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Management training can deliver 200%+ return on investment - IMI

Dealer groups are being warned not to disregard management training if employers are to reach their maximum potential.

The warning comes from the Institute of the Motor Industry (IMI) on the back of a two year return on investment (ROI) study completed by the IMI this month, which has found significant benefits for automotive retail businesses which invest in structured learning and development for management staff.

Management personnel are currently the least trained group of people in the sector, with only 9% holding a management-related qualification.

The IMI’s study measured the application of management training as a means of bridging competency gaps in an aftersales dealer network management development programme, and the achievement of IMI accreditation in automotive management (AMA).

It found up to 118% and 212% ROI respectively from the management training.

Plus an analysis of a manager’s customer service index (CSI) data, before and after an AMA management development, showed a link between their team’s performance, increased CSI score and a reduced monthly variance in the CSI score.

And research into the benefits of junior, middle and senior managers committing to an automotive management degree found a substantial increase in confidence and ability to do their job in terms of their knowledge, skills and conceptual and analytical abilities.

IMI chief executive Steve Nash said: “The IMI’s ROI study clearly demonstrates that management training in all areas will bear fruit for a company’s bottom line.

"In this sector we are often guilty of promoting people on technical ability rather than focusing on the skills that become critically important when they become leaders.

"In fact shockingly, we find that managers are the least trained group of people in the automotive sector; a fact that has clear implications for the efficiency and profitability of a business.

This study shows that management training may be one of the most important areas businesses should focus on; with the biggest possible gains achievable in terms of ensuring a business is competitive and profitable in a challenging market environment.”

A full summary and video case studies from the management and leadership ROI study are at www.theimi.org.uk/roi.

Summary of return on investment findings into management and leadership:

* Up to 118% and 212% ROI respectively from the management training interventions (each £1 invested returned between £1 and £2, allowing for full training costs)

* A statistical analysis of a manager’s CSI (Customer Service Index) data, before and after his AMA management development, showed a link between his team’s performance, increased CSI score and a reduced monthly variance in the CSI score

* Line manager confirmation of exceptional personal growth in the managers

* Positive and sustained behaviour change in the managers and their teams

The study also found benefits of junior, middle and senior managers and their companies committing to a management degree. The study found:

* Substantial increase in confidence and ability to do their job in terms of their technical knowledge, skills and conceptual and analytical abilities

* The belief that job opportunities had increased

* six out of eight had secured at least one of their previous roles with the degree

* 11 of the 13 are now senior managers, the remaining with clear progression

* Sustained impact required a strong focus on career development, both during and after their studies, when the real benefits of a mature manager are realised

* There is an increasing need for executive and senior management to recognise that aspiring managers, having come through this type of programme, are crucial to challenging and shaping the future of their automotive business.

> Training, recruitment and staff retention are themes that will be explored at the AM/IMI People Conference on June 12.

 

More information at www.ampeopleconference.co.uk



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