The Frontline Management Initiative (FMI) provides a framework for competency-based development of frontline managers in Australian enterprises. The FMI's impact on businesses was examined in a national study that included the following activities: focus groups; a national survey of management development and targeted national survey of FMI users; more than 120 telephone interviews with managers responsible for training; and in-depth interviews with FMI managers, participants, team members, and line managers. The study documented FMI's limited penetration and enterprises' lack of awareness of the FMI. FMI was seen as a framework most suited to medium and larger businesses in both the private and public sectors. A link between investing in training and business growth was discovered. For those enterprises that opted to undertake competency-based management development, the FMI framework had a significant impact. The study suggested that to maintain its impact, the FMI must build the quality and sustainability of FMI practices and extend its penetration. The bibliography lists 149 references. The following items are appended: research questions and benefits; focus group protocol; national survey questionnaire; telephone interview protocol; case-study protocols; selected broad survey responses; telephone interview responses; case study matrix for impact rating; and draft mechanism for improving enterprises' performance titled "Investing in Change." (Contains 26 tables and 149 references.) (MN)