The study findings produced a higher overall Management Capability Development Index (MCDI) score this year at 74.5 compared to 71.6 in 2018.
The survey showed that women are more confident of capacity of their organisation than men as women rated management capability of their enterprises higher than men on the majority of the 10 yardsticks, including vision and strategic leadership, performance leadership, financial leadership, external relationships, integrity and corporate governance, and innovation and adaptability. However, women score their organisations lower than men in the areas such as people leadership, organisation, and application of technology and knowledge.
The study shows a lack of substantial score upgrades in the areas of application of technology and knowledge as well as innovation and adaptability. The score on application of technology and knowledge has gone up slightly, from 72.1 in 2018 to 74 now, despite the wave of digitalization during the past couple of years. The score on innovation and adaptability has also improved a little – from 70.3 to 71.6.
The decadal trends of self-rating by Indian management showed a strong bias towards ethics. Over the past five MCDI studies, India Inc has consistently given itself the highest scores on integrity and governance – in high 70s or low 80s. This year, the score on integrity and governance has peaked at 80.4.
The areas of biggest concern through the past decade have been the organisation capability and people practices, but there is a recovery on both counts this year. On organisation capability, since 2011’s peak score of 76.2, there have been dips but now the score has recovered to 71.5. The people leadership score has also recovered this year to 73.2 after dips through the past decade.
The decadal variations have been minor on many management parameters. The scores have hovered around mid-70s on competencies such as vision and strategic leadership, performance leadership, financial leadership, and external relationships.
“The MCDI report provides important insights to Indian management leaders to bolster their organisations as they prepare for realigning their organisations in a changed world,” AIMA President CK Ranganathan said in a press note.
“It takes immense management capability to navigate through uncertainty and ambiguity,” Ranganathan said.
The 2022 MCDI study was conducted across different sectors and different types and sizes of organisations to make it representative of Indian management.