Every year businesses fail because they don’t have competent managers. The full cost of hiring an incompetent manager includes reduced productivity, added training costs, lost sales, increased turnover and the cost of their replacement. Every company needs managers that can capitalize on the opportunities that the future brings. Competent managers create and articulate the vision and mission. They organize operations so that the vision is attainable. They inspire their workforces. They develop tomorrow’s leaders for the company.

Organizations have to identify and prioritize what competencies are necessary for their managers. Effective managers combine their talents with their ability to adapt and learn. TrainingIndustry.com reports that $366 billion gets invested in leadership training around the world annually. High-growth organizations are focused on improving their management talent, and that means enhanced training programs for emerging leaders.

Here are five essential competencies that every manager needs:


Managers need to have a vision of what is important for future direction. They need to be able to communicate this vision in meaningful ways. They need to be able to persuade others to align their efforts with the vision to reach the company’s goals. They need to be self-confident in working with others. They need to take the initiative in getting things done.

Relationship Building

Managers have to show a level of comfort with others. They need to be able to build lasting relationships. They have to be socially and emotionally perceptive (EQ). They have to consistently give and receive performance feedback. They need to be comfortable managing conflict.

Communication Skills

Managers need to be skilled in sending, receiving and interpreting verbal, nonverbal and written messages. They need to be able to solve problems with words. Their communications need to involve appropriate eye contact, gestures and inflections. They have to be excellent presenters of their ideas to groups. They need to have the ability to think on their feet responding immediately to questions.


Managers need to have the ability to use analytical, fact-based, logical, and impartial methods to decide what needs to be done. Problem-solving is the act of defining a problem, determining the cause of the problem, identifying, prioritizing, and selecting alternatives for a solution; and implementing a solution.


Managers need to be able to make timely, cost-effective decisions. This involves getting the relevant and necessary information and weighing the alternatives in order to make a decision. Decisions are the foundation of the planning, organizing, directing and controlling functions of a manager. Decision-making is how managers achieve organizational goals. Decision-making is the act of choosing between two or more courses of action. Decision-making involves choosing between two or more possible solutions to a problem. Decisions are necessary to solve complex business problems. Managers need to make decisions linking short-term planning with long-term strategic thinking.

Manager Development

Competent managers can be developed. Do they take charge and get things done? Are they taking organized actions? Do they use their authority objectively and fairly? Do they motivate and inspire others using optimism and self-confidence? The first step in developing a competent manager is completing an objective assessment of their performance. Once their strengths and growth opportunities are clear, the manager can work with a coach to develop action plans to improve. When managers perform effectively, teams and organizations thrive. But when they don’t, businesses fail. You can assess the competencies of your managers by using an assessment tool like the CheckPoint 360 Survey. This survey evaluates the effectiveness of your managers and it identifies areas for growth, resulting in an individual development plan. The CheckPoint 360 encourages performance that drives results from the top down. Contact us to get started today.

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