Innovation and People Leadership slip in the latest AMCI results

Date: 
Wednesday, October 19, 2016

Business capability in Australia has snapped a five year decline to record a modest uplift according to the findings of AIM’s 2016 Australian Management Capability Index (AMCI). The latest findings reveal a slight uptick in the headline performance rating, with Australian businesses operating at 68.7% of what they could be achieving compared to 67.7% last year.

Dragging down the result was innovation - products and services and people leadership scores - which are categories that Australian leaders have assessed their organisations as least capable in. Organisational capability continued to be at the bottom of the list with the biggest grievance showing managers do not have a sound understanding of best practice management to achieve the organisation's goals.  

The AMCI provides Australian business leaders with the opportunity to assess their management capability across a range of areas to benchmark performance against similar organisations.
The largest improvements in management capability were seen in the application of technology and knowledge and managers displaying visionary and strategic leadership. Corporate governance and financial management remained at the top of the list. Interestingly, the gap between overall AMCI scores reported for CEO/MD’s and middle manager job levels has nearly doubled since 2015.  CEO/MD’s rated AMCI at 77.0, compared with middle managers' self-reporting capability at 61.5.

This distinct divergence in AMCI scores reported for CEO’s and middle manager job levels is a worrying development over the last 12 months.

The final AMCI report will be released to Members in November.

Ranked AMCI results by category

A complimentary Organisational Capability assessment is available to AIM Corporate Members. Please email aimcorporate@aim.com.au to book an assessment. 

About the AMCI
The Australian Management Capability Index (AMCI) provides a benchmark against which we can assess and track performance against a series of key categories of management capability at a company, industry or national level.  The AMCI compares results by ownership type, industry, employee numbers, annual $ turnover, managerial level and gender.  It tabulates and averages survey responses and uses prescribed weightings to generate a score out of 100.