e b|ggest berr|er tc ensur|ng
en enect|ve p|pe||ne c |eecers enc menegers. W|thcut
the necessery s||||s enc cepeb|||t|es be|ng ceve|cpec
|nterne||y, the cyc|e c externe| recru|tment, w|th |ts
ecc|t|cne| ccsts enc r|s|s, cen |mpect cn the eb|||ty c
0K bus|nesses tc bu||c the|r uture cperet|cns.
Our reseerch e|sc revee|s thet cther berr|ers tc e
supp|y c enect|ve menegers |nc|uce |nsunc|ent
|nvestment |n the tre|n|ng enc ceve|cpment c
menegers (::) enc |ec| c te|ent streteg|es tc |cent|y
enc ceve|cp |eecersh|p enc menegement cepeb|||ty
(). W|thcut these ccre ceve|cpment ccmpcnents |n
p|ece, emp|cyers w||| strugg|e tc cverturn the |nterne|
s||||s cec|t.
The sof skills gap
1he reseerch |cent|ec e shcrtege c scer |eecersh|p
enc menegement s||||s es e pert|cu|er che||enge
ec|ng 0K emp|cyers. We es|ec emp|cyers tc ren| the
perscne| que||t|es thet pecp|e br|ng tc the|r |eecersh|p
enc menegement rc|e by |mpcrtence enc eve||eb|||ty
et c|nerent menegement |eve|s. 1he resu|ts shcw thet
crgen|set|cns ccns|stent|y strugg|e tc nc menegers et
every |eve| whc ere emct|cne||y |nte|||gent, |nsp|ret|cne|
enc creet|ve.
1he shcrte|| |n these erees |s pert|cu|er|y prcncuncec
et rst ||ne menegement |eve|. u c respcncents
se|c |t wes herc tc nc rst ||ne menegers whc were
entrepreneur|e|, enc se|c |t wes herc tc nc
emct|cne||y |nte|||gent menegers et th|s seme |eve|.
47%
c emp|cyers c|te
|ec| c |nterne| sten
cepeb|||ty es the b|ggest
berr|er tc en enect|ve
menegement p|pe||ne
09
Figure 5: Challenges to ensuring an efective supply
of managers at all levels of an organisation
Percentage 10 20 30 40
Other
34
18
13
12
11
9
3
The capability of existing
managers to move up to
more senior positions
The ability to attract
external applicants of a
sufcient calibre for any
management position
Retaining talented
people
Not investing sufciently
in the training and
development of
managers
The lack of a talent
strategy to identify and
develop leadership and
management capability
to meet future needs
0
The capability of existing
non-managerial
employees to take on
their rst management
position
The biggest challenge facing organisations is the
lack of existing managers capable of proceeding
into more senior roles, highlighting a weakness in
the talent pipeline
Figure 6: Difculty in nding the following personal
qualities in management applicants
First Line Managers
Very Hard+Hard Key Easy +Very Easy
60 40 20 0 20 40 60
Able to motivate
others/inspirational
Emotionally intelligent/
aware of own and
others emotions
Able to work with
others as part of a
team/a people person
Inspires trust/
has integrity
Good communicator
Has vision/driven to
achieve
Fits culturally
Resilient
Percentage
Decisive
Creative
Intelligent & insightful
Entrepreneurial
Problem solver
38 24
39 22
12 59
21 40
22 43
32 31
20 41
24 33
30 32
37 25
24 35
49 17
28 33
Employers have clear difculties recruiting managers
with the right attributes at rst line manager level,
though applicants are deemed good at teamwork
The leadership and management talent pipeline
10
1he que||t|es c emct|cne| |nte|||gence, creet|v|ty enc
the eb|||ty tc |nsp|re ere |ey cherecter|st|cs cr z:st
century menegement, enc br|cg|ng th|s sc s||||s gep
|s cruc|e| tc ceve|cp|ng e strcng supp|y c cepeb|e
|eecers enc |mprcv|ng cur net|cne| ccmpet|t|veness.
^s they see| tc respcnc tc the g|cbe| recess|cn,
bus|nesses neec tc c|sp|ey h|gh |eve|s c |nncvet|cn
enc creet|v|ty. We neec tc ce||ver new enc |mprcvec
prccucts enc serv|ces enc |nsp|re enc mct|vete sten.
^t the seme t|me, bus|nesses ere |n neec c mcre
emct|cne||y |nte|||gent |nc|v|cue|s pecp|e whc cen
henc|e c|vers|ty, ccmp|ex|ty enc chenge, enc c|sp|ey
e brcec uncerstenc|ng c the g|cbe| ccntext |n wh|ch
bus|nesses cperete.
L|sewhere we see c|eer ev|cence c e ccrre|et|cn
between the |mpcrtence enc the eve||eb|||ty c s||||s
|e the mcst |mpcrtent s||||s ere the mcst reec||y
eve||eb|e tc emp|cyers. 1h|s |nc|cetes thet emp|cyers
heve en ecequete, thcugh nct ccmp|ete, supp|y c
|eecersh|p enc menegement te|ent. ^n ecequete
supp|y c te|ent, hcwever, |s nct encugh. On bcth
en crgen|set|cne| enc net|cne| |eve|, we neec tc e|m
cr exce||ence |n cur |eecersh|p enc menegement
ceve|cpment | we ere tc ech|eve e much-neecec
ccmpet|t|ve ecge.
Figure 7: Difculty in nding the following personal
qualities in management applicants
Middle Managers
Very Hard+Hard Key Easy +Very Easy
60 40 20 0 20 40 60 Percentage
33
31
53
42
50
44
48
50
46
34
47
29
46
22
27
11
20
12
16
15
12
13
26
13
33
14
Able to motivate
others/inspirational
Emotionally intelligent/
aware of own and
others emotions
Able to work with
others as part of a
team/a people person
Inspires trust/
has integrity
Good communicator
Has vision/driven to
achieve
Fits culturally
Resilient
Decisive
Creative
Intelligent & insightful
Entrepreneurial
Problem solver
Applicants appear more capable at middle
management level, though employers struggle
to nd recruits who are entrepreneurial, creative
and inspirational
Figure 8: Difculty in nding the following personal
qualities in management applicants
Senior Managers
Very Hard+Hard Key Easy +Very Easy
60 40 20 0 20 40 60 Percentage
37
33
46
46
53
58
43
52
57
37
55
41
55
32
30
20
20
16
15
19
15
13
23
25
24
14
Able to motivate
others/inspirational
Emotionally intelligent/
aware of own and
others emotions
Able to work with
others as part of a
team/a people person
Inspires trust/
has integrity
Good communicator
Has vision/driven to
achieve
Fits culturally
Resilient
Decisive
Creative
Intelligent & insightful
Entrepreneurial
Problem solver
Applicants to senior management posts are strategic,
decisive and resilient, but lack emotional intelligence,
creativity, the ability to inspire and entrepreneurialism
11
Talent planning
^n cverwhe|m|ng c respcncents |cent|ec e |ec|
c menegement s||||s es e |ey r|s| tc the|r bus|ness.
ln sp|te c th|s, the reseerch shcws thet cn|y / c
emp|cyers heve e p|en |n p|ece tc ensure they heve e
pcc| c |eecers enc menegers thet ere su|teb|y s||||ec tc
|| uture vecenc|es. 1he resu|ts e|sc shcw thet |erger
emp|cyers ere mcre |||e|y tc heve e te|ent p|en, es ere
thcse |n the pr|vete sectcr.
Our reseerch revee|s thet cne |n s|x emp|cyers (enc cne
|n cur |erge emp|cyers) |ec|s e ccherent menegement
ceve|cpment stretegy. Sme||er bus|nesses ere the |eest
|||e|y tc heve e ccherent p|en tc tre|n the|r menegers,
w|th cne |n cur sey|ng thet they heve nc c|eer stretegy
cr thet |t |s menegers cwn respcns|b|||ty tc see tc the|r
cwn tre|n|ng enc ceve|cpment.
legerc|ess c en crgen|set|cns s|ze enc sectcr, e
te|ent p|en |s cr|t|ce| tc he|p|ng emp|cyers metch
s||||s ceve|cpment w|th |nterne| neecs. lcbust te|ent
p|enn|ng eneb|es the smccth trenser c respcns|b|||t|es
enc |eecersh|p rc|es tc e succeec|ng generet|cn c
menegers, enc thereby he|ps tc me|nte|n e ccmpenys
ccmpet|t|ve ecventege cver the |cng term.
^s cne m|ght expect, crgen|set|cns w|th te|ent p|ens
ere mcre ecute|y ewere c the ||m|tet|cns cr pctent|e|
stegnet|cn c the|r menegement te|ent pcc|. 1h|s
suggests thet these crgen|set|cns heve ceve|cpec
p|ens |n respcnse tc e |ncwn te|ent menegement
|ssue, cr thet |erger crgen|set|cns benet rcm mcre
scph|st|cetec l unct|cns w|th greeter ewereness c
|nterne| s||||s neecs enc geps.
57%
c emp|cyers heve e p|en
|n p|ece tc ensure e pcc|
c uture |eecers enc
menegers
Small businesses
Medium businesses
Large businesses
Graduate programme
Total
Public
Private
Figure 9: Organisations with a talent plan
Percentage
Yes, we have a talent plan Key
No, we do not have a talent plan
0 20 40 60 80
57
42
60
46
58
60
75
44
43
58
40
54
43
40
25
56
No graduate programme
Organisations with a graduate programme are most
likely to have a talent plan, followed by large and
private sector businesses. Public sector organisations
are least likely to have a talent plan in place
The leadership and management talent pipeline
12
Training and graduate recruitment
Our reseerch shcws e strcng ccrre|et|cn between
te|ent p|enn|ng enc grecuete recru|tment. Overe||,
three-querters c crgen|set|cns w|th e te|ent p|en
e|sc heve e grecuete prcgremme. 1he reseerch e|sc
cunc thet crgen|set|cns w|th e grecuete recru|tment
prcgremme recru|t e h|gher prcpcrt|cn c menegers
|nterne||y et every menegement |eve|, ccmperec tc
thcse w|thcut. 1hcse w|th e grecuete recru|tment
prcgremme e|sc tenc tc eccpt e mcre ccherent
stretegy cr |nterne| menegement ceve|cpment.
lcr exemp|e, z c emp|cyers w|th e grecuete
prcgremme tre|n menegers becre eppc|ntment
ccmperec tc :8 thet cc nct.
1herecre, e jc|nec-up epprcech tc grecuete
recru|tment |s e re||eb|e |nc|cetcr thet en crgen|set|cn
|s ccusec cn te|ent, enc echeres tc gccc prect|ce |n
|eecersh|p enc menegement ceve|cpment.
We see rcm the reseerch thet sme|| bus|nesses, wh|ch
ere |ess |||e|y tc heve te|ent menegement enc grecuete
recru|tment schemes, requ|re e h|gher prcpcrt|cn c
externe| recru|tment tc meet the|r |eecersh|p neecs.
lt |s c|eer thet the te|ent menegement pcc| |s ceepenec
enc enr|chec by e systemet|c cw c grecuetes |ntc
en crgen|set|cn, |ncrees|ng the r|ght b|enc c s||||s
enc cherecter|st|cs. Orgen|set|cns thet menege
th|s cw ere |ess |||e|y tc neec tc |cc| e|sewhere,
thereby recuc|ng the ccsts c externe| recru|tment.
We ce|cu|ete thet, |n tcte|, 0K crgen|set|cns w|thcut
grecuete recru|tment prcgremmes spenc en ecc|t|cne|
uo m||||cn ennue||y

cn menegement recru|tment,
beceuse they ere crcec tc recru|t externe||y
mcre requent|y.
C|ven thet neer|y he| c e|| new entrents tc the |ebcur
crce ere grecuetes, |t |s ccncern|ng thet uz c
emp|cyers ee| thet grecuetes ere nct we|| preperec
tc prcgress |ntc rst ||ne menegement pcs|t|cns.
lnceec, cur reseerch shcws thet mcre then cne |n
three emp|cyers be||eve un|vers|t|es ccu|c cc mcre tc
prepere grecuetes cr the wcr|p|ece by ceve|cp|ng the
ccre s||||s enc ettr|butes requ|rec c new menegers.
Mcre ccncern|ng st||| |s the ect thet cn|y :8
c emp|cyers expect scmecne tc heve rece|vec
menegement tre|n|ng becre eppc|nt|ng them tc
e menegement pcs|t|cn. 1h|s suggests thet cur
cut c ve ccmpen|es regu|er|y prcmcte pecp|e
tc rcnt-||ne menegement pcs|t|cns w|thcut eny
menegement tre|n|ng. C|eer|y, then, much reme|ns tc
be ccne tc prcmcte ewereness c the |est|ng ve|ue
enc ccst enc|ency c te|ent p|enn|ng, ceve|cpment
enc success|cn menegement, enc c ensur|ng e
smccth cw c s||||s enc cepeb|||t|es thrcugh the
te|ent p|pe||ne.
b 1h|s gure |s besec cn the CllDs gure c en everege ccst c /,/bO per
recru|t, mu|t|p||ec by the c|nerence |n the number c externe||y eppc|ntec
menegers between emp|cyers w|th enc w|thcut grecuete recru|tment
prcgremmes, tc meet the 0KCLS crecest.
Table 1: Proportion of managers
recruited internally
Lmp|cyers
w|th grecuete
recru|tment
prcgremme
Lmp|cyers
w|thcut grecuete
recru|tment
prcgremme
l|rst L|ne Menegers o3.9 59.1
M|cc|e Menegers oO.2 54.9
Sen|cr Menegers 51.o 4B.4
Overe|| 5B.5 54.1
18%
c 0K emp|cyers
expect menegers tc
heve rece|vec eny
menegement tre|n|ng
pr|cr tc eppc|ntment
13
40m
the ennue| sev|ng cn menegement
recru|tment ccsts by 0K emp|cyers
w|th grecuete tre|n|ng prcgremmes
Table 2: Approach to training people for management roles
Total lub||c lr|vete Sme||
bus|nesses
Mec|um
bus|nesses
Lerge
bus|nesses
Crecuete
prcgremme
lc
grecuete
prcgremme
1 We expect pecp|e tc heve
rece|vec tre|n|ng |n preperet|cn cr
e new menegement rc|e becre
eppc|nt|ng them tc e pcst
18% B 21 12 22 1B 25 13
2 We try tc ensure thet scmecne
new|y eppc|ntec tc e meneger|e|
rc|e hes eccess tc tre|n|ng enc
ceve|cpment very sccn eer
43% 51 42 41 41 4o 49 4O
3 We ncrme||y expect scmecne
eppc|ntec tc e meneger|e| rc|e
tc heve eccess tc tre|n|ng enc
ceve|cpment when |ts pcss|b|e
21% 23 2O 23 22 19 1o 23
TOTAL Top three options 82% 82% 83% 76% 85% 83% 90% 76%
4 We heve nc c|eer stretegy cr
the tre|n|ng enc ceve|cpment c
menegers, |t ver|es rcm perscn
tc perscn
14% 11 15 19 15 12 19
5 lt |s menegers cwn respcns|b|||ty
tc see tc the|r cwn tre|n|ng enc
ceve|cpment, |t ver|es rcm perscn
tc perscn
3% 5 3 o 1 4 3 3
6 lcne c the ebcve 0% 1 O O O 1 1 O
7 Dcnt |ncw 0% 1 O O O O O O
The leadership and management talent pipeline
14
1h|s |s bec|ec up |n e new repcrt by the Depertment
cr 8us|ness, lnncvet|cn & S||||s, Leadership &
Management in the UK The key to sustainable
growth, wh|ch shcws e strcng ccrre|et|cn between
the s||||s c en crgen|set|cns |eecers enc menegers
enc |ts percrmence |n the mer|etp|ece. 1he ev|cence
rcm cur reseerch cemcnstretes thet there ere scme
s|gn|cent reescns cr th|s s||||s shcrte||, but e|sc
pc|nts tcwercs the sc|ut|cn. l|rst enc cremcst, thcse
crgen|set|cns thet heve e mcre ccherent epprcech
tc bu||c|ng the|r |eecersh|p enc menegement te|ent
p|pe||ne, w|th grecuete recru|tment streteg|es enc
te|ent p|ens |n p|ece, ere mcre successu| |n se|ect|ng
enc prcmct|ng the|r menegers rcm w|th|n the
crgen|set|cn. ^|thcugh such streteg|es mey |cc|
expens|ve, they ccnt neec tc be. Mcre |mpcrtent|y,
they shcu|c u|t|mete|y be seen es ccst severs, prcv|c|ng
emp|cyers w|th e supp|y c eb|e menegers whc ere we||
ettunec tc the crgen|set|cn, |ts gce|s enc ve|ues enc |ts
wcr||ng methccs enc cu|ture.
1hese |nterne||y-prcmctec menegers ere e|sc |ess
expens|ve tc recru|t, |ess r|s|y tc eppc|nt enc cner
en cppcrtun|ty tc reccup the |nvestment mece |n
the|r ceve|cpment.
Create a talent plan
1he number c crgen|set|cns w|thcut e crme||sec
te|ent menegement p|en |s ccncern|ng. lcr sme||er
bus|nesses, e te|ent p|en cces nct heve tc be e ccmp|ex
cccument ewer pecp|e meens |ess c|ncu|ty |n
essess|ng |nc|v|cue|s cepeb|||t|es enc cereer emb|t|cns
ege|nst crgen|set|cne| neecs enc gce|s.
Mcst |mpcrtent|y, |t eneb|es the |ntrccuct|cn c
essent|e| s||||s ceve|cpment (espec|e||y |eecersh|p
enc menegement s||||s) becre pecp|e te|e up the
respcns|b|||ty cr superv|s|ng cthers.
1h|s |s the seccnc s|gn|cent nc|ng rcm the reseerch.
ler tcc ew crgen|set|cns current|y ensure thet pecp|e
heve the bes|c s||||s neecec tc percrm es |eecers
enc menegers becre they ere rst eppc|ntec tc e
menegement rc|e. C|ven the encrmcus herm thet
e pccr-percrm|ng meneger cen ceuse, the r|s|s
esscc|etec w|th th|s stretegy ere h|gh, enc the enects
ere ev|cencec by the 0Ks seccnc t|er stetus |n terms c
prccuct|v|ty enc grcwth.
Develop the right skills
1here ere ew cther cccupet|cne| erees where |t wcu|c
be ccns|cerec ncrme| tc eppc|nt scmecne tc e rc|e
w|thcut eny tre|n|ng becre cr |mmec|ete|y eerwercs.
1he reseerch suggests thet the mejcr|ty c menegers
rece|ve nc tre|n|ng becre cr |mmec|ete|y eer the|r
eppc|ntment, ceus|ng e s||||s gep es epp||cents step
up tc rst ||ne meneger |eve|. 1he reseerch |cent|ec
three |ey s||||s thet were ces|rec et e|| |eve|s c
menegement ccmmun|cet|cn, pecp|e menegement,
enc crgen|set|cn enc p|enn|ng. Deve|cp|ng these s||||s
|n e|| emp|cyees w||| prepere them cr menegement enc
ess|st them |n the|r cey-tc-cey wcr|. lt w||| |mprcve
ccmmun|cet|cn w|th cc||eegues enc menegement, he|p
them menege supp||ers enc ccntrectcrs, enc he|p them
crgen|se the|r cwn wcr||cec.
lcr sen|cr |eecers, nenc|e| ecumen enc streteg|c
th|n||ng succen|y beccme mcre |mpcrtent, where et
m|cc|e enc rst ||ne meneger |eve| they were seen es
un|mpcrtent. Smert crgen|set|cns w||| ceve|cp these
s||||s |n the|r menegers es they prcgress, neget|ng the
cver-re||ence cn externe| recru|tment et sen|cr |eve|s.
Conclusions and recommendations
We |ncw thet crgen|set|cns w|th better s||||ec |eecers enc menegers
ere mcre successu| enc ccuntr|es w|th we||-tre|nec |eecers enc
menegers ere mcre ccmpet|t|ve. 1he 0K current|y e||s ccwn cn bcth
ccunts ccmperec tc cur mejcr trec|ng r|ve|s.
15
Consider personal qualities
1he reseerch |cent|ec thet menegers whc were
|nsp|ret|cne|, emct|cne||y |nte|||gent, creet|ve
enc |nncvet|ve were herc tc nc et e|| |eve|s c
menegement. We wcu|c cene these es |ey
cherecter|st|cs cr z:st century menegement, enc
cruc|e| tc cr|v|ng grcwth enc |nncvet|cn, wh|ch me|es
th|s gep qu|te ccncern|ng.
l|rst ||ne menegers heve mcst |nterect|cn w|th cther
emp|cyees, custcmers enc c||ents. Sc we neec tc
|nvest |n rst ||ne menegers tc he|p them beccme
mcre |nncvet|ve enc entrepreneur|e|. We e|sc neec tc
prepere them cr the cemencs c mccern |eecersh|p
thrcugh crwerc p|enn|ng enc tre|n|ng e||gnment.
Technical knowledge matters but
should not be over-valued
Wh||e techn|ce| s||||s ere e prerequ|s|te cr |n|t|e|
recru|tment, they ere nct e gccc |nc|cetcr c
menegement cepeb|||ty cr |eecersh|p pctent|e|. S||||s
thet ere |cent|ec es be|ng |mpcrtent cr menegers
et e|| |eve|s, such es pecp|e menegement, ere e gccc
|nc|cetcr. ln ect, rst ||ne menegers recru|tec cr the|r
techn|ce| prcwess e|cne cen prcve tc be |||-preperec
cr the cemencs c mcre sen|cr meneger|e| rc|es.
Lmp|cyers recru|t|ng cn the bes|s c techn|ce|
eb|||ty therecre run the r|s| c e|||ng tc ensure the
suste|neb|||ty c the|r bus|ness. Spec|ce||y, they
ere |||e|y tc enc up w|th teems c expert ncv|ces
techn|ce| experts w|th |cw ewereness enc pccr
|eecersh|pJmenegement s||||s whc ere uneb|e tc set|sy
the |mmec|ete requ|rements c rst ||ne menegement,
enc |||-equ|ppec tc meet the |cng-term neecs enc
che||enges c the|r crgen|set|cn.
When |cc||ng tc ceterm|ne whether cr nct en emp|cyee
|s reecy cr e |eecersh|p rc|e, emp|cyers shcu|c esteb||sh
e c|eer threshc|c cr techn|ce| s||||s w|thcut |cs|ng
s|ght c the cenc|cetes ept|tuce |n the ccre erees c
ccmmun|cet|cn, pecp|e menegement enc p|enn|ng.
Look to the future
l crgen|set|cns ere gc|ng tc bu||c en enect|ve
menegement te|ent p|pe||ne, they neec tc |cc| beycnc
the |mmec|ete cemencs c the rc|e tc ccns|cer whet
the|r uture neecs ere gc|ng tc be. 1hey e|sc neec tc
se|ect pecp|e cr menegement rc|es whc heve the
pctent|e| tc ceve|cp |n the |cnger term. 1h|s cces nct
meen |gncr|ng unct|cne| expert|se, but ccns|cer|ng
whether e cenc|cete hes |ey |ngrec|ents cr uture
|eecersh|p enc menegement cepeb|||ty.
1he cese cr |nvest|ng |n |eecersh|p enc menegement
te|ent |s strcng. 1he neec cr emp|cyers tc |eern rcm
the best percrmers |s c|eer they enjcy the benets
c |cwer recru|tment ccsts enc e mcre enect|ve
menegement teem et e|| |eve|s. lLM |s ccmm|ttec
tc suppcrt|ng the ceve|cpment c the 0Ks |eecers
enc menegers, enc enccureges e|| emp|cyers, |erge,
mec|um cr sme||, pub||c cr pr|vete, tc |eern rcm the
nc|ngs c th|s reseerch enc |ntrccuce streteg|es thet
w||| br|ng ree| benets.
Wh||e cur reseerch suggests there |s en ecequete
supp|y c |eecersh|p enc menegement te|ent et mcst
|eve|s, ecequete |s nc |cnger gccc encugh. ^s the
cemenc cr menegement |ncreeses, emp|cyers w|||
requ|re greeter eccess tc h|gh|y-ceve|cpec |eecers enc
menegers tc cr|ve bus|ness grcwth enc ccmpete |n the
|nternet|cne| mer|et. On bcth en crgen|set|cne| enc
net|cne| |eve|, cur uture ccmpet|t|veness |nvc|ves the
ceve|cpment c e meneger|e| te|ent p|pe||ne thet w|||
ce||ver the s||||s, cepeb|||t|es enc ewereness neecec et
e|| |eve|s.
The leadership and management talent pipeline
16
Methodology
1h|s reseerch wes cerr|ec cut cr lLM by |ncepencent reseerch egency
Op|n|um cur|ng Merch zo:z. /o respcncents were |nterv|ewec by
te|ephcne, w|th 6oo pr|vete sectcr (:o sme||, zoo mec|um enc zo
|erge) enc :o pub||c sectcr (e|| |erge) crgen|set|cns surveyec. 1h|s
brcec|y reects the emp|cyment structure |n the 0K.
1he respcncents were |cent|ec es hev|ng
respcns|b|||ty cr the crgen|set|cns menegement
te|ent p|pe||ne, |n |erger crgen|set|cns th|s wes |||e|y
tc be e sen|cr l prcess|cne|, scmet|mes w|th en
exp||c|t te|ent menegement respcns|b|||ty. ln sme||er
crgen|set|cns |t wes e|ther the mcst sen|cr l meneger
cr l c|rectcr, cr the ch|e execut|ve. ^|| respcncents
were e|sc es|ec tc spec|y the|r |ncustry enc
gecgreph|ce| |ccet|cn.
C|ven the ccmp|ex|ty enc |ength c the survey, nct
e|| respcncents were es|ec ebcut e|| three |eve|s c
meneger (l|rst L|ne, M|cc|e enc Sen|cr Meneger
see bcx). lcr th|s reescn, the bese cr quest|cns |s o
respcncents. S|m||er qucte ret|cs were epp||ec tc the
sub-semp|e es cr the u|| semp|e. cwever, the bu|| c
the quest|cns were es|ec c e|| respcncents, enc the
semp|e s|ze cr these |s the u|| /o.
Where c|nerences ere |cent|ec |n the repcrt es
s|gn|cent, th|s |s et the ccncence |eve| |e
there |s e : cut c zo chence thet the c|nerence |s
nct e pure|y renccm ver|ence.
1he survey wes cerr|ec cut ecccrc|ng tc the Mer|et
leseerch Scc|etys ccce c prect|ce.
^|| respcncents were tc|c thet, cr the
purpcses c th|s reseerch, menegers shcu|c
be c|essec |ntc the c||cw|ng cetegcr|es.
First Line Managers superv|scrs cr teem |eecers
w|th ||m|tec cperet|cne| cec|s|cn-me||ng euthcr|ty,
c|rect|y superv|s|ng mcre jun|cr sten, ncne c whcm
hes eny meneger|e| respcns|b|||ty
Middle Managers usue||y hev|ng et |eest cne cther
|eve| c menegers repcrt|ng tc them, scmet|mes
heec|ng up un|ts cr sme||er c|v|s|cns, w|th brcec
cperet|cne| cec|s|cn-me||ng euthcr|ty enc e ||m|tec
ecv|scry rc|e |n streteg|c cec|s|cns
Senior Managers (and business owners) mey
we|| heve severe| cther |eve|s c menegers repcrt|ng
tc them, heec|ng up s|gn|cent c|v|s|cns c the
crgen|set|cn, w|th brcec cperet|cne| enc streteg|c
cec|s|cn-me||ng euthcr|ty
About ILM
1he lnst|tute c Leecersh|p & Menegement
(lLM) |s the 0Ks |ergest menegement
ceve|cpment crgen|set|cn. We ere pess|cnete
ebcut gccc |eecersh|p enc menegement, enc
|ts pcwer tc cr|ve crgen|set|cne| percrmence
enc w|cer eccncm|c prcsper|ty.
We ere ccmm|ttec tc re|s|ng ewereness enc
uncerstenc|ng c gccc |eecersh|p enc menegement
prect|ce thrcugh en |ntens|ve prcgremme c
|ncepencent reseerch. 1h|s he|ps us tc me|nte|n
e c|eer p|cture c whet greet |eecersh|p enc
menegement |cc|s |||e, enc hcw best tc ech|eve |t.
We cner e brcec renge c |ncustry-|eec|ng
que||cet|cns, tre|n|ng enc member serv|ces
tc ceve|cp enc suppcrt |eecers c e|| |eve|s,
rcm rst ||ne menegers tc CLOs. Lest yeer, cur
netwcr| c cver z,oo expert |eern|ng prcv|cers
he|pec mcre then o,ooo pecp|e tc enhence
the|r |eecersh|p enc menegement cepeb|||ty
w|th en lLM que||cet|cn. Current|y, cver ,ooo
menegers enjcy |ncreesec prcess|cne| reccgn|t|cn
enc suppcrt thrcugh lLM membersh|p.
^s pert c the C|ty & Cu||cs grcup,
we cperete |nternet|cne||y, |mprcv|ng
|eecersh|p enc menegement cepeb|||ty
enc percrmence ecrcss e|| sectcrs.
www.i-l-m.com
For more information
contact Smita Chakma
1 +44 (O)2O /294 3Ob4
L sm|te.che|me|-|-m.ccm
lnst|tute c Leecersh|p
& Menegement
1 C||tspur Street
Lcnccn LC1^ 9DD
www.|-|-m.ccm
1he lnst|tute c Leecersh|p enc
Menegement |s e ccmpeny ||m|tec
by guerentee (leg lc oO1O49) enc
reg|sterec es e cher|ty |n Lng|enc
enc We|es (leg lc 24B22o) enc |n
Scct|enc (leg lc SCO39o93)
lub||shec by the lnst|tute c
Leecersh|p & Menegement
Ccpyr|ght lLM
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