Management Matters in New Zealand: How Does Manufacturing Measure Up?

This paper benchmarks management practices in New Zealand manufacturing firms against the global best. The project was undertaken by a research team from the University of Technology Sydney and is part of a world-wide study led by the London School of Economics and McKinsey & Co. The findings suggest that while some of New Zealand’s firms are as good as any in the world, there is a substantial ‘tail’ of firms that are mediocre, especially in their approach to people management. This is a key differentiating factor between New Zealand and better performing, more innovative countries, and it echoes similar recent findings for Australian manufacturers. The research findings also suggest that there is a link between the quality of management – scored across 18 dimensions of people, performance and operations – and enterprise productivity. This study suggests that New Zealand manufacturing firms need to improve the management performance to build longer-term competitive advantage. It reveals that some management practices represent opportunities for improvement for these manufacturing firms. The study demonstrates that a cost-effective way of improving the productivity performance of New Zealand firms is to promote a transformation in the calibre of the management and leadership of its organisations. This is the key to a more innovative, dynamic and sustainable economy into the future.