At a time when we need them the most, it is widely acknowledged that the UK is failing to produce an adequate supply of effective leaders and managers. Poorly performing managers are promoted without the appropriate training, development and support, leading to a serious skills gap. When provided with new opportunities, these managers are unable to step up and meet the challenges of succeeding in the modern business world.

Poor leaders harm organisations: they cause talented employees to leave; they make poor decisions that impact negatively on growth and financial performance, directly and indirectly. Without effective leaders and managers, organisations are unable to perform competitively on the global stage and the UK suffers economically and socially.

ILM believes we can and must do something about this. There must be an increased focus on these vital areas of personal and organisational competence in the UK We must equip people with new skills and knowledge in order to revitalise the workplace and create a renewed cadre of professional managers and leaders able to meet the challenges of the 21st century. The alternative is long term economic and social decline..

Leadership and management challenges

A changing workforce

Leaders and managers must be well prepared to operate in an era of greater workplace diversity. For example, a new generation of employees, the millennials, prefers collaboration to competition [to going it alone], and mistrusts hierarchical systems. The challenge will not just be to find effective ways to lead and manage the millennials, but also to encourage them to take on the responsibility of leadership and management.

The knowledge economy

Many developed economies are shifting towards a services and knowledge based economy where the competitive currency is information and innovation. Successful organisations are founded on human capital - talented people. The UK needs managers and leaders who can create a culture and environment that values learning and nurtures and supports risk-taking and innovation, and that can build the networks necessary to transfer and utilise information.

Going gobal

Globalisation means that even the smallest business can have a value chain that spans the world. Organisations are often fragmented, with extended supply chains and outsourced and offshored operations. Increasingly, managers and leaders need the cross-cultural competencies required to manage and lead across different geographies, cultures and political systems.

Sustainable business

Together, the peoples of the world, governments, corporations, public sector organisations, charities and non-profits, face the threat of global warming. As the world strives for a collective solution, organisations must move towards a more sustainable approach to achieving their objectives. We must equip people to manage and lead sustainable enterprises.

The pace of change

The pace and intensity of our working lives grows ever greater. The business world is a more competitive place. Stress levels rise as we try to figure out how to do everything better, faster. In the perpetual motion of modern working life managers and leaders must learn to retain a sense of identity and a framework of values, and develop the personal resilience to survive, thrive and succeed in their careers.

Getting more from less

Global competition accelerates the pursuit of efficiency and sustainability requires that we look for ways to preserve precious resources. The willingness to collaborate and increasing access to information means that consumers and service users are able to seek out the best deals and share experiences. This puts increasing pressure on organisations to maximise value, which is not just about minimising costs. Tomorrow’s successful leaders and managers will be focussed constantly on eliminating waste and enhancing value, to get more from less.