Gazing into the Crystal BallGazing into the Crystal Ball--The 3 Big Leadership --The 3 Big Leadership Challenges of the 21Challenges of the 21stst

Century--Century--MCMAMCMA

Lake OzarkLake Ozark April 23, 2009April 23, 2009

Dr. Frank BenestDr. Frank BenestPalo Alto, CAPalo Alto, CAfrank@frankbenest.comfrank@frankbenest.com

OverviewOverview

1.1. Trends Impacting Local GovernmentTrends Impacting Local Government

2.2. PremisesPremises

3.3. Nature of the Leadership TaskNature of the Leadership Task

4.4. Frank’s Big 3 Leadership ChallengesFrank’s Big 3 Leadership Challenges

5.5. Resources and QuestionsResources and Questions

Mega-TrendsMega-Trends

1.1. Select two different mega-trends that Select two different mega-trends that have or will have significant impact on have or will have significant impact on local government local government (consider demographic, social, (consider demographic, social, economic, political, technological, and value trends)economic, political, technological, and value trends)

2.2. Identify the continuing or anticipated Identify the continuing or anticipated impactsimpacts

PremisesPremises

Local governments face a world of Local governments face a world of accelerating and discontinuous changeaccelerating and discontinuous change

Problems we face are complex, divisive, Problems we face are complex, divisive, and emotionally-ladenand emotionally-laden

Mega-trends dramatically impact local Mega-trends dramatically impact local governmentsgovernments

People have lost confidence in all People have lost confidence in all institutions, including governmentinstitutions, including government

PremisesPremises(cont)(cont)

No one institution, including government, No one institution, including government, can solve any major problemcan solve any major problem

Power is diffuse (“blocking” power)Power is diffuse (“blocking” power) Local government organizations are facing Local government organizations are facing

an era of “permanent fiscal crisis”an era of “permanent fiscal crisis” Big challenges require more leadership, Big challenges require more leadership,

not more managementnot more management

The Nature of the Leadership The Nature of the Leadership TaskTask

Big issues of the day are leadership tasksBig issues of the day are leadership tasksa. Technical work can be addressed by managementa. Technical work can be addressed by management

b. Adaptive work requires leadershipb. Adaptive work requires leadership

Leadership vs. managementLeadership vs. management People skills are more important than People skills are more important than

technical skillstechnical skills

““Leaders don’t force people to follow—they invite Leaders don’t force people to follow—they invite them on a journey.” them on a journey.” Charles LauerCharles Lauer

The Importance of People SkillsThe Importance of People Skills

Top Mgmt

Mid Mgmt

An

alytic SkillsTechn

ical Skills

Peo

ple S

killsLower Mgmt

80 percent of management failure is related to poor people skills

Technical S

kills

Peo

ple S

kills

The Nature of the Leadership Task The Nature of the Leadership Task (cont)(cont)

Given nature of challenges, learning Given nature of challenges, learning capacity becomes key to successcapacity becomes key to success

The primary function of leaders is growing The primary function of leaders is growing more leadersmore leaders

Employee and civic engagement becomes Employee and civic engagement becomes paramountparamount

Continuum of InvolvementContinuum of InvolvementInformingInforming

One way monologueOne way monologue Telling/sellingTelling/selling

EducatingEducating Presenting technical Presenting technical

informationinformation Discerning public Discerning public

opinionopinion People are not People are not

responsible for responsible for identifying or carrying identifying or carrying out decision or solutionout decision or solution

EngagingEngaging Two-way dialogueTwo-way dialogue Listening/responding/Listening/responding/

listeninglistening LearningLearning Eliciting values, hopes, Eliciting values, hopes,

dreams, concerns, fearsdreams, concerns, fears Discerning public Discerning public

judgmentjudgment People are responsible People are responsible

for identifying or carrying for identifying or carrying out decision or solutionout decision or solution

Leadership Challenge #1Leadership Challenge #1

Collaborating Across BoundariesCollaborating Across Boundaries

Collaborating Across Collaborating Across BoundariesBoundaries

Big problems cut across boundaries, Big problems cut across boundaries, internally and externallyinternally and externally

““Boundrylessness” must become strategic Boundrylessness” must become strategic goal for organizationgoal for organization

Organizational leaders must take Organizational leaders must take responsibility for larger issues outside their responsibility for larger issues outside their domain and controldomain and control

Organizations need “external sensing” Organizations need “external sensing” capabilitycapability

Collaborating Across Collaborating Across BoundariesBoundaries (con’t) (con’t)

Collaborations require building rapport and Collaborations require building rapport and relationship before problem-solvingrelationship before problem-solving

Organizations must commit resources to Organizations must commit resources to collaborationscollaborations

Greatness in social sector has more to do Greatness in social sector has more to do with work outside organizational with work outside organizational boundaries than internal operationsboundaries than internal operations

Leadership Challenge #2Leadership Challenge #2

Developing a New Story for the Developing a New Story for the Permanently Restructuring Permanently Restructuring OrganizationOrganization

Developing a New Story for Developing a New Story for the Permanently the Permanently

Restructuring OrganizationRestructuring Organization

Recognize the Challenge of Constant Recognize the Challenge of Constant Resizing and RestructuringResizing and Restructuring

Create a Story to Imbue Organization with Create a Story to Imbue Organization with New SpiritNew Spirit

What Is Our New Story?What Is Our New Story?

In the next five years…In the next five years… Will our local government shed outmoded Will our local government shed outmoded

programs or outsource certain discretionary programs or outsource certain discretionary services in order to better focus on core services in order to better focus on core services or competencies?services or competencies?

Will we better utilize technology to promote Will we better utilize technology to promote efficiency and civic engagement?efficiency and civic engagement?

Will we eliminate non-value added process Will we eliminate non-value added process and promote more entrepreneurial style of and promote more entrepreneurial style of solving problems?solving problems?

In the next five years…In the next five years…

Will we sell services to other communities or Will we sell services to other communities or collaborate with other entities in delivering collaborate with other entities in delivering services?services?

Will we better engage community partners to Will we better engage community partners to solve problems?solve problems?

Will the local government be able to free up Will the local government be able to free up revenue to make new strategic investments?revenue to make new strategic investments?

Developing a New StoryDeveloping a New Story(cont)(cont)

Recognize the Challenge of Constant Recognize the Challenge of Constant Resizing and RestructuringResizing and Restructuring

Create a Story to Imbue Organization with Create a Story to Imbue Organization with New SpiritNew Spirit

Engage People in Creating New StoryEngage People in Creating New Story

Leadership Challenge #3Leadership Challenge #3

Creating Talent Strategy for Your Creating Talent Strategy for Your Local GovernmentLocal Government

Demographic Crisis Facing Local Demographic Crisis Facing Local Governments in U.S.Governments in U.S.

The NumbersThe Numbers80 million Baby Boomers (born 1946-1964) leaving U.S. 80 million Baby Boomers (born 1946-1964) leaving U.S.

economyeconomy50 million Gen Xers (born 1965-1981) replacing them50 million Gen Xers (born 1965-1981) replacing them

Large talent “replacement gaps”Large talent “replacement gaps”

Age Distribution of Gov. &Age Distribution of Gov. &Private Sector Workers – 2001Private Sector Workers – 2001

0

5

10

15

20

25

30

<25 25-34 35-44 45-54 55-64 65+

Gov.Private

City of Palo AltoCity of Palo AltoOrganization ChartOrganization Chart

City Manager

Asst City Mgr

Asst to the CM

Asst to the CMExec Asst to CM

Office Specialist

Public Comm Mgr

Office Specialist - Reception Desk

Administrative Asst

Director, CSD (#

Director, ASD

Director Libraries

Fire Chief

Dir Human Res

Dir Pln/Com Envn

Dir PW/Cty Eng

Director Utilities

Police Chief

City Manager’s Office

City of Palo AltoCity of Palo AltoOrganization ChartOrganization Chart

Director PW/Cty Engineer

Mgr, Envrn Comp

Staff Secretary

Mgr, Env Cont Prg

Mgr, Env Cont Prg

Sr Administrator

Depty Dir PW Ops

Mgr, Maint OpsRefuse

Mgr, Maint OpsOperations

Sr Engineer

Mgr, Solid WasteRefuse

Managing Arborist

Executive Asst

Fleet Mgr

Asst Fleet Mgr

Staff Secretary

Mgr, Wqc Plant

Staff Secretary

Supv, Wqc Oper

Mgr, Lab Svc

Supv, Wqc Oper

Supv, Wqc Oper

Office Specialist

Sr Engineer Asst Mgr Wqc Plnt

Supv Wqc Oper

Project Engineer

Asst Dir PW Eng

Sr Engineer

Sr Engineer

Project Engineer

Coord PW Proj

Sr Proj Mgr

Supv Insp/Surv

Sr Eng Strm Drn

Mgr, Fac Maint/Prj

Engineer

Supv Facil Mgt

Supv Bldg Svc

Staff Secretary

Project Mgr

Acct Specialist

Staff Secretary

Office Specialist

Public Works DepartmentAdministration

Admin Asst

City of Palo Alto’sCity of Palo Alto’s “Retirement Wave”“Retirement Wave”

50% of Management and Professional 50% of Management and Professional Employees are eligible to retire in Employees are eligible to retire in

three yearsthree years

35% say they will definitely retire35% say they will definitely retire

A View From The TrenchesA View From The Trenches

1.1. What are some indicators of a talent What are some indicators of a talent challenge in your organization?challenge in your organization?

2.2. What are the organizational impacts?What are the organizational impacts?

Organizational ImpactsOrganizational Impacts Promoted managers or professionals not Promoted managers or professionals not

readyready Difficulty recruiting seasoned managers or Difficulty recruiting seasoned managers or

professionalsprofessionals Loss of productivityLoss of productivity Service problemsService problems Loss of institutional knowledgeLoss of institutional knowledge Increased recruitment and training costsIncreased recruitment and training costs Loss of organizational capacityLoss of organizational capacity

Creating Talent StrategyCreating Talent Strategy

1.1. Analyze workforce and identify Analyze workforce and identify vulnerabilitiesvulnerabilities

2.2. Initiate succession planning to respond Initiate succession planning to respond to “retirement wave”to “retirement wave”a. Identify talent and accelerate a. Identify talent and accelerate development of aspiring managersdevelopment of aspiring managersb. Transfer knowledgeb. Transfer knowledgec. Attract young people into local c. Attract young people into local government careersgovernment careers

Creating Talent StrategyCreating Talent Strategy(con’t)(con’t)

4.4. Identify competencies required for future, Identify competencies required for future, especially in “pivotal” positionsespecially in “pivotal” positions

5.5. Retool hiring practices (see “Hiring 2.0” Retool hiring practices (see “Hiring 2.0” Guide of Best Practices)Guide of Best Practices)

Creating a Talent StrategyCreating a Talent Strategy(cont)(cont)

5.5. Create learning organizationCreate learning organizationa. Provide strong rationalea. Provide strong rationaleb. Offer array of learning opportunitiesb. Offer array of learning opportunitiesc. Focus on “doing”c. Focus on “doing”d. Provide coaching resourcesd. Provide coaching resourcese. Encourage learning planse. Encourage learning plansf. Re-conceptualize role of managersf. Re-conceptualize role of managersg. Allow for mistakesg. Allow for mistakes

Creating a Talent StrategyCreating a Talent Strategy(cont)(cont)

6.6. ““Re-recruit” employeesRe-recruit” employees

7.7. Align all organizational systems to Align all organizational systems to support talent strategysupport talent strategy

ResourcesResourcesCal-ICMA Coaching ProgramCal-ICMA Coaching Program

www.cal-icma.org/coachingwww.cal-icma.org/coachingCheck out “Hiring 2.0” GuideCheck out “Hiring 2.0” Guide

ICMA Next Gen resourcesICMA Next Gen resourceswww.icma.org/nextwww.icma.org/nextgengen

Articles—contact Frank at Articles—contact Frank at frank@frankbenest.comfrank@frankbenest.com““Creating a New Future for the Downsizing Creating a New Future for the Downsizing Organization”Organization”““Retaining and Growing Talent—Strategies for Retaining and Growing Talent—Strategies for Creating Organizational Stickiness”Creating Organizational Stickiness”

Good to Great and The Social Sectors, Good to Great and The Social Sectors, Jim Jim Collins, 2005Collins, 2005

Follow-Up ActionFollow-Up Action

““As a result of this workshop, what is one As a result of this workshop, what is one idea that I would like to incorporate into my idea that I would like to incorporate into my city management practice?”city management practice?”

Wrap-UpWrap-Up

Questions?Questions?

Perplexing issues?Perplexing issues?

Thank You!Thank You!

www.frankbenest.comwww.frankbenest.com