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13 APRIL, 2022 (GPN): The pandemic has changed how organisations work, hence it is even more pivotal to evaluate the management capability of the leaders of India. With this priority in mind, KPMG in India, in collaboration with the All India Management Association (AIMA), released the sixth edition of the Management Capability Development Index report. This survey measures perspectives from CEOs, CXOs and senior leadership on 10 dimensions of management capability. The survey captures both the relative weightage and urgency of the dimensions and received 507 responses across sectors and locations.

The report examines the 10 pillars of management capability complemented by a newly introduced dimension – Impact of COVID- 19 in detail; and attempts to highlight the level of maturity of the organisations across these key dimensions.

The 2022 edition of the MCDI Survey has an additional section regarding the impact of the COVID-19 pandemic on the leaders’ organisations. This section helps us understand how organisations changed their strategic priorities from growth to survival, the acceleration of digitisation in the organisations due to COVID-19, and the impact of work from home on productivity. The section also focuses on the aspects such as retaining changes enforced by COVID-19 in a post COVID-19 scenario and focus on re-accelerating growth in a post COVID-19 scenario.

Key Highlights:

• The overall MCDI preceptors have increased to 74.5 from 71.6 in the previous survey held in 2018. However, the confidence of the senior leaders in their organisation’s overall MCDI capabilities has not been able to cross the 2011 levels. This indicates that while organisations have improved over the past few years, there is still scope for improvement to improve certain management capabilities
• The overall MCDI score for Visionary Leadership was measured at 73.3 (moderate). Participants from Mining and Professional Services firms are most confident while those in healthcare are least comfortable of their management’s ability in this dimension
• Performance Leadership was pegged at 74.4 (moderate) as organisations with headcount between 101-200 have rated their management highest while those from organisation with headcount between 1-5 rated the lowest
• People Leadership and self- development was scored at 73.2 (moderate). Participants from IT and Mining are most confident while those in healthcare are least comfortable of their management’s ability in this dimension
• With a score of 71.5, Organisational Capability is one area where participants believe that not many organisations demonstrate strong commitment to continuous learning for both individuals and the organisation
• COVID-19 has resulted in an additional emphasis on digitisation and application of technology. The overall MCDI score for application of technology and knowledge was higher than those of the past 3 surveys, continuing the upward trend of the past 3 surveys

“While the world is still trying to get back on its feet, it is even more critical for the management to demonstrate higher levels of capability. It is encouraging to observe that scores have shown a positive shift from the previous editions. The management is encouraged to employ its core strengths such as living the core values, business acumen, influencing and communication, and perception effectually” said Vishalli Dongrie, Partner and Head, People & Change Advisory, KPMG in India.

Way forward:

• With the ever-changing environment and market conditions, senior leaders must proactively own and champion change management initiatives to ensure complete buy-in from all stakeholders
• Organisations must work on creating a strong feedback mechanism for quick turnaround: to reduce the time to identify issues and take corrective action for business activities
• Organisations must look at offering fulfilling careers instead of jobs to fill vacancies.
• Organisations can instill a culture of continuous innovation by converting an innovative product or idea into a profitable business that will change the way of doing business together
• Senior leaders must lead by examples by developing and committing to plans and goals that support sound, sustainable growth, and continuous performance improvement
• Leaders should build a culture of taking calculated risks where necessary by balancing risks with achievements