LEADERSHIP FOR CHANGE. CMI’s Management Manifesto.

June 2017 FOREWORD

The 2017 General Election While the UK can be proud of many world-leading businesses, it has has been defined by a long tail of poorly managed and Brexit and the forthcoming unproductive organisations. The UK-EU negotiations. UK lags behind its G7 competitors’ average productivity levels by some Whatever political deals 18%. Poor management costs UK emerge, Brexit throws into employers some £84bn a year and sharp relief several urgent it is, according to authorities like the OECD, one of the biggest factors in questions about the UK’s our competitive weakness. Compare economy, education and that cost to the IFS estimate of a skills. They each demand £75bn annual hit to the economy if the answers if the UK is to UK leaves the EU single market. thrive. They are linked by So while debate rages over the future one underlying issue that is of the UK’s trading rules, we risk losing sight of the prize. Improving too rarely talked about: an management and leadership across imperative to improve the the UK and closing the productivity gap quality of management could be even more important to the and leadership in the UK. country’s future. Yet closing that gap will be impossible while many companies remain choked by outdated management cultures. Too many people – including middle managers – are disengaged from their work, lack trust in their leaders, and go unheard when it comes to management decision-making. We need to radically overhaul business cultures and work in ways that blend better with people’s lives, give people more power to perform, and make flexibility a reality on both sides of the employment relationship.

2 It’s a rallying cry for government, businesses, public, educational and professional organisations like CMI to work in partnership for change.

We also need to fix the glaring Yet we clearly also need a new Complex challenges demand lack of diversity in so much of UK emphasis on home-grown skills. We collaborative answers so our management. This is the moment to have too many ‘accidental managers’, Management Manifesto is not a eradicate gender imbalances, adding who are promoted into management simplistic shopping list of actions £150bn annually to the UK economy. jobs – then left to sink or swim. It’s vital that managers demand from the That means making a success of that people have the right opportunities Government. It’s a rallying cry for gender pay transparency and pushing to learn. We need a commitment to government, businesses, public, change forward by ensuring that new high-quality apprenticeships and educational and professional higher-level jobs are advertised as better access to funding, especially organisations like CMI to work in flexible by default, when only 9% for small business, serving both young partnership for change. Partnership currently are, or making sure that one people and helping to upskill people is innate to CMI. We know its value in in ten apprenticeships are used to already in work. upskilling, accrediting and qualifying support parents returning to work. And the people who lead and manage we need more transparency about pay We also must do better for young organisations. That spirit of partnership and progression by employees’ race people making the leap from education now needs to shape how we tackle the and ethnic background to make sure to work, not only with apprenticeships challenges before us. the ‘management pipeline’ is rich in but also with a new school-to-work talent and open to all. syllabus, new measurement of The good news is that many of schools’ performance on helping our skills problems are eminently That is imperative because the pupils progress into further or higher fixable. There is an increasing will to economy needs 1.9m people coming education or apprenticeships, and a do something about it. This short into management jobs over the higher education system that focuses Manifesto sets out our priorities and decade to 2024. Many managers fear on delivering the practical management whether you’re a politician, a business damage from the possible end to free and leadership skills that underpin leader or a manager, we look forward movement of people from the EU and employability. CMI supports the to working with you to turn these restrictions on other immigration. We Teaching Excellence Framework to aspirations into reality. need to ensure employers have access drive this focus on employability to employees from abroad who bring for all students. much-needed specialist skills, and that we keep the door open for students who add huge value to our higher education sector. Ann Francke MBA CMgr CCMI FIC Chief Executive, CMI

3 EXECUTIVE SUMMARY

1 2 Our Management Improving Building Trust Through Manifesto is not simply Productivity Better Business Cultures a wish list for the next Through People and Governance Government. It is based on a vision of collaboration The UK’s productivity lags Trust in leaders is at rock and partnership between 18% behind the average of its bottom: from the rejection of policy makers, employers, G7 competitors – 35% behind ‘elite’ or ‘expert’ views seen in individual managers, Germany. Closing the gap means the Brexit vote to a breakdown recognising the pivotal role of of trust in the workplace, fuelled and of course CMI as management and leadership by outdated management the professional body skills in improving productivity cultures, secretive leaders and for management and and a national focus on replacing runaway executive pay. ‘accidental managers’ with leadership. confident, competent, qualified We need more transparency from managers. business, underpinned by regulation We identify five key areas on reporting pay ratios; pay that is To provide this focus on improving linked to customer and employee where collaborative management, CMI will work with engagement; and increased action is needed. government and key partners to build employee voice in management a National Management Index to track decision making. progress and demonstrate the impact on business performance and national Leaders need to do much more productivity. to call out poor behaviour and be role models for high ethical We need support for the new standards. They need to be more Productivity Council, which is led by transparent and communicate business. £13m has been pledged but better, and executive pay should secure funding is needed for the next be aligned with the behaviours five years to allow the Council to make that support trust. a difference.

4 3 4 5 Inclusive Leadership – Improving Employability The Age of Apprenticeships Harnessing Diversity and – Better Access and – Get In and Go Far in Challenging Group Think Opportunities for Young Management People

The evidence is increasingly clear: The UK needs 1.9m new The new Trailblazer diversity delivers results. Better managers by 2024 so we need Apprenticeships offer high gender balance in the workplace to strengthen routes into quality learning, including could add £150bn a year to the management. We need a new degree-level programmes like UK economy. We need to focus school-to-work syllabus, with the Chartered Manager Degree on the ‘missing middle’ that sees better engagement between Apprenticeship. They meet women under-represented in employers and educators, employer needs and offer real middle management and upwards, driven by new outcome opportunities both to young facing a ‘glass pyramid’ on pay and measures for schools. people and to those already progression. in work, supporting lifelong In higher education we support the learning. This means making a success of Teaching Excellence Framework to gender pay transparency and pushing drive a focus on employability for The new Government needs to change forward by ensuring that all students, and CMI will work with back the continued roll out of these higher-level jobs such as management all of its education partners to help apprenticeships. We support the roles are advertised as flexible by develop the practical skills, global Apprenticeship Levy as a much- default, when only 9% currently are, mind-set and ethical behaviours needed answer to long-standing and making sure that one in ten that employers need. We also need under-investment in skills. Access apprenticeships are used to support to protect the access of overseas to funding should be improved, parents returning to work – as well as students and academics to UK’s in particular for small businesses. a ‘silver quota’ for the over-50s. higher education sector, a national Government also needs to work success that must be nurtured. with partners to improve awareness and understanding among young people, parents, employers and existing employees about the opportunities available.

5 1. PRODUCTIVITY THROUGH PEOPLE RECOGNISING MANAGEMENT AS THE KEY DRIVER

Management and leadership is critical to our economic success. The UK currently has an estimated 2.4m accidental and unskilled managers, promoted into leadership roles because of their functional expertise but left to sink or swim when it comes to management. As a result, poor people management has been calculated to cost the UK economy £84bn a year – £9bn more than the Institute for Fiscal Studies’ estimate of the potential cost of leaving the EU single market, of £75bn a year.

Not enough employers are investing in developing the skills of their existing workforce, or training new managers to be more effective. More must be done as we prepare for a post-Brexit world of home-grown management talent.

Productivity has been identified as a While many assume productivity is major risk to the UK’s growth agenda cured through investing in technology for the post-Brexit referendum world. or infrastructure, the Organisation WHY IT UK productivity is currently 18% lower for Economic Co-operation and than the average of the rest of the Development (OECD) confirmed that the MATTERS G7, and a recent Investors in People outstanding primary factor in addressing report found that £84bn is wasted the productivity gap is improving in the UK each year through poor management and leadership. The Bank people management and leadership. of England’s Andy Haldane has said that Only one in five UK managers today there would be “potentially high returns is professionally qualified. To address to policies which improve the quality this, the last Government announced of management within companies”. funding for the creation of a UK However, 71% of employers admit they Productivity Council led by Sir Charlie do not do enough to train their managers. Mayfield and the private sector, recognising the need for improving Productivity is also compromised by the quality of leadership in the UK. a poor quality of working life and low This is due to launch in autumn 2017. levels of wellbeing. Poor management can damage mental and physical health and working age ill health is estimated to cost the economy £100bn annually. More engaged and healthier employees are more productive.

6 Three key asks for Government Three things businesses Three things CMI is doing should be doing Support a National Management Creating confident and competent Index – the UK lacks clear data Invest in training – there are managers – 40,000 learners about the quality of management and 2.4m ‘accidental’ managers not registered for CMI-accredited courses leadership skills. As the adage goes, delivering to full capability currently, in 2016/17, across more than 90 what gets measured gets managed; yet who need training and development business schools and 400 education we lack clear measures in this vital area. support. Organisations with effective providers. Working in partnership, we The next Government should support management and leadership both support new students and help the development of the proposed development programmes have to upskill those already in management National Management Index to measure on average 23% better results and roles, providing pathways to grow their and track the nation’s skills base and are 32% more productive. 83% of capacity to drive up performance and identify opportunities for improvements. Chartered Managers say they are meet the future needs of business. more productive as a consequence of Invest in management and their training and development, and Building a National Management leadership to raise productivity CMI calculates their average added Index – we will pioneer new research levels – the Government needs value to an organisation is £391,443. during 2017 to provide policymakers to accelerate efforts to improve and employers with a benchmark of productivity through improving Support employee wellbeing and the UK’s management and leadership management leadership. This will mental health – employers need skills. Collaborating with the new require a commitment to support the to make sure that how they work Productivity Council, Investors in work of the new Productivity Council, supports health and wellbeing at a People, the Work Foundation, the IPA, which is led by business, and the time when 41% of managers say their Engage for Success and key business encouragement of collaboration and stress levels have risen over the last organisations, we will measures sharing of best practice. £13m has 12 months. progress over time and demonstrate been pledged but secure funding is the impact of management needed for the next five years to allow Extend flexible working – flexible effectiveness on business performance the Council to make a difference. The working practices support wellbeing and national productivity. new Government must support sectoral and can transform productivity. It and regional initiatives to drive up means empowering employees, Eliminating the accidental management and leadership. avoiding digital presenteeism, better manager – we will continue to developing line managers, improving showcase successful businesses Drive improvements in skills and change management and actively who put leadership and management employment through the Industrial supporting health. excellence at the heart of their culture. Strategy – to deliver long-term We will champion the new work-based success, the Industrial Strategy needs apprenticeships and support managers to fully support investment in skills, in their lifelong learning and continuing lifelong learning and the roll-out of high professional development, helping quality apprenticeships. Government young leaders bridge into employment, should prioritise investment in and providing pathways to Chartered upskilling managers to ensure they are Manager status. equipped with the skills to embrace change, build trust and create working cultures with positive role models and inclusive values. The outcomes of Matthew Taylor’s Review into Modern Employment Practices should be adopted in order to prevent abuse of employment rules and to support good work, and they should be joined up with the Industrial Strategy to enhance employee engagement and wellbeing.

7 2. BUILDING TRUST BETTER BUSINESS CULTURES AND GOVERNANCE

Trust matters – yet in many parts of the business world, it is in short supply. Businesses have to earn trust, whether from their customers or their employees. It is imperative that leaders build (or rebuild) trust and engagement with the people in their businesses.

Doing so means changing management cultures to be more flexible, to better blend work with home life, and to allow people to make better use of their abilities in their work. Too many organisations remain trapped in hierarchical, bureaucratic and secretive cultures. We need increased transparency, for instance about executive pay, and changes to how companies are led, in ways that help strengthen business cultures to the benefit of all.

The Brexit vote can be seen as Trust has also broken down inside reflecting a far-reaching breakdown of organisations. Only 36% of middle trust in ‘elite’ politicians and business managers fully trust their leaders. WHY IT leaders. The Edelman Trust Barometer Those middle managers are at the reported its biggest-ever drop in trust heart of organisations, playing a pivotal MATTERS in government, business, the media role in engaging employees and turning and NGOs in 2017. Many people are strategy into action, yet just 31% feel concerned by runaway executive pay the importance of their role in building and perceived ‘rewards for failure’. trust is valued by their leaders.

Trust and growth go hand-in-hand. In rapidly growing organisations 68% of managers have high trust in leaders, whereas in declining organisations that number plummets to just 15%. Reforming business cultures to rebuild trust is critical for better business performance and productivity.

8 Three key asks for Government Three things businesses Three things CMI is doing should be doing Curb runaway executive pay and Helping managers measure and rewards for failure – transparency Create long-term purpose not rebuild trust – we will be championing is a powerful lever for change, so myopic management – as the the importance of trust at work with businesses should be required to Commission on Management and a consumer-focused campaign publish pay ratios between the top Leadership found in its Management exploring the issues around trust, and average levels of pay. Rewards 2020 report, the best-led organisations celebrating middle management and for failure need to be stopped by define their social purpose – not in establishing a support network for this reinforcing the links to performance. terms of short-term financial results, most underappreciated group. We Leaders should be measured on how but in the long-term value they know that what gets measured gets they deliver company purpose and create for their customers and their managed, so we will champion trust their commitments to stakeholders stakeholders. Executive pay should in management through a ‘net trust including customers, employees, and be linked to measurable progress score’, benchmarking the behaviours communities. Government should on these fronts, not just shareholder that create and sustain trust. demand increased transparency and return, and should move away from strengthen the role of Remuneration complex long-term incentive plans that Working with leaders to develop Committees, to make sure remuneration are weakly linked to results. role models – CMI recognises and is based on long-term evaluation champions excellence in management of performance. Improve management and leadership. Our Companions are communication – senior leaders role models for management and the Strengthen employee and need to spend more time with middle CMI Gold Medal recognises the very stakeholders’ voices – CMI research managers and make themselves best, with recent winners including shows low levels of trust within visible, as 64% of middle managers champions of progressive practices business. Corporate governance say they are prevented from building like Unilever’s Paul Polman and the reforms should strengthen the voice trust in their own teams through a lack John Lewis Partnership’s Chairman, of stakeholders and in particular of information from the top of their Sir Charlie Mayfield. We are also employees at the top of companies. business. The top five behaviours that growing the number of Chartered managers want from senior leaders Managers, creating committed Develop human capital reporting are to: professionals who are role models for standards – better data on employee best practices in their organisations. engagement and management • Share their thinking behaviours help boards to direct • Admit to mistakes Highlighting trends in management companies and inform better decision • Encourage people to raise issues pay – we work in partnership with making from investors, identifying the • Be more inspirational XpertHR, the UK’s leading online HR drivers of long-term business value. • Uphold company values resource, to publish annual information Government should consider making on management salaries. Based on integrated reporting mandatory for Reveal leaders’ thinking more a partnership of over 40 years, our listed businesses, through changes to openly – the number-one behaviour research shines a light on trends in Financial Reporting Council guidance. that middle managers want to see management pay and the links to from their leaders to improve trust is to performance. understand what leaders are thinking, closely followed by admitting mistakes. Be open and transparent and involve people across the organisation in decisions. Involve middle managers in shaping communications; only 9% say they are asked for input.

9 3. INCLUSIVE LEADERSHIP HARNESSING DIVERSITY AND CHALLENGING GROUP THINK

The evidence is increasingly clear. Diversity delivers results. Companies with diverse leadership teams generate increased returns and reduce the risk of groupthink. Government should work with employers to increase the diversity of their workforces and reduce the under-representation in management roles of groups including women and ethnic minorities.

Diversity adds value. Gender diverse Women face a ‘glass pyramid’ in the leadership teams measured by Credit workplace with a double effect of an Suisse deliver an 18% Return on Equity increasing gender pay gap and lower WHY IT premium. McKinsey have calculated levels of representation at senior diverse companies are 15% more likely levels. It is clear that the talent pipeline MATTERS to outperform competitors and that is broken: there is a ‘missing middle’ diversity could add $12 trillion annually of women who fail to progress from to the global economy and £150 billion junior to senior roles. Women make a year to the UK economy by 2025. up 73% of junior managers but only 32% make it to director level, and men managers are currently 40% more likely than female managers to be promoted. Future projections show the scale of the challenge: with the economy needing 1.9m new managers by 2024, 1.5m would have to be women in order to achieve gender balance.

Business is waking up to the under-representation of ethnic minorities in management roles, with debate driven by the Parker and McGregor-Smith reviews. Ongoing CMI research suggests that most businesses lack data about their employees’ ethnicity and as yet have less well-developed approaches to increasing race and ethnic diversity than for gender.

10 Three key asks for Government Three things businesses Three things CMI is doing should be doing Implement and extend reporting Championing gender balance – CMI on diversity through pay and Using sponsorship, role models, has been championing gender balance progression data – the next and calling out bad behaviour. since 1969 when we launched Women Government needs to continue to Encourage sponsorship to help In Management. We have increased engage with employers to ensure talented women and other under- our focus on building gender diversity that gender pay gap reporting is fully represented groups access to drive productivity by relaunching adopted by employers. In addition opportunities to succeed. Companies Women in Management as the CMI to pay, we believe employers should need role models for change: identify Women network, now chaired by CMI be required to set targets and and make visible diverse leaders to Companion, Heather Melville. report on progress when it comes encourage aspiration among under- to gender balance through the represented groups and demonstrate Creating a Blueprint for Balance – management pipeline. Transparency openness to change. Encourage CMI’s innovative and free open-source can also improve ethnic diversity in and support those who call out bad platform to promote diversity in the management, and CMI will support behaviour: four in five managers report workplace, from which managers measures proposed by Baroness they have witnessed some form of can access best practice resources, McGregor-Smith for reporting on pay gender bias at work. benchmark their organisation and and progression by race and ethnic upload resources for others’ benefit. background. Addressing bias in recruitment Through this we will attempt to redress and promotion – ensure diversity the ‘missing middle’ – that point in the Work with business to achieve both in shortlisted candidates and in glass pyramid at which we lose women voluntary change – the Davies review assessment panels. Male managers from our management structures. provides a template for changing are currently 40% more likely to be business culture and behaviour. promoted than female managers. Working to improve race and Business needs to own changes, so Set and report on targets for gender ethnic diversity in the management support those that lead the way, for balance to support decision making. pipeline – we are working in instance in setting voluntary targets partnership with the British Academy for change on gender diversity and Increase flexible working practices of Management to conduct pioneering or other areas, like race and ethnicity. – managers rate flexible working as research into the experience of black Learn from and build on sector-based one of the top five ways to help women and ethnic minority managers in initiatives like the work led by Virgin progress and to create a diverse, more FTSE100 companies, to identify how Money’s Jayne-Anne Gadhia to create productive organisation. Technology employers can accelerate efforts to the Women in Finance Charter. has made flexible working much more increase diversity and inclusivity. straightforward and opened up whole Encourage culture change by new markets for some organisations. supporting changes in how people Make flexibility the norm, not the work – CMI supports extending the exception, by making flexible working period in which men are entitled to paid the default when recruiting roles unless paternity leave. Government should business needs make it impossible. also work with employers to encourage Only 9% of higher-quality jobs are more uptake among men of parental currently advertised as flexible. leave by improving the packages offered to men. Continue to promote more flexible working and better-quality part-time or job-share opportunities to help people combine work with family lives.

11 4. IMPROVING EMPLOYABILITY BETTER ACCESS AND OPPORTUNITIES FOR YOUNG PEOPLE

The UK needs 1.9m new managers by 2024. We need to ensure that school leavers and graduates are engaged by employers and taught leadership and management skills as early as possible in order to open up new routes into management and leadership careers.

This will better prepare them for a working world they currently feel uninspired by and detached from, while equipping employers with a far more productive workforce. We also need to develop management and leadership skills for those people not going directly into management roles, supporting employability and entrepreneurship.

Apprenticeships are a big part of the answer to these challenges – see section five for more on their role in supporting employability.

Young people are increasingly Post-Brexit we need to recruit and struggling to find jobs when leaving train a new generation of home-grown education and want more support from UK leaders and managers to address WHY IT employers – 35% of 16-21 year-olds productivity, yet young people feel do not know about employers and jobs deeply disenfranchised in the working MATTERS in their local areas. world and are struggling to transition from education to the workplace. The Employers have become increasingly appetite is there too – 63% of 16-21 frustrated by the failure of education year-olds are interested in leading a institutions to provide work-ready team and 37% would like to start their school leavers and graduates who can own business. easily transition into the workplace. Despite employers reporting skills shortages, youth unemployment rates remain high, and 65% of employers believe graduates lack the interpersonal skills necessary to manage people.

12 Three key asks for Government Three things businesses Three things CMI is doing should be doing Support a new school-to-work Developing a school-to-work syllabus – the next Government Providing meaningful experience syllabus – we are working in should make a long-term commitment of work – 88% of 16-21 year-olds partnership with the EY Foundation to systemic change in the education say employers should offer more to develop a school-to-work syllabus system to ensure that young people experience of work, with 56% unable through the national curriculum that in the UK can make a successful to get the experience they need to includes recognition of team leadership transition into the workplace and the secure the job they want. Too much skills and work readiness. This includes next stage of their lives. The national work experience is an afterthought a National Youth Panel dedicated to curriculum needs a school-to-work and involves menial tasks that do not constructively challenging stakeholders syllabus to develop employability prepare young people for an actual job. to better support employability. skills, including team leadership and communications skills, which should be Engaging with schools – there are Working with higher education – accredited. great schemes available to enable CMI works with over 90 university business professionals to donate partners to improve employability Measure schools on outcomes – time to schools, and schools are outcomes, develop practical better visibility of outcomes is needed increasingly looking for role models management and leadership skills, and so schools should be measured on to speak about work with classes support student entrepreneurialism, the progression of pupils as they to better prepare them for what the by accrediting degrees and providing leave education, whether into further working world is life. Businesses need employability modules. We have or higher education, employment or to take them time to show their work in developed measures to track the apprenticeships. Careers advice should a favourable way to young people. impact on employability and will be transformed with active promotion publish data as it becomes available, of new apprenticeship pathways. Investing in new talent – work with supporting reporting under the TEF. We schools, colleges and universities will work with our partners to support Improve employability through to tap into the potential of the new life-long learning among alumni. higher education – all students employer-led apprenticeships which We look forward to supporting the should learn to manage and lead. provide cost effective ways to bring development of the new T-Levels to Higher education can improve motivated young people into the world provide recognition of team leadership students’ employability by improving of work. With investment from the skills for 16-18 year-olds. knowledge, skills and behaviours, so Apprenticeship Levy and grants for government needs to encourage HE smaller businesses, there are lots of Supporting future leaders – we have to develop connections with business opportunities for employers. established a Future Leaders Panel and partner professional bodies to build a community to enable our to provide students with practical younger members to discover their opportunities to develop and apply potential, explore the demands of their skills. All students, not just leadership and develop the necessary business or management programmes, skills to lead effectively. As a natural should have the opportunity to acquire ‘home’ for those graduating from practical management and leadership CMI-accredited programmes into full skills. CMI supports the Teaching membership, Future Leaders will play Excellence Framework (TEF) to drive a critical role in early management this focus on employability for all careers. Supported by CMI Mentoring students. and our suite of resources, like ManagementDirect, it will accelerate their development and help them grow into better leaders.

13 5. THE AGE OF APPRENTICESHIPS GET IN AND GO FAR IN MANAGEMENT

Apprenticeships are set to become a key pathway into the professions for school leavers and existing workers alike. No longer are apprenticeships restricted to introductory and lower-level programmes for new starters: the new trailblazer management apprenticeships, including the Chartered Manager Degree Apprenticeship, are high-level, prestigious, and can be used to upskill existing employees of any age. By providing new routes into the profession and opportunities for progression, they will also support improved social mobility and widen access, supporting diversity.

The new apprenticeships offer a blend of work-based learning and business education that will benefit any business. The Apprenticeship Levy is a huge opportunity to support employer investment in skills and will address the UK’s long-standing productivity crisis.

Uncertainty about access to overseas Research from Universities UK shows skilled workers is fuelling employers’ that the Chartered Manager Degree need to invest in home-grown talent. Apprenticeship is already the most WHY IT 80% of managers agree that post- popular degree apprenticeship, just Brexit investing in skills will be even ahead of engineering, accountancy MATTERS more important. 67% are negative and digital, with nearly 2,000 about their employers’ ability to attract apprentices expected by the end of EU workers; yet 71% of firms admit 2017. This is despite the fact that that they fail to offer management just 13% of parents are aware of training to first-time managers. degree apprenticeships. The potential popularity is clear: when they are As of April 2017, employers with a explained, 61% of parents say they £3m+ annual pay bill are required to would rather their child took a degree contribute 0.5% of the total to the apprenticeship with a major company Apprenticeship Levy. Employers can than a traditional Oxbridge degree. use funds from the Levy to reinvest in 81% think it provides a better chance their own management apprenticeships of getting a job than a standalone programmes. Managers have university degree. supported the Levy by a ratio of almost 3:1 (48% supported it, compared to only 17% who disagreed with the plans, prior to its introduction).

14 Three key asks for Government Three things businesses Three things CMI is doing should be doing Back the expansion of high-quality Promoting apprenticeships – apprenticeships – the next Seize the Levy opportunity – the working with employers, education Government should maintain a strong Levy should be seen as a ‘Skills providers, schools and Government, commitment to the new trailblazer Investment Plan’ that can be used we are promoting the value of apprenticeships and the Apprenticeship to fund management development apprenticeships to employers. We Levy to create certainty and confidence programmes both for school leavers will help parents and apprentices in the new system for employers, and existing employees. 71% of raise awareness of the skills providers and most importantly apprentices remain with the same investment opportunity offered by the apprentices. The Levy should be employer after joining, and businesses Apprenticeship Levy. extended to cover professional employing apprentices increase qualifications and accredited their productivity by £214 per week Eliminating the accidental programmes to meet the wider training on average. Utilise high quality manager – 65% of employers think needs of employers. Expansion means programmes like the Chartered graduates lack the interpersonal skills engaging people who typically have not Manager Degree Apprenticeship: to manage people. We are working accessed apprenticeships including Chartered Managers deliver £391,443 with universities and education existing employees and groups such of added value to their employers. providers to deliver CMI apprentices as returning parents and older workers. with the skills and professional CMI is calling for one in ten Tackle misconceptions, transform recognition that employers want. CMI apprenticeships to support parents the brand – employers need to rid offers education providers a support returning to work and government themselves of misconceptions about package of professional development, should support companies targeting the apprenticeships being a ‘second-class curriculum enhancement and end point over-50s with ‘silver quotas’. choice’, and ensure that employees, assessment that supports learners young people and their parents to achieve their apprenticeship and Improve access to funding – bring understand the opportunities. The gain professional recognition up to forward the timing for extending the Trailblazer initiative has ensured that Chartered status. Digital Apprenticeship Service to small new apprenticeships are of the highest businesses, currently Levy non-payers, quality, developed by employers for Developing standards – CMI so that there is a single and more employers. has supported an employer-led accessible employer-led funding trailblazer group of 40+ businesses, system. This will better incentivise Leverage networks – larger organisations and HE institutions providers to target small business and employers should work collaboratively to develop three management would remove the need for complicated with suppliers to ensure access to apprenticeships: Chartered Manager funding allocations to existing providers. apprenticeships for smaller businesses, Degree Apprenticeship, Level 3 cascading learning opportunities (team leader) and Level 5 (operations Improve awareness – create a through their supply chains. manager). A Master’s degree Level national communications campaign 7 management apprenticeship is to better raise awareness of the new currently in development in consultation professional pathways offered by with a large group of leading employers apprenticeships. This should focus on and universities. reaching parents, young people and those employers who have outdated perceptions of apprenticeships. Employers should regard the Levy as a ‘Skills Investment Plan’. Too many still see apprenticeships as a low-level entry route into work, as opposed to a route for investing in high-value skills, upskilling their existing workforce and attracting the best new talent.

15 CONCLUDING COMMENTS

Whatever the outcome of the General Election in June 2017, our nation’s leaders and managers face a set of unique challenges and opportunities, not least those presented by Brexit.

What form they will take is unclear. Until a deal is secured at the EU negotiating table it’s hard to predict the impact it will have on issues like the economy and access to skilled overseas workers, issues that our research show are the priorities for managers going into those discussions.

However, there is one thing for sure in this sea of uncertainty. Britain will need to build a highly productive and internationally competitive economy, and the crucial factor in doing so will be the quality of our leaders and managers.

From the Government and employers alike, we will need strong, agile and inclusive leadership. CMI’s charitable mission to increase the number and standard of professionally qualified managers and leaders has never been more important. We, and our members in organisations across the UK, will play our part.

We look forward to stepping up to the task and working with the new Government. Our partnerships with employers, higher and further education institutions, and education providers will ensure that we produce managers with the skills that UK plc needs.

FIND OUT MORE

To find out more about CMI’s research, the analysis that has informed our Management Manifesto, and to sign up to our weekly Insights newsletter, please head to www.managers.org.uk/insights.

16 MEET CMI’S STAKEHOLDER ENGAGEMENT TEAM

Petra Wilton – Director of Strategy Ali Cox – Head of Apprenticeships and External Affairs and Stakeholder Engagement

Petra Wilton leads CMI’s thought leadership agenda and Ali focuses on the exciting developments in is responsible for building its brand profile and strategic Leadership & Management apprenticeships and partnerships. She has co-authored many reports and working to build demand and capacity. She is also shares managers’ views with Government, business, Project Manager for the Leadership & Management education and the media. Trailblazer Employer Group, currently developing the Senior Leader Master’s Degree apprenticeship. Petra has been leading work on the development of the new management and leadership apprenticeships, Ali also leads on building relationships with key including the Chartered Manager Degree Apprenticeship, stakeholders, and increasing the engagement with and also supports the CMI Women’s network to help and profile of our prestigious CMI Companions. create a world-class pipeline of women into management. [email protected] [email protected]

Patrick Woodman – Head of Research Phil Wood – Stakeholder and and Advocacy Companions Engagement Manager

Patrick heads up CMI’s thought leadership research Phil is responsible for developing CMI’s stakeholder programme, generating the practical insights that shape relations, building networks and relationships across CMI’s recommendations and underpin our campaigns and CMI’s key sectors. This includes engagement with points of view on key issues. He’s currently working on plans CMI Companions, our most senior members. He has for our National Management Index as well as further a particular focus on our work on young people and research on diversity and inclusivity in management. employability.

Patrick is also a regular spokesperson for CMI and he Phil is also responsible for CMI’s Parliamentary leads on several key partnerships. Recently he worked engagement, including managing the secretariat for closely with the Government Equalities Office, as CMI the All-Party Parliamentary Group on Management. contributed to the development of the gender pay gap reporting regulations. [email protected] [email protected]

17 NOTES

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Incorporated byRoyalCharter Registered charitynumber1091035 77 Kingsway, London,WC2B6SR Chartered ManagementInstitute #cmi2017 @CMI_managers Twitter on follow us and information, more for www.managers.org.ukVisit eventsnetworks, regional mentoring and opportunities. online through expertise to their build managers help and of Conduct, Code Professional our through practice ethical we promote leaders, of and high standards managers 130,000 than of more community amember With curve. of the teams keep and ahead change, create high-performing to embrace them helps that support online practical with and thinking management to latest the access with managers individual and We employers provide improves workplace performance. and potential earning increases award, which Manager Chartered unique the levels, including to PhD equivalent Our professional management qualifications span GCSE growingand the ofmanagers. number qualified leadership, to dedicated improving skills managers’ and management for body professional chartered only the is (CMI) Institute Management Chartered The ManagementChartered Institute (CMI)

ISBN: the BritishLibrary A CIPcataloguerecord forthisreport isavailablefrom British LibraryCataloguinginPublicationData prior permissionofthepublisher. mechanical, photocopying,recording orotherwise,without or transmitted,inanyformbymeans,electronic, publication maybereproduced, stored inaretrieval system, for thepurposesofcriticismandreview, nopartofthis All rights reserved. Except for the quotation of short passages First publishedJune2017 Copyright Chartered ManagementInstitute© 0-85946-665-5

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