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Inside the Architecture of Reform:
LEADERSHIPFocusing on leadership capabilities critical to meet future challenges.. The NSW Treasury Experience
Lorraine SalloumHead of Human Resources
Jeanette Allom-HillChange Director, Financial Management Transformation
Interaction between leaders, organisation and the environment determines leader performance
Leader
Environment Organisation Leader Performance
Leadership Performance – having the appropriate organisation and leaders given the external situation
What most organisations do versus what the best organisations do*
‘Legacy Leader’ ‘Organisational Obstruction’
‘Static System'
ChallengeEnvironment 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
Performance-Lift Factor: Focus on the capabilities critical to meet future challenges
Misaligned emphasis and poor support expose leader performance to risk
• Leaders prioritise the wrong competencies
• Organisations don’t support Leaders to apply them correctly
The questions to ask..
• 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?
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 • 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.
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.
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.
The Treasury Behavioural Evidence Guide
Defining expectations of the Leader in a complex and changing environment
“A leadership competency for enabling change within an organisation. “ Prosci 2012
What is Change Leadership?
Prosci
Prosci
A Leadership Competency Enabling Change
Our workplaces are constantly changing and therefore change leadership should be a part of every managers essential skills. Changeleadership.com 2008
Why is Change Leadership Important?
www.changefirst.com
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
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
Successful Change Leadership is the
difference between Implementation and
Installation
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)
2. Assess competency
How do you start building Change Leadership?
1. Baseline skills
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 How Who CM Support
Chairing the PCP1 trial board
16 October 2012 Setting clear objectives at the beginning of the meeting
Ensuring that discussions remain on track
Ensuring key decisions are made/agreed by the meeting conclusion
Executive Board Meeting objectives outline
Meeting agenda
Chairing the Steering Committee
Regularly throughout the
Program
Setting clear objectives at the beginning of the meeting
Ensuring that discussions remain on track
Ensuring key decisions are made/agreed by the meeting conclusion
Steering Committee
Meeting objectives outline
Meeting agenda
Promoting program objectives with
executive peers and Secretary
Ongoing One on one discussions around program objectives and key messages with executive peers
Discussions around program objectives and key messages at executive meetings
Deputy Secretaries and
Secretary
Program key messages and objectives
Promoting program with Treasury staff
18 October 2012 Directorate Mtg
Providing a ten minute presentation/Q&A session on Transformation at the FED Meeting
FED staff Speaking notes
Change leadership activities
Change Management Support
3. Roadmaps for development and tracking progress
A2, A3 (challenge) – On board needs support to lead change
8
A1 ( Advocate) – On board and already change capable
11
B2, B3 ( Barrier) – Neutral or opposed and need support to lead change
4
B1 ( Threat) – Neutral or opposed but are change capable
3
Areas that need support
*Prosci
Samples only
Narrowing the Gap: Change Leadership in practiceKotter’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 – People Management
Manage Reform and Change
Capability framework for Executives
Change capability
Operational Active, Implement, Communicate, Monitor
Tactical Plans, Steers, Seize opportunity
Strategic Identify improvement, Drive direction, Create urgency
What is the outcome of effective Change Leadership?
36% 40%
73%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Sponsor was veryineffective (average
score < 2)
Sponsor wasineffective (average
score between 2 and3)
Sponsor was effective(average score
between 3 and 4)
Sponsor was veryeffective (average
score between 4 and5)
Correlation of sponsor effectiveness to meeting project objectives
Sponsor effective rating average
Per
cent
of r
espo
nden
ts th
at m
et
or e
xcee
ded
proj
ect o
bjec
tives
© Prosci. From Prosci’s 2012 Best Practices in Change Management benchmarking report
Active and Visible Leaders:1. Allocate resources and
funding 2. Set expectations 3. Hold the team accountable
Leaders Communicate by:1. Building awareness on why
the change is being made2. Sharing the risks if no change 3. Showing how change aligns
with overall direction
Leaders build a coalition by:• Determining and
communicating priorities• Establishing alignment
around business and change objectives
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
Are you a Change Leader ?
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
Support on Leadership and Change
www. comprac.nsw.gov.au