Tánaiste launches Management Development Council Report

`Management Development in Ireland’

The Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan today (Tuesday 16^th March 2010) launched the Report by the Management Development Council entitled `Management Development in Ireland’.

The Tánaiste welcomed the report and said that it represented an “important contribution to the management development agenda”. The Tánaiste emphasized that “the SME sector is one of the key drivers of the Irish economy. This report highlights the necessity of ensuring that SME managers are equipped with the appropriate skills to overcome the critical challenges posed by the current recession and to participate in our development into a Smart Economy.”

“I would like to take this opportunity to thank all of the MDC members for the time and dedication which they devoted to the Council.”

The Report outlines that enhanced management skills can help the Irish economy to return to growth, reduce firm failure rates by half, boost employment and productivity, and restore international competitiveness.

The Council also suggests that improvements in the average management performance of Irish SME managers could yield returns of up to €2.5 billion to the economy (through increased turnover/sales).

Professor Frank Roche, Chairman of the MDC, outlining the importance of management development commented, “Ireland at present is confronted by numerous challenges – the need to restore international competitiveness, the need to boost employment, and the need to sustain business through the current recession. The ability of our SME managers will be a fundamental determinant of whether Ireland can meet these challenges and progresses over the next decade.”

“I would like to see an increased level of participation in management development among SME managers, particularly from companies, which to date, have not engaged with either the State or with private providers. It is only by engaging with these hard to reach enterprises that Ireland can significantly improve our overall management performance.”

Report available at www.managementdevelopmentcouncil.ie

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Notes to Editors:

The Management Development Council (MDC) was appointed by the former Minister for Enterprise, Trade and Employment, Micheál Martin to advise Government on supporting the development of world class management skills within Irish SMEs. It was established to advise Government on the adequacy and relevance of management development provision in Ireland and to promote a coordinated approach to building awareness and appreciation in the small and medium sized business sector for the value of and need for upgrading leadership and management skills.

Forfás provided research to the MDC.

Summary of Key Recommendations:

Recommendation to stimulate demand for management development

Participation in relevant management development programmes amongst SMEs not currently catered for by either the CEBs or EI should be promoted though the development of a Management Development Network.

Recommendations to reform delivery of management development

(ii) The third level sector should play a greater role in the area of management development particularly in the area of continuing and professional development;

(iii) State funding should be used to drive the use of best practice amongst management development training providers to the greatest extent possible; and

(iv) Regular research should be conducted to ensure that the best practice guidelines highlighted in this report remain relevant and up-to-date.

Recommendations on funding for management development

(v) Private companies already provide most of the funding for management development without recourse to the State and the Council would like to see this continue;

(vi) The County Enterprise Boards should continue to address management development in companies employing up to 10 people;

(vii) Enterprise Ireland’s role dealing with management development in high potential start ups (HPSUs) and growth companies should be maintained; and

(viii) The State should provide a funding allocation starting at €10-12 million per annum from the National Training Fund to fund management development networks – while this is significantly less than the State spent in previous years, the Council believe that greater returns can be achieved through the use of networks (outlined above).

For further information:

Aideen Fitzgerald, Communications Department, Forfás

Tel: 353 1 607 3020 / 087 2432140

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