Leading Edge – November Edition: Benchmarking Australian Business Capability


Preliminary results from the Institute of Managers and Leaders’ report on management capability shows that business capability in Australia is continuing its downward spiral.

A snapshot from the 2017 Australian Management Capability Index (AMCI), set to be released at the end of November, revealed that Australian businesses feel they only operate at an overall management capability score of 67.0 (out of 100).  The five-year decline seemed to have stopped with the overall AMCI score rising from 67.7 in 2015 to 68.7 in 2016, however, the 2017 score continues with the negative trend.

The AMCI provides Australian business leaders with the opportunity to assess their management capability across a range of areas to benchmark performance against like organisations.

Australian managers and leaders assessed their organisations as being most capable in:

  • Integrity and Corporate Governance (82.7)
  • Financial Management (73.7)
  • External Relationships (73.0)

They assessed their organisations as being least capable in:

  • Innovation – Products & Services (64.3)
  • People Leadership (63.0)
  • Organisational Capability (61.8)



The results of the AMCI underpin the Institute’s Corporate HealthCheck, turning the raw data into a powerful management needs analysis tool for organisations.  This tool, accessible to IML Corporate Members, ensures organisations can measure themselves against 10 key management competencies and benchmark their results against the Australian average.

CEO’s at odds with middle managers

The 2017 AMCI also shows CEO’s still don’t agree with frontline and middle managers.  Leaders at the top level hold their organisation’s management capability in higher regard (73.5) than those in the middle (59.6).  This can be due to many reasons, including senior leaders having a more optimistic view of their organisation or middle managers being more aware of the impact that decisions have on the business and staff.  By gathering opinions at all levels, the Corporate HealthCheck is a powerful way for organisations to benchmark their leaders and managers’ opinions (and it is free for IML Corporate Members).

Visionary and Strategic Leadership (64.7) and People Leadership (63.0) are both on the low end of the spectrum, signalling a worrying trend about leadership in Australia and the need for an improvement in leadership competencies.

The Institute’s recharged focus on setting the standard for management and leadership in Australia includes the Chartered Manager designation, the new IML 360° feedback tool, and new development programs, all of which are designed to enhance the necessary skills and capabilities in Australian managers.

About the AMCI

The Australian Management Capability Index (AMCI) provides a benchmark against which we can assess and track against a series of key categories of management capability at a company, industry or national level. The AMCI compares results by ownership type, industry, employee numbers, annual $ turnover, managerial level and gender.  The report tabulates and averages survey responses and uses prescribed weightings to generate a score out of 100.  The 2017 Australian Management Capability Index (AMCI) report will be released at the end of November.



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