The University of Technology Sydney (UTS), was engaged by the Ministry of Economic Development, in conjunction with The Treasury, the Department of Labour, and New Zealand Trade and Enterprise to assess 152 medium and large-sized New Zealand manufacturing firms in 2009. 

The study used a method developed by the London School of Economics and McKinsey & Co to review management practices in manufacturing firms, identify key determinants of management performance and interpret the relationship between management capability and firm performance. 

It globally benchmarks New Zealand management with a range of countries, including the United States, United Kingdom, Canada, Australia, Japan and emerging economies like China and India.

Key Findings

Some of New Zealand's firms are as good as any in the world, but  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.

To read more on how NZ management performs across a variety of competencies vs. the world click here