Back News  /  June 2013

Companies see potential to optimize management development

Nevertheless, the majority forgo carrying out Management Audits

By Karl-Joseph Mondorf, Managing Partner, InterSearch Executive Consultants

German companies recognize the need to improve the structure of their management teams. Only 12% of those responsible for personnel state that leading management functions in their company are optimally filled. This is the finding of the study “HR Studies in Medium Sized Companies” carried out by InterSearch Executive Consultants among 200 personnel managers in companies with over 250 employees.

The large majority of personnel managers (68%) doubt whether suitable personalities are carrying out the most important leadership roles. Logically, this group expresses its doubt by answering that it is “more likely” for a job to be filled sub-optimally, while only 16% of respondents answer with “less likely”. 2% of respondents recognize an acute need for change, answering with “no, not at all optimal”

Only 2 out of 5 personnel managers have a very good overview of leadership potential in their company

The main requirement for filling a management position optimally is focused management development. For this to take place, the internal management potential must be accurately identified and assessed. Of all HR managers interviewed, 11% described their overview of available potential as “poor”. Two thirds of respondents assessed themselves as having a better than average overview, but only two out of five would describe themselves as “very good”. Companies can improve their recognition of management potential by using diagnostic analyses, Management Audits, in short. Unfortunately, not even half of companies used this instrument with any regularity.

Concern that Management Audits will cause disquiet among employees

Only 46% of companies carry out Management Audits on a regular basis. 28% plan to carry out an audit in the future, while 16% have done so in the past but do not use them currently. Nearly every tenth company (9%) rejects the tests categorically despite having no experience with them.

Reasons for not carrying out Management Audits vary. Most often, it is feared that an audit will create unrest within the company (36%), although appropriate internal communication serves to diminish this risk. The assumption of high costs (33%) and the fear of results being ignored (31%) also cause companies to forgo carrying out the analysis. In so doing, they lose sight of the fact that poor management costs more money in the long run than an investment in corrective measures made now. The fact that some companies do ignore the results of a Management Audit rather than acting on them can be due to a sense of helplessness. A professional provider of a Management Audit will also provide recommendations on specific action points as well as support in carrying these out and communicating any restructuring measures internally.


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