An analysis, conducted by the Centre for Business Performance at Cranfield School of Management, and published in March, has found a clear link between good management and improved business performance – in spite of the challenging economic context and the wider impact of the recession on business success.
The study, which combined case studies, a survey of over 400 employers and an analysis of financial performance information from Companies House, found that working with Investors in People (IiP) increases profitability by enhancing managerial skills, knowledge and experience, improving the effectiveness of management development practices and increasing the performance of managers. It also inspires a high-performance management culture and an effective learning environment, both of which help to improve business performance.
Mike Bourne, Professor of Business Performance at Cranfield School of Management conducted the research and concluded that IiP has a positive impact on management performance at all levels, from senior executives through to middle managers, and supports the development of a learning culture within organisations.
Jane Jones, Acting Chief Executive of Investors in People UK, said: “This is compelling research.”
Comment: At first sight, the Cranfield study appears to state the obvious – that good management helps businesses to improve their performance. And – thinking of Ms Jones’ comment – to coin a cliché, she would say that wouldn’t she?
But, seriously though, we need academics to do just this: carry out research that confirms conventional wisdom and even states the obvious. The rest of us would think this too banal to study – and so we might overlook a key truth that is no less the truth for being screamingly obvious.