KPMG and AIMA release Management Capability Index report

NEW DELHI: In a bid to measure and assess the management capabilities of professionals across sectors, audit and advisory firm KPMG in association with All India Management Association ( AIMA) released their Management Capability Index ( MCI) report in New Delhi on Wednesday.

MCI measures and evaluates management capability across sectors, geographies, and organisation types. The findings of this report will help organisations benchmark their management practises and effectiveness against similar organisations, KPMG stated.

MCI is built on responses provided by over 500 senior leaders across India, and elaborates on how organisations fare on 10 drivers of management capability- visionary and strategic leadership, performance leadership, people leadership, financial management, innovation in products and services, organisation capability, application of technology and knowledge, external relationships, integrity and corporate governance, and organisation results and comparative performance.



The survey respondents were asked to rate the questions for all given dimensions on a 6-point like scale ranging from 0 to 5.With a score of 75.4 %, foreign multinationals have adapted and evolved faster as compared to other types of organisations to the changing environment. Government establishments have a relatively larger scope for improvement with a score of 64 %. SMEs were found to have a scope for development in financial management, external relationships, and application of technology and knowledge.

"MCI puts India at par with countries like Australia, New Zealand, Hong Kong and Malaysia who have done this exercise. I believe the index gives us an opportunity to improve in areas like organizational result and comparative performance, external relationships and application of technology and knowledge,” said Richard Rekhy, CEO, KPMG.

Organisations with employee strength of more than 50000 scored about 74% on MCI, while the IT/ITes and the media and telecommunications sector were cited as having the strongest management capabilities at 75% in the report.