KPMG in India- AIMA Reports on India’s management capability underscores the need for bold corporate leadership

KPMG in India and All India Management Association (AIMA) have produced the seventh ‘Management Capability Development Index (MCDI) India’.

The report was released today by Shri Jyotiraditya M Scindia, Minister of Communications and Development of North Eastern Region, Government of India, in the presence of imminent dignitaries at AIMA’s 10^th National Leadership Conclave. It offers a deep dive into how leaders and managers across sectors perceive their management capabilities, benchmark practices, and prioritise future growth areas. Against a backdrop of geopolitical shifts, environmental concerns, and rapid technological disruption, it highlights the urgent need for resilient, empathetic, and future-ready leadership in India.

Now in its seventh edition, the MCDI survey draws insights from 200 senior leaders, including CEOs, CXOs, and other top executives across industries. It assesses organisational maturity across ten dimensions such as visionary leadership, performance leadership, people leadership and self-development, integrity and corporate governance, and focus on results. The participants rated the urgency and impact of each capability, providing a rich dataset segmented by demographics. The findings offer a valuable benchmark for organisations looking to build competitive leadership capabilities in a fast-evolving environment.

Ms Suneeta Reddy, AIMA President has called the 2024 MCDI Report an important marker of Indian management’s evolution over the past decade and half, which has been a period of unprecedented challenges and opportunities for India’s business leaders. “The 2024 MCDI Report comes at a time of great turbulence in the business environment and its revelations must make India’s corporates give due attention to building management competitiveness to thrive on churn,” she says.

Yezdi Nagporewalla, Chief Executive Officer, KPMG in India said, “Tomorrow’s leaders will be defined not by their ability to withstand disruption, but by their capacity to harness it as a catalyst for growth, innovation, and positive impact – transforming uncertainty into opportunity, and risk into reward”.

“To thrive in a rapidly evolving business landscape, leaders must empower managers and teams by prioritising continuous learning, upskilling, and leadership development. By leveraging advanced technologies such as AI and data analytics, leaders should streamline processes, provide real-time feedback, and make informed decisions, says Sunit Sinha, Partner and Head – Human Capital Advisory Solutions, KPMG in India.

Key Findings of the report:

• MCDI score slipped by ~8.3% since 2011, from around 76 to 69.7 in 2024, reflecting stagnant growth in management capabilities.
• Integrity and Corporate Governance maintained the highest ranking across a decade, showing no major decline and reflecting stable ethical leadership focus.
• Focus on Getting Results pulls off a stunning turnaround — from the worst-rated in 2014 to leading the charts in 2024, thanks to a growing results-driven mindset across Indian enterprises.
• Innovation and Adaptability became the lowest performing dimension in 2024, a worrying fall of approximately 10% since 2011.
• External relationships, financial leadership, and integrity and corporate governance scores declined year-on-year from 2022, signalling emerging concerns around adaptability and forward-planning.
• Core capabilities like Organisation Capability and Application of Technology and Knowledge show only modest improvements over the years, hinting at deeper systemic gaps.

Way Forward Recommendations:

• Lead Digital Innovation and Transformation: Champion the adoption of AI, IoT, and blockchain technologies while embedding ethics, transparency, and sustainability at the core of digital strategies to stay competitive and responsible.
• Strengthen People-First Leadership: Foster inclusive, empathetic leadership that prioritizes emotional intelligence, continuous learning, and employee well-being to create high-performing, future-ready teams.
• Reimagine Talent Value Proposition: Adapt to shifting work models by offering a compelling employee experience, balancing flexibility with meaningful in-office engagement to attract and retain top talent.
• Align Financial Strategy with Sustainable Growth: Integrate financial planning with broader organisational impact goals, while strengthening risk management frameworks to navigate economic uncertainties effectively.
• Embed Agility and a Culture of Experimentation: Promote cross-functional collaboration, encourage experimentation, and empower employees to drive continuous innovation and adapt swiftly to changing market needs.
• Elevate Governance, Compliance, and Trust: Mitigate risks by conducting regular audits, investing in employee compliance training, enhancing data governance practices, and using technology for proactive monitoring.

This comprehensive report by AIMA and KPMG in India serves as a valuable resource for organizations seeking to enhance their management competitiveness and to build leadership pipeline.