Gaining the skills to lead

Following the publication of an influential skills report last year, it has emerged that the retail motor industry suffers from a crippling lack of qualified managers. The findings of a sector skills development agency report revealed that the retail side of the automotive industry currently has the lowest proportion of qualified managers of any UK business sector. The number of qualified managers working in the retail motor industry stands at just 14 per cent, the report claimed, compared with an average of 40 per cent for all other industries. Qualifications The problem is a significant one. According to the report authors, Professor Derek Bosworth and principal research fellow Rob Wilson, the problems in the sector relate not just to the level of education managers have attained but to the skills gaps at managerial level as well. In terms of education, 14 per cent of managers in the sector are qualified to NVQ level 4 or above, which is well below the levels seen in other sectors, but management training remains a sorely neglected area. “Skills gaps among managers are a problem, with 7.5 per cent of establishments reporting that managers needed improvements in their management skills, which is above the all-industry average,” the report said. “The situation compared to 2001 also appears to be getting worse rather than better.” career development Part of the problem lies with the attractiveness of the automotive retail sector in comparison with other industries. More talented individuals are opting to develop their careers in other businesses and that problem is borne out by the relatively low level of graduates who choose to enter automotive retailing in comparison with other business sectors. “Despite the fact that it accounts for 2.5 per cent of all employment, the sector attracts only 0.7 per cent of all new graduates entering corporate management positions,” the report said. “The sector clearly has a problem of attractiveness compared to other sectors. This is reinforced by the fact that management pay in the sector is about 20-25 per cent lower than the all-industry average.” The problem has not gone unnoticed. At the end of 2004, Automotive Skills, the sector skills council for the retail motor industry, attempted to tackle the problem head-on with the launch of a dedicated management training programme. The Automotive Retail Management Standard (Arms) has recently been refined by the training body – in partnership with the Chartered Management Institute and the Institute of the Motor Industry - in a bid to offer businesses a more flexible way to integrate with the scheme. The new customised approach now allows Arms to be incorporated into a company's bespoke management development programme or it can be offered as an industry-specific qualification. Following a review of the old Arms programme, Automotive Skills said it had become apparent that the industry required a more accessible tool for businesses to develop the skills of their managers. Industry leadership And with the number of qualified managers in the retail sector perilously low, the need to step up to the mark in management and leadership in the industry has never been greater. Patricia Richards, Automotive Skills chief executive, said the reason for the shortfall in management education and training was a result of the sudden and rapid change in the retail motor sector. She said that until recently most automotive retail companies were founded and survived predominantly on a technical or sales skill base. “This approach has served them well in a market which changed very little until recent years,” Richards said. “However, the current fast pace of change, tight profit margins and fierce competitive pressures is putting management competence into the spotlight. “For many companies – particularly small and micro businesses, it is a survival issue. Those businesses that are successful understand this. Others are struggling and need a wake up call. Arms is the tool to help them get back on track.” Management accounts l The number of qualified managers currently working in the retail motor industry stands at just 14 per cent l The average for all other industries is 40 per cent l Number of automotive managers enrolled on Arms is 500 l Number of approved training providers is 14 l The partnership between Automotive Skills, Institute of the Motor Industry and Chartered Management Institute hope this figure can be doubled by the end of the year