Tricia Cunningham discusses management development, the crucial link between human resources and economic opportunity, and why it plays such a vital role in the long term success of organisations.

Tricia, why is it critical for companies to invest in management development?
Now that the economy has started to turn in a positive direction, the skills that employees currently have may not be the skills that will allow them to help an organisation grow, and maximize business opportunities that are carved out through hard work. Over the last number of years the focus for many organisations have been doing what’s needed to get ahead one step at a time, but now that things are improving and opportunities are opening up, people and organisations will need to start thinking differently and incorporating new skills to maximize those opportunities.

What business supports should senior managers and business owners consider?
(1) First, organisations should start thinking about what requirements their organisation will need over the next eighteen months, and mapping out the skills needed to deliver on those requirements. From that they can start to consider and assess their employees against those requirements. They can then determine the best way to develop a new set of required skills. There are many different approaches to developing people from formal training programmes to giving employees the opportunity to work on new projects.

(2) Secondly, over the last number of years managers have been working in environments heavily focused on cost reduction with few resources available to them. So the focus has been on the technical deliverables; delivering to the specific requirements of customers and getting paid. Now that things are changing again, managers need to understand that how they manage a team and interact and guide a team is vitally important to the long term future of the business. People skills are critical to that future so it’s not sufficient to focus only on the technical aspects of the job.

(3) Thirdly, we have to recognise that if the economy continues to grow as it is with a current unemployment rate of 8.6, having dropped from a peak of over 14, it is becoming more of an employee market. If that rate continues the organisations that don’t invest in employees and help employees to develop their skills will lose those key employees. Generally speaking, employees who work in an organisation value opportunities to develop and enhance their skills. Investment in them and developing those skills can have considerable payback in terms of commitment, loyalty and a desire to do more, deliver more and assist the organisation to grow.

So owners and leaders need to consider development as an investment. Before any training begins, they must agree with the employee the skills to be developed and how the organisation expects the individual to demonstrate those skills back at work. In this way the leader can see that development is no longer a cost but a sound investment. By focusing on developing the skills of key individuals, organisations are better positioned to grow and retain key employees who have assisted them in the harder times and are also equipped to maximize the new opportunities.

Business Effectiveness

Understanding Management Best Practices
Managers need to be supported in developing the key skills to manage people effectively; learning from their experience isn’t sufficient. It’s about understanding management best practices and determining how they can be applied in the organisation so that organisations are developing strong competent teams that can work effectively together and with the manager; a team who respects the manager and learns from the manager.

Personal Growth and Career Ambition
When an individual works in an organisation there isn’t always the expectation that by participating in management development programmes they are going to climb the rungs of the ladder, but rather they are enhancing the skills they have. They are broadening their knowledge and broadening the opportunities they have to do different types of work. That is also development and this is often very satisfying for an employee. When you work in the SME sector you know there are few opportunities to climb the rungs because there are very few rungs on the ladder to begin with.

Management DevelopmentAnd if you work in a large organisation you need to be careful not to give the impression that development is all about climbing the ladder because when an opportunity presents itself, six people may go forward for that opportunity but only one person can secure the role. What happens to the other five candidates? How are they to be managed so they don’t become deflated and believe that there are no opportunities in the business? They need to understand there are opportunities to develop skills that are still very valuable and will ensure they remain employable and valuable to the organisation. They need to know they can continuously contribute to the organisation and that’s why investment in their development is important.

Shouldn’t organisations continuously develop staff whether the economy is good or bad?
Yes but when organisations have experienced the kind of recession that we had, one of the first things that gets cut is training and development for staff, because during a downturn development is too costly for a business. Now that many businesses are in a position where they can make some investment in their people again, they need to consider the supports available out there, like government funded supports to help them develop their team. These business supports ensure the cost isn’t borne fully by the organisation particularly for those that may not yet be in a position to do so. But if they can bear some of the cost, government agencies will step in and provide further funding and support.

Can you give an example of business supports that are available?
There is a strong organisation called Skillnets that are located around the country and their remit is to provide support for organisations seeking to develop their people. Skillnets will supplement part of the overall cost of the training and development in-company, but Skillnets will also provide open programmes for people at a reduced cost per employee. These two options for the organisation should facilitate them in developing their teams further.

Larger organisations like Enterprise Ireland have grants available as part of overall programmes that focus on efficiencies in organisations. As part of that there are various LEAN programmes and training and development falls within the remit and scope of those grants and business supports.

What management development supports do LEAP offer organisations?
LEAP recognises the need for strong leadership, effective management and engaged employees in organisations. From our 15 years’ experience of working with companies we have put together programmes that focus on developing the core skills of these three groups. Additionally we look at operational effectiveness to ensure that not only are the people working effectively, but that they are focusing on the right things and doing them right.

How is your organisation preparing for economic recovery? Let us know with a comment below.

Tricia Cunningham

Tricia Cunningham is co-founder and senior partner at LEAP