COMPANIES must invest in their managers if they are to improve their fortunes during the current economic slump, says a Huddersfield-based consultant.

David Broadhead, who runs Partners in Management, based at the Media Centre, said companies needed to focus on managers and other senior staff.

He said: “People are the one consistent, essential ingredient of all organisations – but usually the one with the least investment, especially the more experienced and senior they are.

“You wouldn’t spend over £25,000 on a new car or machine and then not service and improve it, yet that’s what we do with our people – year on year.

A survey by the Chartered Management Institute showed that only 21% of managers are rated as highly effective by their subordinates and 43% are considered either ineffective or highly ineffective.

Said Mr Broadhead: “In other words, eight out of 10 are doing a bad to acceptable job, yet we are relying on them to lead us out of the situation we are in by letting them do what they have always done.

“It’s probably worse in a lot of organisations as they put more fear and pressure on these people to perform, so they work longer and harder to produce even more disastrous results.”

Mr Broadhead said several organisations had seen “spectacular, successful experiences” by investing in the development of their managers and “professional knowledge workers”.

Mr Broadhead has developed the 21st Century Manager programme, which is designed to kick-start key workers into developing the entrepreneurial and leadership skills needed to deliver effective strategic change in these challenging times.

A five-day course, delivered one day a month, will take place at the Media Centre from February.

Said Mr Broadhead: “We’ve seen organisations that were struggling achieve 200% profit growth, obtain full order books and reduce overdues whilst also employing fewer people, all after developing their management teams.

“It does work and is probably the most cost effective investment any organisation can make, especially in the current environment.”