What Are the Skills Gaps That Need to be Addressed in Managing the Current

Slowdown?

According to a recent survey (1), there is an ever-widening gap between the skills and
competencies perceived as most critical in today's businesses and those that are
actually possessed by managers.

Responses identified the five most critical skills and competencies and showed how well
managers are performing on each. Despite nearly two decades of competence
development in organisations, there still seems to be a significant gap between
perceived need and operational reality.

Skill or Competence Level of Importance Actual Ability

Customer focus 95.6% 70.5%

Ability to use information to solve business 95.2% 46.1%

problems

Recognising problem areas and implementing 94.7% 45.5%

solutions

Cooperation and commitment 93.0% 53.7%

Contributing to corporate mission departmental 89.3% 51.0%

objectives

Are managers becoming less competent?

The ability of managers to focus effectively on areas of critical concern to the business
was called into question by this AMA survey, showing a yawning gap between
expectations and reality. Particularly suspect is the ability of managers to meet the
needs of today's business.

According to the study there is a serious lack of skills and competencies in the
managerial ranks that pose potentially disastrous consequences for any business
heading into a slowdown. The research identifies huge gaps in critical areas such as:

1) Coaching and mentoring skills

2) Recognising problem areas and implementing solutions
3) Using information to solve business problems
4) Identifying opportunities for innovation
5) Listening and asking questions.

Looking in more detail, the gaps between needs and ability become all too obvious (n.b.
Ratings are based on a maximum score of 5.0).

InfoWorks International Newsletter July 2001.

URL: infoworks@infoworks.com.au
Email: infoworks@infoworks.com.au
 Average Importance Rating Average Competency Rating Difference
1) 4.14 2.9 1.24
2) 4.59 3.38 1.21
3) 4.59 3.47 1.12
4) 4.32 3.2 1.12
5) 4.38 3.27 1.11

The results clearly show that there is a widening gap between the skills and
competencies most needed in today's business and those possessed by working
managers. Worse still, according to the AMA, the gap between need and ability is
getting wider year on year in some critical areas.

This gap is also visible in year-on-year responses. Key areas where managers are
expected to contribute more include:

• Understanding an organisation's business model

• Setting and maintaining performance standards for external business partners
• Selecting critical information from masses of data
• Transforming ideas into words and actions
• Using information to solve business problems.

Essentially what this means is that there is not only an increasing inability to recognise
emerging issues and opportunities, but a reduction in the skills available to communicate
critical developments or do something constructive about them.

A cross section of managers listed specific areas of concern

• With regards to organisations' inability to identify opportunities for innovation,

most managers today spend time solving problems, not looking for opportunities
- that's all there is time for.
• With regards to organisations' inability to use information effectively, there is
simply too much information to interpret. Fast, efficient IS systems mean that
'paralysis by analysis' is not only with us but increasing year on year.
• With regards to organisations' lack of coaching and mentoring skills, again there
is no time to carry this out. Also, the use of more and more virtual teams is
making face-to-face contact a rarity. When it does happen, it is looking at current
problems, not long-term bonding.
• With regards to organisations' need for customer-focused skills, again time is the
issue. Despite all the hype, customers are not really at the top of a manager's
daily concerns, unless they are in sales. It is managing processes that takes the
time.

As most companies are strategically looking at how to deal with a partial economic
slowdown, many of these skills and competencies will be needed even more. A failure
of managers to hone these skills in the relative calm of the last six or seven years calls

InfoWorks International Newsletter July 2001.

URL: infoworks@infoworks.com.au
Email: infoworks@infoworks.com.au
into question many other surveys that strongly suggested that acquiring new skills and
self-development were the elements of the employment package employees valued
most. Furthermore, it has become evident that skilled workers are migrating to
companies that offer the acquisition of skills and competencies as part of the overall
work contract.

How organisations perform in the coming 18 months will show whether or not these
employer offerings and these employee expectations are simply hype, not reality.

How Can You Implement Effective Solutions to Meet These Challenges?

Here are some program ideas to improve these skill gaps:

Skill or Competence InfoWorks Program

Customer focus Client Focus
Ability to use information to solve business problems Insight – Problem Solving
Process Improvement
Recognising problem areas and implementing solutions Insight – Problem Solving
Cooperation and commitment Dynamics of Leadership
Contributing to corporate mission departmental objectives Dynamics of Leadership
Coaching and mentoring skills Coaching Skills
Using information to solve business problems Process Improvement
Managing Successful Projects
Identifying opportunities for innovation Process Improvement
Internal Consulting Expertise
Listening and asking questions. Dynamics of Leadership
Presentation Skills
Understanding an organisation's business model Dynamics of Leadership
Strategic Planning
Setting and maintaining performance standards for Dynamics of Leadership
external business partners Managing Successful Projects
Selecting critical information from masses of data Managing Successful Projects
Dynamics of Leadership
Transforming ideas into words and actions Internal Consulting Expertise

Email InfoWorks International for more information on any of these programs, which can
be tailored to meet specific client needs. Also visit our website and sign up for free use
of our Power Tools.

(1) AMA Survey: Management skills and competencies. To access the complete results visit
http://www.amanet.org/research/summ.htm

InfoWorks International Newsletter July 2001.

URL: infoworks@infoworks.com.au
Email: infoworks@infoworks.com.au