Occasional Papers

No. 13: Management Skills Development in Canada

by Keith Newton, Industry Canada, December 1995

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Summary

Are the skills of Canadian managers sufficient to meet the challenges of the knowledge-based economy? This is the central issue of this paper. If continuous innovation is the engine of growth, and innovation depends on new ideas and knowledge, then human resources are of paramount importance, and redoubled efforts are required across the entire spectrum of skill development. Decision makers in both the public and private sectors must, therefore, undertake a critical evaluation of the vast array of programs and services for skill acquisition and knowledge creation.

This paper focuses on one part of the spectrum — management education, training and development. It examines the contention that there are worrisome deficiencies in management skills in Canada. After briefly describing the context within which this challenge to competitiveness arises, the question of adequacy is addressed. Evidence that suggests deficiency is presented, and the particular problems of small and medium-sized enterprises are highlighted. The hypotheses that Canada lacks a training culture and that management development is not an integral part of doing business in Canada, are examined.

Next, the market for management development products and services is examined in greater detail. It points to the variety of requirements for management development services and suggests the need for basic building blocks supplemented by the continuous acquisition of new, often specialized and in some cases rarefied, skills. This leads to two important points.

• There is a clear need for effective and accessible diagnostic tools and services with which to identify areas of deficiency.
• The availability as well as the flexibility and convenience of delivery of a relevant product or service are important.

An examination of the vast array of products, services and suppliers on the supply side suggests that quantity is not the problem: we must look elsewhere to qualitative considerations such as relevance, timeliness, flexibility and cost. It is concluded that the two sides of this complex market are not being efficiently matched. Here is a classic case of imperfect information.

The following section examines the information question, adducing evidence from a variety of sources. This leads directly to the policy question of how best to address the gap and to consider the role for government and the principles on which such a role should be based. Potential areas for government facilitation are identified and suggestions made for implementation of specific actions. Finally, a concluding section emphasizes the role of partnership arrangements and the need for further, and continuing, research to enrich the information infrastructure required for management skills development.

Occasional Papers