Cranfield University School of Management research released in February 2010 finds empirical evidence showing that Investors in People underpins effective management through its impact on the development of managerial capabilities and management performance.
This includes:
- Enhancing the knowledge, experience and skills of managers
- Supporting the development of an organisational learning culture
- Improving the effectiveness of management development practice
- Facilitating the creation of a high-performance environment
As a result Investors in People recognised companies have better managerial capabilities that trigger a chain of events leading to better financial performance, resulting in higher profitability – as shown in their published accounts – than non-recognised companies. Furthermore, the more companies that embrace Investors in People, the better their performance will be.
The study was based on a nine month project exploring the extent to which working with Investors in People affects managerial performance, and therefore the performance of the organisation as a whole. It combined in-depth case studies, a survey of over 400 employers and analysis of published business performance data from returns to Company’s House (as provided through the FAME database).
When investigating the key factors that determine the performance of managers the effective implementation of Investors in People appears as a key driver.
Click to download the Investors in People, Managerial Capabilities and Performance report.
