COMPANIES are not investing enough to develop the next generation of managers even though a million new business leaders will be needed in the next few years, according to a new report.

Around 150,000 employees could take on management roles every year without being prepared for the job, it was warned. The Chartered Management Institute (CMI) and a commission on leadership said in a report that the problem threatens the UK’s competitiveness.

A survey of 2,000 business leaders found that three out of five admitted their organisation performed poorly.

The report said “shortsighted”

behaviour was squeezing out the visionary approach needed to achieve real growth.

Peter Ayliffe, CMI president and co-chairman of the commission, warned of “under- investment in the next generation of leaders”.

He said: “We’ve got some brilliantly-managed organisations in the UK, but there are simply not enough of them. Unless all of us responsible for leading businesses, public services and charities acknowledge that we are at a tipping point and commit to being part of a better- managed Britain, the nation’s sustainable long-term growth opportunities will not be fulfilled.”