A better managed Malta

Our economy is under pressure as never before. The global economic turmoil has led to a situation where our organisations are facing new challenges and tasks and are staffed with people skilled to achieve old ones.

Pressures from taxpayers and from politicians determined to steer the economy away from collapse, are forcing national budget cuts across various public organisations. The private sector faces increasingly active and vocal consumers, insisting that lower costs are accompanied by higher quality products and services.

Behind these pressures is a growing realisation that the response to the new challenges facing Malta is the need for a management and leadership revolution. There is a fundamental need for better recognition of what managers do and how they shape our economy and the future.

Sustaining foreign direct operational investments; fostering innovation through Maltese industry to promote economic growth; cutting our carbon footprint; delivering world class public services - all will be impossible without the highest standards of management and leadership.

We have some great leaders and managers in Malta, but there is still under-performance. Many managers of public and private organisations still do not hold a professional qualification. It is a situation that would be unthinkable in most other professions. In an increasingly competitive world, we urgently need to cut this skills deficit. The burden of action falls equally on the government, employers and individual managers.

Basic-level skills development is no longer good enough. Managers and leaders are vital to job and wealth creation, economic and organisational competitiveness, and employee engagement. It is vital that developing higher-level management and leadership skills becomes a priority. The tax credit schemes announced in the Budget for individuals and employers investing in accredited training are commendable.

Empowering employers, employees and individuals by giving them financial control over the funding of their training and skills development will ensure money is directed where it is most needed and has the greatest impact. It will also help ensure the training provision is demand-led, rather than distorted by supply-side interventions. Longer term, tax credits will be revenue neutral as improvements in management skills lead to positive returns in the economy.

To achieve the Budget's aim to revitalise the economy, we need to raise ambition and draw on a wider talent pool. Young people need the opportunity to develop management and leadership skills and awarness while in secondary education.

The Malta Institute of Management calls for the government's backing for plans to establish a Youth Academy for Management and Leadership that will bring together seasoned managers and leaders to share their experiences with young people.

The academy will act as the forum to preserve and hand over knowledge gained in past generations. Aspiring managers and leaders will have access to professional role models.

We also need better measurement of the extent of management skills and their impact. MIM is spearheading the development of the National Occupational Standards for Management and Leadership and next year will pursue this project in collaboration with the social partners. Its success will largely depend on the government's support.

The government, as the country's largest employer, must also lead by example in nurturing management and leadership skills. As is evident from the Budget, the public sector faces major challenges: delivering reform to improve services in the context of tightening finances (yet growing) EU funding opportunities, and managing in a changing world of public-private partnerships and collaborative networks.

Highly competent and accountable public sector managers are needed to overcome these challenges, and more government initiative is required to support their professional development. MIM believes that the government has a responsibility to highlight public organisations which have achieved success through improving and developing their managers and leaders.

Employers need to take responsibility for ensuring that their managers and leaders have the skills, knowledge and tools to perform to the best of their abilities. Restoring management's reputation also implies that employers must support managers in promoting concepts like environmental sustainability, social responsibility, equal opportunities, diversity, and transparency.

Employers should participate in the development of the National Occupational Standards for Management and Leadership and recognise them as a framework for continuous professional development.

Managers must demonstrate their commitment to professionalism in their work. MIM will be compiling a Code of Professional Conduct and Practice which MIM members will be expected to embody.

Managers and leaders must be brave enough to refute corruption, unethical deals and undue pressures that may compromise the livelihood and employment rights of people within their responsibility.

If the Budget for 2010 is to accomplish its expectations in the national interest, the MIM calls on the government, employers and managers to demonstrate their commitment to management excellence and surpass the mentality of amateur management styles and cheap political stunts. Rather, efforts must be focused on sustainable results through a better managed Malta.

Mr Agius Muscat is the new chief executive officer of the Malta Institute of Management.

aagiusmuscat@maltamanagement.com