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Why should Britain close the gap on management skills?

According to the whitepaper released as part of the government’s Industrial Strategy in November, poor management skills could account for a quarter of the productivity gap between US and UK companies. American companies produce a fifth more than UK companies do with the same effort, something that is logically attributed to poor business management. Apart from the natural competitiveness with our cousins across the pond there are also many other good reasons for Britain to close the gap on management skills.

More productivity means more profit

It’s not difficult to understand how a fifth more productivity would be a very positive increase for UK businesses. Particularly if it requires no extra effort other than to close the gap on management skills. To put a figure on how much this lack of management might be costing the UK economy, if the gap were to be closed over night tonight and UK companies caught up with US companies then – without any extra work at all – British companies would be an instant £300 billion richer. That’s an impressive figure for any economy.

It can be done

The example often given of an economy that completely turned itself around with the benefit of management skills is Japan. After the Second World War Japan was just one tenth as productive as America. Within years it had made huge strides with a specific programme of improvement in management skills that was designed to spread across the entire economy, from small businesses to large. Japan even subsidised management consultancies to help disseminate better business practices and set up a state inspection agency to help bring standards up.

Britain will likely fall behind if the gap is not closed

Japan is just one example of how a very conscious and specific initiative to improve management skills in all businesses has had a tangible impact on overall productivity. Singapore is another Asian economy that used a similar tactic in the 1980s when it realised that the foreign companies based there weren’t passing on their management capabilities to the smaller, local firms. So, Singapore introduced a campaign to change management mindsets and brought in consultants to upgrade knowledge and experience. South Korea has introduced similar measures, as has Finland and many other countries that have suffered from a similar management skills gap. It’s not something that can be successfully ignored and the prediction is that Britain’s productivity could fall further behind if it continues to be a problem.

There is an awareness in Britain that poor business management is causing problems for our overall economy. In the report The Innovation Paradox, the management quality of British businesses was compared to the worst 10% of firms in China. So, we are already falling well behind. The industry is trying to help itself – for example Be the Business, an initiative to spread best practice. However, most experts agree that when it comes to closing the management skills gap it’s going to require more than just private sector initiatives. As in Japan, South Korea, Singapore and Finland, the government is going to have to get (more) involved.

If you’re looking for management training, get in touch with PTP today on 01509889632.

In-House Training with PTP

PTP stands for Practical Training for Professionals and our aim is to make our training as practical as possible so delegates can return to the workplace with skills they can implement immediately. PTP now delivers training to over 40% of the FTSE 100.

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What is 1-to-1 training?

1-to-1 training can be based on any of the 100 plus courses that PTP provides, it includes an initial telephone conference of up to 1 hour, a 1/2 day (3.5 hours) on-site one to one training session at your premises with one of PTP's expert trainers and then a further telephone conference call of up to an hour within 2 weeks of the on-site visit.

You have the option of a line manager being involved in both telephone conferences, the second telephone conference which can be for feedback and action planning is generally scheduled during the on-site visit.

Who does 1-to-1 training suit?

Individuals taking on a new challenge or responsibilities. Professionals who want a trusted "sounding board" and thinking partner. Executives or managers who want to enhance their leadership effectiveness to achieve organizational and career success. Executives and professionals wanting to compete successfully but still retain balance in their life. Individuals who want to understand their blind spots so that they don't stand in their own way on their path to success. Executives and Professionals who want to improve their interpersonal skills so as to be more effective with bosses, peers, subordinates, or people in general. How much does 1-to-1 training cost?

A 1-to-1 training session costs from as little as £400 + VAT and will include an initial telephone conference of up to 1 hour, a 1/2 day (3.5 hours) on-site training at your premises and then a further telephone conference call of up to an hour within 2 weeks of the on-site visit.

What is U-Choose?

Choose from any of the 150 plus courses that PTP provides, and choose from 1 of our 50 plus UK wide training venues. You must book for 2 or more delegates and at least 4 weeks in advance, but that’s it, the course you want where you want it. The reason we ask for a minimum of 4 weeks notice is to enable us to market the course you have scheduled to other companies and organisations. However, if we fail to sell any additional places we guarantee to run the course just for you.

How much does U-Choose Training cost?

U-choose costs the same as our normal open courses i.e. the normal delegate rate. This includes lunch and refreshments throughout the day, framed certification and comprehensive training notes. A U-Choose booking can only be confirmed once we receive payment which can be made via credit/debit card, BACS or cheque. Payment is due at least 4 weeks before the date you request. Please note to be eligible for U-Choose you must book a minimum of 2 delegates on the same course & date.