1. Inside the Architecture of Reform:
LEADERSHIP
Focusing on leadership capabilities critical to
meet future challenges.. The NSW Treasury
Experience
Lorraine Salloum
Head of Human Resources
Jeanette Allom-Hill
Change Director, Financial Management
Transformation
2. Interaction between leaders, organisation and the
environment determines leader performance
Leader
Organisation
Environment
Leader
Performance
Leadership Performance – having the appropriate organisation and
leaders given the external situation
3. What most organisations do versus what the best
organisations do*
‘Legacy Leader’
‘Organisational
Obstruction’
‘Static System'
Challenge
Environment changes but
leaders do not
Environment changes but
organisation does not
Environment changes but
organisation and leader do
not
What most
organisations
do
Focus on „buy‟ or „build‟
strategies
Focus on organisational
restructuring
React to situational
changes with leader and
organisation changes
What the best
organisations
do
Organisations identify and focus
leaders on the right
competencies for the
environment
Organisations surface
barriers to leader
effectiveness addressing
„hard and soft‟ factors that
may undermine success
Proactively alignment of
talent and organisational
resources in support of
future business strategy
*Adapted from ‘Managing Leadership Performance
Risks’ Corporate Executive Board 2009
4. Performance-Lift Factor: Focus on the capabilities critical
to meet future challenges
The questions to ask..
Misaligned emphasis and
poor support expose leader
performance to risk
•
•
Leaders prioritise the wrong
competencies
Organisations don‟t support
Leaders to apply them correctly
• What are the critical capabilities
required to meet future challenges?
• What do these look like and what
does a leader need to do to display
and encourage them?
• What organisational support can we
provide to apply them correctly?
• What opportunities does the Public
Service Commission reforms give
us to redefine what leadership is
within our agency?
5. What is critical for Treasury to meet future
challenges?
Adapt to Change
•
•
•
Use knowledge of NSW Treasury and
their role to quickly adjust to work
environment changes
Proactive; they are not paralysed by
change,
Willing to take action and move projects
and priorities forward.
Influence
•
•
•
Apply Judgment
•
•
Use strong analytical skills to prioritise
their work, assess problems, and make
decisions.
Rely on their expertise, experience and
knowledge of Treasury to apply
judgment to their decisions and in their
work.
Good collaborators, working well with
and through others.
Teamwork skills necessary to work with a
range of people across Treasury and the
NSW public sector.
Use their technical expertise to influence
internal and external stakeholders and
contribute to collaborative projects.
Leadership
•
•
•
Actively engage in people management
Develop their team’s capability to adapt to
and facilitate change
Provide advice with influence and make
considered, future focused judgements.
8. What is Change Leadership?
“A leadership competency for enabling change
within an organisation. “ Prosci 2012
A Leadership Competency
Enabling Change
Prosci
Prosci
Our workplaces are constantly changing and therefore change leadership
should be a part of every managers essential skills. Changeleadership.com 2008
9. Why is Change Leadership Important?
The sheer complexity of change today requires a more
disciplined, informed, competent and structured approach, underpinned
by a highly committed, visible and determined leadership.
Changefirst. Delivering Transformation Change. David Miller 2012
Driving results in a world of
ever-increasing change
requires a new kind of
leadership.
Kotter 2013
Organisational success now
relies on the importance of
Change Leaders throughout
the organisation and how they
can be the catalyst to
maintain momentum.
Mckinsey 2012
Active and visible leadership
is the number 1 contributor to
success over the last 14
years
Prosci 2012
Progress is in the examination
of change competencies and
the building of capability for
managing significant and
continuing change.
Oxford University 2010
Successful Change
Leadership is the
difference between
Implementation and
Installation
www.changefirst.com
10. Why are we focusing on Change Leadership in the NSW
Public Sector?
Capacity to manage change was an area
where employees held poor perceptions of
their managers.
• 42% agree change is handled well
• 58% agree their organisation is making
improvement to meet our future
challenges.
• “They [public sector experts] emphasise
the importance of sustained leadership
over time to making these changes.” (p14)
11. How do you start building Change Leadership?
1. Baseline skills
2. Assess competency
3. Roadmaps for
development and
tracking progress
Change leadership
activities
Most important sponsor activities
The three most critical roles of sponsors are:
1) Participate actively and visibly throughout the project.
2) Build a coalition of sponsorship with peers and managers.
3) Communicate effectively with employees.
A detailed sponsor "role description" is attached. Sponsor activities are included in the PoPs. The sponsor roadmap below outlines the key sponsor
activities for Strategic Projects in October/November 2012.
What
When
Chairing the PCP1 trial 16 October 2012
board
How
Who
Setting clear objectives at the beginning of the meeting Executive Board
Ensuring that discussions remain on track
A2, A3
(challenge) – On
board needs
support to lead
change
8
Actively and
visible
partcipation
Managing
resistance
Direct
Communication
11
B2, B3 ( Barrier) –
Neutral or
opposed and
need support to
lead change
B1 ( Threat) –
Neutral or opposed
but are change
capable
4
Areas that need support
A1 ( Advocate) –
On board and
already change
capable
CM Support
Meeting objectives outline
Meeting agenda
3
Ensuring key decisions are made/agreed by the
meeting conclusion
Chairing the Steering Regularly
Committee
throughout the
Program
Setting clear objectives at the beginning of the meeting
Steering
Committee
Ensuring that discussions remain on track
Meeting objectives outline
Meeting agenda
Ensuring key decisions are made/agreed by the
meeting conclusion
Promoting program
objectives with
executive peers and
Secretary
Ongoing
One on one discussions around program objectives and Deputy
key messages with executive peers
Secretaries and
Secretary
Program key messages and
objectives
Change Management
Support
Discussions around program objectives and key
messages at executive meetings
Promoting program 18 October 2012
with Treasury staff Directorate Mtg
Providing a ten minute presentation/Q&A session on
Transformation at the FED Meeting
FED staff
Speaking notes
Samples only
*Prosci
12. Narrowing the Gap: Change Leadership in practice
Kotter’s steps
Leadership Deliverables
Establish a sense of urgency
• Examining market and competitive realities
• Identifying and discussing crises, potential crisis, or
major opportunities
Form a powerful guiding coalition
• Assembling a group with enough power to change
effort
• Encourage the group to work together as a team
Create a vision
• Creating a vision to help direct the change effort
• Developing strategies for achieving that vision
Capability framework for
Executives
Change capability
Operational
Active, Implement, Communicate, Monitor
Tactical
Plans, Steers, Seize opportunity
Strategic
Identify improvement, Drive direction, Create urgency
Capability Framework – People
Management
Manage Reform and Change
14. Are you a Change Leader ?
Organisation
A day in the life of a Change Leader
•
•
•
Communicated the personal messages about the change
Conducted group and individual coaching sessions
Identified analysed and managed resistance
•
•
•
Participated actively and visibly throughout the change
Built a coalition of sponsorship with peers and managers
Communicated directly with employees
•
•
•
Established a clear vision
Aligned leadership with the change management process
Focused on progress and barriers to effective transformation
relationships
•
Involves people meaningfully in the change, giving them a
sense of control, and managing their available capacity
Provides supportive education and training opportunities to
develop knowledge and build competence to behave in the new
ways
Rewards people for engaging with the change and behaving in
these new ways
•
•
15. Support on Leadership and Change
COMMUNITY OF HRPR SSIONALS
OFE
The CoCP benefits individuals,
agencies and the Sector by:
•
•
•
•
•
Driving change leadership
Building change management
capability
Promoting the sector as a preferred
place to work
Strengthening best practice
Providing a strategic forum and
networking opportunities.
The CoHRP benefits
individuals, agencies and the
Sector by:
• Contributing to building the capability of
the sector to improve service delivery to
customers
• Providing access to career
development and mentoring
opportunities
• Lifting the profile of HR Professionals in
the Sector
• Providing a strategic forum and
strengthening best practice
www. comprac.nsw.gov.au
Editor's Notes
There is no debating we are in a time of change and that CM is critical to the successful delivery of reform. What role does CL play in this success? CL IS THE COMPETANCY THAT ENABLES CHANGE IN AN ORGANISATION. What does a leadership competency mean ? – From a project and CL perspective you need to make executive decisions around resources, strategy and scope, timing and dates.….. From a change management and CL perspective you need to take action and being active and visible, communicating and building a coalition What does enabling change look like - linking back to Lorraine's work its about being able to prepare yourself for the change by understanding the changes, adapting to them and developing competencies to manage the change. Then as CEB says its about leading employees through the change - introducing changes/ managing through transition and reinforcing celebrating success. Who are Change leaders – anyone that manages people in these times of change
Now we have a definition why is it important? AS David miller the founder of change works said in April this year ….if we look at Kotter most recent research he is saying that Management methodologies we used in 20th century are no longer sufficient and to drive results with increasing change requires a new type of leader - Mckinsey latest research Org success is based on CL being the catalyst and maintaining momentum. Prosci research shows that over the last 14 years active and visible leadership is the number one contributor to success. Finally Oxford university says that progress lies in the examination of change competencies and building a capability to manage change - finally looping back to David millers work on delivering transformational change he says change doesn’t happen when a new system is on place it happens when someone uses the system and their behaviour changes. So I as you the question is change leadership the difference between implementation and installation ? David says the value gap is achieved if you appoint a dedicated resource to lead the change, allow time for change to be rolled out and train your people to be effect in planning and executing change. Take a moment to think about your recent change activities do you have a value gap and what's missing to achieve implementation for your current change.
Where are we starting from in Government? Hold out report ……In the how is it report for 2012 capability to manage change was an ……so we have a baseline measurement to start from
So how do we start building change leadership to improve the perception of our people on our capability as leaders to manage change. In treasury we started with baseline our skills using a questionnaire with 30 questions that covers L, CM and PM - we then deep dived into change leadership competency looking at an additional 30 questions this then gave us areas to work on as individuals managers and as a leadership team - finally for senior leaders of change we developed roadmaps to support progress
So as you saw at an individual level you can have a roadmap that outlines key areas for development, management level you have areas to work on and areas of resistance and at a reform team level you can outline key change steps and translate them into leadership deliverables …. create a vision would mean the leader does……and at a sector level so for example you can manage for change capability using the PSC framework - future model PSC working on an even deeper piece around managing reform and change to meet the new requirements of our leaders around CL
So finally what does successful CL look like - 14 years of research across 650 organisations across 62 countries shows that if you have a effective sponsor , change leader then you will get a 85% success rate on your reforms vs 36% with an ineffective change leader. I know we all want that additional 49%. what would this look like in your organisation you would have active and visible leaders who are …..allocating resources and funding
What about you …Are you a change leader or do you have CL in your organisation – how do you know - I have had the privilege of working with Great change leaders and if I think about what a day in their life looked like then in Optus when we created OV Kevin …..in MS when we migrated across EMEA Elaine ….in Treasury through our Org change Phil and in Transformation MM is …………Is this what your day looks like or your leaders days look like who are in the midst of reform????
Thankyou and if you need further information or support we have 2 communities of practice around Leadership and Change to support you