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Leadership & motivation in the Public Sector Some lessons from experiences in the private & public sector Laurent Ledoux EIPA 24/06/08 [email_address] Dedicated to Matthias Moyersoen

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Agenda 2 Why PS modernization has not always (yet) led to higher motivation 3 Possible next steps 1 A quick & dirty overview of possible theoretical frameworks

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Key elements in the evolution of organizational models A quick & dirty overview of possible theoretical frameworks “ Bureaucratic” Model Developed in the Public Sector “ Commitment” Model <ul><li>Stable environment with heavy demand </li></ul><ul><li>“ Sound” management: </li></ul><ul><ul><li>Simplifying work tasks </li></ul></ul><ul><ul><li>Following rulebooks </li></ul></ul><ul><ul><li>Establishing tall hierarchies </li></ul></ul><ul><li>1st rewards: economic (incl. security) </li></ul><ul><li>Compliance: Command & Control </li></ul><ul><li>Growing turbulence: 3 C’s - Competition, Customers, Change </li></ul><ul><li>“ Sound” management: </li></ul><ul><ul><li>Ensuring client-focus </li></ul></ul><ul><ul><li>Stimulating initiative, innovation,… (commitment) </li></ul></ul><ul><ul><li>Cutting down hierarchies (flat) </li></ul></ul><ul><li>Eco. rewards not enough to buy commitment </li></ul><ul><li>Partnership </li></ul>Imported in the Private Sector <ul><li>Transactional leadership </li></ul><ul><ul><li>Tasks first </li></ul></ul><ul><ul><li>Workers resist imposed change </li></ul></ul><ul><li>Transformational leadership </li></ul><ul><ul><li>People first: commitment through meaningful task purpose </li></ul></ul><ul><ul><li>Committed workers initiate changes when their purpose is threatened or they see a better way of accomplishing it </li></ul></ul>Imported in the Public Sector Developed in the Private Sector

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What is there behind the «Commitment» model ? A simple HRM model* ? New organisational & leadership forms Motivation Individual & organizational performance Worker autonomy <ul><li>What performance? </li></ul><ul><li>Is it better to talk about value creation? </li></ul><ul><li>How do you measure? </li></ul><ul><li>How do you attribute it? </li></ul>? ? ? <ul><li>What is motivation? (continuum from intrinsic to extrinsic; PSM) </li></ul><ul><li>Can it be abstracted from the social context? (PO fit & alignment of interests) </li></ul><ul><li>Dynamic (commitment) or static (satisfaction) ? </li></ul><ul><li>Can the worker really participate? </li></ul><ul><li>Does the worker internalize the new regulation forms? </li></ul><ul><li>Which job/ org. design? </li></ul><ul><li>Is leadership compatible with autonomy? </li></ul>* Adapted from Steijn, Bram: “HRM in the public sector: a neglected subject”, PUMA/HRM (2002)13 A quick & dirty overview of possible theoretical frameworks

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You focussed yesterday on Public Service Motivation and its applications* Leadership Individual Public Service Motivation Individual & organizational performance Basic psycho. needs “ satisfaction” * Adapted from Vandenabeele, Wouter: “Leadership promotion of public values: PSM as a leadership strategy in the Public Sector” A quick & dirty overview of possible theoretical frameworks Today’s focus Promotion of public values Promotion of new designs & behaviors <ul><li>Job/org. design </li></ul><ul><li>Perf./Mem-bership behavior </li></ul><ul><li>… </li></ul><ul><li>Politics & Policies </li></ul><ul><li>Public interest </li></ul><ul><li>Compassion </li></ul><ul><li>Self-sacrifice </li></ul><ul><li>Democratic governance </li></ul><ul><li>Autonomy </li></ul><ul><li>Competence </li></ul><ul><li>Reletadness & Security </li></ul>Today’s focus <ul><li>Controlled </li></ul><ul><li>Extrinsic motiv. </li></ul><ul><li>External regulation </li></ul><ul><li>Introjection </li></ul>

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Basic psychological needs satisfaction can be viewed as generic «intrinsic» rewards produced by and reinforcing self-management events* Intrinsic rewards Self-management Opportunity (Autonomy) rewards Accomplishment (Competence) rewards From Task Activities From Task Purpose * Adapted from Thomas, Kenneth & Jansen, Erik: “Intrinsic motivation in the Military: Models & strategic importance” Sense of Relatedness & Security Sense of Choice Sense of Competence Sense of Progress Sense of Meaningfulness Experiencing Relatedness & Security Choosing Activities Monitoring Competence Monitoring Progress Committing to Purpose A quick & dirty overview of possible theoretical frameworks Energy Judgments

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A few building blocks to increase generic «intrinsic» rewards* A quick & dirty overview of possible theoretical frameworks <ul><li>Relatedness & Security </li></ul><ul><li>Team spirit </li></ul><ul><li>Team KPI’s & rewards </li></ul>Choice - Delegated authority & trust - Security (no punishment for honest mistakes) - A clear purpose & information Competence Challenge – Knowledge - Pos. feedback & Skill recognition - High, non-comparative standards - Progress A collaborative climate - Milestones & celebrations - Access to customers - Measurement of improvement - Meaningfulness - A non-cynical climate - An exciting vision - Relevant task purposes - Whole tasks * Adapted from Thomas, Kenneth: “Intrinsic motivation at work”

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«Architectural» & «charismatic» roles of leadership to increase generic «intrinsic» rewards A quick & dirty overview of possible theoretical frameworks Leading for Relatedness & Security Team building Leading for Choice Handing off Leading for Competence Coaching Leading for Progress Scorekeeping & Cheering Leading for Meaningfulness Inspiring

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Agenda 2 Why PS modernization has not always (yet) led to higher motivation 3 Possible next steps 1 A quick & dirty overview of possible theoretical frameworks

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The recent fall of job satisfaction in the Public Sector cannot be equated to a fall in motivation <ul><li>Recent surveys (early 2000) in various countries show that job satisfaction in the PS is currently under pressure </li></ul><ul><li>However, the reasons for this lower job satisfaction do not necessarily hint at a lower “motivation” </li></ul><ul><li>It rather possibly hints to the contrary , ie a growing willingness to get things done and frustration by a system that hinders it </li></ul><ul><li>2 Examples* : </li></ul><ul><ul><li>USA : lower morale of civil-servants between 2001 and 2002 would be due to: </li></ul></ul><ul><ul><ul><li>growing complaints about bureaucracy in their organization </li></ul></ul></ul><ul><ul><ul><li>the unmet need to address under-performing co-workers </li></ul></ul></ul><ul><ul><li>Netherlands : job satisfaction decline in 2002 would be essentially due to: </li></ul></ul><ul><ul><ul><li>growing dissatisfaction with organisation & management, essentially with a leadership style still too much characterised by “management by control” </li></ul></ul></ul>Why PS modernization has not always (yet) led to higher motivation * From Duvillier, Thibaut & Co: “La motivation au travail dans les services publics”

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Explanations for the fall in job satisfaction (and motivation?) can be partly found in the incoherence of many HRM modernisation programs* <ul><li>Incoherence can take many forms </li></ul>Why PS modernization has not always (yet) led to higher motivation Syndromes Incoherence Nature Proto-modernisation Internal Change in a limited number of HRM variables while the others are maintained unchanged Pseudo-modernisation Discursive Growing formalization of several HRM Variables through “objectiving” instruments Post-modernisation Contextual Changes in all the HRM variables but without modifying the way things are done Turbo-modernisation Processual Hasty top down approach, imposed without discussion on final objectives with lower and therefore without their buy-in * From Pichault, François: “Leadership et modèles de gestion des ressources humaines”

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<ul><li>Possibly an equally or more cynical climate than before </li></ul><ul><ul><li>Conscious dismantling of reforms initiated by a previous minister or government </li></ul></ul><ul><ul><li>High increase in salary of top civil servants to attract people from outside but most appointed top civil servants finally come from the administration; While top civil servants wages increase, little is done for middle managers (broke the psy. contract) </li></ul></ul><ul><ul><li>Despite this, top civil servants are probably not enough extrinsically rewarded for intrinsically motivating their people </li></ul></ul><ul><ul><li>top civil servants are given a formal mandate but very little powers to implement them (their capacity to (re)allocate resources is still very much constrained) </li></ul></ul><ul><li>Difficulty to formulate an exciting vision </li></ul><ul><ul><li>No real interest in reforms by most politicians (ST versus LT preoccupations) </li></ul></ul><ul><ul><li>Too often a one-time check-in-the-box requirement </li></ul></ul><ul><ul><li>Growing motivational dilemma due to real of apparent divergence between public values and managerial values </li></ul></ul><ul><li>Despite some improvements thanks to BPR’s, whole tasks are still rare and silos strong </li></ul><ul><ul><li>Most work remains activity-centered rather than purpose centered </li></ul></ul><ul><li>Devotion to the “cult of rigorous PSM” but too little attention to its concrete outcomes </li></ul>Elements of incoherent modernisation program may affect the sense of meaningfulness Sense of Meaningfulness Why PS modernization has not always (yet) led to higher motivation

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Elements of incoherent modernisation program may affect the sense of choice <ul><li>Despite all the promises, little authority and trust are delegated and this, at all levels </li></ul><ul><ul><li>Still too much micro-management and approval procedures (controls rather than commitment perspective; no real empowerment; pseudo-modernization) </li></ul></ul><ul><ul><li>Too often only trivial decisions are delegated; delegation happens also too often in a “one-size-fits-all” fashion: all signs that low trust remained, at all levels </li></ul></ul><ul><li>Despite nice words on the need to be innovative, zero-defect mentality is still prominent and is often not justified nor correctly implemented </li></ul><ul><ul><li>Finance Inspectors are not yet “controllers”, partnering with management to reach objectives </li></ul></ul><ul><ul><li>Ex-ante controls are still much more numerous than serious ex-post controls, even for tasks where mistakes would not be catastrophic </li></ul></ul><ul><ul><li>Too many people still spend too much time on playing “gotcha” </li></ul></ul><ul><li>Horizontal communication is still very much constrained by top management </li></ul>Sense of Choice Why PS modernization has not always (yet) led to higher motivation

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Elements of incoherent modernisation program may affect the sense of competence <ul><li>Too often absence of a burning platform to request people to “stretch” themselves </li></ul><ul><li>Too many still find refuge in doing some things well (craftmans) but often in things that lead to little value creation </li></ul><ul><ul><li>When there are well managed, BPR’s can help change that </li></ul></ul><ul><li>Training incentives are not set-up to stimulate the acquisition of needed competencies </li></ul><ul><ul><li>No real investments in people’s development and bad use of financial incentives </li></ul></ul><ul><li>Knowledge management is still very much hindered by “knowledge is power” attitudes </li></ul><ul><li>Absence of benchmarking makes it difficult to follow high standards </li></ul>Sense of Competence Why PS modernization has not always (yet) led to higher motivation

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Elements of incoherent modernisation program may affect the sense of progress <ul><li>Too few quick wins – too many civil servants expend energy in reforms with few visible results </li></ul><ul><li>Some KPI’s start to be followed but too often they still focus on inputs, not enough on outcomes </li></ul><ul><li>Mobility & internal labor markets promotion is still too much hindered by power games and not conceived as a positive factor for pers. & org. dev. </li></ul><ul><li>Celebration of milestones is too rarely allowed (considered inappropriate) </li></ul>Sense of Progress Why PS modernization has not always (yet) led to higher motivation

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Elements of incoherent modernisation program may affect the sense of relatedness & security <ul><li>HRM remains too impersonal </li></ul><ul><ul><li>Increase of the importance of instrumental values (eg competencies) while PS essentially based on respect of terminal values (equity, respect,…) </li></ul></ul><ul><li>Pay is not enough treated as an equity issue (perceived fairness), that can supplement intrinsic motivation </li></ul><ul><ul><li>Equity is a principle of fairness that basically says that your outcomes (rewards) should be proportional to your inputs (performance) </li></ul></ul><ul><ul><li>Too many people have the illusion of “doing well” while those that really do the work are not fooled; Inequity is often hidden because performance is not measured </li></ul></ul><ul><ul><li>Great divergence, implicit or explicit, in individual and organizational interests </li></ul></ul><ul><li>New dynamic young recruits are quickly (less than 3 years) neutralised or “expulsed” </li></ul><ul><li>Opportunity of forthcoming large departures (due to pyramid age) is not fully or systematically exploited </li></ul>Sense of Relatedness & security Why PS modernization has not always (yet) led to higher motivation

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Applying theory to a personal case: «my» story in the Public Sector in a cartoon by Kroll* <ul><li>Why I finally left: </li></ul><ul><li>Negative regular check-up of my job along the 5 elements of intrinsic motivation </li></ul><ul><li>Growing realization of the contradictions between my Public Service Motivation (PSM) ideal and its daily application </li></ul><ul><li>As a result, growing difficulty to set high expectations for my own intrinsic motivation </li></ul>Why PS modernization has not always (yet) led… * Published in TeleMoustique in 2001

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Rootcauses for incoherent modernisation & motivation issues can be found to a great extent in a lack of political & managerial leadership People neglected (or used by politicians) No holistic approach (& too little IT investm.) Lack of managerial leadership Impersonal ideal of neutrality Ambiguous objectives Lack of political Leadership Reform level Underlying Beliefs Level Incoherent modernisation & its consequences (Fall in job satisfaction, motivation,…) Syndromes Why PS modernization has not always (yet) led to higher motivation

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Agenda 2 Why PS modernization has not always (yet) led to higher motivation 3 Possible next steps 1 A quick & dirty overview of possible theoretical frameworks

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In order to increase structurally intrinsic motivation in the public sector, we need to adress rootcauses and current deficiencies in political & managerial leadership <ul><li>Granted: “easier said than done…” </li></ul><ul><li>(To be discussed) </li></ul>Invest massively in people with a focus on increased perf. Test coherency of programs & invest massively in IT Give managers real powers to fulfill their mandates Make HRM more personal & objective Request reforms KPIs & benchmark Make ministers more accountable for reforms Possible next steps

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Final remark : u nderstanding motivational drivers is key to understand misunderstandings regarding New Public Management <ul><li>U nderstanding how motivation “works” may help bridge between old and new public management </li></ul><ul><li>Besides a few specific factors and Public Service Motivation, is it fundamentally different to motivate people in the public sector? </li></ul><ul><li>Generic “intrinsic” motivation should not be confused with Public Service Motivation </li></ul><ul><ul><li>PSM is probably not enough to motivate people in the long run if the 5 basic psychological needs are not sufficiently satisfied </li></ul></ul><ul><li>Many modernization programs in the Public Sector have probably greatly suffered from a lack of attention towards the 5 “intrinsic” rewards discussed in this paper </li></ul>Possible next steps