ilm global management challenge china vs world 010708

Upload: shuozheng-wang

Post on 05-Apr-2018

242 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    1/27

    CHINA VsTHE WORLD

    The GlobalManagement Challenge

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    2/27

    Contents

    Foreword 01Executive summary 02Section one: Introduction 05Section two: What can we learn from Chinas managers? 061 How does the world view Chinas managers?2 How do Chinas managers see themselves?3 China: what makes a good manager?4 The thirst for knowledgeSection three: A global perspective 111 What makes a good manager?2 How do your fellow managers shape up?a How good are the managers in your company or country?b The 25 characteristics of effective managementSection four: At a country level 141 What makes a good manager?

    2 Managerial performance: national strengths and weaknessesa The UK manager: good at relationshipsb French managers: customer-focussed decision-makersc US managers: entrepreneurial team players3 How managers see themselves, and other managersa The UK manager: good at getting the job done, but not very caring?b The French manager: caring, but not very innovative?c The US manager: like the UK manager?Section ve: Conclusion 20Methodology 23About ILM 24

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    3/27

    Foreword

    The Institute of Leadership & Management (ILM)is the UKs premier management organisation. Webelieve that good leadership and management holdthe key to organisational effectiveness and socialand economic prosperity.

    Reecting our own international reach and in recognitionof increasing economic and social globalisation, a majorarea of interest for ILM is the extent to which leadersand managers in different countries working in differentcultural contexts perform, and the standards by whichthey judge that performance.

    The US is still seen as the pinnacle of best managementpractice where most modern management thinkingcurrently resides. But will this remain the case as thecentre of economic power shifts? China is the worldsmost populous country and currently exports more ITproducts and services than the US. We recognise thatthe Chinese approach to economic success may well

    require us to revisit some of the American universalsin management practice and accept that there is nobest way. What is needed is a sea-change in employersawareness of the challenges facing them and theimportance of improving managers knowledge andskills to meet these increasingly global challenges. Themore we understand how these issues will impact, themore successful we will all be in creating value in ourown organisations and globally.

    ILM accepts its responsibility in helping to make thishappen. We will continue to contribute to improvingand developing business understanding of leadershipand management practice, working with individualsand organisations to achieve their full potential.

    Penny de Valk, Chief ExecutiveInstitute of Leadership & ManagementJune 2008

    01

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    4/27

    02The Global Management Challenge

    Executive summary

    The global balance of economic poweris shifting. Chinese managers are settingthe management agenda for China andare poised to do so for the rest of the world, and managers in Europe andNorth America would do well to pay attention. Although there was generalsupport from all sample countries fora top ten list of good managementcharacteristics (see opposite), thisresearch has identied some signicantdifferences starting to emerge betweenChinese and Western managers, andprovides some important lessons forus all to learn.

    What Western managers need to learn,and learn quickly:

    1 Know the competitionOur perception of Chinese managersremains rooted in the past. China is stillseen by most managers as a society whoseeconomic strength relies on low costs, longhours and tough management. In fact ourresearch suggests that China is starting todevelop a distinctive and highly effectivemanagement culture sophisticated, very commercial, innovative and ambitious. Western economies risk losing out in thesame way they did to Japan in the 1970s if we do not take the Chinese managementchallenge seriously, and react accordingly.

    2 Get your priorities rightIt is apparent from our research

    that Western managers do notnecessarily practice what they preach.Overwhelmingly they subscribe to amanagement paradigm that emphasisespositive features, such as getting thingsdone, customer focus, good workingrelationships and communication.However, and very worryingly, the areasthe British, French and US managersidentied as the most important arenot the areas in which they felt they performed most strongly. It seems that we do the less important things well,and the most important things less well.

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    5/27

    www.i-l-m.com03

    3 Invest in developmentHowever, despite scoring our managementpractices the same or lower than theChinese, we do not identify any clearmanagement weaknesses or developmentneeds. Whereas, despite scoringthemselves highly, the Chinese stand outas being modest about their performance,identifying several weaknesses and areasfor improvement. The Chinese managers we surveyed came across as well educatedand far more ambitious than those in the West although we seem happy withmediocrity, they are not, and they aredoing something about it. In contrast with the Chinese, the UK managementpopulation appears under-qualied,under-developed and less interested inimproving its knowledge and performance.

    4 Get ready for a new styleof Chinese managementChinese management doesnt appear toconform to simple cultural models, andclearly draws from Western especially US management theory and practice.However, there are some subtle butsignicant differences of emphasis and weneed to be alert to an emerging Chinese way of managing (just as we had to learnabout the Japanese way). We will need tolearn from their different perspectiveand also to understand the potentialimpact this will have on futureeconomic relationships.

    The global top tencharacteristics of good managers:1 Determination to get things

    done, and done right2 Good communication skills3 General knowledge, ability

    to learn and wisdom4 Takes responsibility for

    making things happen5 Has a positive and supportive

    relationship with people6 Management skills, leadership

    and control7 Customer-focussed8 Knows the business

    and its products9 Team-working skills10 Good at organising own

    and others workloads

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    6/27

    04 The Global Management Challenge

    China According to managers from the

    UK, US and France, managersin China are: hierarchical andauthoritarian in style, motivatingtheir employees to work hard,performing tasks on time andon budget.

    They are not: very innovative,caring or concerned withfollowing rules.

    According to managers fromChina, Chinese managers are:very concerned about followingrules and procedures, good atmotivating people and focussedon getting the job done.

    They are not: very authoritarian inthe way that they manage people.

    According to Chinese managersthe top three characteristics ofgood managers are: knowledge,wisdom and the ability to learn;taking responsibility, team

    working skills.

    The strengths of Chinese managersinclude: being customer-focussed;ensuring workplace safety; beinghonest, ethical, and having strongpersonal values.

    Chinese managers were farmore willing than their Westerncounterparts to acknowledgemanagement weaknesses; holdingback development, communicationand teamwork.

    Chinese managers are bettereducated at rst degree leveland benet from signicantlymore in-house training than theirWestern peers.

    A global perspective Taking the responses of the UK, US,

    France and China together the topthree most important managerialattributes or characteristics are: adetermination to get things done;good communication skills; generalknowledge, and ability to learnand wisdom.

    The least important (in the topten) are: business knowledge;team working skills; the ability toorganise workload.

    French managers give signicantlylower scores to their ownmanagers, and managers from theUK, US and China.

    Taking the responses of the UK,US, France and China together thetop four attributes the managersactually possess are: verycustomer-focussed; take decisions;ensure a safe workplace; are goodteam players. (Note the mismatchwith desired attributes.)

    An individual country perspective Asked what makes a good

    manager, the UK managersfavoured relationships, the Frenchmanagers action, but neither theUK, US nor French rated knowledgeand wisdom very highly.

    UK managers are decisive, fair-minded, relationship and safetyconscious individuals, with a focuson customers and teams.

    UK managers are less good atmanaging relationships, and inparticular: helping with peoplesproblems; dealing fairly but rmlywith poor performance; andmanaging individuals well.

    French managers are tough mindedteam players, good at decisionmaking and communication.

    French managers, like their UKcounterparts, are less good atmanaging relationships, and inparticular: helping with peoples

    problems; dealing fairly but rmlywith poor performance; andmanaging individuals well.

    American managers areauthoritative, innovativeentrepreneurial problemsolvers and decision makers.

    American managers are less goodat delegating and assigning tasksand motivating people and teams.

    UK, US and French managersare not good at taking advantageof new production andoperational systems to gaincompetitive advantage.

    UK and French managers are notgood at ensuring minimal impacton the environment.

    Executive summary

    Key ndings

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    7/27

    www.i-l-m.com05

    In the 1970s and 1980s the managersof the world looked to the Japanesemanufacturing miracle for inspiration.They adopted and adapted themethods of the Toyota ProductionSystem and lean manufacturing,for example, developed by TaiichiOhno, Shigeo Shingo and Eiji Toyoda.Western managers also implementedthe Japanese managers approach toquality which the Japanese in turn hadtaken from Americans workingin Japan, such as W. EdwardsDeming, and also Joseph Juran.

    However, by the time Westernmanagers had acknowledgedthe effectiveness of Japanesemanagement techniques, and theirown management deciencies, it

    was too late to prevent Japanesecompanies taking a signicant marketshare from businesses in the West.

    Today, at the beginning of the 21stcentury, there is another economicrevolution underway. China, once oneof the greatest trading nations in theworld, has awoken from its slumberand is now the fastest growingeconomy in the world.

    While global growth will slow to1.8% in 2008, its weakest rate since2002, according to the Organizationfor Economic Cooperation andDevelopment, in China the economicgrowth rate will slow only marginally,from 11.9% in 2007, to 10%.

    China is fast improving itscompetitiveness too. Accordingto the World Economic ForumsGlobal Competitiveness Report for20072008, China is ranked at #34,up from #54 in the previous year.

    At the centre of the Chineseeconomic miracle are its managers,millions of executives, applying theirmanagement skills and knowledgeto improve the performance ofChinese businesses.

    The ILM research featured inthis report explored somefundamentally important questionsabout management across theglobe. It put a range of key questionsto managers in four of the worlds

    leading economies the UK, US,France and China. What makes agreat manager? What are managersgood and bad at? How well do youunderstand managers in othercountries? How good are your fellowmanagers? What improvementswould make you a better manager?

    Unsurprisingly, the researchrevealed a range of responses, andsome interesting insights into themanagement characteristics andattributes that managers consideressential, and what they are good orbad at. These insights are explored inthis report.

    However, while it is important togather the thoughts on managementfrom executives in leading Westerneconomies, and consider theimplications of their responses, ifhistory has taught us anything it isthis the responses that managersshould pay particular attention to arenot those of the Western managers,but instead, those of the Chinesemanagers soon to be running theworlds largest economic superpower.

    Section one: Introduction

    Historically, great management practice has beenassociated with economic success and prosperity. At theheart of Americas business boom in the early 1900s weremanagement innovators, like Henry Ford, who pioneeredmass production, and Frederick Winslow Taylor, thefather of scientic management.

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    8/27

    06 The Global Management Challenge

    Published research on Chinese

    managers is fairly limited. However,part of our research asked practisingmanagers to rate other managers intheir own and other countries on sixattributes. In doing so the researchrevealed how managers in Chinaare perceived by managers fromthe UK, US and France, and whetherthese perceptions matched theChinese managers views of theirfellow managers.

    These are important ndings. If thereare disparities between what theWest thinks that Chinese managersare good at, what they value, howthey operate, and how the Chinesethemselves view their managers,it may indicate a fundamentalmisunderstanding on the part of theWest of what is happening in China of what underpins Chinas economicmiracle. If the West does not getChina, if it does not understandwhat drives and motivates Chinas

    management, how can it competewith this emerging economic andindustrial superpower?

    Worse, if these research ndings

    reect a poor understanding ofChinas managers on the part ofWestern management, it is possiblethat the strategies devised byWestern economies to competewith China in the new globaleconomy may be misplaced.

    1 How does the world viewChinas managers?Despite Chinas meteoric economicrise over the last decade, despite itsrapid transformation from economicbackwater to economic powerhouse,the Wests perception of Chinesemanagers seems remarkably rootedin the past (see Table 1 opposite).

    According to managers from the UK,US and France, managers in China arehierarchical and authoritarian in style,driving their employees hard to getwork done on time and on budget.These ndings seem to reect a viewof business in China coloured by the

    countrys communist centralisedcommand and control background;a view of China as a country relyingmainly on low costs, long hours,and tough management to createeconomic value.

    Note that China scores less well on

    characteristics such as innovation,paternalism, and regard for rulesand procedures. By placing ethicsand governance at the bottom of thelist, Western managers surveyedare presumably passing commenton the wider standards of ethics andgovernance of Chinese business,or at least of Chinas managers.(Interestingly, Following proceduresor rules came top or near the topof the responses of France, UK, andthe US when assessing theirown managers.)

    It is also interesting that Westernmanagers do not rate their Chinesecounterparts very highly when itcomes to innovation. Many Westerneconomies have a competitivestrategy that relies on out-innovatingChina and India. The US and UK, forexample, are supposed to excel atinnovation, whereas there is a view,reected in the survey ndings,

    that China and Indias economicsuccess is largely founded on low-cost manufacturing rather thaninnovative practices in managementor otherwise.

    Section two: What can welearn from Chinas managers?

    There is no question that China is undergoing aremarkable period of economic and social transformation

    and success. It would be reasonable to speculate that partof Chinas economic success is related to the characteristicsand attributes of its managers. If that is the case, what canthe world learn from Chinas managers? Are managers inChina any different to those in Europe or North America,in terms of their knowledge, expertise, management style,or in any other ways?

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    9/27

    www.i-l-m.com07

    2 How do Chinas managerssee themselves?The managers in China, however,had a markedly different opinion of

    the relative importance of the sixattributes listed (see Table 2 above).Even if the Chinese were once themanagers their counterparts in theWest still imagine them to be, it shouldnot be that surprising to nd that, likeChina itself, they have changed.

    As far as Chinas managers areconcerned following rules andprocedures is the most typicalattribute among their colleagues,and not the least typical, as Westernmanagers predicted, possiblyindicating a different attitude towardsethics and governance than thatperceived externally.

    An authoritarian approach tomanagement is, however, notsomething that Chinas managersrate that highly, placing it towardsthe bottom of typical attributes, andonce again confounding perceptionsin the West.

    Possibly the two most interestingndings from this section ofthe research were the views onpaternalism and innovation

    expressed by Chinese managers.

    Paternalistic towards the peoplethey manage, was bottom of the listin every country other than China,where it was third from bottom,and with a higher score than in theother countries. Does this suggestthat Chinese managers care moreabout their employees than Westernmanagers? Given that Chinasmanagers scored authoritarian inthe way that they manage people,below paternalistic, this mightbe a reasonable interpretation.

    Regarding innovation, althoughChinese managers placed Veryinnovative, keen to encourage peopleto try new ways of working, as theleast typical attribute, they still scoredinnovation above the UK, France orthe US, suggesting that competingwith China on innovation may betougher than Western economies

    and companies imagine.

    Table 1: Chinese managers: What the world thinksMean of the combined French, UK and US managers ratings:where 4=Very typical, 3=Quite typical, 2=Not very typical and 1=Not at all typicalCharacteristic Mean

    ratingVery authoritarian in the way that they manage people 3.26Very focussed on getting the job done successfully, on time and on budget 3.11Very good at motivating people to work hard and perform effectively 2.97Very innovative, keen to encourage people to try new ways of working 2.76Very paternalistic towards the people they manage 2.55Very concerned with following procedures or rules 2.53

    Table 2: Chinese managers: What China thinksMean of the Chinese ratingsCharacteristic Mean

    ratingVery concerned with following procedures or rules 3.44Very good at motivating people to work hard and perform effectively 3.30Very focussed on getting the job done successfully, on time and on budget 3.25Very paternalistic towards the people they manage 3.19Very authoritarian in the way that they manage people 3.16Very innovative, keen to encourage people to try new ways of working 3.06

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    10/27

    08The Global Management Challenge

    3 China: what makes agood manager?If managers in the UK, US andFrance appear to have a poorunderstanding of what the Chinesebelieve makes a good manager, thenother ndings from the researchshould help understand Chinesemanagers better.

    Chinas managers have helpfullyidentied what they consider to bethe most important attributes orcharacteristics that make a goodmanager in your type of business.

    And to make matters even clearerthe Chinese managers have thenidentied those characteristics ofeffective management that theirnational managers perform well,from a choice of 25.

    So what are the top vecharacteristics of good managersaccording to the Chinese? As it isclear from Figure 1 opposite,knowledge, wisdom and learning,

    and taking responsibility areof primary importance toChinese managers.

    Wisdom has particular signicancefor Chinese culture, and society.In the World Expo 2010 held inShanghai, for example, the themefor Chinas showcase Pavilion isChinese Wisdom during the Processof Urban Development, with wisdomassociated with ideas such asmake unremitting efforts for self-improvement, a gentle man mustconstantly cultivate virtue in himselfto shoulder the world, and harmonycombined with divergence.Interestingly, these concepts ofwisdom are reected elsewhere inthe research ndings. In the West,however, concepts of wisdom tend tobe more focussed on content ratherthan process.

    The third most importantcharacteristic for Chinese managers isthe possession of team-working skills.The prominence of team-working maynot surprise those aware of Chinashistorical emphasis on communityand the collective. What is perhapssurprising, however, in an age wherecooperation and collaboration issupposed to provide competitiveadvantage, not one of the Westernnations placed team-working skills inits top ve characteristics.

    If the top ve characteristics offerfew surprises to those with someknowledge of Chinese culture andsociety, casting an eye over thethoughts of Chinese managers onthe 25 characteristics of effectivemanagement is likely to raise afew eyebrows. In a country that has been aCommunist single party state since1949 you might not expect managersto give much regard to qualitiesconsidered fundamental in a market

    economy. Yet managers in China listVery customer-focussed/customercentred as the characteristic ofeffective management that Chinesemanagers were best at (see Figure2 opposite). Yet another warning forWestern business.

    Being safety conscious is notsomething that many people wouldrate uppermost in the minds ofChinese managers. The researchtells a different story, however, asensuring a safe workplace wasranked in second place bythe Chinese.

    The remainder of the top veranked characteristics of effectivemanagement may also cause somereappraisal in boardrooms across theUS and Europe.

    China is widely perceived in the Westto be a country where sweatshops,the exploitation of workers,counterfeiting of brands, and abuseof human rights are commonplace.But, while it is possible that Chinesemanagers interpret the meaning ofethical differently from managersin the West, they certainly rate ithighly as a managerial characteristic.Also, Chinese managers appear towork well with their line managers,not a characteristic that accords wellwith the notion of a culture widelysupposed to embrace hierarchicalauthoritarian systems.

    Finally, and perhaps most surprisingly,the Chinese managers count Ensuresthat any impact on the environmentis minimal as something they dowell this in a country where theenvironmental record is frequentlydescribed with adjectives liketerrible or disastrous. Maybethe survey ndings reect thatChinese managers are more in tunewith concepts of corporate social

    responsibility than many believe.

    The Chinese managers believe thatthey are less effective at managingpeople and monitoring processes,but as we will see, because they arevery willing to admit and address theirshortcomings, these weaknesses maysoon become strengths.

    4 The thirst for knowledgeDespite Chinas quick sprint towardseconomic prosperity Westernmanagers appear complacent in theface of the Chinese onslaught, and lessinterested in learning about differentor new styles of management thantheir Eastern counterparts.

    When the research turned to thesubject of managerial weaknesses,for example, there was little sign of theWest showing any concern about thestate of its own managerial acumen.

    Section two: What can welearn from Chinas managers?

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    11/27

    www.i-l-m.com09

    Figure 1: China: What the Chinese see as the top vecharacteristics of good managers

    Figure 2: China: What the Chinese identify as their top ve andbottom ve characteristics of effective management (from a list of 25)

    Figure 3: Top ve management weaknesses holding back development

    Asked about their weaknesses, themanagers in the UK, US and France,were hard pressed to nd any (seeFigure 3 below right). In each nation,over 65% of respondents repliedthat there were no managementweaknesses in the businessthat they felt could be holdingback development. It appearsa remarkable, and possiblymisplaced, condence in currentmanagerial capabilities.

    Pressed further on the matter, andasked to select a single improvementthat they thought would make thema better manager, there was noconsensus among UK, US and Frenchmanagers, with answers fairly evenlyspread across a range of choices.

    Contrast this with the responses fromthe Chinese managers. Worryinglyfor the rest of the world, Chinesemanagers are modest about howmuch they already know and havea hunger for learning. It is very likelythat they will transform from a nation

    that follows the trends of othermanagement styles to developingstyles and practices that others inturn will follow.

    Showing a far greater degree ofhumility, it seems, a signicantproportion of Chinas managers werewilling to acknowledge managementweaknesses that were holding themback. Communication and teamworkwere identied as problem areas.

    Note that it is not an overall condenceproblem in managerial abilities thatChinas managers are expressing.When asked about the abilities ofmanagers in their country, and acrossa range of characteristics, Chinesemanagers displayed the same levels ofcondence in the competence of theirown managers, as the managers in theUK, US and France did (see discussionin Section three).

    General knowledge,ability to learn and wisdom

    Takes responsibility formaking things happen

    Team-working skills

    Management skills,leadership and control

    Knows the businessand its products

    Characteristic

    0%

    10 20 30 40 50

    34.0

    34.0

    28.9

    20.6

    16.5

    Very customer-focussed/customer-centred (1)

    Characteristic

    Ensures that theworkplace is safe (2)

    Ethical, strong personalvalues, honest (3)

    Works well with thoseabove him or her (4)

    Ensures that any impact onthe environment is minimal (5)

    Recruits or selects the rightpeople for the work (21)Ensures people develop

    their knowledge, skills (22)Monitors processes

    well (23)Creative or innovative

    sees opportunities (24)Manages individuals

    well (25)

    5Ratings: 1=Not at all important, 10=Essential

    6 7 8 9

    8.31

    8.06

    7.84

    7.8

    7.75

    7.36

    7.33

    7.26

    7.14

    7.11

    None

    Teamwork

    Communication

    Weaknesses

    76.074.0

    27.866.7

    15.5

    15.5

    0%

    10 20 30 40 50 60 70 80 90 100

    UK France China USA

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    12/27

    10The Global Management Challenge

    The desire to improve managerialabilities in specic areas was againconrmed when the Chinesemanagers were asked to selecta single improvement that theythought would make them a bettermanager. A signicant proportionof Chinese managers identiedbetter management skills andcommunication abilities as areas inneed of improvement.

    And if the West was looking forsome comfort in West versus Chinacomparisons on the level of trainingmanagers receive, the research showsthat they would be disappointed. Notonly are Chinese managers bettereducated to begin with, they thenreceive more in-house training thantheir Western counterparts.

    The research paints an impressivepicture of Chinas managersas hungry for knowledge andexperience, prepared to acknowledgeweaknesses and keen to improvein those areas. Even though Chinas

    economy is already the fastest-growing in the world and China iswell on its way to becoming theleading economic power, Chinasmanagers are still searching for waysto become better managers. It is inline with the traditional emphasis onwisdom. Remember those phrases:make unremitting efforts for self-improvement and a gentle manmust constantly cultivate virtue inhimself to shoulder the world.

    In sharp contrast, managers fromthe UK, the US and France appeararrogant in their unwillingnessto acknowledge managerialweaknesses. Managers in the Westshould know better, because theyhave already been down this pathonce before. In the 1950s, in theaftermath of World War II, Japanesemanagers, with the help of WilliamEdwards Deming and Joseph Juran,began a revolution in quality control.The pioneering managementtechniques made Japan the greatestmanufacturing nation in the world,producing superior products to thosein the US and the UK.

    But, instead of learning lessons fromthe Japanese early on, admittingweaknesses and adopting theirtechniques and competing on levelground, it took an economic crisis anda dramatic slump in the fortunes of UScar manufacturers to make managersin the West take notice. While Japanseconomy may since have suffered itsown problems, the US car companies

    never regained the dominance theyhad previously enjoyed.

    Faced with a resurgent China anda new generation of powerful,ambitious, driven managers, canthe West afford to make the samemistakes all over again?

    Section two: What can welearn from Chinas managers?

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    13/27

    www.i-l-m.com11

    1 What makes a good manager?While the responses of the Chinesemanagers were some of the mosteye-catching ndings of the survey,as well as revealing how Chinasapproach to management is markedlydifferent from that of the West, theresearch also collated the responsesfrom managers across the worldto determine what attributes orcharacteristics make agood manager.

    The most interesting aspect of theresults may be the differences inapproach and values of the countriescovered in the survey. It is, however,worth mentioning the collated resultshighlighted in Figure 4 (whichlargely reect the position ofWestern managers).

    The clear winner in terms of whatmakes a good manager is theDetermination to get things done,and done right. This emphasis onaction and practice reects ILMsown philosophy on management

    development, a focus on translatingtheory, knowledge and learninginto practice. It is not what youknow, after all, but how you use thatknowledge, that makes a difference inorganisational performance.

    The results mirror earlier researchndings from a study by AQR and ILMin 2007 in which some 1600 practisingmanagers in the UK were sampled.This research underpinned the ILM72leadership prole tool and the ndingthat one of the most signicantcharacteristics of effective leaders,as seen from the perspective of thosebeing led, was the Determination todeliver. This characteristic was easilythe most signicant dimension. Asthe AQR researchers commented,Delivering what is promised is anover-riding requirement which leadsto success and the feeling of success.

    Section three: A global perspective

    Figure 4: Global perspective: the top tencharacteristics of good managers

    0%

    5 10 15 20 25 30

    Determination to getthings done, and done right

    Characteristic

    Good communication skills

    General knowledge, abilityto learn and wisdom

    Takes responsibility formaking things happen

    Has a positive and supportiverelationship with people

    Management skills,leadership and control

    Customer-focussed

    Knows the businessand its products

    Team-working skills

    Good at organising ownand others workloads

    17.7

    9.5

    26.0

    19.3

    17.1

    16.2

    15.6

    13.1

    11.3

    9.8

    At the same time the emphasis ongetting things done also reectsan approach to performance

    management that rewards action.Unfortunately a lot of action does notnecessarily translate into excellentperformance, a problem that Britishmanagers have been identied asstruggling to address.

    Also high up on the list of goodmanagerial traits are goodcommunication skills, generalknowledge, the ability to learn andwisdom, and also taking responsibilityfor making things happen.

    The high regard for generalknowledge, the ability to learn andwisdom, is something that needsto be appreciated. This is all aboutmanagers having more than just jobskills; there is an expectation that theyshould be aware of wider issues andable to put what happens at work intoa broader context.

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    14/27

    12The Global Management Challenge

    The second most highly ratedtrait (among Western managers it was not in Chinas top 5) wasgood communication skills. This isin line with the emphasis on goodrelationships at work but less so withcommunicating with customers,as customer-focus comes a lowlyseventh out of ten on the list.

    2 How do your fellowmanagers shape up?As well as asking managers whatthey thought the most importantmanagerial attributes andcharacteristics were, they were alsoasked how they thought their peersshaped up, both in their own countryand elsewhere (see Section Four).

    The managers were asked about theirgeneral impressions of managementperformance assessed against thosecharacteristics and attributes thatthey had already identied in thesurvey as being indicative ofgood management.

    In addition, the managers surveyedwere asked to judge the performanceof their peers against a set of25 characteristics of effectivemanagement, derived from a range ofbest practice indicators, which werein turn developed from sources thatincluded the National OccupationalStandards, the Council for Excellencein Management, ILM centres andemployer organisations.

    a How good are the managersin your company or country?Overall the managers who took partin the research were reasonablysatised with the standard ofmanagers in their own countries. Thedifferences between the US, UK andChina were not statistically signicant,with all three countries scoringtheir own managers at seven out often, suggesting they are OK, butcould probably do better. Notably,however, the acknowledgement bythe UK and the US that there was roomfor improvement was not matched bya willingness to acknowledge eithera weakness in any particular area ofmanagement, or a desire to improvemanagement performancethrough learning.

    Only the managers in France weremore reticent about acknowledgingthe talents of their fellow managers.The overall score for French managersby French managers was only six outof ten, one whole point lower thantheir international counterparts

    a statistically signicant difference.

    There are a number of possibleexplanations for this deviation fromthe average on the part of the French.It could be, of course, that the French just do not rate their own managers,a judgement which could be wellfounded or misplaced, althoughyou might imagine that the Frenchwould be well placed to make sucha judgement. Or the French may bemore pessimistic and cynical than themanagers in the other countries, andconsequently less sanguine about thestandard of French management. Orthey may be just harder to please.

    Either way the French may be beingtoo tough on their compatriots. In theannual Global Competitiveness Index,published by the World EconomicForum, France ranked #18 in boththe 20067 and 20078 rankings.For sophistication of business

    performance and strategy in themost recent 20078 rankings, Franceranked #12, one place behind the UK,and well ahead of China.

    An alternative explanation mightbe that French managers are moremodest than their US, UK and Chinesecounterparts, and less inclinedto trumpet the performance andqualities of French managers.

    Should the reasons for the markeddifference in results be down tothe French being more demandingor critical, this may have widerimplications. Might this more criticaland demanding stance be translatedinto other aspects of their behaviour,for example? Might French managersdemand more of the people theymanage, or be more critical of theirperformance than managers inother countries?

    Other research supports thishypothesis, suggesting that Frenchmanagers (along with those fromsome other European countries)are more likely to address the poorperformance of the people theymanage. In contrast, UK managershave been criticised for a tendency

    to place good relationships with thepeople they manage above beingcritical of substandard performance.

    In the 2007 LSE/McKinsey &Company report, ManagementPractice & Productivity: Why theymatter , the authors note: WhileUK rms are among the best intheir approaches to attracting andretaining talented people, they do notrank highly in aspects of individualperformance management such asthe establishment of effective, wellstructured targets.*

    This might suggest a need for UKmanagers, at least, to adopt amore self-critical approach, andbe prepared to address under-performance in others, somethingthat can be achieved through trainingand practice.

    Section three: A global perspective

    *Nick Bloom, Stephen Dorgan, John Dowdyand John Van Reenen Management Practice& Productivity: Why they matter LSE Centrefor Economic Performance and McKinsey &Company July, 2007

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    15/27

    www.i-l-m.com13

    b The 25 characteristics ofeffective managementWhen managers were asked to judge the performance of their peersagainst a set of 25 characteristicsof effective management (see Table3 above), the results produced aranking of the top ten characteristicsthat the managers collectively feltthey were strongest in. Theoretically

    then, this list represents the stateof management performance in theworld today in four of the worldsleading economies, as judged by themanagers themselves.

    Perhaps the most revealing aspect ofthis ranking is the disparity betweenthe things that managers are good at,and the attributes and characteristicsthat managers believe are required tobe a good manager.

    According to the managers surveyed,managers across the world excel atbeing customer-focussed (it comestop of the list of things that managersare good at), and yet, accordingto those same managers, beingcustomer-focussed was only seventhout of ten in terms of desirable traits.Conversely, communication is secondon the list of must-have attributes, yetonly seventh on the list of things thatmanagers are good at.

    Indeed, managers appear to be quitegood at performing in areas that theydo not, when asked, consider veryimportant in terms of the attributes ofa good manager. Managers are, theysay, good team players, although thisrates second from bottom in termsof what makes a good manager. Butmanagers are not, apparently, sogood at problem-solving or especially

    intellectually rigorous, or intelligent.That is a disappointing nding, whenmanagers cite general knowledge,the ability to learn and wisdom as thethird most desirable characteristic ofa good manager.

    The research ndings here givesome cause for alarm. First, giventhe disparity between the managersin China and the West in terms of whatis a valuable attribute for a manager,and the disparity in economicperformance, the West may bemisplaced in their beliefs aboutwhat makes a good manager.

    Even if managers in the West areright about what makes a goodmanager, they are falling short intheir performance on those verycharacteristics and attributes. Thissuggests there is a fundamental needfor education and training to close theperformance gap, although getting

    managers in the West to acknowledgethis gap may prove challenging.

    Table 3: Global perspective: the top ten areasof management performance amongst peersMean of combined Chinese, French, UK and US managers ratingswhere 1=Not at all important, 10=EssentialCharacteristic Mean

    ratingVery customer-focussed/customer-centred 7.89Takes decisions 7.72Ensures that the workplace is safe 7.66Good team player 7.66Ethical, strong personal values, honest 7.6Tough-minded, mentally strong 7.58Good communicator 7.56Works well with those above him or her 7.47Good problem-solving skills 7.38Intellectually rigorous, intelligent 7.38

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    16/27

    14The Global Management Challenge

    Drill down to the individual countrylevel, however, and some interestingdifferences emerge (besides thosealready highlighted with respect toChina, in Section two).

    At an individual level there are threeareas where the research revealssome important insights which attributes or characteristics

    make each countrys top veattributes list, and which do not;

    which ve characteristicsmanagers think they performbest or worst at; and

    how managers see themselves,and other managers.

    1 What makes a good manager?As discussed in Section two, Chinesemanagers have signicantly differentideas about what constitutes a goodmanager from managers in the UK,US and France. But there also somedifferences among the UK, US andFrance (see Figures 58 opposite).

    Managers in the UK place almostequal signicance on their top vemanagement attributes, and sharefour of those with the US (see Figures6 and 8). There appears to be anemphasis on relationships, withcommunication skills, customerfocus, and positive and supportiverelationships with people all guringhighly. Knowledge appears lessimportant, as both business andproduct knowledge, and generalknowledge, the ability to learn andwisdom, failed to make it into the UKs

    top ve (they barely featured on theFrench or American lists either).

    French managers placed signicantemphasis on having the determinationto get things done, and done right,with 43% of French managersselecting this attribute (see Figure 7).The remaining four attributes werefairly evenly weighted, although theFrench also valued management skills,leadership and control, unlike theUK and US.

    Managers in the US also showed fairlyequal weighting for their preferences,which reected those of the UK,although positive and supportiverelationships were sacriced forproduct knowledge (see Figure 8).

    Section four: At a country level

    The global ndings provide some interesting insightsinto what managers in four major economies believe arethe dening characteristics of good managers, as well asindicating the progress towards achieving that ideal.

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    17/27

    www.i-l-m.com15

    Figure 5: China top ve characteristics of good managers

    Figure 6: UK top ve characteristics of good managers

    Figure 7: France top ve characteristics of good managers

    Figure 8: US top ve characteristics of good managers

    General knowledge,

    ability to learn and wisdomTakes responsibility formaking things happen

    Team-working skills

    Management skills,leadership and control

    Knows the businessand its products

    Characteristic

    0%

    10 20 30 40 50

    34.0

    34.0

    28.9

    20.6

    16.5

    Goodcommunication skillsDetermination to get

    things done, and done rightCustomer-focussed

    Has a positive and supportiverelationship with peopleGood at organising own

    and others workloads

    Characteristic

    0%

    10 20 30 40 50

    25.0

    23.0

    19.0

    19.0

    15.0

    Determination to get thingsdone, and done right

    Has a positive and supportiverelationship with people

    Management skills,leadership and control

    Good communication skills

    General knowledge, ability

    to learn and wisdom

    Characteristic

    0%

    10 20 30 40 50

    43.0

    19.0

    19.0

    17.0

    17.0

    Good communication skills

    Good at organising ownand others workloads

    Determination to getthings done, and done right

    Customer-focussed

    Knows the businessand its products

    Characteristic

    0%

    10 20 30 40 50

    23.3

    20.0

    16.7

    16.7

    16.7

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    18/27

    16The Global Management Challenge

    2 Managerial performance:national strengths andweaknessesBy asking managers to judgethe performance of their peersagainst a set of 25 characteristics ofeffective management, it was possibleto determine the top ve strengthsand weaknesses of each country,according to that countrys managers(see Figures 911 opposite). (Notethat managers were not explicitlybeing asked to identify theirweaknesses here.)

    a The UK manager: goodat relationshipsOn the plus side, UK managers aredecisive, fair-minded, relationshipand safety conscious individuals. Afocus on customers is encouraging ina world moving increasingly towardthe fullment of customers wantsand needs, and even the need tocollaborate with customers to co-create and improve products andservices. Having managers whoare strong team players also

    emphasises the UKs strengthin relationship building.

    Ironically, the strengths of UKmanagers also contribute to theirgreatest weaknesses. They placeconsiderable importance on theirrelationships with others, yet ndmanaging those relationships achallenge. Performance managementof individuals usually involveshighlighting and rewarding goodperformance, but also identifyingand dealing with poor performance.

    Three of the bottom vecharacteristics that UK managersidentify are involved with managingrelationships, and, in particular:helping with peoples problems;dealing fairly but rmly with poorperformance; and managingindividuals well. These aspects arehighly inter-connected. If individualsare to be managed well, then theyneed support when they are havingproblems and to be dealt with rmlyif they are under-performing.The weakness of UK managers inusing leading edge productionor operations, suggests that UKorganisations will struggleto compete internationally. Wehave already witnessed the large-scale movement of manufacturingfrom the UK to China and otherdeveloping countries this is likelyto continue if managers cannottake advantage of new productionand operational systems to gaincompetitive advantage.

    With the UK government campaigning

    for greater environmentalresponsibility on the part of itscitizens, UK managers would alsodo well to reect that a companysapproach to corporate and socialresponsibility, including considerationfor the environment, is likely to have agreater impact on its competitivenessand protability in the future.

    b French managers: customer-focussed decision-makersFrench managers see their strengthsas similar to those of UK managers,also identifying customer focus,being a team player, and decisionmaking ability, as positives.Communication and toughmindedness are the remainingtwo areas where French managersbelieve that they perform well.

    As we have seen already, the Frenchmanagers have a marked tendencyto score themselves and others onthe low side. This may tie in withthe perception of French managersas tough minded, with a greaterwillingness to be realistic aboutthe strengths and weaknesses ofmanagers. Although when the Frenchmanagers were asked to list a singleimprovement that would make thembetter managers they proved lessresponsive than the UK managers.

    In terms of top ve weaknesses theFrench managers reported identicalattributes to managers in the UK,demonstrating the difcultiesinherent in managing people and inparticular their poor performance, askill which can denitely be improvedthrough training.

    Worryingly, French managers seethemselves as worst at ensuringminimal impact on the environment.As with the UK, this may reect a lackof knowledge or education about the

    subject, a lack of concern or both.

    c US managers: entrepreneurialteam playersMany of the strengths andweaknesses identied by USmanagers among their peers willnot cause much surprise.

    American managers are oftenassociated with a more controlling,authoritative style of management,and this is reected both in theirdecision-making strengths andtheir weaknesses in delegatingand assigning tasks and motivatingpeople and teams.

    Also, as a nation proud of itsentrepreneurial traditions, it is nosurprise that US managers seethemselves as good at spottingopportunities, and as creative,innovative, problem solvers.

    Section four: At a country level

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    19/27

    www.i-l-m.com17

    What is a surprise is that ensuring asafe workplace comes at the very topof the list of things that US managersconsider themselves good at. Possiblythis can be explained by the litigioussociety that US businesses operatein, but it is doubtful that excellingin this area is likely to improve thecompetitiveness of US business withrespect to India or China.

    Looking at the US, UK and Francetogether, one striking commonweakness, not shared with China,is the lack of knowledge of, or use

    of, leading edge production oroperations. The knowledge and use ofbest practice is essential for managersin the West if they are to drive Westernbased business forward to competewith those businesses in China, Indiaand other nations that are currentlymaking rapid economic progress.

    This suggests that a strongerconnection is required with themanagement educators andacademics that disseminate cuttingedge management thinking.

    Figure 11: Top and bottom ve attributesof US managers

    Very customer-focussed/customer centred (1)

    Characteristic

    Takes decisions (2)

    Good team player(3)

    Ensures that theworkplace is safe (4)

    Ethical, strong personalvalues, honest (5)Supports people,

    helps with problems (21)Manages individuals well (22)

    Deals fairly but firmly withpoor performance (23)

    Knows/uses leading edgeproduction or operations (24)

    Ensures that any impact on theenvironment is minimal (25)

    5Ratings: 1=Not at all important,10=Essential

    6 7 8 9

    6.67

    8.09

    8.08

    8.05

    7.98

    7.98

    7.3

    7.29

    7.14

    6.77

    Very customer-focussed/customer centred (1)

    Characteristic

    Takes decisions (2)

    Tough-minded,mentally strong (3)

    Good team player (4)

    Good communicator (5)

    Supports people, helps withproblems (21)

    Knows/uses leading edgeproduction or operations (22)

    Motivates people and teams,recognises and rewards (23)

    Deals fairly but firmly withpoor performance (24)

    Ensures that any impact on theenvironment is minimal (25)

    5Ratings: 1=Not at all important,10=Essential

    6 7 8 9

    7.35

    7.27

    7.23

    7.14

    7.09

    6.54

    6.5

    6.41

    6.39

    5.86

    Ensures that theworkplace is safe (1)

    Characteristic

    Takes decisions (2)

    Good team player (3)

    Creative or innovative sees opportunities (4)Good problem-solving

    skills (5)Plans work well (21)

    Delegates well encourages

    people to take responsibility(22)Motivates people and teams,recognises and rewards (23)Recruits or selects the right

    people for the work (24)Knows/uses leading edge

    production or operations (25)

    5Ratings: 1=Not at all important,10=Essential

    6 7 8 9

    8.24

    8.21

    8.10

    8.00

    7.97

    7.33

    7.31

    7.20

    7.20

    6.91

    Figure 9: Top and bottom ve attributesof UK managers

    Figure 10: Top and bottom ve attributesof French managers

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    20/27

    18The Global Management Challenge

    3 How managers see themselves,and other managers.Finally, managers rated managersin their own countries and othercountries on six attributes, withdiverging results, as we have seenin Section two in the case of China.

    Whereas everyone else seemedto have an opinion about Chinasmanagers, the Chinese managerswere not so keen on expressing theirviews about the managers of theother countries. In fact, fewer than10% were willing to comment. Thismay be because they are too polite,or because they do not feel theyknow enough to volunteer an opinion.

    Managers in the US, UK and Francewere forthcoming with their opinionsabout their peers in other countries,particularly the French, wherebetween 80 and 90% were willingto volunteer their thoughts.

    So, how well do the managers in theUK, US and France understand eachother? It is an important questionas it may be indicative of how wellinternational managers are able towork together, and equally of howinsightful they are about the strengthsand weaknesses of others in terms ofcompeting or collaborating withother managers.

    Stereotypes can also encouragecomplacency, mistrust, and evendislike when dealing with othermanagers, whether withinthe same organisation or elsewhere,and so needlessly obstructbusiness performance.

    a The UK manager: good atgetting the job done, but notvery caring?Managers in the US and France havea good understanding of their UKcounterparts, correctly identifyingthe top three attributes as scoredby the UK managers (see Table 4).There was an interesting difference

    of opinion over innovation, however,with France, China, and the US notrating UK managers innovativequalities as highly as the UK managersdid. For a nation that has identied itscompetitive advantage as its capacityfor innovation, this is a worryingnding, if it is reection on theinnovative capacity of UK business.

    b The French manager: caring,but not very innovative?While the French may not seethemselves as authoritarian andpaternalistic, the managers from theUK, US and China do (see Table 5).Whether this benevolent paternalismis viewed as a positive or negativeattribute it is difcult to tell. The UKand US managers do agree on theFrench managers self assessment ofbeing not very strong on innovation(although the Chinese rate them asvery innovative).

    c The US manager: likethe UK manager?Although managers in France, China,and the UK accurately predicted theUS managers desire to get thingsdone, if not the strength of theimportance of this attribute, theyappear to have a poor understandingof the other attributes that USmanagers believe that they aregood at (see Table 6).

    Section four: At a country level

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    21/27

    www.i-l-m.com19

    Table 4: How the rest of the world sees UK managers Vshow UK managers see themselvesCharacteristic UK Mean 1 Very concerned with following procedures or rules 3.24 2.86 (2)Very focussed on getting the job done successfully, on time and on budget 3.15 2.94 (1)Very good at motivating people to work hard and perform effectively 3.06 2.86 (2)Very innovative, keen to encourage people to try new ways of working 2.95 2.59 (5)Very authoritarian in the way that they manage people 2.94 2.71 (4)Very paternalistic towards the people they manage 2.84 2.45 (6)1Mean ratings of Chinese, French and US managers

    Table 5: How the rest of the world sees French managers Vshow they see themselvesCharacteristic France Mean 2

    Very focussed on getting the job done successfully, on time and on budget 2.93 3.07 (2)Very concerned with following procedures or rules 2.78 2.90 (4)Very good at motivating people to work hard and perform effectively 2.73 2.83 (5)Very authoritarian in the way that they manage people 2.69 2.97 (3)Very innovative, keen to encourage people to try new ways of working 2.47 2.79 (6)Very paternalistic towards the people they manage 2.47 3.10 (1)2Mean ratings of Chinese, UK and US managers

    Table 6: How the rest of the world sees US managers Vshow they see themselvesCharacteristic USA Mean 3

    Very focussed on getting the job done successfully, on time and on budget 3.45 3.06 (1)Very concerned with following procedures or rules 3.44 2.80 (4)Very good at motivating people to work hard and perform effectively 3.18 3.02 (2)

    Very authoritarian in the way that they manage people 3.17 2.75 (5)Very innovative, keen to encourage people to try new ways of working 2.93 3.01 (3)Very paternalistic towards the people they manage 2.82 2.63 (6)3Mean ratings of Chinese, UK and French managersRatings: 4=Very typical, 3=Quite typical, 2=Not very typical, 1=Not at all typicalNumbers in brackets (1) indicate the ranking of that attribute by that country

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    22/27

    20The Global Management Challenge

    Section ve: Conclusion

    The research reveals a number of important ndings that will informthe global management debate andcould guide the focus of research andinvestment in management development.

    In particular, it highlights some of thechallenges that Western managers facein understanding their increasingly successful counterparts in China, whosit squarely at the heart of Chinaseconomic revolution.

    The messages we receive in the media aboutbusiness in China often portray China as anauthoritarian, sweat shop economy, fond of bending rules, such as those on intellectualproperty rights, and with scant regardfor the environment or concepts such ascorporate social responsibility.

    The research paints a different and farmore sophisticated picture of Chinesemanagers. Chinas managers seethemselves as having a high regard forrules, customer-focussed, and concernedabout safety and their impact on theenvironment. They are ethical, principled,and value team working. Above all they value wisdom and knowledge, and while willing to acknowledge weaknesses, arealso determined to correct them.

    In short, Chinas managers are aformidable cadre of executives who aredriving Chinas economy forward, butare deeply misunderstood by managersin the West.

    To compete with your competitors, rst you have to know your competitors. Soone important lesson from this researchis that managers in the West need to pay more attention to how and where Chinasmanagers excel, and seek to improve theirown performance in those areas.

    The research also reveals importantinsights about the qualities that managersregard as important in a good manager,the qualities that managers in differentcountries actually possess, and themismatch between the two.

    The archetypal ideal manager revealedby the research is, above all, determinedto get things done; in addition the perfectmanager has good communication skills, good general knowledge, wisdom andthe ability to learn, takes responsibility,and enjoys good relationships with othersLess important are business knowledge,customer-focus, or team-working skills.

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    23/27

    www.i-l-m.com21

    Unfortunately, by their own admission,few managers live up to this ideal. Whatmanagers are good at is teamwork andbeing customer-focussed. What managersare not particularly good at are the moredifcult aspects of managing people,such as motivation and managing poorperformance, or keeping up with cuttingedge thinking and practice, which is a poorreection of their general knowledge andability to learn.

    This mismatch between ideal and reality is something that managers across the globe must work on. However, they mustalso regularly re-evaluate and profoundly question the relative importance of thosecharacteristics and attributes that they associate with good management, bothin light of changes in the world of work,

    and with regard to how other successfulnations manage, and adapt accordingly.

    It is notable, for example, that China, with its emphasis on wisdom, knowledgeand learning, has the one group of managers that are condent about theirknowledge of, and use of, leading edgeproduction and operations.

    This leads neatly to a third insight, namely that there are warning signs that Westernmanagers may be growing complacentin both critical self appraisal of theircompetencies, and their approach tomanagement education.

    The business world is in a state of constantmotion. Management practices changeand improve, as do the best managers.Those businesses and managers that areunable or unwilling to change and progressfall by the wayside.

    Success breeds complacency, and thereare signs in the research that decades of economic success and prosperity havemade managers in the West complacent.

    Reection and self-awareness are essentialingredients for managers who want to get better at what they do. Worryingly,over 65% of the managers questionedin the UK, US and France, were unableto identify management weaknessesin the business that they felt could beholding back development. The Chinese,

    managers, however, were clear about theareas in which they needed to improve.

    Add to this the fact that some 60% of Chinese managers surveyed had a degree,compared to no more than 40% in the US(36.7%), UK (21%) or France (25%), andaround 70% of Chinese managers get in-house training programmes, compared toless than 55% in the US (53.3%), UK (45%)and France (21%), and the scale of thechallenge becomes apparent.

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    24/27

    22The Global Management Challenge

    The global balance of economic power isshifting. Chinese managers are setting themanagement agenda for both China andthe rest of the world, and managers in theUK, US and France would do well topay attention.

    For UK managers, it is essential thatthey acknowledge their own weaknessesand improve upon them, as well asunderstanding the strengths and weaknesses of managers fromother countries.

    Perhaps the most importantmessage to draw from this research ishow highly Chinese managers value general knowledge, the ability to learn,and wisdom, or as the Chinese managersmight say: make unremitting efforts for

    self-improvement.

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    25/27

    www.i-l-m.com23

    A two-stage sampling method wasused, the rst stage being a clustersample drawn from four major citiesin each country (see Table 7), withthe goal of drawing approximately25% of the country sample from eachcity. The nal split was driven by theresponse rate in each area.

    A purposive sample of respondentswas then identied usingpurchased lists of operationalmanagers working in privatesector organisations; managers inpublic sector organisations werespecically excluded from the sample.

    Operational managers were denedas rst line managers or above, butbelow board or senior executivelevel, with general managerialor supervisory responsibility (asopposed to having specic functionalresponsibilities in areas like HRor training).

    Because there was no intention ofanalysing sub-sets of the nationalsample, no formal quotas were set forother characteristics, but the samplewas drawn to try to ensure that theemploying organisations were mainlydomestically owned, contained a mixof large and small organisations, andof organisations operating primarilyin domestic markets and those witha more international focus (see Table8). Data on the industrial sector inwhich the organisations operatedwere collected but only to ensurethat the respondent tted the sampleframe. In practice, the Chinese sample

    contained the largest proportion offoreign-owned and domestically-focussed organisations, and alsocontained more larger organisationsthan in the other three countries.

    The interviews took approximately 20minutes to complete; all respondentswere told that the research was beingundertaken on behalf of ILM andthat the results would be availablepublicly on the ILM website, butthat no information about individualrespondents or their organisationswould be made available to ILM.

    Methodology

    The survey was undertaken on ILMs behalf by MSSResearch during May 2008, using telephone interviewsconducted by native language speakers in each of thefour countries. French and Chinese responses were thentranslated into English for analysis.

    Table 7: Country cluster sampleChina France UK USACity Sample City Sample City Sample City SampleBeijing 19 Lyon 20 London 23 Boston 6Nanchang 44 Marseille 26 Edinburgh 27 Miami 7Shanghai 17 Nantes 28 Cardiff 26 New York 12Hong Kong 17 Toulouse 26 Belfast 24 Philadelphia 5Total 97 Total 100 Total 100 Total 30

    Table 8: Respondents employer prole Domestically Under 25 Only operatesowned employees domestically

    China 73% 34% 90%France 100% 88% 77%UK 95% 89% 66%USA 97% 63% 77%

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    26/27

    24The Global Management Challenge

    About ILM

    The Institute of Leadership & Management (ILM) isEuropes leading management organisation. We partner with individuals and organisations to help them fulltheir potential and achieve success.

    With our broad range of industry-leading qualications,membership services and learning resources, ILMprovides exible development solutions that canbe blended to meet the specic needs of employersand learners. We are also undertaking a signicantprogramme of original research to contribute to ourunderstanding of global leadership and managementpractice and to ensure that our products are benchmarkedagainst best practice standards and easily tailored tothe economic social and cultural context of individualorganisations and their operating environment.

    All ILM programmes are built on in-depth researchand carefully conceived to meet the skills requirementsof the industries and professions in which they are used.

    ILMs membership packages are tailored to delivercost effective career-long support and development tomanagers at all levels.

    We operate internationally, improving leadership andmanagement skills, knowledge and outputs across allsectors, from corporate nance to the armed forces.

  • 8/2/2019 ILM Global Management Challenge China vs World 010708

    27/27

    For more informationcontact Matt Adcock,Communications ManagerT +44 (0)20 7294 3054E [email protected]

    Institute of Leadership& Management1 Giltspur StreetLondon EC1A 9DD