ddunoon - rethinking leadership for the public sector

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RETHINKING LEADERSHIP

FOR THE PUBLIC SECTOR

Don Dunoon

Director

New Futures Pty Ltd

Australian Journal of Public Administration 61(3): 3-18,

September 2002

Reproduced with the kind permission of the National Council of the Institute of PublicAdministration, Australia

Leadership and management are best thought of as a matter of competencies. Or

are they? The paper challenges the current orthodoxy in Australia on this

question, and suggests that leadership and management need to be regarded as

reflecting opposing values. The paper also distinguishes between charismatic and

collective forms of leadership, and proposes the latter as likely to be of greater

value in a public sector context. A challenge for public sector organisations is how

to strike and maintain a suitable balance between management for ongoing

operations and leadership for deep-reaching change. Strategies for developing

collective leadership capability are suggested.

Leadership is a topic attracting mixed reactions in the Australian context, and in the public sector

in particular. At one level, there is recognition of the need for leadership if public sectororganisations are to be better able to respond to the changing expectations of political and

community stakeholders (Mellors 1996; Barrett 1997). Yet one also senses an ambivalence

surrounding leadership, sometimes expressed through questions such as: Is it leadership that we

need or better management? Doesn't a focus on leadership imply an uncritical acceptance of

corporate models? Isn't there a danger of maverick leaders hijacking or distorting government

agendas? Staff might ask, won't an emphasis on leadership reinforce the power of existing elites?

This paper contends that, to deal effectively with the more difficult and contentious issues theyface, public sector organisations do require leadership, but of a type somewhat different from

conventional models. Referred to here as learning-centred leadership, the approach involves

fostering the conditions under which people, working together, are better able to create new

visions, productively deal with underlying issues, generate fresh insights and change work place

cultures. Learning is seen not as an end in itself but in terms of building the capability of

organisations, groups and individuals for effective action.



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The development of such capability requires a reassessment of the meaning of leadership. This

has two aspects. First, there is a need to examine the relationship between leadership andmanagement. Contrary to the conventional wisdom in Australia, this paper takes the view that

leadership and management are different and this is a difference of consequence. It is suggestedthat in this country there has been a tendency to view leadership through a management lens,

with public sector organisations tending to over emphasise management at the expense of

leadership. One impact is a disproportionate focus on operational aspects and crisis management

as distinct from building capability to be effective tomorrow (AbeII 1999).

The second aspect of reappraising leadership is to consider the values and assumptionsunderlying leadership practices and development programs (Heifetz 1994). Leadership can mean

many different things, and unless underlying meanings are made transparent there is a potential

that leadership development efforts may be only partially effective or even counter productive.

The paper reviews established concepts of transformational leadership and distinguisheslearning-centred leadership from charismatic approaches to transformation. Learning-centredleadership is proposed as a frame through which leadership can be viewed, rather than as a

specific program or methodology. The approach, in a public sector context, is concerned withincreasing the capacity of organisations to implement the priorities of government effectively,

achieve cultural change and deal productively with difficult and emerging issues.

Implications for leadership practice and development are discussed, with a focus as much on

organisational as individual development. Three key areas are proposed for attention by

individual agencies: the development of an infrastructure to support collaborative leadership,

clarification of supportive organisational values, and the development of skills, particularly in

conversing productively about difficult issues. It is recognised, though, that the development of leadership capability, no matter which approach is followed, is problematic.

The Need for Leadership

It is difficult to discuss the need for leadership before exploring the meaning of the term, so for

the moment the reader is asked to accept the proposition that leadership is concerned with deep-

reaching change, particularly when shifts in underlying assumptions and beliefs are required. As

Behn (1998) points out, without leadership by managers, public sector organisations would be

unable to achieve what governments require of them. He points to factors underscoring a need

for leadership including the possibility of ambiguous or unclear directions from government, thedanger of capture of agencies and programs by sectional interests and the need to deal with

organisational dysfunction, such as when parts of an organisation are pursuing conflicting

agendas.

While the need for leadership at top management levels in establishing policy and directions

might be accepted, subsequent implementation is often seen as a relatively technical, linear

matter - more a question of effective management than leadership. However, as Beer and

Eisenstat (2000) suggest, implementation efforts frequently go awry, and for reasons which



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could be avoided. They identify six sources of implementation error: top-down or laissez-faire

senior management style, unclear strategy and conflicting priorities, an ineffective seniormanagement team, poor vertical communication, poor cross functional coordination and

inadequate down-the-line leadership skills and development. Later in this paper it will besuggested that creating the conditions under which these sorts of problems are less likely is itself

a leadership challenge.

Many of the problems that government organisations - and governments - face are messy and ill

defined with different possible interpretations and pathways for action. The terms 'wicked

problems' (Harmon and Mayer 1986:11) and 'adaptive problems' (Heifetz 1994:8) have beenused to describe such problems, the main characteristic of which is that there is no technically

correct answer waiting to be found. Contemporary examples include balancing the needs of

salinity management and farmers, reconciling development and heritage values in urban areas

and dealing with youth homelessness. Part of the leadership challenge in working with such

issues is to harness and integrate the knowledge and expertise of diverse people and groups, tomake explicit and scrutinise underlying assumptions and to build common ground and

momentum for change. Without leadership, the likely outcomes are reactive decision-makingand unsatisfactory compromises that leave the deeper issues largely unchecked.

Achieving cultural change is another leadership challenge facing public sector managers. One

example is the need in the health services to create a more open culture in relation to

acknowledging and dealing with clinical errors and to gain greater involvement of clinicians in

quality improvement efforts (Leap 1994; Wilson et at. 1995). In relation to place management

initiatives, Walsh (2001) observed: 'improving responses to local communities will require

attention to issues of culture and relationships and an end to compartmentalised mentalities and

behaviour in the public service at all levels'. Cultural change is always difficult, particularly incases like those described where behaviour is based on deep beliefs and assumptions that may

have been shaped over decades, if not generations. There are many intricacies for leadership in

culture change, including dealing with strongly held emotions, encouraging people to question

what has been taken as given and not least the fact that change leaders may be steeped in the

same culture themselves (Schein 1992). While one is wary of over simplifying highly complexissues, it is difficult to see how such changes could come about in the absence of positive

leadership.

Organisations may state that they are already focusing attention on leadership and its

development, and no doubt in various ways they are, perhaps with great success in some cases.

The intention here is not to diminish these efforts or to suggest that present approaches are'wrong'. Rather the aim is to encourage reflection on the values and assumptions underpinning

those approaches and to open up possibilities for enhancing what is presently being done. One

area where some reappraisal could be useful is in the relationship between leadership and

management.

Leadership and Management - A Question of Competencies?



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Most, if not all, Australian jurisdictions have developed competency frameworks for their senior

executives (Morley and Vilkinas 1997). While their approaches vary somewhat, theseframeworks generally share an implicit assumption that leadership and management at senior

levels are much the same thing, or at least cannot usefully or meaningfully be distinguished.Perhaps the most authoritative support for this view comes from Enterprising Nation, report of

the Industry Task Force on Leadership and Management Skills, better known as the Karpin

Report (Industry Task Force 1995). Drawing on the findings of specially commissioned research

(Craig and Yetton 1995), the task force took the view that, rather than trying to distinguish

between leadership and management, 'the more pertinent questions centre around the broad areas

of competence that managers in the new structures require' (Industry Task Force 1995:135).

In their research report for the task force, Craig and Yetton noted (1995:1185) that thousands of

leadership studies had failed to discern any traits, behaviours or qualities that could be reliably

used to set leaders apart from others and to form the basis of leadership selection and

development. They further concluded (1995:1213) that 'since the search for the leadershippanacea has failed everywhere else, it seems a bit pointless to try and find or develop specifically

Australian leaders ... However, there is a whole range of theories and techniques that have beenshown to improve organisational performance. These all deal with managerial competencies'.

While management competency frameworks have their value, for example in providing a

structure to guide processes such as selection or 360-degree feedback, one would be wary of

relying too heavily on them. Ultimately, any framework reflects the biases and assumptions of its

creators. A review of the various SES frame works in terms of their underpinning - and perhaps

implicit theories - of leadership could be a useful research project.

In the writer's view, Craig and Yetton and - by extension the Industry Task Force - have erred inconceptualising leadership as being primarily a matter of the characteristics and behaviours of

individual 'leaders'. They correctly recognised that there is more to organisational effectiveness

than focusing on the potential and actions of high calibre individuals, and this apparently led

them to play down the contribution of leadership. Perhaps for this reason, the Task Force onLeadership and Management Skills focused mainly on management (Sheldrake 1997).

A more useful approach may be to conceptualise leadership, not in terms of the attributes of individuals, but as a mode or action quite distinct from management, as advocated by Harvard

professor John Kotter (1990). Kotter argued that leadership and management, are two sides of a

coin; leadership being about coping with change while management is about ensuring stability

and continuity. Kotter saw both leadership and management as necessary with organisationsneeding to find and maintain a suitable balance between the two modes. Organisations need to

develop leader-managers with capability in both domains, while recognising that some

individuals will have preferences for management and others for leadership. Similar distinctionsbetween leadership and management have been made by other authors including Bennis and

Nanus (1985:217-18)

Before developing the contention that the distinction between leadership and management is oneof consequence for the public sector, it is necessary to consider further the meaning of leadership



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and management and, in particular, to critically assess the values and assumptions implicit in

each. It is important to acknowledge at this point a potential danger in creating a bi-polardistinction between leadership and management, in that too much may be made of the difference

(Barker 1997). The ability to hold leadership and management apart is necessary if organisationsand individual executives are to be able to consider what leadership means to them, in their

context, and how much of their effort is being devoted to leadership. Equally, the distinction

between leadership and management must be a soft or 'permeable' one, recognising that both

leadership and management are required, that there is a degree of overlap between them, that

many or most managers probably do some of each, and that different balances between

leadership and management may be required at different levels of the hierarchy (with senior

managers focusing more on leadership).

It is also important to recognise the realities of leading and managing in contemporary public

sector environments, among them intense pressures for achieving results, maintaining

accountability, using resources efficiently and responding quickly to changes in direction orpriorities. In order to enable a clear assessment of the values implicit in leadership and

management, however, consideration of the effects of these pubic sector realities is head overuntil later in the paper.

The Management Mode of Operating

According to Kotter (1990), management - as a manner of operating rather than a formal role or

set of roles - is concerned with such aspects as planning and budgeting, organising and staffing,and controlling and problem solving. Management, from his perspective, is concerned with

predictable and orderly operations.

Extending Kotter's view, the focus of management, as distinct from leadership, can be seen as

being on ongoing concerns, such as delivering results for customers or clients, solving routine

problems, improving business processes and ensuring control and account ability through

monitoring, measuring and reporting on performance. The emphasis is on rational analysis

(Barker 1997) and the 'harder', more explicit aspects of organisation such as plans, policies,tasks, service level agreements and the like.

This is not to say that the management way of working is simply concerned with tangibles and

not with people. Management is sometimes described as 'getting things done through people'.

This can take different forms, on a continuum from a directive approach to a more empoweringstyle.

The directive approa.ch relies on formal authority and implies unilateral decision making,

although desirably informed by consultation with those affected. Directive approaches can be

necessary in situations where external circumstances dictate a particular response, or where

unpopular decisions need to be taken. Consider, for example, the local government council in

which top executives decide, after consultation, that the only resources for an important service

enhancement can come from a reduction in over time for a group of staff. As the staff are



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opposed to such a decision, the only way it can be taken is by direction - although desirably with

the reasoning made explicit.

A problem with directive approaches, however, is that they can be at odds with the need to build

staff commitment to change and improvement. If used excessively, such approaches can

encourage a self-fulfilling logic among senior executives, that they need to act decisively as staff

are not 'on side'.

In a more empowering approach to management, the strategy involves clarifying directions,

assigning responsibilities, allocating resources, ensuring people have the skills and othersupports needed, and holding them accountable for results (Quinn and Spreitzer 1997). However,

as these authors suggest, such an approach is likely to place little emphasis on the development

of people in ways that enable them to contribute fully as members of the organisation. Moreover,

as the management mode implies a strong operational orientation, problem solving is likely to be

confined to task or technical matters, where reaching agreement on a solution is relativelystraightforward. An empowerment-oriented management style, by itself, is unlikely to create theconditions necessary for dealing with the deep and multifaceted issues implied in cultural

change.

Take the example of two departments, one responsible for maintenance and one for operations,

in a state infrastructure agency. The departments are in continual conflict and relations between

them are poor. A particular conflict arises around the introduction of a new business system. Top

managers are able to get the departments together to resolve this issue, but after this it is business

as usual: the underlying tensions continue to bubble away with adverse effects on

productiveness.

Dealing effectively with deeper issues, such as between the departments, implies the need for an

organisation to be capable of handling disagreement or contention constructively (Goss et al.

1993). This requires an organisational tolerance for differing perspectives, a respect for the

contribution of others and processes to help the protagonists find common ground. When there iscontention there is threat and discomfort, and these are at odds with the values of stability,

control and predictability central to the management mode.

While organisations in which the management mode dominates often declare values like respect,

trust and diversity, the experience of people in the organisation is likely to be that actual practice

falls a good way short of the stated values. Unless managers and staff believe that the stated

values really do drive behaviour, they are likely to be pessimistic about the organisation's abilityto deal with its problems, and mistrust, cynicism, blame and the avoidance of threatening issues

can figure strongly. Changing these dynamics is a leadership issue.

Perspectives on Leadership

While many leadership frameworks can be found in the academic and practitioner literatures, the

attention here is towards approaches that can be broadly described as transformational, drawing



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on the ideas of Burns (1978). Burns emphasised transformational leadership as a process of

mutual influence in which leaders inspire followers by recognising and responding to their morenoble needs:

The transforming leader looks for possible motives in followers, seeks to satisfy

higher needs, and engages the full person of the follower. The result of transforming

leadership is a relationship of mutual stimulation and elevation that converts

followers into leaders and may convert leaders into moral agents (Burns 1978:4).

His stress on the higher needs is in keeping with a public sector emphasis on ethical conduct andprobity, and precludes the actions of charismatic but malevolent or narcissistic individuals being

considered as 'leadership'.

Two approaches to transformational leadership can be identified. The first might be termed

charismatic transformation (Stace and Dunphy 1994) and emphasises the individual leader as theagent of transformation or deep change. The second approach, referred to here as learning-

centred leadership, reflects a more collectivist view of leadership, and emphasises processes suchas dialogue and other forms of reflective conversation to build shared understandings and

momentum for change. A distinction needs also to be drawn between leadership and formal

authority (Heifetz 1994). A good deal of the so-called leadership by some people in positions of

authority might more accurately be described as management behaviour.

Much of the popular leadership literature takes a charismatic transformational stance. The

emphasis tends to be on the individual leader as defining and articulating a compelling vision forthe future, as engaging and inspiring staff towards the desired direction, and as building

alignment of people, structures and systems to support the vision. The leader's role as coach,facilitator and supporter of people is commonly emphasised, as are contemporary social values

such as trust, respect and diversity. Examples broadly falling within this school of thought

include the works of Kouzes and Posner (1987), Tichy and Devanna (1990) and Dess and Picken

(2000).

While not denying that some organisations, including in the public sector, may have achieved

dramatic change under charismatic chief executives, a number of issues arise with such an

approach to leadership. The possibility exists that the leader's vision, or the strategy for

implementation, may be flawed or out of step with government priorities. The 'aura' surrounding

the leader may reflect a cult of personality, making it difficult - or at least risky - for others to

criticise the leader's views or to offer contending ideas. As a result charismatic leaders may notreceive the feedback necessary to prevent problems arising; for example, differences of view

around vision or implementation may be suppressed or masked (Morrison and Milliken 2000).An excessive focus on the leader may inhibit the development of a depth of leadership capability

in the organisation, potentially leaving it vulnerable in the event of new challenges arising or the

leader's voluntary departure or contract termination. While leaders seek the 'buy-in' and

commitment of staff, it may be that what staff offer is compliance, in the sense of making all the

right noises in public but privately switching off or even rebelling. Although leadership isnecessary in public sector organisations, the charismatic perspective is of limited utility as a



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general model - notwithstanding that some individuals may demonstrate charismatic qualities

and behaviours to good effect.

Perhaps a fear of some of the aspects of the charismatic style contributes to ambivalence towards

leadership, as suggested in the introduction, with concerns such as the maverick leader

reinterpreting government policy to suit their own agenda, or the ego-driven leader preoccupied

with self-promotion. If organisations do not have a viable alternative concept of leadership to the

charismatic approach, they can find themselves caught between an understanding that they need

leadership and their fear of leadership. The response may be a top-down management style with

declarations upholding leadership-related values. Employees may also find themselves in a bind.They can see the contradictions between espoused values and actual practice. Yet they remain

silent because of the perceived threat involved in raising these issues with senior management

{Argyris 1990). This dynamic can fuel resentment, frustration and a disengagement with the

organisation - all of which make organisational goals harder to achieve.

Learning-centred Leadership

To begin with, a qualification: the term learning-centred leadership is used here to enable a

contrast to be drawn with charismatic leadership. The intention is not to imply that there is one

best way or style of leadership but rather that there are differing underlying values, and that

perhaps the core values of learning-centred leadership are, generally speaking, more helpful to

public sector organisations than those of charismatic transformation.

The conceptual basis of learning-centred leadership comes from organisational learning theory,

reflecting the contributions of scholars such as Argyris (in many publications, for example,1990,1991), Senge (Senge 1990; Senge et al. 1994) and Dixon (1994). Following the publication

of Senge's The Fifth Discipline in 1990, 'the learning organisation' was something of a fad in this

country, including in public sector organisations, in the early to mid 1990s. At the time there was

a tendency by consultants and practitioners to focus on quick fixes and simple prescriptions, and

when these failed to deliver the desired results the learning organisation went the way of all fads.

However, organisational learning theory is much more than a fad and has a significant historydating back over 25 years (Senge, quoted in Fulmer and Keys 1998).

The following definition from Dixon (1994:5) may help to convey something of the nature of

organisational learning:

[Organisational learning is] the intentional use of learning processes at the

individual, group and system level to continually transform the organisation in adirection that is increasingly satisfying to stakeholders.

The intentional use of learning processes implies that learning is not just a haphazard affair but

something that needs to be consciously worked at. Dixon (1994:5) emphasises learning as a

'dynamic process of the construction and reconstruction of meaning'. She adds that 'learning



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concerns the processes the organisation uses to gain new understandings or correct the current

understanding; it is not the accumulated knowledge of the organisation'.

Leadership from an organisational learning perspective is to do with creating the conditions

under which organisational members, jointly and individually, can better make sense of, or

interpret, issues and opportunities they face that are not purely of a technical nature, and then

take effective action. Leadership, from this standpoint, is essentially about capacity building

(Heifetz 1994). Leaders at all levels can contribute to developing the capacity of others in the

system for getting to the core issues beneath apparent problems, generating and testing ideas

about what might be achieved, and mobilising energy for action. The challenge of leadershipdevelopment becomes one of developing a 'leadership ecology' in which leadership is a valued

mode of operating throughout the organisation (Fulmer and Keys 1998).

One key leadership capability is in helping others to make meanings clear. This involves

enabling people to recognise what they may take for granted and generate new ways of seeing,and helping them to apply these understandings in action. When people are able to frameproblems differently, they open possibilities for acting that otherwise could well have been

outside their field of view. In this sense of assisting people to reframe issues and opportunitiesand identify viable pathways for action, learning-centred leadership is transformational.

However, the transformation occurs not so much through individuals responding to the appeal of

a charismatic individual, but through processes that executives and others design, nurture and

model.

A learning-oriented approach to leadership may also avoid or minimise some of the problems

associated with the charismatic approach. The prospect of the maverick leader is likely to be less

of a problem if leadership responsibility is widely distributed and ideas are contestable. For thesame reasons, there is less likelihood of egocentric individual leaders being able to impose their

ideas on others. As with the distinction between leadership and management, however, it is

important that the line between charismatic and learning-centred leadership not be too heavily

drawn. Building learning-centred leadership capability implies the need for individuals to takeleadership roles. To the extent that individuals may demonstrate some charismatic qualities, such

as a high degree of self-confidence and enthusiasm, this may have some positive effects in

inspiring others.

To bring the analysis to a more applied level, leadership is considered at each of the three levels

proposed by Dixon (1994).

Leadership in Enabling lndividual-level Learning

Fostering learning at the individual level is not just a matter of supporting and coaching people in

acquiring new skills and knowledge. This is arguably a management challenge, in line with the

focus on operational aspects. The leadership challenge implies such aspects as working with

people to assist them to become more self-aware, to clarify their assumptions and goals, and toidentify realistic strategies for moving forward. Such processes have been termed generative

coaching (Murphy 1995).



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Managers operating mainly in the management mode are likely to see their role as analysing and

problem solving, and providing advice, assistance and solutions. From a learning-centredleadership perspective, the challenge is to keep the other person in charge of their own learning

and assist them to achieve deeper insights into the problems they face, so that they might betteridentify and implement action strategies. This is not a matter of trying to change people's

personalities or interfering in matters better left private; rather it is about the tough challenge of

engaging with another's work-related thinking processes in ways that minimise defensive

reactions and build capacity for productive action.

As an example, a middle manager works with a team leader in a human services agency to assistthem to deal with a conflict between two staff. The team leader assumes the problem is caused

by a 'personality clash' between the two staff. The middle manager inquires into the thinking

behind this explanation in ways that minimise threat to the team leader while encouraging

reflection. After some deliberation the team leader comes to their own conclusion that the

underlying problem is to do with an unresolved issue about perceived unfair treatment in favourof one of the workers. They now feel in a position to discuss the conflict with the workers at this

level, and are confident about being able to handle the conflict productively.

This is a leadership intervention since it operates at the level of underlying assumptions rather

than business as usual. The middle manager's role is not to solve the problem but to assist the

team leader remain in control of their own learning and improve the prospect that they will be

able to handle similar situations effectively in future.

Leadership in Enabling Group-level Learning

Leadership in this context entails assisting a group to move beyond competitive or dysfunctionaldynamics in order that they may achieve more creative and deeper understandings of the issues

they face and build new insights as the basis for action. The key process here is dialogue (Senge

1990; Ellinor and Gerard 1998), an approach to conversation for enabling a group to discover

shared meaning. A dialogue is a quiet, reflective conversation in which differing perspectives areencouraged, people tend to feel listened to and valued and there is a sense of collaboration,

working together to build a common understanding. However, it is a mistake to think of dialogue

simply as 'nice talk'. Paradoxically, the dialogue process enables difficult issues to be tackledmore directly and conflicting viewpoints to be aired. Leading organisational development scholar

Edgar Schein (1993) observed, 'All problem-solving groups should begin in a dialogue format to

facilitate the building of sufficient common ground and mutual trust, and to make it possible to

tell what is really on one's mind'.

As powerful as it is, dialogue is somewhat counter-cultural in most public sector and businessorganisations. It requires a suspension of judgment, a temporary letting go of outcomes, attention

to process, and a willingness to talk issues through quietly - all of which can be against the grain

of day-to-day organisational life. Accordingly, building capability for, sponsoring and supporting

dialogue are key leadership challenges.

Leadership in Enabling System-Ievel Learning



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Leadership at this level is about creating the conditions under which a system or part of a system

may increase its ability for effective performance. While a range of strategies may be applied tofoster system-level learning, one is an action learning process, in which groups of staff work on

key organisational or business problems while simultaneously advancing their individual and joint learning.

Royal Dutch Shell is one organisation to have made extensive and effective use of such

processes. In the words of one of the company's managing directors, Steve Miller: 'Change your

approach to strategy, and you change the way a company runs. The leader becomes a context

setter, the designer of a learning experience - not an authority figure with solutions' (Pascale1999).

The notion of the senior executive leadership function as context setting is some way removed

from concepts of charismatic leadership. In organisations emphasising collective leadership, top

managers still play an important leadership role, but the emphasis is more on helping othersunderstand what is important, clarifying meanings and shaping the way the organisationresponds to stakeholder pressures. A key capability from the learning-centred perspective is an

understanding of organisational development and dynamics and an ability to influence theseproductively. To succeed in collaborative leadership, top managers need also to have a deep

belief in the value of leading with people, not just 'from the front'. Of utmost importance is the

notion of top executives as 'lead learners' (Negroni 2000). This implies that the executive is

appropriately open to the ideas of others and capable of seeing issues from multiple points of

view, as well as being able to recognise and question their own assumptions.

Four Domains of Learning-centred Leadership

While there are undoubtedly many ways in which learning-centred leadership could be

conceptualised, the four-dimension framework, as sketched in Table 1, is suggested as a useful

lens. The framework is not proposed as comprehensive, more as indicative of some of the key

areas of effectiveness and required capabilities. A fuller articulation of the framework than ispossible here would differentiate senior and middle management leadership roles and would

point to more specific capabilities, including personal capabilities, within each of the domains.

Table I: Four Dimensions of Learning-centred Leadership

Strategic Leadership

Working with others to: understand changing external and internal environments,

clarify a preferred future (whether for the organisation or a particular program or

initiative), engage with 'current reality' (Senge 1990), build momentum to achieve the

vision, and develop alliances internally and externally.



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Leadership for Knowledge Creation

Enabling people of diverse perspectives/backgrounds to integrate what they know,generate novel perspectives and achieve deeper understandings about the underlyingnature of difficult problems facing the organisation, as well as strategies for dealing

with those problems.

Values-based Leadership

Clarifying and articulating values to guide staff in decision-making; creating a climate

in which values-related issues (such as ethical dilemmas) are discussed openly and in

which gaps between espoused values and the values being enacted can be explored.

Personally acting in ways that model the values espoused.

Developmental Leadership

Working with individuals and groups so as to strengthen their capacity for effective

action. Acting as coach, mentor and facilitator in ways that enable open and relatively

safe exploration of underlying assumptions and beliefs.

What unites these four dimensions is that they involve processes of collaborative inquiry into

underlying assumptions and differing conceptions of reality. This means colleagues workingtogether to deal with deep problems, handle the conflict and threat that arises, and devise and

implement new solutions and strategies. The leadership task is to create the context and

environment in which such inquiry can occur, to contribute as appropriate, to facilitate and

support the process, and to enable the insights gained to stimulate new action.

The leadership process here is subtle. An executive needs to be able to sponsor and orchestrate

joint inquiry simultaneously, as with a dialogue process, but also contribute as a colleague

alongside others at different levels in the organisation. Particular challenges include how to

advocate one's views while at the same time being open to the views of others, and how to guide

and shape the inquiry process without taking too much control. The leadership role in

collaborative inquiry involves interpreting and possibly reframing the contributions of others,recognising and developing important but perhaps only partly formed ideas, creating syntheses

from diverging viewpoints and extending the range of ideas considered. These capabilities are

not suggested as replacing those in the various senior executive capability frameworks (Morley

and Vilkinas 1997) but a learning-centred leadership perspective may imply a need for some

modification of those frameworks.

The process emphasis in each of the dimensions of the learning-centred leadership framework isin marked contrast to the focus on tangibles in many public sector organisations. For example,strategic leadership deals with - among other things - the process of creating shared vision and



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using vision to propel action in the desired direction. In many organisations, however, 'creating a

vision statement' is a mechanical exercise that emphasises the statement per se rather than theprocess of arriving at the statement and using it to enable change. Not surprisingly, vision has

become a management cliché. The same applies with leadership for knowledge creation. Thefocus here is on the leadership process of integrating and building knowledge by bringing

together different perspectives. In some organisations, however, the focus is on the stock of

explicit knowledge, that which can be captured and documented in databases, rather than the

knowledge creation process (Nonaka and Takeuchi 1995).

This focus on process may seem problematic in outcomes-driven public sector organisations.After all, the contemporary focus on outcomes is in part a response to what was seen as a

preoccupation with internal bureaucratic processes as ends in themselves. The challenge here is

different. As Langer (1989:5) puts it, 'every outcome is preceded by a process'. The challenge for

leadership practitioners, from a learning-centred perspective, is to be more explicit and open

about their 'theories of action'. These are the implicit beliefs that executives hold about theprocesses by which their plans and actions will bring about the outcomes they desire.

Take, for example, the case of a newly arrived head of a branch in a service delivery agency. Partof her performance agreement involves making significant changes to the product and service

delivery methods of the branch. In conversation with the writer, she observes that most of the

branch staff have 'been here too long' and are 'resisters', and that she will need to 'drive change

through'. A process perspective on leadership would suggest that the manager needs first to

reflect on her assumptions about what she means by resisters, why these people are resisters,

what specifically it is they are resisting about her plans and actions, what other explanations

there might be for their observed behaviour and what all this means in terms of strategies she

might adopt. A more mindful conception of resistance might enable the executive to see theissues from the point of view of different staff and perhaps even recognise that her own actions

in 'driving change' are feeding into the reactions she finds problematic.

A learning-centred, process-oriented perspective on leadership offers promise in dealing with theimplementation issues identified by Beer and Eisenstat (2000), including poor communication

laterally as well as vertically, and ineffective senior teams. A process perspective encourages

people to think more dynamically about what is really going on, and to test their assumptions andanalyses openly. To take the issue about vertical communication, a process perspective on

leadership invites inquiry into what is occurring in the organisation such that people feel unable

to communicate openly up and down the line. How does the problem look to people at different

levels, including one's own? What underlying factors, including possibly undiscussed orundiscussable issues, are driving the responses of people in different parts of the organisation?

There may be strongly divergent and heated views on these issues, but leadership involves

assisting others to develop more grounded, testable analyses of the problems they face.

Leadership and Management Reconsidered



14

Now that management and leadership have been reviewed, and learning-centred leadership has

been differentiated from the charismatic variety, we are in a position to return to the question of the relationship between leadership and management, and whether the distinction between them

is of consequence to the public sector. The discussion so far has suggested that the essence of thedistinction lies in differences in underlying values. Table 2 summarises some of these values.

Table 2:

Values underlying Management and Learning-centred Leadership

Values underlying Management

Perspective

Values Underlying Learning-centred

Leadership

• Outcomes, accountability

• Control, stability, order

• Analysis, deductive logic

• Measurement, monitoring

• Leadership as province of individuals

• Current operations

• Avoidance of threat and conflict

• Process before outcomes

• Deep change, transformation

• Creativity, insight, emotionalawareness

• Development, inquiry

• Collective and individual leadership

• Capacity building

• Embrace of diversity, contention anduncertainty

It needs to be emphasised, as Kotter (1990) has done, that both leadership and management are

necessary; it is not a matter of regarding one as more important than the other. The question iswhether there tends to be an imbalance between them and, if so, what are the causes and the

implications.

Kotter (1990) argues that most people are over-managed and under-Ied. This writer's experience,from discussions concerning leadership and management balance with hundreds of Australian

public sector managers in workshop settings, is in line with Kotter's dictum. These managers not

only tend to regard their organisations as over emphasising management at the expense of leadership, but report that in their own work they are driven overwhelmingly by management

imperatives.

One danger of an over emphasis on management is that managers will focus on doing what they

already do, although perhaps with an eye to fine-tuning and continuous improvement. Building

capacity for achieving effective implementation, for dealing with contentious issues and for



15

achieving cultural change, however, might require that they do some quite different things as

well. Examples could include identifying and exploring emerging issues, building a widelyunderstood and shared strategic agenda, finding ways to create new knowledge by integrating the

perspectives of diverse specialties, creatively exploring new ways to introduce and implementchange, and building external relationships. Many agencies might respond along the lines of 'we

do these things already'. The question is how well they do them, and whether they devote enough

attention to these issues.

An example might illustrate the point. The SES group in a development workshop in one agency

were asked to nominate the significant emerging issues that the agency would need to engagewith over the next three years. The assembled group had no trouble in brainstorming a list of

several issues. When asked what action the group was currently taking in relation to these issues,

the collective response was 'none'.

An organisation focusing too strongly on management is at risk of failing to deal effectively withthe major issues it faces. The danger is that the organisation is caught up in reacting to eventsand managing crises, and is unable to give due attention to the deeper or more long-term matters.

In such organisations important problems often fester unresolved or are the subject of organisational politics and perhaps patch-up or mediocre decisions. There can be much wasted

effort in circling around the issues rather than dealing with them directly.

Why the Over Emphasis on Management Values?

If, as has been suggested, management is to do with ensuring stability and continuity andleadership is concerned with deep change and transformation, a fundamental tension arises

between the two. The potential exists that decision-makers operating chiefly from the control-oriented values of management will seek to 'reign in' any leadership-oriented efforts to break out

of existing moulds or question basic assumptions. By Kotter's (1990) definition, the change that

is synonymous with leadership is threatening to the status-quo orientation of management.

Several other factors can be seen as operating to reinforce an over emphasis on managementcompared to leadership. The first concerns the unrelenting pressure on managers and staff in the

public sector to achieve more and better results. While a results focus is critical, the achievement

of those results can be compromised if there is not also sufficient attention to the processes and

dynamics of change, as indicated in the earlier example of the new branch manager trying to

'drive through' change against resistance. Attention to accountability is also vital. The danger is

that managers can interpret this as implying a need for direct control, thereby reinforcing a top-down management style.

Most public sector managers, at least in the writer's experience, work under considerable time

pressures; there is always more to be done than can be achieved. Under such pressures managers

are likely, this writer suggests, to focus their effort on the more urgent challenges they face.

Important but less urgent issues (Covey 1989:151) such as clarifying organisational values ordeveloping a shared agenda for the future, are likely to be relegated to second place. These



16

aspects may only be given attention when they become urgent or when there is a crisis, making a

proactive approach to organisational capability development difficult to achieve.

The management emphasis on achieving tangible results provides feedback and affirmation,

which are powerful rewards in themselves - particularly given the limited scope for incentive pay

and other material rewards in the public sector. While leadership work may bring its own

satisfactions, the organisational benefits can take time to appear, resulting in a lack of immediate

reinforcement.

Leadership, with its focus on major change, necessarily involves risk and threat. What if peopledon't like our ideas, or don't share our vision? How do we deal with those who have different

views, and especially with those who seem ambivalent about our ideas, or oppose them, yet who

may not indicate the basis of their reactions? Leadership also implies a need to deal with

emotional factors including the fear of one's own response to the reactions of others. To those

with a strong bias to detached, rational analysis this can be a frightening prospect, resulting inprocrastination or complete avoidance.

Another dimension to the threat issue comes from learning-centred leadership having a personal

aspect. The management paradigm, with its emphasis on analysis and tangibles, sees problems as

'out there' and requiring a solution to be found by examination of external factors. Leadership,

with its emphasis on modelling and reflection, requires the manager to ask in effect, 'in what

ways might my behaviour or approach be contributing to the problems that I am engaging with?'

Such a question implies taking personal responsibility for seeing ourselves as part of the system

we find problematic, rather than as separate from it. It is much easier to side step this question

and look for an external cause.

Implications

As well as the factors outlined, other pressures facing public sector managers include operatingwithin tight resource limits, dealing with multiple competing pressures simultaneously, working

with systems that might reinforce the status quo, and the size and complexity of manygovernment organisations. With all of these factors, it might be suggested that a learning-centred

conception of leadership is a romantic ideal for the public sector.

The writer agrees that developing and maintaining a learning-centred approach is difficult in the

public sector, indeed in any setting. It is especially difficult when the priorities of governments

call for sudden changes of direction or decisions likely to be unpopular within the organisation,such as outsourcing or downsizing. The question in relation to leadership is how to deal withthese difficulties. On the one hand, executives can use such problems to justify a style that is

essentially top-down management, albeit perhaps dressed up with the jargon of leadership.

Alternatively, they can elect to work in a way that specifically recognises the unavoidable

tensions between leadership and management, and seek to reconcile these tensions as best they

can. The reconciliation process requires that managers consciously evaluate the choices theyface, rather than deciding implicitly. This can involve balancing the focus on results and

tangibles of management with the process and values orientation of leadership. Such balancing is



17

not necessarily an either/or matter, a question of this or that. What is required is that managers

take into account the principles of leadership when working under pressure; for instance, inexplaining the thinking behind decisions which may seem to be at odds with declared values, or

explicitly testing assumptions. The more managers can demonstrate that they are attempting tomodel leadership while getting on with the business of managing, the more likely they are to be

seen as credible and believable, and to build staff satisfaction, capability and commitment.

This discussion has focused on the choices facing individual managers. Making such choices and

following through with action will

be much easier for managers if they are operating in an environment that supports the

development of leadership capability.

Building Capability for Learning-centred Leadership

Readers will appreciate that there are many issues that an organisation thinking of pursuing this

path will need to deal with, some of which are summarised in Table 3. Not the least of these

issues is that getting started on the process requires a measure of leadership to begin with. The

capability development process calls for sponsorship by executives with enough self-awareness

to appreciate their own leadership and management style and their impact on others, enough

awareness of the potential benefits of collaborative approaches to commit to the effort and

resourcing required, and enough patience and persistence to maintain the focus under toughconditions until an evaluation can reasonably be made.

A range of approaches will be required, variously emphasising the development of organisationaland individual capability, though this discussion is concerned mainly with the former. It is

suggested that approaches can usefully be grouped under three headings:

Establishing an infrastructure to support leadership development and practice Articulating and nurturing values supportive of learning-centred leadership

Developing skills, particularly in reflective conversation

The three broad approaches need to be regarded as mutually reinforcing. Focusing on one

without attention to the others is unlikely to be highly effective.

Establishing an Infrastructure for Learning-centred Leadership

Infrastructure in this context refers to explicit aspects of the organisation that can provide support

or ‘light scaffolding’ for leadership efforts. Specific aspects include competency frameworks,

meeting structures, budget allocations, business plans, position descriptions and performance

indicators. For example, competency frameworks can be reviewed in terms of their underlying

assumptions about leadership and management. Aspects such as dialogue and mindfulness(focusing on observable behaviour, avoiding rushing to judgment or attributing motives,

reflecting on one's own assumptions) may need to be given greater attention. Management



18

position descriptions and team role statements can be reviewed in terms of the balance between

management and leadership aspects.

In high-pressure public sector workplaces, 'the lack of time' is often raised as an inhibiting factor.

If leadership is to be more than rhetoric, time for creating shared understanding must be set aside

and protected. Otherwise, the tyranny of the urgent will soon take over. As well as making time,

structures and supports need to be established that legitimise and encourage this type of activity.

As re-engineering guru Michael Hammer (Hammer and Stanton 1997) observed, 'we need to

treat reflection as a business process'. This implies that leadership- related practices need to have

their place among organisational priorities and to be resourced like other activities.

Table 3:

Some Issues in Building Collective Leadership

How to ensure more attention to leadership in public sector organisations operating

under intense pressures, which tend to reinforce management-related values?

How to reconcile the need for top-down executive decision-making in somecircumstances with the importance in leadership of congruence between stated and

enacted values and modelling of the desired behaviours?

How to gain support for capacity-building approaches to leadership when the

outcomes may be remote in time?

How to encourage executives and others to reflect on their underlying assumptionsand values about leadership?

How to ensure that developing leadership capability is treated as a discipline, like

learning a sport or a musical instrument?

How to deal with the reality that people yearn for 'practical' solutions but that some of

the most powerful approaches are counter-intuitive and require commitment and

practice to produce results?

How to build legitimacy and space for reflection, which is often regarded as people

'not working'?

How to help executive managers reflect on how their own behaviour may contribute

to the problems they see?

How to get people elsewhere in the organisation to take responsibility for their

contribution to what is happening, rather than pointing the finger at others?



19

An executive team in a state government agency realised that its monthly full day meetings were

being taken up largely with information sharing and with routine and operational matters. Theteam divided its meeting in half, to enable it to spend 50 percent of each meeting on leadership-

related issues. Another agency with a staff of 500 sets aside one day per month for all managersto explore common issues together, thereby providing an opportunity for the development of a

shared leadership focus while building understandings and strategies on important issues.

The US Army has a well-known process called After Action Reviews (Baird et al. 1999). This

involves a systematic debriefing process being followed after any significant exercise, incident

or project. Other organisations are using a range of creative methods, including so-calledstrategic communities and communities of practice, to ensure they learn effectively from their

experience, and that the knowledge of differing specialists is productively tapped (Cross and

Baird 2000; Storck and Hill 2000; Wenger and Snyder 2000). While public sector organisations

would be advised against adopting these methods uncritically, the models do point to

possibilities for adaptation.

Articulating and Nurturing Values

Supportive of Building Organisational and Individual Capability

Statements of organisational values have become almost obligatory for public sector

organisations. Yet such statements, in the writer's experience, are often seen as little more thanempty platitudes by staff. As with vision, the emphasis is often on the statement, rather than on

the process of building the statement and then using it to guide and shape action in theorganisation.

Collins and Porras (1994) demonstrated the centrality of working with values as a means of

building high-performing organisations. They compared a set of outstandingly successful

companies with another group of good, but less exceptional, companies. They found that themain differentiating factor was not visionary leadership or use of the latest management

practices, but commitment to a clear purpose, beyond making money, and core values. The moresuccessful companies were able to maintain stable values over time while simultaneously

cultivating an ethic of change. Interestingly, in relation to statements, Collins and Porras

observed (1994:11), 'Creating a statement can be a helpful step in building a visionary company,

but it is only one of a thousand steps in a never ending process of expressing the fundamental

characteristics'.

The challenge for public sector organisations in working with values is to attend to the subtle,process aspects, not only to 'the statement'. Working with the subtle aspects involves exploring

the values currently in use in the organisation (values that might be inferred from observable

behaviour), the factors that drive these values-in-use, and possible sources of leverage that would

support behaviour in line with desired values.

Widespread involvement in the values clarification process is essential, in order to build

employee commitment to, and understanding about, working with values. One vital aspect is to



20

make the values operational, to specify the kinds of behaviours that would demonstrate the

values in action. Such specification is necessary to deal with ambiguity in the interpretation andapplication of values, and to ensure that members of the organisation think through what is

involved in applying the values. For example, Argyris (1990:106) notes that 'respect' can meandeferring to others, or it can mean attributing to others the competence to deal with their own

issues, including emotional reactions. The second interpretation is in line with building a

leadership community, the first is possibly at odds with it, since deferring to others suggests a

holding back from raising tough issues that might generate emotional reactions. Of course,

respect can also mean valuing a person's unique background and perspective without undue

deference.

While organisations will determine values according to their own needs, a focus on learning-

centred leadership implies a need for emphasis on the value of openness, however this is

expressed. In the writer's view, openness implies people believing they are 'able to say what

needs to be said, without setting out to upset or provoke others.

As well as clarifying values, organisations need to make ongoing efforts to ensure that the values

are embedded and reflected in all organisational systems and process. There also needs to be aperiodic testing of the degree to which employees believe the values are being upheld. In the

earlier stages at least, this might be via anonymous employee survey. Finally, senior executives

and others need to be able to deal productively with apparent departures from value-based

behaviour, and use these as opportunities to advance individual and organisational learning.

Developing Skills in Reflective Conversation

Building shared understanding on difficult issues implies the need for conversation. In order thatnew synergies can be developed from participants' partial perspectives, such conversations need

to have a reflective dimension to them. Reflective conversation can be understood by thinking

about the problems that tend to bedevil conversations about difficult or strategic issues in the

workplace (Senge 1990). People commonly make little effort to listen to one another - exceptperhaps to find a space to jump into the conversation! There is a tendency for participants to

compete with one another through scoring points and defending and justifying their own

arguments. Issues that might result in embarrassment or threat tend to be avoided, ensuring thateveryone can save face. The discussion wanders all over the place with little sign of progressive

development. Assumptions are frequently made but rarely acknowledged and questioned. In such

conversations, the prospects for creative integration of knowledge and for collective learning are

minimal.

Some might argue that this is 'just human nature'. In the writer's view, it is possible for peopleand groups to improve the quality of their interaction, and thereby extend the possibilities for

transformational thinking and learning. In reflective conversations there is an emphasis on

creating a quieter 'space' for conversation, in which people more truly listen to each other (and to

themselves), differing opinions are seen as a source of data, and participants realise that they

have only a partial hold on the truth. An important leadership role for managers at all levels is tosupport and model reflective conversation practices.



21

Enabling reflective conversation requires the development of infrastructure and organisational

values as discussed, but there are some specific, trainable skills involved. As described by Senge(Senge 1990; Senge et al. 1994), these skills include advocacy, inquiry and dialogue, which was

introduced earlier.

Advocacy involves articulating one's own views in ways that are assertive (as opposed to

dogmatic) and reflective. The challenge is to help others gain deeper insights into why we think

and feel about issues the way we do. Highly skilled advocacy is characterised by recognition of

one's assumptions, disclosure of feelings and a willingness to receive feedback from others.

Advocacy can be difficult for people unused to asserting, appropriately, their deeper thoughtsand feelings. However, one might hypothesise that, with some training, just about anyone could

become more effective in articulating their ideas so that others will better understand them.

Inquiry is the process of asking questions in such a way as to enable others to reveal more of

what they know, without putting the person on the defensive. Inquiry is not cross-examination.Rather, the aim is to assist the other person in making public more of their thinking and feelingthrough the use of effective questioning. Skilled inquiry involves the questioner probing deeply

while minimising threat to the other.

Like any discipline, such as golf or piano, the central requirement for developing capability in

reflective conversation is continued practice. Executives can support the development of

collective leadership capability by practising and modelling reflective conversation skills

themselves and encouraging others to do the same. The need for practice represents a huge

challenge in many organisations, where people are impatient for action and results. Often people

believe that once they understand the concept of reflective conversation, they can apply the skills

immediately. Practice in the workplace can seem like a waste of time, but as any musician willtestify, high-Ievel competence is not possible without it.

Conclusion

Learning-centred leadership has been advocated not as a panacea or a prescription but a way of

thinking about leadership that might assist public sector organisations in implementing new

initiatives, in dealing with vexing problems and in achieving cultural change. In its emphasis on

the creation of conditions under which people can make their most effective contribution, the

approach represents a distinct departure from charismatic leadership. It is recognised, however,

that individual leaders can have a dramatic and beneficial effect on organisations. Leadershipneeds to exist complementary fashion to management and the challenge for organisations is to

develop and maintain a suitable balance between them. For many organisations, this will entail

giving greater attention to the leadership component, in a disciplined and ongoing manner. Thedifficulties of doing so, given the pressures faced by contemporary public sector organisations,

should not be underestimated.



22

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ddunoon - rethinking leadership for the public sector

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