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Management Capability Index

In 2003 NZIM introduced the NZIM Management Capability Index (MCI).The Management Capability Index is based on eight major drivers of management capability that deliver profitable business growth or the equivalent in non-companies. Actual results and comparative performance are used to create an index of management capability.The weightage of the nine categories in the final index is as follows:

1. VISIONARY & STRATEGIC LEADERSHIP 15%
2. PERFORMANCE LEADERSHIP 10%
3. PEOPLE LEADERSHIP 10%
4. FINANCIAL MANAGEMENT 10%
5. ORGANISATION CAPABILITY 05%
6. TECHNOLOGY & KNOWLEDGE 05%
7. EXTERNAL RELATIONSHIPS 05%
8. INNOVATION - PRODUCTS & SERVICES 10%
9. RESULTS & COMPARATIVE PERFORMANCE 30%

The primary value of the Management Capability Index for any organisation is firstly in identifying where improvements can be made and then in comparing against other organisations in their own country and internationally. Improving management capability and through that the performance of the organisation, will result in the organisation ultimately achieving its potential. The first step is for Chief Executives/Managing Directors to benchmark their own organisation against these results and then to identify opportunities for improvement

Indian MCI Survey 2005

The overall AIMA Management Capability Index-2005 is 76.37. This suggests Indian management is performing at 76% of its potential capability. While this is satisfactory, there clearly is an opportunity for improvement. This being the first time AIMA has measured management capability, there are no trends to consider. AIMA's very strong strategic focus on lifting management performance is paying off. The results of this first AIMA Management Capability Index will assist individual organisations benchmark themselves against other Indian organisations. The Management Capability Index is being adopted by a number of countries throughout the world so international comparisons and benchmarking will also be possible in the near future.

Comparison between Indian and New Zealand MCI 2005

In 2005 the first international comparison of the MCI was made. In all categories except Financial Management India was higher than New Zealand . The overall 2005 index for India was 76.37, that is 6.10 better than New Zealand at 70.27.

India had no categories below 70, and was significantly higher than New Zealand in:

  • Innovation - Products and Services (+8.74)
  • Performance Leadership (+8.5)
  • Results and Comparative Performance (+7.5)
  • Visionary and Strategic Leadership (+7.22)
  • Organisational Capability (+6.34)
  • Application of Technology and Knowledge (+4.5)
  • People Leadership (+4.34)
  • External relationships (+3.4)

India was below New Zealand in Financial Management (-1.28).

Clearly India 's very strong strategic focus on lifting management performance has paid off

MCI 2007 has been launched where NMOs are expected to participate. Questionnaire has been made more relevant and contemporary.

For details on MCI 2007 please contact Head-Operational Office-AAMO

Zubinsha Melvin,
Malaysian Institute of Management (MIM)

Unit T1-L11, Level 11, Tower 1, Jaya 33,
No. 3 Jalan Semangat, Seksyen 13,
46200, Petaling Jaya, Selangor, Malaysia
Tel:+603 7711 2813
Fax:+603 7711 2999
Email:zubin@mim.org.my