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