malaysian management capability index

8/11/2019 Malaysian Management Capability Index

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Under the auspices of :Survey jointly conducted and reported by :

Asian Association of

Management OrganisationsMalaysian Institute of Management

Malaysia

Productivity Corporation

MCI Model by NZIM:

Malaysian Institute of Management (MIM) &

Malaysia Productivity Corporation (MPC)

MCI Research Team

October 2010

MALAYSIAN

MANAGEMENTCAPABILITYINDEX

MIM-MPC-AAMO Management Capability Index (MCI) 2010 Survey

2010


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Malaysian Management Capability Index 2010

Copyright 2010 Malaysian Institute of Management2

1. Message from President of Malaysian Institute of Management 3

2. Message from Chairman of Malaysia Productivity Corporation 4

3. Joint Message from CEO of MIM and Director General of MPC 5

4. Executive Summary 6

5. Transforming Management Capability For Organisation Excellence & 7

Sustainable Business Growth

6. How Malaysian Management Fared 11

Approach to the Malaysian MCI Index 2010 Research Study

Malaysian MCI Index 2010

Interpretation of the Malaysian MCI Index 2010

Comparison of the Malaysian MCI Index in 2008 and 2010

Respondents by Type of Organisations, Industry Sectors and

Services Sub-Sectors

7. Transforming Malaysias Management Performance 20

Findings on Malaysian MCI 2010 Index Research Study

Recommendations for Improvement for Malaysian Organisations

Overall Summary on the Malaysian MCI 2010 Index Research Study

8. Benchmarking Malaysian Organisations 22

9. Countries MCI Index New Zealand, Canada and Malaysia 24

10. Way Forward 25

11. Appendices

A. Overall Results of Malaysian MCI Index 2010 27

B. MIM-MPC-AAMO Malaysian MCI Index Questionnaire 2010 28

C. Management Competencies, Competence & Capability 35

D. MIM Holistic Integrated Management Model 36

E. MCI Categories & Recommended Training & Development Programmes 37

Contents

The MIM MCI Research Team:

Dr Nazily Noor, Chief Executive Officer, MIM

Lai Wai Lin, Manager, Business Research & Development, MIM

Nur Amaleena Hafiza Muhammad Zain, Assistant Manager, Business Research & Development, MIM

The MPC MCI Research Team:

Mohd Razali Hussain, Director General, MPC

Ab Rahim Yusoff, Senior Director, Service Research Division, MPC

Sharifah Normah Syed Omar, Senior Manager, Service Research Division, MPC

Nor Fazila Hashim, Senior Consultant, Service Research Division, MPC

Raja Ainul Bismi, Consultant, Service Research Division, MPC

The NZIM MCI Research Team:

Kevin Gaunt, CEO NZIM Northern Region

Doug Matheson, former NZIM National Chairman, Author of MCI & President of AAMO 2002-2004

Ken-Fink Jensen, Partner, Research New Zealand


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Copyright 2010 Malaysian Institute of Management 3


The Malaysian Institute of Management (MIM) andMalaysia Productivity Corporation (MPC) would like to

thank all the Malaysian MCI 2010 survey participants

for their support.

Entering its third year of research undertaken by MIM

with the first MCI survey in 2006 and the second in

2008, the research has again been conducted with

the continued support of the Asian Association of

Management Organisations (AAMO) and MPC.

The MCI was initiated with the objective for member

organisations within the AAMO set-up to ascertain their

own management capability index which can be used

for inter-organisation and regional comparison and

benchmarking for improvement.

These findings will allow Malaysian organisations to

assess their current management capability whilst at

the same time put them on the pulse of our neighbouringcountries progress and learn from their best practices

in improving business capability.

As the professional national management organisation

that has been providing Malaysian managers and

industries with more than 40 years of excellence in

management development and practice, MIM has taken

on this research study with a view to seeing Malaysia

produces world-class management leaders capableand committed to uplifting our countrys management

capability to greater heights of excellence.

Besides the support of AAMO and MPC, MIM also workedtogether with the New Zealand Institute of Management

(NZIM) where the MCI study was developed and

undertaken for the past seven years (2003-2009).

With MCIs third year research study, the index has been

strengthened and now we are able to see the trend of

performance in the ten major drivers of management

capability for organisation and industry while this year,

we are recognising organisations for their continued

participation for three years in a row.

MIM and MPC extend our heartiest thanks to those

organisations that have taken part in this research

survey and hope that with more support forthcoming

from sponsors and participating organisations, this

study can be continued on an alternate year basis to

gather data to identify trends and areas for continuous

improvement.

We hope that many more organisations will comeforward to participate and contribute to this study thus

enabling our efforts to continuously monitor the progress

of Malaysian organisations in terms of improvements

in management capability and performance results

enabling us to move towards our 1Malaysia and

Wawasan 2020.

1. Message from President of Malaysian Institute of Management

TUN MOHAMMED HANIF BIN OMAR


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Malaysia Productivity Corporation (MPC) has undertaken

the Malaysian Management Capability Index (MCI) study

together with the Malaysian Institute of Management

(MIM) since 2008. This 2010 report marked the second

synergistic collaboration between both public and

private sectors to consolidate their efforts in identifying

and promoting best practices in management capability

performance.

Companies that participated in this study benefit by

assessing and benchmarking themselves with theindex of management capability comprising ten drivers

or thrust that deliver profitable business growth.

As the ndings highlighted in this report provide a

comprehensive analysis by types of organisation and

industry sectors, this would put them in good stead to

take on the challenges of the dynamic global marketplace

and in strengthening management capabilities towards

a culture of excellence, enhanced competitiveness and

achieving world-class performance.

I would like to extend my appreciation to all the

CEOs, Managing Directors and General Managers

of participating companies for their commitment

in making this study a success. It is hoped that the

findings of the study will be useful in providing the

organisations a benchmark of their performance vis--

vis the national average. Any gaps in performance could

be addressed through various improvement initiatives

including benchmarking against the best, human capital

development programmes and knowledge sharing

initiatives.

We look forward to your continued support and active

engagement with MPC and MIM towards achieving

our Governments aspiration to transform the nation

into a high income economy through higher value

added activities, innovation and creativity. Together

we endeavour to facilitate business transformation

to greater heights through enhanced management

capability competencies for the desired outcomes ofsustainable business growth and competitiveness.

2. Message from Chairman of Malaysia Productivity Corporation

TAN SRI AZMAN HASHIM


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MIM and MPC would like to express our gratitude and

appreciation to all respondents of this years study. The

study is an excellent platform for gathering benchmarks

and best practices on management capability among

participating companies with further support from

organisations to undertake this survey on a regular

basis. We are condent that through time, these ndings

can be useful for Malaysian organisations to benchmark

themselves against the national management capability

index as well as with the regional countries indices.

The findings from this years study demonstrate

that Malaysian organisations perceive themselves

to be good in Integrity & Corporate Governance and

Financial Management as they identify integrity and

ethical business as good for long term business and

profitability and practice sound and effective financial

management.

The findings also indicate that Malaysian organisationsobserve themselves as being inept in Innovation in

Products and Services and Organisation Capability.

These urge the management to continuously create and

encourage innovation and continuous improvement as

part of the organisations culture.

Further collaboration of MIM and MPC will give the

right drive for this research to move to a higher level to

provide a credible and encompassing coverage. MIM and

MPC hope to continue this collaboration to continuously

deliver through the research study, a comprehensive

management capability index which will in turn provide

organisations with the recommendations and initiatives

that they can undertake to advance themselves from

mediocre to good and to great companies.

MIM and MPC trust that the Malaysian organisationsare now able to observe a trend in their management

capabilities performance. Greater efforts to provide

organisations with recommendations and initiatives to

better themselves in management capabilities will be

beneficial for them to become greater companies.

DR NAZILY NOOR

Chief Executive Officer

Malaysian Institute of Management

3. Joint Message From CEO of MIM and Director General of MPC

MOHD RAZALI HUSSAIN

Director General

Malaysia Productivity Corporation


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4. Executive Summary

Management Capability has been an important indicator

of performance in management at it indicates beyond the

individuals skill level to reect the impact of these skills at

organisational level.

Capability measures the application of management to

the total organisation and to the resulting organisational

performance that is achieved. Excellent in management

capability performance leads to sustainable performance

and business growth.

This years Malaysian Management Capability Index (MCI)

research study has established a better ground on the

performances of Malaysian organisations in terms of

management capability and we are pleased to recognise

companies which have participated three years in a row.

The Malaysian MCI 2010 Index has improved to 72.0

as compared to 67.7 of the potential 100 capability in

Malaysian MCI 2008 Index in all management capability

categories. The Malaysian MCI 2010 index shows that the

organisations observe themselves as good in Integrity &

Corporate Governance and Financial Management

and average in Innovation in Products and Services

andOrganisation Capability.

The Malaysian MCI 2010 index is generated by tabulating

and averaging the responses where prescribed weightings

were applied to each of the numbers and the weightings

reect the relevant importance of each area. Each number

is tabulated to produce an index out of 100.

The report consists of four parts. The first features

the approach of the research study, the MalaysianMCI 2010 Index and its interpretation, comparison of

the Malaysian MCI Index between 2008 and 2010,

and organisational, sectoral and services sub-

sectors analyses of Malaysian MCI 2010 Index. The

second part consists of findings of the Malaysian MCI

2010 Index, recommendations for improvements

and overall summary of the report. The third part

indicated the organisations MCI Index benchmarked

against the Malaysian MCI 2010 Index. The final partcovers countries MCI Index which indicates New

Zealand and Canada MCI Indices against Malaysias

MCI Index.

In a global environment characterised by business

sustainability and growth, the Malaysian MCI 2010

Index highlights that further improvement can be

made to achieve 80 (on a base of 100) of potential

management capability.


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5. Transforming Management Capability For Organisation Excellence andSustainable Business Growth

Definition of Management Capability

Management capability stems from an individuals

competences and it embraces sound processes, practices

and structure. This, in turn, results in the improvement in

management capability of an organisation, which directly

inuences the countrys capability for long term economic

and growth performance.

It is important to understand that management capability

is much more than management competencies. While

competencies are general descriptions of the abilities

necessary to perform successfully in a particular job or

position, capability is the degree to which management

uses its skills, abilities and competencies to achieve

results. In examining capability, we are moving up a level

beyond competencies.

Management capability is demonstrated in business

/ organisational performance, and is the result of

management leadership and competence in the key

management practices that lead to sustainable business

performance and business growth.

Of course, there are other factors beyond management

that also inuence business / organisational performance

i.e. government policy, ination, labour market, etc.

Management capability is the ability to deliver performance

by applying your competencies in the environment you face,

with the resources you have and addressing the challenges

encountered in achieving organisation excellence.

Highly capable managers respond to changing

environments and are adaptable in applying their

competencies in practice in different and challenging

environments and producing superior results. They have

inspiring visions and clear strategic goals, and are capable

of growing the organisation by continually improving the

performance of the organisation.

The important aspect of capability is how effectivelymanagement applies and practises its competencies to deal

with external and internal inuences to achieve the highest

levels of business and organisational performance.

All competencies are important. But without the ability

to apply them to actually have the organisation, the

people and the processes in the organisation deliver

performance in order to make things happen towards

some purpose, vision, strategic goals and shorter

term performance goals these competencies would

not be of much value to the organisation one leads

and manages, or to the individual in growing himself

or herself. Capability is how CEO performance, or any

management performance, is evaluated or assessed.

When the environment gets real tough, the highly

capable managers win through and deliver in spite of it.

The best managers are those capable of applying their

competencies in different and challenging environments

to produce superior results. We all have skills, abilities,

personal attributes and competencies. But can we

apply them to deliver superior business performance in

the organisation we lead?

In practice, some of us are very good at applying our

skills, abilities and personal attributes, and through

management leadership, deliver superior business

performance. Others with essentially the same set of

skills, abilities and personal attributes may not. We

are dealing with the practice and the application of

management leadership not the theory.

So, capability is the ability to deliver performance byapplying your competencies in the environment, with

the resources you have, managing the challenges you

face to achieve desired outcome.

The measurement of management capability must

therefore link the application of management

competencies and abilities to the results achieved by

the business or organisation.


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8. Innovation Products & Services

Encourages continuous innovation in products and

services in creating new value for the organisation.

9. Integrity & Corporate Governance

Consistently adheres to ethical principles having set

specic rules and procedures for making decisions

on organisations affairs. Has an established standard

of ethical behaviour for directors and stakeholders

based on trustworthiness and values that are

accepted or upheld. Adheres to legislation, regulations

and guidelines in administering the business of the

organisation.

10. Results & Comparative Performance

Measures and monitors business performance

and goals as the key performance indicators and

scorecard of the organisation. Recognises that

performance results are the most important measures

of management capability.

Category Weightage

1. Visionary & Strategic Leadership 15%

2. Performance Leadership 10%

3. People Leadership 10%

4. Financial Management 10%

5. Organisation Capability 5%

6. Application of Technology & Knowledge 5%

7. External Relationships 5%

8. Innovation Products & Services 10%

9. Integrity & Corporate Governance 5%

10. Results & Comparative Performance 25%

Total 100%

Malaysian MCI 2010 Weightage

Malaysian organisations assess their current

position in respect to the ten major drivers of

management capability that deliver profitable

business growth and which can be used to create

an index of management capability.

The ten major drivers and the corresponding

weightage on these ten categories are as follows:


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Scoring Statements

The scoring statements for the first nine major drivers of management capability are scored as follows:

The scoring statements for the tenth major driver of management capability are scored as follows:

Legend Score Current position of the organisation

1 100 Fully practised throughout the organisation. Continually refined and improved as the way things are done round here.

2 80 Being practised consistently across the organisation with further improvements being made.

3 60 Being practised across most of the organisation with further improvements being made.

4 40 Being practised but only in parts of the organisation with further improvements being made.

5 20 This has just started.

6 0 This is not in place.


1 100 Excellent performance in most areas. Strong evidence of industry leadership in many areas.

2 80 Good to excellent performance in most areas. Most trends compared against benchmarks show areas of leadership andvery good performance.

3 60 Good performance in many areas. Many trends compared against benchmarks show areas of good performance.

4 40 Improving trends in many areas. Some trends compared against benchmarks show areas of strength.

5 20 Early stages of developing trends, many results not reported.

6 0 No results, poor results.

how effectively management applies and practises its competencies to deal with external andinternal threats and opportunities, to develop and motivate employees to innovate and achieve the

highest levels of performance that is management capability. Doug Matheson


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6. How Malaysian Management Fared

6.1 Approach to the Malaysian MCI 2010 ResearchStudy

The Malaysian MCI 2010 Index survey was conducted

from January June 2010. Questionnaires (Appendix

B) were mailed out to 4000 companies. A total of 240

responses (6%) from CEOs, Managing Directors and

General Managers of companies in Malaysia were

received of which 222 were analysed.

The responses for each of the ten areas were tabulatedand averaged. The prescribed weightings were applied

to each of these numbers and the weightings reect the

relevant importance of each area. Each of the numbers

from the ten areas was then tabulated to produce an

index out of 100 (where 100 would be a perfect score).

6.2 Malaysian MCI 2010 Index

The Malaysian MCI 2010 Index is registered at 72.0 of

100 capability as compared to 67.7 of 100 capability in

2008. Table 6.2.1 shows the ranking of Malaysian MCI

2010 Index from the highest to the lowest management

capability as indicated by Malaysian organisations.

Figure 6.2.1: Malaysian MCI 2010 Index Compass


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Based on the overall response, the ranking of the ten categories are as follows:

Table 6.2.1: Ranking of Malaysian MCI 2010 Index

Figure 6.2.2: Ranking of Malaysian MCI 2010 and Malaysian MCI 2010 Index

Rank Category Scores

1. Integrity & Corporate Governance 80.0

2. Financial Management 75.1

3. Performance Leadership 73.1

4. Visionary & Strategic Leadership 72.4

5. Application of Technology & Knowledge 71.8

6. External Relationships 71.0

7. Results & Comparative Performance 70.5

8 People Leadership 70.5

9. Innovation Products & Services 70.0

10. Organisation Capability 69.1

Malaysian MCI 2010 Index 72.0


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6.3 Interpretation of Malaysian MCI 2010 Index

The Malaysian MCI 2010 Index at 72.0 suggests

that Malaysian management is performing at 72 ofits potential 100 capability which shows that the

criteria statements are practised across most of

the organisations with further improvements being

made.

Table 6.3.1 shows the overall response where

Malaysian organsations scored the highest in

Integrity & Corporate Governance followed

by Financial Management, Performance

Leadership, Visionary & Strategic Leadership,

Application of Technology & Knowledge,

External Relationships, People Leadership

and Results Comparative Performance with

scores over 70. This suggests that the management

The primary value of the Management Capability Index for any organisation is in identifying where management

performance improvements can be made, and through that the performance of the organisation, with the aim of

the organisation ultimately achieving its potential.

The rst step is for CEOs / Managing Directors / General Managers to benchmark their own organisation against

the Malaysian MCI 2010 Index and then to identify opportunities and development initiatives for improvement in

each individual category.

is consistently practising good processes, practices and

structures with further improvements being made.

Organisation Capability is the area below 70 whichcan best be described as a level of mediocrity.

Top management is not achieving the potential of the

organisation it leads. There are needs for greater focus

on lifting management performance by boards and chief

executives for management capability to be practised

consistently across the organisations. This also implies that

further improvements can be made by demonstrating strong

commitment to continuous learning for individuals and

organisations.

The most heavily weighted category in Malaysian MCI, the

Results and Comparative Performance, has improved

to 70.5 which suggests good measuring and monitoring of

business performance by Malaysian organisations.

Table 6.3.1: Management Capability Individual Category Results

Malaysian organisations assess their capability to be highest (i.e. Above 75 of potential) in:

Next range of results of categories (i.e. Between 70-75 of potential) include:

The final range of results of categories (i.e. Below 70 of potential) in:

Integrity & Corporate Governance 80.0

Financial Management 75.1

Organisation Capability 69.1

Performance Leadership 73.1

Visionary & Strategic Leadership 72.4

Application of Technology & Knowledge 71.8

External Relationships 71.0

Results & Comparative Performance 70.5

People Leadership 70.5

Innovation Products & Services 70.0


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6.4 Comparison of 2008-2010 Malaysian MCI

This section highlights the comparison between 2010 and 2008 results, variance for each of the ten categoriesand the index ranking.

Figure 6.4.1 indicates that Malaysian MCI 2010 Index surpasses that of 2008 in all categories. This suggests an

improvement of management capabilities for Malaysian organisations in many areas. However, organisations are

yet to achieve organisation excellence as they should aim to achieve 80 of 100 capability where excellence business

practices are consistently applied throughout the organisations.

Figure 6.4.1: Comparison of 2010 and 2008 Malaysian MCI Index


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Categories 2008 Malaysian MCI 2010 Malaysian MCI Variance

Visionary & Strategic Leadership 69.3 72.4 +3.1

Performance Leadership 70.0 73.1 +3.1

People Leadership 66.2 70.5 +4.3

Financial Management 71.7 75.1 +3.4

Organisation Capability 65.6 69.1 +3.5

Application of Technology & Knowledge 67.8 71.8 +4.0

External Relationships 67.1 71.0 +3.9

Innovation Products & Services 64.9 70.0 +5.1

Integrity & Corporate Governance 75.2 80.0 +4.8

Results & Comparative Performance 65.0 70.5 +5.5

Malaysian MCI 67.7 72.0 +4.3

Table 6.4.1: Variance of 2010-2008 Malaysian MCI Index

Table 6.4.2: Ranking of Malaysian MCI Index Categories in 2010 and 2008

Table 6.4.1 shows positive variances and improvement in all categories. Results & Comparative Performance(5.5) shows the largest variance, followed by Innovation in Products & Services (5.1), and Integrity &Corporate Governance (4.8) while Visionary & Strategic Leadershipand Performance Leadershipshowthe smallest variance (3.1).

The improvements in Results & Comparative Performancesuggest that organisations regarded performanceresults as the most important measures in management whereas improvements on Innovation in Products& Services imply that organisations recognise innovation as an important aspect of business and processes.

Improvements on Integrity & Corporate Governancesuggest that the organisations promote an establishedstandard of ethical behavior for the management and employees.

Table 6.4.2 shows that the ranking remains unchanged for the rst 7 categories. There are improvements in rankingfor Results & Comparative Performanceand Innovation in Products & Servicesfrom 9th in 2008 to 8th in

2010 and from 10th in 2008 to 9th in 2010 respectively.

There is a slip in ranking forOrganisation Capabilityfrom 8th in 2008 to 10th in 2010. This suggests that in orderto achieve organisational goals and objectives, it is important for management to have sound understanding andeffective application of best management practices.

Categories Ranking Ranking (2010 Malaysian MCI) (2008 Malaysian MCI)

Integrity & Corporate Governance 1 1

Financial Management 2 2

Performance Leadership 3 3

Visionary & Strategic Leadership 4 4Application of Technology & Knowledge 5 5

External Relationships 6 6

People Leadership 7 7

Organisation Capability 10 8

Results & Comparative Performance 8 9

Innovation Products & Services 9 10


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Figure 6.5.1: Respondents by Type of Organisations

Table 6.5.1: Malaysian MCI 2010 According to Type of Organisations

Categories MalaysianMCI 2010

MultinationalCorporations

(MNCs)

Local LargeCorporations

(LLCs)

Small &Medium

Enterprises(SMEs)

Visionary & Strategic Leadership 72.4 80.0 74.7 69.2 77.1

Performance Leadership 73.1 80.5 76.5 69.4 74.3

People Leadership 70.5 72.4 74.4 68.3 74.3

Financial Management 75.1 83.2 78.2 71.4 77.1

Organisation Capability 69.1 74.1 70.5 67.0 77.1

Application of Technology & Knowledge 71.8 77.8 72.3 69.8 74.3

External Relationships 71.0 74.6 76.8 67.3 77.1

Innovation Products & Services 70.0 75.7 67.0 69.7 74.3

Integrity & Corporate Governance 80.0 87.6 86.0 75.2 88.6

Results & Comparative Performance 70.5 74.6 74.7 67.5 77.1

MCI 72.0 77.5 74.8 69.1 76.7

GovernmentLinked

Companies(GLCs)

6.5 Respondents by Type of Organisation, Industry Sectors and Services Sub-Sectors

6.5.1 By Type of Organisation

The Malaysian MCI 2010 research study respondents are shown in Figure 6.5.1 which indicates that majority ofthe respondents are from the Small & Medium Enterprises (SMEs) (57.7%) followed by the Local Large Companies

(LLCs) (25.7%), Multinationals Corporations (MNCs) (16.7%) and Government Linked Companies (GLC) (3.2%).

Table 6.5.1 indicates that MCI for the Multinational Corporations (MNCs), Government Linked Companies (GLCs)and Local Large Companies (LLCs) are comparatively higher than the 72.0 index. However, the Small and Medium

Enterprises (SMEs) fared lower at 69.1.


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The MNCs and GLCss performance which are above

75 suggests that they are moving towards 90 0f 100

capability where best business practices are applied

fully across the organisations.

LLCs score at 74.8 implies that best management

practices are applied consistently across the

organisations with further improvements being made.

The SME needs to make further improvements in all tendrivers of Management Capability in order to be at par

with the Malaysian MCI Index.

Multinational Corporations (MNCs)

The MNCs are performing at 77.5 of potential 100

capability which suggests that the criteria are being

practised across most of the organisations with further

improvements being made.

The MNCs group surpasses the Malaysian MCI in

all categories, indicating strongest performance in

Financial Management(variance +8.1), Visionary

& Strategic Leadership (variance +7.6) and

Integrity & Corporate Governance(variance +7.6).

Government Linked Companies (GLCs)

The Government Linked Companies surpasses the

Malaysian MCI in all categories of comparison. TheGovernment Linked Companies group indicated

strongest performance in Integrity & Corporate

Governance(variance +8.6),Financial Management

(variance +8.1), andVisionary & Strategic Leadership

(variance +7.6).

Local Large Corporations (LLCs)

The LLCs group surpasses the Malaysian MCI in all

categories, except for Innovation Products and

Services(variance 3.0). The LLCs indicated strongest

performance in Integrity & Corporate Governance(variance +6.0), External Relationship (variance +5.8)

and Results & Comparative Performance (variance

+4.2).

Small and Medium Enterprises (SMEs)

The SMEs group recorded lower overall assessment

in all the categories, with the widest disparities in

the Integrity & Corporate Governance (variance

4.8), Financial Management (variance -3.7),Performance Leadership (variance 3.7) and

External Relationship(variance -3.7).

The general perception is that all organisations are

performing well inIntegrity & Corporate Governance

with scoring above 75. However, Innovation Products

& Services was scored lowest at 67.0 by LLCs and

Organisation Capability was scored lowest at 67.0

by SMEs.


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6.5.2 By Industry Sectors

Figure 6.5.2 indicates that the largest number of respondents by sector is from Services (49%), followed by

Manufacturing (35%), Others (10%), Construction (5%) and Agriculture (3%).

The MCI for each of the industry sectors are as follows:

Figure 6.5.2: Respondents by Industry Sector

The Agriculture and Services sectors surpassed the Malaysian MCI at 76.3 and 73.3 respectively while Manufacturing,

Others and Construction fared below the Malaysian MCI 2010 Index of 72.0.

Industry

Categories

V

isionary&StrategicLeadership

P

erformanceLeadership

P

eopleLeadership

F

inancialManagement

O

rganisationCapability

A

pplicationofTechnology&

K

nowledge

E

xternalRelationships

InnovationProducts

&

Services

Integrity&Corporate

G

overnance

R

esults&Comparative

P

erformance

M

CI

Agriculture 74.3 77.1 74.3 80.0 77.1 74.3 74.3 71.4 85.7 77.1 76.3

Construction 60.0 70.8 64.6 70.8 67.7 66.2 70.8 60.0 78.5 67.7 66.7

Manufacturing 71.5 72.8 67.4 75.9 66.2 69.7 66.2 70.0 76.9 69.7 70.7

Services 74.5 73.8 73.8 75.2 70.8 73.6 73.9 71.4 82.4 70.8 73.3

Others 72.0 69.3 66.7 72.0 69.3 73.3 73.3 68.0 77.3 72.0 71.1


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6.5.3 By Services Sub-Sectors

Further analysis of 117 organisations from 10 services sub-sectors were carried out. Figure 6.5.3 shows the

participating services sub-sectors in the Malaysian MCI 2010 research study. Majority of the respondents are from

Business and Professional Services (26%), followed by Tourism (14%), Finance (12%), Education and Trade (11%),Healthcare (10%), ICT and Transportation (5%) and Telecommunication and Utility (3%).

Figure 6.5.3: Services Sub-Sectors Representation

Visionary&StrategicLe

adership

PerformanceLeadership

PeopleLeadership

FinancialManagement

OrganisationCapability

ApplicationofTechnolog

y&

Knowledge

ExternalRelationships

InnovationProducts&

Services

Integrity&Corporate

Governance

Results&Comparative

Performance

MCI

Categories

Industry

Transport 76.7 73.3 80.0 86.7 70.0 76.7 76.7 73.3 86.7 73.3 76.7

Telecommunication 85.0 80.0 75.0 80.0 70.0 75.0 50.0 75.0 90.0 80.0 78.0

Trade 70.8 72.3 75.4 75.4 66.2 72.3 72.3 67.7 76.9 70.8 71.8

Finance 73.8 73.3 70.8 72.3 73.8 66.2 78.5 67.7 86.2 75.4 73.5

Business &

Professional Services72.1 70.0 75.0 73.6 70.0 71.4 72.1 67.9 81.4 65.7 70.6

Tourism 71.3 73.8 72.5 73.8 68.8 72.5 73.8 72.5 80.0 70.0 72.2

Healthcare 78.2 76.4 69.1 76.4 71.0 74.5 72.7 70.9 83.6 72.7 74.3

Education 71.1 73.3 68.9 68.9 75.6 77.8 80.0 80.0 80.0 68.9 72.7

ICT 93.3 93.3 90.0 83.3 86.7 93.3 83.3 90.0 86.7 80.0 87.2

Utility 73.3 66.7 60.0 80.0 53.3 73.3 73.3 60.0 86.7 66.7 68.7

The MCI for each of the service sector as follows:

Among the services sub-sectors, ICT scored the highest at 87.2 while Utility registered the lowest at 68.7. The service

sub-sectors which fared below the Malaysian MCI of 72.0 were Trade, Business & Professional Services and Utility.


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7. Transforming Malaysias Management Performance

7.1 Findings

From the Malaysian MCI 2010 results, it is evident

that Innovation in Products and Services and

Organisation Capability are the two areas for

improvements by Malaysia organisations to ensure

they remain competitive and sustainable locally and

globally.


The criteria for innovation of products and services are:

Creates the climate for and encourages continuous

innovation in products and services.

Innovation is recognised by everyone as important for

all aspects of the business and for all its processes -

innovation is part of the culture. Innovation leads the

business to new dimensions of performance.

Innovation creates new value for the business, its

customers and its shareholders.

2. Organisation Capability

The criteria for organisation capability are:

Builds organisation capability, a culture of innovation

and research, and an organisation dedicated to

continuous improvement.

Brings about and maintains a boundary-less

organisation, is condent and effective in leading

and managing a non-hierarchical structure.

Effectively balances strong effective teams with free

individuals.

Sound understanding and effective application of

best management practices to achieve organisational

goals and objectives.

Demonstrates strong commitment to continuous

learning for both individuals and the organisation.

7.2 Recommendations for Improvement

The following are some programme recommendations

for improvement in the two areas identified:


Instill a culture that encourages innovation in the

organisation.

Introduce internal programmes that reward employees

for their creativity and innovation in the workplace.

Practise constant brainstorming sessions to innovate

existing products and services.

Always ask What if?, Why?, Is there a better way

of doing it? and How can it be done better?

Conduct formalised innovation training

Establish systematic innovation and change

management programme in the organisation

2. Organisation Capability

Introduce organisation and research training

programmes to instill a culture of innovative

development, organisational and change management

in the organisation.

Introduce programmes on team building and

organisation structuring and dynamics.

Inculcate continuous learning, training, development

and identification of applications of best management

practices.

Attend management conferences or seminars to

keep up with the latest trends in management both in

Malaysia and overseas.

Learn and practise diversity management.

Adopt the MIM Holistic Integrated Management Model

for organisation and management development.

Adopt MPC Business Excellence Framework towards

achieving superior business performance and

competitiveness.


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7.3 Overall Summary

Malaysian MCI 2010 Index

Based on the Malaysian MCI 2010 Index ndings, it can

be summarised that overall Malaysian organisations

have fared well and moving towards achieving

organisation excellence at 80 of 100 capability.

The increase in the MCI from 67.7 (in 2008) to 72.0

(in 2010) and the overall higher assessment in all

categories for 2010 indicate an improvement in

Malaysian organisations management capability.

There is significant improvement by Malaysianorganisations to move towards more than 75 to achieve

good to great levels in management capability

performance. In the immediate term, Malaysian

organisations would need to strengthen their innovation

and creativity and organisational capability.

Refer to Appendix E for a comprehensive list of training

and development programmes offered by MIM and

Business Excellence Framework by MPC to assist in

developing and improving on the ten categories of the

MCI.

Organisation Index

The MNCs are performing at 77.5 of capability which

suggests that they are on the way to achieving the

potential 100 capability. GLCs and LLCs have shown

improvement by hitting the 76.7 and 74.8 of capability

respectively. Although SMEs has improved by 4.6 points,

the index is still below 70.

Sectoral Index

In the sectoral MCI ndings, the industry that fared

below 70 of capability is Construction at 66.7 which

will need to focus on improving their management

capability particularly in Innovation in Products and

Services, Visionary & Strategic Leadership and

People Leadershipareas.

The other sectors which registered above 70 of capability

are Agriculture, Manufacturing, Services and Others. These

sectors should continue to make further improvements in

their management capability and strive towards achievingthe potential 100 of capability in their respective industry

sectors. The results augur well for these sectors which

are contributing strongly to Malaysias economy.

Services Sub-Sector Index

In the services sub-sector MCI ndings, the sector that

fared below 70 of capability is Utility which will need

to focus on improving their management capability in

Organisation Capability, Innovation in Products and

Services and People Leadershipareas.

The other services sub-sectors which registered above

70 of capability should continue with their improvement

measures in management capability and strive to achieve

100 management capability in their respective industry

sectors. The results are evidence of their contributions

towards Malaysian economic growth.

Based on the organisation, sectoral and services sub-

sectors indices, the areas for improvement for all are

consistent with the categories indentified in the MalaysianMCI 2010 Index which are Innovation in Products &

Servicesand Organisation Capability.


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8. Benchmarking Malaysian Organisations

8.1 Comparison of Organisations Results with the Malaysian MCI

The following illustrates how an organisations results can be compared to the Malaysian MCI 2010 Index and to

identify the gaps in each of the ten individual categories. This sample result is taken from one of the 222 responses.

Company As performance is as follows:

Category Malaysian MCI Company Variance

2010 Index A Scores

1. Visionary & Strategic Leadership 72.4 80.0 +7.60

2. Performance Leadership 73.1 72.0 -1.103. People Leadership 70.5 68.0 -2.50

4. Financial Management 75.1 92.0 +16.90

5. Organisation Capability 69.1 64.0 -5.10

6. Application of Technology & Knowledge 71.8 64.0 -7.80

7. External Relationships 71.0 72.0 +1.00

8. Innovation Products & Services 70.0 52.0 -18.00

9. Integrity & Corporate Governance 80.0 100.0 +20.00

10. Results & Comparative Performance 70.5 60.0 -10.50

MCI 72.0 70.4 -1.60


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8.2 Company As Performance

The Management Capability Index for Company A is

70.4. This suggests that Company A is performing at

70.4 of its potential 100 capability. Company As MCI

of 70.4 is lower than the Malaysian MCI 2010 Index of

72.0.

Company A registered highest score in Integrity

& Corporate Governance followed by Financial

Management and Visionary & Strategic

Leadershipand weakest in Innovation Products

& Services.

In its strongest areas, company A should continue its

efforts to set the industry standards in these areas.

Company A should now focus on its weakest area

Innovation Products & Services which has

the widest gap of (-18.0) followed by Results &

Comparative Performance(-10.5) andApplication

of Technology & Knowledge(-7.8).

Company A should address these weak areas by

examining each relevant criteria and implementvarious improvement initiatives to improve organisation

performance. The way forward for company A is to

benchmark themselves against the best performing

company in their excellence practices through forming

of the Community of Practice (CoP) in Management

Capability.

A comprehensive list of training and development

programmes offered by MIM and Business ExcellenceFramework by MPC to assist in developing and improving

the ten categories of MCI are outlined in Appendix E.

A further comparison of Company As type of organisation

and industry sector with the respective type of organisation

MCI and corresponding industry group MCI will give an

indication of Company As performance within its own

organisation type and industry sector as well.

For organisations that have participated in the 2010 MCI

Research Study, individual reports of your organisationsMCI and interpretation of findings can be done upon

request. Please contact MIM Customer Service at (603)

2172 5555 or email [email protected] for further

details.


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9. MCI Results New Zealand, Canada and Malaysia

MCI Results International Comparison

The following table shows a comparison of the MCI results of New Zealand, Canada and Malaysia.

Categories New Zealand MCI Canada MCI Malaysia MCI

Visionary & StrategicLeadership

70.7 71.0 72.4

Performance Leadership 71.9 75.0 73.1

People Leadership 70.4 72.3 70.5

Financial Management 77.5 80.0 75.1

Organisation Capability 68.2 71.3 69.1

Application of Technology & Knowledge 67.5 69.9 71.8

External Relationships 74.3 78.2 71.0

Innovation Products & Services 65.9 70.2 70.0

Integrity & Corporate Governance NA NA 80.0

Results & Comparative Performance 67.3 74.8 70.5

MCI 69.9 73.9 72.0


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11. Appendices

Page

Appendix A. Overall Results of Malaysian MCI Index 2010 27

Appendix B. MIM-MPC-AAMO Malaysian Management Capability Index 2010- Questionnaire 28

Appendix C. Management Competencies, Competence & Capability 35

Appendix D. MIM Holistic Integrated Management Model 36

Appendix E. MCI Categories & Recommended Training & Development Programmes 37


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Overall Results of Malaysian Management Capability Index 2010

The Malaysian MCI was calculated from the following assessed scores and weighting of the ten categories.

Appendix A

Categories Assessed Weightage Index

Visionary & Strategic Leadership 72.4 15% 10.9

Performance Leadership 73.1 10% 7.3

People Leadership 70.5 10% 7.1

Financial Management 75.1 10% 7.5

Organisation Capability 69.1 5% 3.5

Application of Technology & Knowledge 71.8 5% 3.6

External Relationships 71.0 5% 3.6

Innovation Products & Services 70.0 10% 7.0

Integrity & Corporate Governance 80.0 5% 4.0

Results & Comparative Performance 70.5 25% 17.6

Malaysian MCI 2010 72.0


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MIM-MPC-AAMO Malaysian Management Capability Index 2010 Questionnaire

OBJECTIVE

Management capability is demonstrated in business performance, and is the result of management leadership and

competence in the key management practices that lead to sustainable business performance and business growth. To

measure the capability of management and to track improvement, we have adopted a Management Capability Index

originally developed by the New Zealand Institute of Management (NZIM).

Capability is defined as the demonstrated capability to achieve or accomplish through effective use of abilities for a

particular purpose.

There are ten (10) major drivers of management capability that deliver profitable business growth and which can be

used to create an index of management capability.

We at MIM, MPC and AAMO are now inviting you to participate in a regional survey of benchmarking management

capability by accessing the current positionwith organisations in Malaysia in respect to these ten drivers.

The results will help Malaysian organisations benchmark themselves against other organisations in other countries in

Asia. The overall results will be made available to you based on contact information provided by you to us as follows:

Appendix B

Name:

Title:

Designation:

Organisation Name:

Organisation Address:

Organisation No.

Tel No.: Fax No.:

Email Address:

Dato Datin Prof Dr Mr Mrs Ms Encik Puan Cik

WHO SHOULD COMPLETE THIS SURVEY FORM?

The survey form should be completed by theCEO or General Managerof the organisation.

Kindly return duly completed questionnaire by mail, fax or email to:

Contact Person: Nur Amaleena Hafiza Muhammad Zain, Senior Executive, Research and Business Development

Address: Malaysian Institute of Management, Management House, 227 Jalan Ampang, 50450 Kuala Lumpur

Tel: 603-2172 5555 ext. 1005 Fax: 603-2172 5573 Email: [email protected]


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Please answer the following questions about your organisation.

Circle one number for each question. For questions 5 & 6, please fill in the figures.

1. Which of the following best describes your managerial level?

Level 1 - CEO/MD 1 Level 2 - report to CEO/MD 2 Level 3 - report to Level 2 3

Not in a managerial position 4

3. Type of organisation:

Multi National Corporation (MNC) 1

Local Large Organisation 2

Small and Medium Enterprise (SME) 3

Government Agency 4

4. Ownership of your organisation:

Fully local (0% foreign ownership) 1

Majority local (1 49% foreign ownership) 2

Equal ownership (50% local & 50% foreign) 3

Majority foreign (51 99% foreign) 4

Fully foreign (100% foreign ownership) 5

Agriculture 1

Construction 2

Petroleum and gas - upstream 3Manufacturing

Food, beverage & tobacco 4

Textiles & wearing apparel 5

Rubber products 6

Wood & wood products 7

Paper & paper products 8

Chemical & chemical products 9

Non-metallic mineral products 10

Iron & steel 11

Fabricated metal products 12

Electrical & electronics products & machinery 13

Transport equipment 14

Transport

Air 15

Land 16

Water 17

Telecommunications 18

Trade

Wholesale 19

Retail 20Finance

Banking 21

Insurance 22

Stockbroking 23

Business & professional services

Law firms 24

Accounting 25

Architects 26

Management consulting 27

Advertising 28

Tourist & leisure services

Hotels 29Restaurants 30

Tour agencies 31

Health 32

Education 33

ICT 34

Others 35

Please specify ___________________

2. Which sector / sub sector is your organisation classified:

5. Year established: ______________

6. Total number of employees in your organisation: ______________ employees


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HOW TO COMPLETE THE SURVEY FORM

Using the following six-point Likert scale, please circle the relevant score for the following statements. The following

scale refers to the first nine parts.

PART I: VISIONARY AND STRATEGIC LEADERSHIP


6 100 Yes, fully practised throughout the organisation.

Continually refined and improved as The way things are done round here

5 80 Yes, being practised consistently across the organisation with further improvements being made.

4 60 Yes, being practised across most of the organisation with further improvements being made.

3 40 Yes, being practised, but only in parts of the organisation, part of the time.

2 20 Yes, this has just started.1 0 No, this is not in place.

In my organisation:

1. Management articulates a clear and inspiring vision that is well understood. 1 2 3 4 5 6

2. Management actively fosters and encourages ownership of the vision by staff. 1 2 3 4 5 6

3. The vision and supporting goals underpin and guide managerial decisions and

behaviours.

1 2 3 4 5 6

4. Management plans with a view to growing the business while meeting the

needs of shareholders/owners, taking into account employee, supplier,

customer and other stakeholder interests.

1 2 3 4 5 6

5. Management demonstrates an international / global perspective and has

a good understanding of global markets and global thinking.1 2 3 4 5 6

Overall our current position for Part I 1 2 3 4 5 6

PART II: PERFORMANCE LEADERSHIP

In my organisation:

1. Management ensures the organisation is strongly goal, performance and

achievement focused.1 2 3 4 5 6

2. Management demonstrates the ability and attitude to lead the achievement

of challenging goals and change.1 2 3 4 5 6

3. Management balances risk with achievement, not risk avoidance

(i.e. management is not risk averse.)1 2 3 4 5 6

4. The organisation consistently meets its performance goals and has a

performance track record of growth and of continually improving performance.1 2 3 4 5 6

5. The organisation consistently performs better than its competitors or othercomparable organisations.

1 2 3 4 5 6

Overall our current position for Part II 1 2 3 4 5 6


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PART III : PEOPLE LEADERSHIP

Legend Score Current position of the organization

6 100 Yes, fully practised throughout the organisation. Continually refined and improved as The way things are done round here




2 20 Yes, this has just started.

1 0 No, this is not in place.

In my organisation:

1. Management attracts, retains, develops, motivates and leads an effective team

capable of achieving company objectives. 1 2 3 4 5 6

2. Human resource planning is an integral part of the annual business planning

process. 1 2 3 4 5 6

3. Management provides enhanced leadership acts as a role model, committed

to developing subordinates and leading people. 1 2 3 4 5 6

4. Management is strong on empowerment allows scope for people to growand contributes toward employees growth therefore enhancing their CV. 1 2 3 4 5 6

5. Management maintains a culture supportive of todays employee values

not stied by structure and hierarchy.1 2 3 4 5 6

Overall our current position for Part III 1 2 3 4 5 6

PART IV : FINANCIAL MANAGEMENT

In my organisation:

1. Management develops and commits to plans and goals that support sound

growth and continuing performance improvement. 1 2 3 4 5 6

2. Management leads and manages the business to consistently achieve or

exceed these goals.1 2 3 4 5 6

3. Management practises sound and effective management of the organisation

including nancial planning, accounting, cash ow management, investment,

financial reporting and liaison with financial institutions.

1 2 3 4 5 6

4. Management has experienced accounting and financial personnel for its

financial management.1 2 3 4 5 6

5. Management has in place sound and effective internal control systems

through supervision and internal audit.

1 2 3 4 5 6

Overall our current position for Part IV 1 2 3 4 5 6


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PART V : ORGANISATION CAPABILITY








In my organisation:

1. Management builds organisation capability, a culture of innovation and research,

and an organisation dedicated to continuous improvement. 1 2 3 4 5 6

2. Management brings about and maintains a boundary-less organisation, is

confident and effective in leading and managing a non-hierarchical structure. 1 2 3 4 5 6

3. Management effectively balances strong effective teams with free (independent)

individuals. 1 2 3 4 5 6

4. Management has a sound understanding and effective application of best

management practices to achieve organisational goals and objectives 1 2 3 4 5 6

5. Management demonstrates strong commitment to continuous learning for

both individuals and the organisation. 1 2 3 4 5 6

Overall our current position for Part V 1 2 3 4 5 6

PART VI : APPLICATION OF TECHNOLOGY AND KNOWLEDGE

In my organisation:

1. Management exploits information technology and brings about a knowledge

driven organisation. 1 2 3 4 5 6

2. Management understands the impact of technology on organisations and on

work itself. 1 2 3 4 5 6

3. Management understands the value and application of knowledge in

organisations. 1 2 3 4 5 6

4. Management applies effective knowledge and information management. 1 2 3 4 5 6

5. Management practises knowledge management and promotes a learning

organisation culture. 1 2 3 4 5 6

Overall our current position for Part VI 1 2 3 4 5 6


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PART VII : EXTERNAL RELATIONSHIPS








In my organisation:

1. Management develops networks and spheres of inuence with stakeholders. 1 2 3 4 5 6

2. Management maintains networks and spheres of inuence with stakeholders. 1 2 3 4 5 6

3. Management ensures the organisation has a positive external image

through the building of effective relationships with all stakeholders including

customers and suppliers.

1 2 3 4 5 6

4. Management ensures the organisation has a positive external image throughthe fulfillment of community and social obligations.

1 2 3 4 5 6

5. Management practises corporate social responsibility. 1 2 3 4 5 6

Overall our current position for Part VII 1 2 3 4 5 6

PART VIII : INNOVATION PRODUCTS AND SERVICES

In my organisation:

1. Management and employees create the climate for and encourage

continuous innovation in products and services.1 2 3 4 5 6

2. Management and employees recognise innovation as an important

aspect of business and for all the organisations processes

innovation is part of the organisations culture.

1 2 3 4 5 6

3. Management and employees recognise that innovation leads

the business to new dimensions of performance.1 2 3 4 5 6

4. Management and employees practise innovation to create new

values for the business, customers and shareholders.1 2 3 4 5 6

5. Management and employees practise innovation to expand its market

and increase its market share.1 2 3 4 5 6

Overall our current position for Part VIII 1 2 3 4 5 6


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PART IX : INTEGRITY AND CORPORATE GOVERNANCE

THANK YOU FOR COMPLETING THIS QUESTIONNAIRE. YOUR PARTICIPATION COUNTS!

PART X : RESULTS AND COMPARATIVE PERFORMANCE


6 100 Yes, fully practised throughout the organisation.

Continually refined and improved as The way things are done round here






In my organisation:

1. Management and employees understand ethical principles in making decisionson organisations affairs.

1 2 3 4 5 6

2. Management and employees follow ethical rules and procedures for making

decisions on organisations affairs.1 2 3 4 5 6

3. Management and employees adhere to legislation, regulations and guidelines

in administering the business of the organisation.1 2 3 4 5 6

4. The organisation promotes an established standard of ethical behaviour for

directors, management and employees based on integrity and code of proper

conduct1 2 3 4 5 6

5. The organisation practices integrity and ethical behaviour as being good

for long term business and profitability. 1 2 3 4 5 6

Overall our current position for Part IX 1 2 3 4 5 6

In my organisation:

1. The performance results are the most important measures of management

capability. (The results should include performance relative to competitor(s)).1 2 3 4 5 6

The key measures* of business performance and business growth in the contextof the Management Capability Index could be:

(* NOTE : The key measure of the particular organisations performance should

be used to assess results and comparative performance).

2. Growth in revenue over past 5 years.

1 2 3 4 5 6

3. Profit performance over past 5 years. 1 2 3 4 5 6

4. **EVA (economic value added) performance over past 5 years.

(** EVA a measure of a companys nancial performance based on the residual

wealth calculated by deducting cost of capital from its operating profit

(adjusted for taxes on a cash basis.))

1 2 3 4 5 6

5. The organisations management capability determines performance results. 1 2 3 4 5 6

Overall our current position for Part X 1 2 3 4 5 6

Please use the following scale for Part X.


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Management Competencies, Competence and Capability

The relationships between management skills and abilities, management practices, management competencies,

management competence and management capability are important aspects of management performance. It is

helpful to understand the denitions of competencies, competence and capability in this regard:

Competencies are general descriptions of the abilities necessary to perform successfully in a particular

job or position. Competency proles synthesise skills, knowledge, attributes and values, and

express performance requirements or competencies in behavioural terms.

Competence is having the requisite or adequate ability or qualities to perform well or to a required standard.

Capability demonstrated capability to achieve or accomplish through effective use of abilities for a particular

purpose.

The relationship between management skills, abilities, qualications, practice, competencies, competence, capability

and organisational performance can usefully be depicted as follows:

Appendix C

Management capability is demonstrated in business / organisational performance, and is the result of management

leadership and competence in the key management practices that lead to sustainable business performance and

business growth. The important aspect is how effectively management applies and practises its competencies to deal

with external and internal inuences to achieve the highest levels of business / organisational performance.

BASE / CORE MANAGEMENTSKILLS & ABILITIES

MANAGEMENT PRACTICE

(DIFFERENT IN DIFFERENT ORGS /ENVIRONMENTS)

COMPETENCIES

(REQUIRED ABILITIES EXPRESSEDIN

BEHAVIOURAL TERMS)

CAPABILITY

(ORGANISATIONAL PERFORMANCE,RESULTS / OUTCOMES

Qualications reect this

against a standard

The abilities necessary to

perform successfully in a

particular job or position.

Demonstrated management

capability,reected in organisation

/ business performance.


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MIM Holistic Integrated Management Model

Appendix D:

with other people becomes important in terms of getting

work done. With more than one person working together,

there is a need to work as a unit and a team, which is

effectively a group of individuals working and respecting

each other to achieve a group task or assignment.

The team is the work unit, and with other groups, will

then form the third level which is the functional group or

department.A combination of functions will then form

a division or a business unit. A business unit on its own

or a number of business units make up the corporationor organisation, and this corporation must have the

competency to deal with the industrychallenges, and to be

a successful company in the industry, the organisation has

to deal and manage effectively in the globalenvironment

or economy.

The HIMM is a systemic approach of total management

and is based on the premise that if each enterprise or

organisation competency is developed and strengthened

as the individual worker and organisation grows, then the

total organisation with each of its parts will function in amore synergistic manner.

Similarly, the management capability of an organisation is

also dependent on the ability of the individual managers

take action and make the desired results come to pass.

It is the application of their management capability to

their work unit (team) that brings about an environment

that inspires the department and business unit, and

motivates employees to strive for the vision and superior

performance of the organisation as a whole.

The science, art and practice of management are to

develop and ensure that all integral parts are functioning

in an optimal and productive way. Similarly, management

capability is also the practice of the application of the skills,

knowledge and abilities of individuals in the organisation in

order to strive for achievement of superior performance.

MIM has a comprehensive suite of developmental

programmes to assist organisations in developing and

strengthening their respective areas within the HIMM

concept. Refer Appendix E for the list of recommendedtraining and development programmes in the ten MCI

categories.

The

M I M

Holistic

I n t e g r a t e d

Management Model (HIMM) firstly identifies the

various organisational capability and competencies

required to build a strong, growing and protable

enterprise or organisation. Most growing organisationsfall into the HMM as they move through their organic

growth phases. The HMM also shows the interface

and management dynamics within and between each

level or function of management which requires them

and their people to gain the relevant competences to

adequately deal with their growth stages and learning

needs.

An organisation or enterprise is formed as a group or

conglomeration of people. Hence, the base productive

unit is the individual worker. Each individual mustbe capable and strive to be competent and achieve

personal mastery in his/her own area of work and

responsibility to produce the best results. Each

worker needs to possess the relevant competences

to perform his/her job well. Accompanied by the

relevant competences, the individual worker should

also internalise their values, ethics and pride of work

irrespective of the role and tasks they are performing

as part of the whole in general accountability to help

the organisation perform well.

The individual worker has to work and co-exist with

other workers, hence the understanding of how to work


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MARKETING & SALES

Achieving Outstanding Sales Results Professionally (For Big Sales)

Art of Selling - How to sell the SMART way!

Branding As An Effective Market-driven Business Strategy

Delivering Customer Satisfaction

Effective Sales Training With NLP

Effective Telesales Techniques

Key Account Management - Growing Your Business Against Competition

Power Negotiation Using Psychological Tools

Strategic Marketing Management: Winning Strategic Analysis and

Competitive Advantage Development

QUALITY MANAGEMENT

Continuous Improvement (Kaizen)

Managing for Excellence in Quality and Productivity

7 Management & Planning Tools (7MP)

HUMAN CAPITAL MANAGEMENT

Basics in Managing People

Coaching & Counseling for Performance

Engaging Employees for Higher Performance and Retention

How To Design, Assess and Implement Your Training Modules Creatively HR For Non-HR Managers

Identifying & Analysing Training Needs

Manager As Coach

Successful Interview Techniques for Managers

Talent Management For High Performance Organisations

ORGANISATIONAL MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY

CSR Reporting

MIM-ARM Foundation Certicate in CSR

THE MIM MANAGEMENT HOW-TO SERIES

Financial Management Strategies To Reduce Costs, Improve Liquidity

and Increase Revenue

How To Enhance Customer Service & Retention

How To Increase Sales & Develop Effective Marketing Strategies

Specic HR Strategies in Challenging Times

MANAGEMENT LEADERSHIP

Advanced Leadership Skills (inspiring, Leading and Managing Organisations

Towards Peak Performance)

Assertiveness Skills for Management Leaders (Leading People For Results)

Building A Cohesive Team Using Persuasive Leadership Skills

Building Strong Management Skills

Developing Effective Managerial Skills

Effective Middle Management

Fundamentals of Management

Job of Executives (JOE)

Job of General Managers (JOGM)

Job of Managers (JOM)

Team Dynamics using NLP for Managers and Team Leaders

Visionary&Stra

tegic

Leadership

PerformanceLe

adership

PeopleLeaders

hip

FinancialManagement

OrganisationCa

pability

ApplicationofT

echnology&

Knowledge

ExternalRelatio

nships

InnovationProducts

&Services

Integrity&Corp

orate

Governance

Results&Comp

arative

Performance

MCI Categories

MIM Programmes


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Using Neuro Linguistic Programming (NLP) To Improve Your Leadership Skills

PROJECT MANAGEMENT

Managing Project Risks

PMP Exam Preparation

Project Management for Beginners

Project Management Leadership

Project Management Tools for Executives

Successful Project Management

STRATEGIC MANAGEMENT

Business Model Innovation - How To Break The Rules and Change The Game

of Doing Business

Making Strategy Work - The Balanced Scorecard Way

Market-Driven Business Planning

Scenario Thinking For Strategic Planning

Strategic Thinking, Planning and Implementation

Winning Organisational Change Paving the Way for Your Future Business

Growth

INDUSTRY MANAGEMENT

CREATIVITY & INNOVATION

Enhancing Analytical & Creative Thinking Skills

Generating Ideas Through Organised Creativity

How To Unleash Your Creativity and Innovation At Your Workplace

Thinking Outside The Box

GLOBAL MANAGEMENT

Job of The Chief Executive

Visionary&Strategic

Leadership

PerformanceLeadership

PeopleLeadership

FinancialManagement

OrganisationCapability

ApplicationofTechnology&

Knowledge

ExternalRelationships

InnovationProducts

&Services

Integrity&Corporate

Governance

Results&Comparative

Performance

MCI Categories

MIM Programmes


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The Business Excellence Framework (BEF) is about adopting a holistic approach to strengthen the management practices,

systems and processes of an organisation towards achieving superior business performance and competitiveness.

This framework is based on internationally comparable and holistic models for managing enterprise excellence and

innovation. BEF has seven dimensions of excellence namely Leadership, Planning, Information, Customers, People,

Processes and Results.

The implementation of BEF focuses on leadership ability in guiding and sustaining organisations to address issues on

corporate governance that includes ethical, legal and community responsibilities.

The systems approach of this framework covers the following dimensions: Planning, Information, Customers, People

and Processes. These dimensions evaluate how organisations determine requirements, expectations and preferences

of customers and markets.

The business outcome is measured using organisations performance and improvement in key business areas such

as product and service outcomes, customer satisfaction, nancial and marketplace performance, human resource

capabilities, operational performance, leadership and social responsibility.

MPC Business Excellence Framework


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The implementation of BEF requires involvement of all spectrum of employment in an organisation as well aseffective partnership with suppliers and customers. Good management systems and processes need to be employed

organisation-wide, beginning with a clear vision to maintaining a safe and healthy workplace. This requires well-

trained and motivated employees, standardised work procedures, effective production control as well as ensuring the

quality of external suppliers and operating a fast and efcient after-sales service. In essence all parties are important

contributors to the successful implementation of BEF which eventually promote and enhance business innovation.

The Business Excellence Journey


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Malaysian Institute of Management

Institut Pengurusan Malaysia (22978-D)Management House, 227 Jalan Ampang, 50450 Kuala Lumpur, Malaysia

Tel:603-2172 5555 Fax:603-2172 5563

E-mail:[email protected] Website:www.mim.org.my

Malaysia Productivity CorporationPerbadanan Produktiviti Malaysia

P.O.Box 64, Lorong Produktiviti, Off Jalan Sultan,

46904 Petaling Jaya, Selangor Darul Ehsan, MalaysiaTel:603-7955 7266, 7955 7050, 7955 7085

Fax:603-7957 8068, 7955 1824, 7954 0795 (Marketing)

Email: [email protected] Website:www.mpc.gov.my

malaysian management capability index

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