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LEADERSHIP

The public sector operates in an increasingly complex and interdependent environment, with a consistent increase in the trend for issues to reach across traditional portfolio boundaries. The 2004 MAC report Connecting Government noted that the capabilities of APS employees are critical to effective whole of government work– both in terms of leadership and the range of technical and implementation skills required to address complex policy and service delivery issues.⁴⁷ Leaders in this context need to be particularly strategic and agile in responding to the changing environment.

The demographic shifts in the APS and the increasing focus on the need for organisational renewal has placed pressure on agencies to address the issue of leadership development. With such a large cohort nearing retirement the impending ‘changing of the guard’ will require careful management both to avoid a sudden loss of corporate knowledge, and to more diligently develop younger emerging leaders.

SELC FRAMEWORK AND LEADERSHIP CAPABILITY

The Senior Executive Leadership Capability (SELC) framework is an articulation of the crucial success factors for senior APS leaders–in particular, the behaviours that support high performance. The five capability areas in summary are:

• achieves results
• cultivates productive working relationships
• shapes strategic thinking
• communicates with influence
• exemplifies personal drive and integrity.

Since September 1999, the SELC framework capabilities have been the core criteria for selection to the SES. However, the PS Commissioner may accept requests from agencies for additional selection criteria for particular SES vacancies. In 2003—04, 20 agencies made 51 requests for additional selection criteria, with these requests generally focused on technical or professional expertise (such as legal, taxation, IT, and statistical knowledge), corporate and/or financial skills, or other skills particularly relevant to the job being filled (such as high level research skills, defence and/or intelligence experience, and program design and delivery capabilities).

There is some evidence that agencies are increasingly seeing a need to tailor selection criteria for specialist positions: over the last three years there has been an increase in the number of requests for additional criteria (from 21 requests in 2001—02 to 51 requests in 2003—04). Nonetheless there remains strong support right across the APS for maintaining the core criteria based on the SELC framework.

As outlined further below, the Commission has extended the SELC framework over the last year through its new Integrated Leadership System (ILS), clarifying the capabilities required at different management levels. The ILS also acknowledges more specifically than in the recent past the mix of leadership, management and technical/professional skills required. Accordingly, the PS Commissioner accepts the need to supplement the core criteria with specific technical/professional skills and experience, but continues to emphasise the importance of those core criteria for the SES to comprise a cohesive leadership cadre for the APS, as implied by the PS Act provision on the contribution and role of the SES (s. 35).

The employee survey asked employees to rate their immediate supervisor (not necessarily at the SES level) against the SELC framework capabilities. Compared to the other core leadership capability clusters, more employees continued to rate their immediate supervisor as ‘high’ in the areas of ‘achieves results’ and ‘exemplifies personal drive and integrity’. The relatively higher rating of these two capabilities amongst immediate supervisors is consistent with trends identified within the feeder group to the SES who participate in the Career Development Assessment Centre (CDAC) program. There is a consistent pattern that CDAC participants are commonly strong in driving outputs, but weaker in the areas of ‘productive working relations’ and ‘shaping strategic thinking’. As Figure 9.11 indicates, in 2003—04 there was an increase in the proportion of employees rating their immediate supervisor as ‘high’ in the area of ‘achieves results’ (up from 58% in 2002—03 to 65% in 2003—04), and a slight increase in the area of ‘cultivates productive working relationships’ (up from 50% in 2002—03 to 53% in 2003—04).

Figure 9.11: Proportion of employees that rated their immediate supervisor as 'high' on leadership capabilities

Note: Capabilities were worded slightly differently in 2002—03.⁴⁸

Source: Employee survey

PEOPLE MANAGEMENT CAPABILITY

The capabilities set out in the SELC framework require a range of management skills in the emerging environment, including financial, contract, project, risk and people management skills. The importance of management as a component of leadership has also been reinforced by the Secretary of PM&C, Dr Peter Shergold, who stated last year that ‘it seems to me that leadership without management is no leadership at all’.⁴⁹ A recent report prepared for the APS Commission on emerging APS leadership issues also points out that management skills including people management are particularly vital to effective leadership.⁵⁰

The employee survey asked employees about how effective their immediate supervisor was at managing people. There was an increase in the proportion of employees that rated their immediate supervisor as highly effective at managing people (53% in 2003—04 compared to 47% in 2002—03). This was the same proportion (53%) of employees that rated their immediate supervisor as ‘high’ against the SELC criterion of ‘cultivates productive working relationships’.

Supervisors were rated as more effective by younger employees and employees working in the ACT, and less effective by Indigenous employees and by employees with a disability. The SES (59%) were more likely than EL staff (55%) and APS 1—6 employees (53%) to have rated their supervisor as highly effective at managing people. These different perceptions were also reflected in the comments provided by some employees, which included:

My current supervisor is not suited to managing people.

Too often people are promoted for their technical skills rather than people management skills.

One of the best that I have ever worked for.

My team leader is very effective at managing the team including employee work/life balance.

SES LEADERSHIP DEVELOPMENT

The PS Commissioner has a specific responsibility under the PS Act to ‘contribute to, and foster, leadership in the APS’. In practice, the PS Commissioner exercises this responsibility in close collaboration with agencies. In the area of leadership development, individual agencies are often best placed to undertake significant elements of leadership development in the context of their own organisational issues. The APS Commission is able to provide complementary development that is supportive of interaction amongst the leadership cadre of the APS, and amongst the feeder group for the SES. (The role of agencies in leadership development is outlined later in this chapter.)

The Orientation to the Senior Executive Service program continued to be well supported by participants. Table 9.8 shows that 110 senior executives attended the program in 2003—04, which represents a slight increase from last year. The ratio of participants attending the program in 2003—04 to the number of SES engagements and promotions in 2003—04 increased to 65% (up from 50% in 2002—03).⁵¹ Attendance at events such as the SES orientation program can play an important role in developing a cross-agency perspective, and promoting collaboration between SES employees in all APS agencies. This message was reinforced in the 2004 MAC report Connecting Government. These issues are discussed further in the context of whole of government issues below.

Table 9.8: Attendance at orientation to the SES program

Note: SES engagements and promotions include all promotions into the SES, but not within the SES, and all engagements at the SES level.

Source: APS Commission

Other key programs offered to the SES at Band 2 and 3 levels are the APS Commission’s Leading Australia's Future in Asia (LAFIA) fellowships and, from 2003—04, executive fellowships from the Australia and New Zealand School of Government (ANZSOG).

The LAFIA program offers SES employees the opportunity to better equip themselves for the international dimension of their current and future roles. Over 120 senior executives have participated in LAFIA, now in its eleventh year of operation. In 2004 there were 14 SES employees who participated in the program (along with six participants from State jurisdictions).

The Australian Government became a member of the cross-jurisdictional ANZSOG in September 2002, and was represented on the foundation board by the PS Commissioner, as Deputy Chair. ANZSOG is a school established collaboratively by a consortium of Australian and New Zealand governments, universities and business schools to provide world-class education and development for emerging public sector leaders. The PS Commissioner has also participated as a member of the ANZSOG research committee and the ANZSOG quality committee.

The APS has made a substantial investment in the school through its commitment of places on ANZSOG programs over the first three years of operation and its support for an enhanced research capacity. ANZSOG has two flagship teaching programs–the Executive Fellow Program (EFP) and the Executive Master of Public Administration (EMPA).

ANZSOG’s EFP is an intensive three week residential program tailored for senior executives at the Band 2 and 3 levels to enhance core leadership and management skills needed to lead public sector organisations. In addition to receiving both structured and informal learning experiences, participants have the opportunity to meet key government leaders, leading academics and practitioners in Australia and internationally. The first EFP commenced in Sydney on 1 September 2003 and concluded on 19 September 2003. Of the first EFP’s 80 participants, 16 were APS agency participants.

SES FEEDER GROUP DEVELOPMENT

Recent State of the Service reports have consistently noted increasing attention on identifying the development needs of those EL staff that form the feeder group of the SES. There are two key APS-wide programs for the SES feeder group, ANZSOG’s EMPA and CDAC.

EMPA is a two year part-time post graduate degree aimed at high-performing EL2s to develop the depth and breadth of management and policy skills needed in today’s public sector. The first cohort of this program commenced study in May 2003, with 29 participants from 16 APS agencies, and will conclude in late 2004. In 2004 fewer places than expected were taken up by APS agencies on the EMPA (23 of 30 places). The program is highly innovative and carefully designed to be relevant to the modern public sector. Feedback to date has been very positive. The success of the program will depend on maintaining the calibre of the participants, the relevance of the curriculum and access to leading academics and teaching staff.

CDAC assesses high-performing EL2s identified by their agencies as having clear potential to reach the SES. Their performance is rated against the SELC framework through a variety of activities. Since the inception of CDAC, participation has included 584 EL2s, with 140 participants in 2003—04. The number of agencies participating in the CDAC program increased in 2004 to 33 agencies (up from 27 agencies in 2003).

Comparison of the progression from EL to SES levels between participants in CDAC and non-participants shows that at June 2003, 28% of 2001—02 CDAC participants were in the SES, or acting in the SES, compared with four per cent of non-participating EL2s who were EL2s at June 2001, while 46% of 1999—00 participants were in the SES compared with 10% of non-participating EL2s who were EL2s at June 1999. This is not necessarily a measure of the success of the program, but does indicate the right people are generally being nominated, and that they are being helped to identify their development needs for future advancement.

CDAC may not be the most cost-effective way of identifying development needs for everyone with potential to move to the SES, but it has proven to be very effective for most of those who have participated, with a frank and detailed assessment of strengths and weaknesses. Given the challenge of increasing the numbers of employees with capacity to take on leadership positions in the next five years, the Commission would expect CDAC participation rates to be nearer the rate of appointment to the SES (as is the case for some participating agencies). Agencies might consider the participation of suitable employees in the CDAC program to meet their future SES requirements. This could include younger employees in the feeder group and EL2s new to that role, for whom CDAC might more clearly indicate development requirements early in their management careers.

To further contribute to the development of organisational and individual capability in the APS, the Leadership and Learning Advisory Committee (LALAC) (formerly the CDAC Advisory Group) provides high-level advice to the PS Commissioner. Members of the committee are mostly agency heads.

LEADERSHIP CAPABILITY DEVELOPMENT IN AGENCIES

A broad range of activities can be used by agencies to develop leadership capability, ranging from on-the-job approaches, such as coaching and mentoring, to more formal structured opportunities, such as agency leadership and development programs. The agency survey collected information about the leadership development activities offered by agencies at different classification levels.

The agency survey results show that agencies are taking a targeted approach to leadership development. Figure 9.12 shows that agencies were most likely to offer more formal opportunities to EL and SES employees. Specialised leadership programs external to the agency were used by 75% of agencies for EL staff and 60% of agencies for SES employees. More informal opportunities, such as placements/mobility options inside the agency were most commonly used by agencies for EL (64%), APS 5—6 (62%), and APS 1—4 (56%) employees.

Figure 9.12: Leadership development activities offered by agencies

Source: Agency survey

These results were similar to those obtained in 2002—03, with generally only a small increase in the number of agencies offering the different leadership activities. The largest increases were in the proportion of agencies using specialised leadership programs external to the agency for APS 5—6 employees (up from 31% in 2002—03 to 47% in 2003—04); coaching for SES employees (up from 29% in 2002—03 to 40% in 2003—04) and for EL employees (up from 44% in 2002—03 to 53% in 2003—04); and placements and/or mobility options across the APS for EL employees (up from 31% in 2002—03 to 38% in 2003—04). In contrast, the biggest decreases were in the use of mentoring and personal sponsorship for EL employees (down from 38% in 2002—03 to 30% in 2003—04), and in specialised leadership programs external to the agency for SES employees (down from 67% in 2002—03 to 60% in 2003—04).

The use of placements and/or mobility options ‘across the APS’ and ‘outside the APS’ as leadership development opportunities continues to be limited. However, it is expected that use of these activities will increase over the next few years as agencies respond to the Service-wide requirement for strong organisational agility. The 2004 MAC report Connecting Government suggests that organisational agility can be fostered through Service-wide and agency-based approaches, and that placement and mobility options should form part of capability and succession management strategies.⁵² Organisational agility is vital in delivering whole of government solutions, and while the APS Commission can play a role (for example, hosting cross-agency networks and forums such as the SES and EL updates), agencies must also look for opportunities to encourage collegial behaviour.

INTEGRATED LEADERSHIP SYSTEM

The whole of government agenda forms part of the context for the APS Commission’s investment in its new ILS, which was launched in July 2004.

The ILS is an extension of the SELC framework, and based on the five core leadership capability clusters in that framework. It is designed to link all aspects of leadership capability development in the APS. The ILS articulates the desired leadership capabilities for EL and SES employees across the APS. It provides guidance to agencies and employees as to an appropriate balance of leadership, management, and technical skills. It also provides agencies with the flexibility to incorporate their own leadership programs, and to adapt the system to their business needs. Figure 9.13 outlines how the mix of leadership, management and technical skills change as employees move to more senior levels.

Figure 9.13: APS leadership model

Source: APS Commission

A major component of the ILS is the APS Leadership Capability Development Pathway (the Pathway). The Pathway is designed to inform and support leadership capability and career development for EL1 to SES Band 3 employees. It also seeks to develop a shared understanding of the type of leadership required at these levels. The Pathway identifies new behaviours that leaders require to move to the next level in their career, and highlights critical transition points in their development. For example, at the EL1 level there is a focus on ‘self’ and ‘team’ behaviour moving through to ‘community’, ‘cross-agency’ and ‘whole of government’ behaviour at the higher levels.

The ILS was developed to facilitate a collaborative approach between the APS Commission and agencies to build APS leadership that can deliver innovative solutions to current and emerging government priorities. It incorporates the APS Values and provides a common language for agencies to deliver whole of government outcomes. The ILS contains a number of support tools for agency HR practitioners and individuals to assist in career and workforce planning, and provides a consistent approach for career management. These tools include:

• Pathway descriptions for use by HR practitioners and employees
• a self-assessment tool for employees to assess their capability and assist in developing a personal development plan
• a capability development planning template for employees to record their personal development plan
• a ‘layers of complexity’ model, which describes the increasing levels of complexity as roles change
• a ‘development of methods and options’ guide, which outlines the avenues available for an individual to acquire new capabilities.

The APS Commission will be working with agencies and providers to integrate and customise (where appropriate) the system to meet agency requirements.

47 MAC, 2004, op. cit.

48 In 2002—03 ‘exemplifies personal drive and integrity’ was ‘demonstrates personal drive and integrity’, ‘shapes strategic thinking’ was ‘influences strategic thinking’, and ‘communicates with influence’ was ‘communicates effectively’.

49 Dr P Shergold, ‘Two Cheers for the Bureaucracy: Public Service, Political Advice and Network Governance’, speech to APS Commission Lunchtime Seminar, ACT, 13 June 2003.

50 National Institute for Governance, Public Service Leadership: Emerging Issues, December 2003.

51 Data is not available for the number of newly engaged or promoted SES employees in 2001—02, 2002—03, or 2003—04 that participated in the orientation program in the same year.

52 MAC, 2004, op. cit., p. 50.