FORUM FOR EXECUTIVE FORUM FOR EXECUTIVE PUBLIC MANAGEMENTPUBLIC MANAGEMENT

LEADERSHIP IN THE PUBLIC SECTOR: LEADERSHIP IN THE PUBLIC SECTOR: CHALLENGES AND COMPETENCIES FOR CHALLENGES AND COMPETENCIES FOR

TOP EXECUTIVESTOP EXECUTIVES

Professor David C. WilsonProfessor David C. WilsonWarwick Business SchoolWarwick Business SchoolUniversity of WarwickUniversity of Warwick

UKUK

Top Executives Deal With..Top Executives Deal With.. The handful of strategic decisions The handful of strategic decisions

which drive and shape an which drive and shape an organisation’s current and future organisation’s current and future actions.actions.

These decisions are not easily changed, These decisions are not easily changed, once made.once made.

They have the greatest impact on They have the greatest impact on whether strategic objectives are met.whether strategic objectives are met.

The Executive ChallengeThe Executive Challenge

Changing Contexts

OrganisationStrategy

“fit”

“fit”

“fit”

The Dynamics of The Dynamics of LeadershipLeadership

Goals

ResourcesEnvironmentOrganisationalCapabilitiesandPeople

MissionVisionValuesObjectives

DecisionsActions

GeneralMarketPoliticalTechnological

LOOKS EASY ON A LOOKS EASY ON A SLIDE……..SLIDE……..

BUT THE PROCESS OF BUT THE PROCESS OF LEADERSHIP IS FRAUGHT WITH LEADERSHIP IS FRAUGHT WITH DIFFICULTIES, AMBIGUITIES AND DIFFICULTIES, AMBIGUITIES AND COMPLEXITIESCOMPLEXITIES

LEADERSHIP IS A DISTINCT LEADERSHIP IS A DISTINCT AND ACTIVE PROCESS AND ACTIVE PROCESS

LL

Active

PassiveAllow

Enable

Manage

Lead

AT THE EXECUTIVE LEVEL, AT THE EXECUTIVE LEVEL, LEADERSHIP IS ABOUT:LEADERSHIP IS ABOUT:

Ensuring delivery of the agreed agendaEnsuring delivery of the agreed agenda Doing this in creative and imaginative Doing this in creative and imaginative

ways (within budget!)ways (within budget!) Animating action throughout the Animating action throughout the

organisationorganisation Encouraging others to ‘run with the Encouraging others to ‘run with the

baton’ by delegating and by instilling baton’ by delegating and by instilling enthusiasm in others.enthusiasm in others.

THE EXECUTIVE ROLE (1)THE EXECUTIVE ROLE (1) “……“…….it is one of the .it is one of the loneliestloneliest jobs I jobs I

have ever experienced. You are have ever experienced. You are isolated, caught between the needs isolated, caught between the needs of Ministers and the people in your of Ministers and the people in your organisation who you have to organisation who you have to convince to come along with you…”convince to come along with you…”

(Robert Naylor, Chief Executive Birmingham (Robert Naylor, Chief Executive Birmingham Heartlands National Health Service Trust)Heartlands National Health Service Trust)

THE EXECUTIVE ROLE(2)THE EXECUTIVE ROLE(2)“…“….you really have to have a .you really have to have a sense of sense of

humourhumour….the role is haphazard with ….the role is haphazard with conflicting dimensions….you need to conflicting dimensions….you need to appear un-structuredappear un-structured to your staff to your staff but but really be highly structuredreally be highly structured, , particularly toward government….you particularly toward government….you need to maintain need to maintain multiple facesmultiple faces….”….”

(Chief Executive, Department for Social (Chief Executive, Department for Social Security)Security)

COMMUNICATIONCOMMUNICATION Accurate communication throughout the Accurate communication throughout the

organisation is vital – and clearly organisation is vital – and clearly establishes the nature of the leader in the establishes the nature of the leader in the eyes of others.eyes of others.

Modelling desired behaviours continually Modelling desired behaviours continually seems to help engage others (whether to seems to help engage others (whether to implement more of the same or to invoke implement more of the same or to invoke radical change).radical change).

Communication and TaskCommunication and Task

ll

Task-Centred

Communication

High

Low

Low High

Isolated leadership:Leader divorced from the rest of the organisation but leader has strong visionIsolated and little vision or idea of where the organisation should go.

Transformational leadership: Can articulate and model a credible and compelling vision

All the right interactions – but no content

IN THE PUBLIC SECTOR…IN THE PUBLIC SECTOR… Leadership is a process which takes Leadership is a process which takes

place in different (and sometimes place in different (and sometimes conflicting) contexts:conflicting) contexts: The The PoliticalPolitical – Ministers steer and change – Ministers steer and change

agendas……agendas…… The The Organisational Organisational – structures, cultures – structures, cultures

and managing professionals ……..and managing professionals …….. The The PersonalPersonal – style of management and – style of management and

approach to leadershipapproach to leadership

LEARNING FROM THE PRIVATE LEARNING FROM THE PRIVATE SECTOR?SECTOR?

Pressures on public sector organisations to Pressures on public sector organisations to adopt models of practice developed in the adopt models of practice developed in the commercial sector are intense.commercial sector are intense.

The evidence in the UK is very mixed.The evidence in the UK is very mixed. Assumes a one best way of managing (the market)Assumes a one best way of managing (the market) Elevates managerial factors over the concerns of Elevates managerial factors over the concerns of

professionalsprofessionals Learning is one-way (always from private to public)Learning is one-way (always from private to public)

LEADERSHIP AND LEADERSHIP AND PERFORMANCEPERFORMANCE

Leaders are assessed from the first Leaders are assessed from the first day they begin……..day they begin……..

But a more robust assessment of But a more robust assessment of performance comes from looking at performance comes from looking at what leaders achieve over time as what leaders achieve over time as they implement strategic decisions…..they implement strategic decisions…..

IMPLEMENTATION OF STRATEGIC IMPLEMENTATION OF STRATEGIC DECISIONSDECISIONS

Com

plet

ion

Time

100%

Getting Started

SustainingImplementation

Locking intoPlace

LEADERSHIP OVER TIMELEADERSHIP OVER TIME InheritorsInheritors

Implement the decisions of their Implement the decisions of their predecessorspredecessors

Re-vitalisersRe-vitalisers Inject new life into old strategiesInject new life into old strategies

BuildersBuilders Are at the founding stages of an organisationAre at the founding stages of an organisation

Turn-aroundersTurn-arounders Try to implement large scale changeTry to implement large scale change

LEADERSHIP AND LEADERSHIP AND INFLUENCEINFLUENCE

Varies depending on whether leaders are Varies depending on whether leaders are initiators of new ideas (internal) or are initiators of new ideas (internal) or are implementing the ideas of others (external).implementing the ideas of others (external).Change

Continuity

Transformer

Builder

Re-vitaliser

Inheritor

Locus of InfluenceInternalInternal

Internal/External

External

KNOWLEDGE ASSETSKNOWLEDGE ASSETS Society is becoming increasingly Society is becoming increasingly

communications ‘smart’communications ‘smart’

A recent survey indicated that more A recent survey indicated that more communication took place between communication took place between individuals outside formal individuals outside formal organisations than within themorganisations than within them

CUSTOMS AND EXCISE (uk)CUSTOMS AND EXCISE (uk) ……..In 2000, the criminals we were chasing were smarter ..In 2000, the criminals we were chasing were smarter

than the people we had trying to catch them in the than the people we had trying to catch them in the Customs and Excise organisation!.... Criminals usedCustoms and Excise organisation!.... Criminals used

New information technologyNew information technology

Increasingly sophisticated anti-detection devicesIncreasingly sophisticated anti-detection devices

Capitalised on new distribution systemsCapitalised on new distribution systems

(Richard Broadbent, Chairman HMCE)(Richard Broadbent, Chairman HMCE)

……By 2003 we had increased the intellectual capital of our By 2003 we had increased the intellectual capital of our organisation to an extent where we could begin winning organisation to an extent where we could begin winning the battle against drugs and smugglingthe battle against drugs and smuggling

CRITICAL EVENTS

THE APPOINTMENT OF RICHARD BROADBENT AS CHAIRMAN

(ex City – A Turn-arounder)

HE IMMEDIATELY FOCUSSED ON ONE OF THE REGIONS WHICH HAD GONE THROUGH A SERIESOF SUCCESSFUL CHANGE PROCESSES

(under the lead of David Garlick - a trained manager with an MBA!).

USED THIS REGION AS A ‘ROLE MODEL’ FOR THE REST OF THE ORGANISATION.

CRITICAL ACTIONS

RICHARD BROADBENT’S ACTIONS:

First Steps:

• Reduce the number of Senior Management and Board meetings

• No Management Meeting to Last Longer Than 15 Minutes Without a Good Reason

• No Lengthy Paperwork - a Maximum of One Side of A4

• Went ‘on tour’ and Spoke to all Regions and to all Operational Staff about his Plans for Change

CRITICAL ACTIONS (2)

Second Steps:

• Identified the key ‘distinctive competences’ of the organisation - Business Services/Taxes and Law Enforcement (Drugs, Illicit Materials).

• Reorganised the Structure of the Organisation around these Competences to Prioritise Strategies in both key areas.

• Eliminated Corporate Headquarters and decentralised to the Regions.

CRITICAL ACTIONS (3)

Third Steps:

• Re-shuffled the Board, getting rid of those who opposed the Changes

• Got rid of the Non-Executive Directors who did little except Defend the Status Quo

• Appointed a New Specialist Role on the Board dedicated to Liaising and Influencing Government at Policy Level.

CRITICAL ACTIONS (4)

And Finally:

• Managed all these changes and Implemented Them Very Quickly

(within 3 Months).

KEY RESULTS

• Drug Traffic and Illicit Material Rates Decrease Significantly

• Better Use of Intelligence (decentralised special units)

• Faster and more accurate Decision Making

• Staff Committed to the Organisation (increased sense of ownership)

• Strategy more Pro-active and politically smarter toward the Government (can influence new policies).

• Transfer of Learning Internationally to other Agencies Worldwide

PERFORMANCE, KNOWLEDGE AND PERFORMANCE, KNOWLEDGE AND ORGANISATIONAL CONTEXTORGANISATIONAL CONTEXT

Knowledge Base

high

Low

highLow

Organisational

Context

HighestPerformersGood Performers

Poorest PerformersAdequate

Performers

(Hickson, Miller and Wilson, 2003)

LEADERSHIP AND COMPETENCIESLEADERSHIP AND COMPETENCIES

Consistency in style helps transformations Consistency in style helps transformations Creating a receptive organisational context helps Creating a receptive organisational context helps

change initiativeschange initiatives Leverage and develop the knowledge base of the Leverage and develop the knowledge base of the

organisation (its intellectual capital) increases organisation (its intellectual capital) increases performanceperformance

Prioritise which are the really strategic issues and Prioritise which are the really strategic issues and concentrate on theseconcentrate on these

Be able to assess risk and trade-offs in the context Be able to assess risk and trade-offs in the context of incomplete information and uncertaintyof incomplete information and uncertainty

Be able to communicate with and instill a sense of Be able to communicate with and instill a sense of ownership for strategies throughout the ownership for strategies throughout the organisationorganisation