STRATEGIC LEADERSHIP QUALITY THROUGH THE DEVELOPMENT AND
CHANGES1
Srdjan Nikezic2, Sveto Puric3
Summary: The project of administration and management reform in the public, private and
shareholding sector, is result of the identified requirements for improving leadership
development, management and acquisition of talented managers basic skills learning and
development throughout the Republic of Serbia. This paper defines the needs for a new approach
to leadership in public, private and the shareholding sector of business. The quality of leadership
through training, acquiring new knowledge and skills are a prerequisite respond for successfully
resistance to the challenges of environment.
Keywords: Leadership, development, quality, training, changes
INTRODUCTION
Strategic Centre for Leadership, Learning and Development (in further text Strategic Centre)
should be established as the education - practical service that is focused on strengthening
leadership development, including effects on talent. In the future, the focus will be to expand and
include continual development of the basic skills of effective and transformational leaders. This
leadership development strategy should be defined and developed by the Strategic Centre with
the help of eminent academic and economic experts from the outside. Business needs are
analyzed and the objective of the strategy is to fill the identified gaps. Strategic center will
cooperate with other agencies in the country and abroad, and based on contemporary practice
and research.
FOCUS ON LEADERSHIP DEVELOPMENT
Strategic center will confront to the current and future significant risks affecting the ability of
leadership. It is very important to detect these risks and to ensure the ability of leaders to
continue to carry out the perceived needs of the citizens and the community. These challenges
include the long-term problem in the area of policy and services that require fast solutions and
leaders with diverse abilities and profiles. Also, we are faced with a number of existing
employees at risk, including the elderly and the imminent retirement of senior managers, and
therefore should provide continual education, promotion and development of leadership skills. In
the end, we are faced to new challenges, such as increasing competition of young, educated
people, which means that we must build leadership talent within the existing institutions and
create leaders out of institutions and to involve them in the institutional framework.
1
The work is part of the research project 41010, funded by the Ministry of Science and Technological Development
of Republic of Serbia
2
Faculty of Science, University of Kragujevac, Serbia, srdjan_nikezic@yahoo.com
3
Faculty of Law, University of Kragujevac, Serbia, svetopuric@yahoo.com
LEADERSHIP DEVELOPMENT STRATEGY
Leadership development strategy is based on the variable KEY variables with leaders in the
public sector and the economy. Variable variables are key goals of development and points that
need to be defined as axioms. In Figure No. 1 is shown the imperatives of leadership
development.

The workforce
current risks




New
Challenges


Dealing with complex policy challenges, the orientation of the
citizens with an emphasis on executive functions in the
administration and the economy.
About 40% of the group leader has the right to retire in the next
5 years/80 percent over the next 10 years
Only 8% of agencies have active talent management strategy
Only 30% have an active succession management
Less than 1 in 3 employees in the government sector has
assessed the effectiveness of their leadership training and
development program as well as high and noted improvements
in leadership performance.
The labour force in the world of old, and this leads to increased
competition for talent;
 In 2010, people aged over 65 = 13%
 In 2050 people will be over 65 = 23%
Leadership Development and Talent Management is a top
priority in organizations worldwide. (Boston Consulting Group)
In the future,
leaders will be
functionally
different profiled.
There is a
possibility to
improve
leadership
development.
Talent
management must
be built from the
inside
Figure 1: Leadership Development Imperatives
Development Strategy Leadership is covered by dimensions: Know - Work - Be as dimensions
of leadership. The leadership development program is designed to identify the ten principles of
development as the most effective method of combination of learning on the job (50%),
continual education (40%) and formal learning in workshops (10%)
10%
4. How to develop a
program for future
leaders?
40%
50%
High potential
3.
How to build the
current leadership
competencies?
5. What are the priorities for the
development of leadership
competencies?
Experienced in the role
The transition in the role of
Team
Leader
Provision of
Cultural
services
be
What leaders need to
achieve?
Complexity of the development policy
know
1.
Priorities of Citizens
changes
work
2. What is meant by
effective leader in public
administration and
economy?
6. How to assess the
effectiveness of
development resources?
Figure 2: Strategy of Leadership Development
The strategy is focuses on six key questions that have been identified in its notice as business
needs at all levels. Leadership approach of needs development is shown in Figure No. 2 as a
strategic response to these questions. Below are given the answers to the six questions in more
detail.
STRATEGY ELEMENTS 1: What leaders need to achieve?
Strategic center will try to adapt its work to the public and the business sector and business to
understand the requirements to be met by the leaders of the present and future. This has included:
• Defining functions and interaction between management and leadership.
• Appreciation of environment as a key field for business leaders. Readiness for leadership
change as a result of turbulent environments. Shaping requires that leaders must be able to
achieve in the future.
• Understand the needs and expectations of citizens and followers leadership and willingness to
respond on the challenges through active changes.
Definition of Leadership
Leadership is the key variable in the dominant characteristics of management in companies,
political parties and society. It is characterized with personality and environment in which he/she
operates. Many definitions of leadership are based on personal characteristics of leaders,
interpersonal relationships between leaders and followers in the process of achieving goals,
leadership as a process or function. Research and contemporary practice have shown that there is
a lot of approaches for the development of leadership competencies, as well as many definitions
of leadership. The Oxford English Dictionary has defined leadership as:
"The action in the conduct of the group or organization and the ability of leaders to achieve it."
Definition of leadership includes the following elements:
• interpersonal relationship between leaders and followers,
• ability of leaders to articulate the action of the vision and mission of the organization, party or
state.
• ability to influence leaders and followers actions align with your goals.
Excellent manager is a good leader, and a leader in managerial structure contains all its elements,
which shows the interconnection between leaders and managers.
Key drivers required for the new concept of leadership
At the beginning of 80s of the last century, after a period of relative stability economy and world
affairs have changed business conditions and existing patterns, beliefs, values and goals are not
able to respond to the changes that have become dynamic and comprehensive. Many, by then a
successful company, faced with the crisis and the need to radically change every aspect of their
business. This was reflected in the total, political relations in the world. So far the theoretical
foundations that were based on an analysis of the personal characteristics of leaders and
managers, and their behavior in different situations, not taking into consideration certain, quite
uncharacteristic of quality leaders. These new qualities are demanding a new theory or a new
concept of leadership. It is concept of transformational leaders. Transformational leaders seek to
change existing patterns, values, beliefs and goals, and create new ones that encourage greater
commitment to the followers. Transformational leaders know how to strike a balance between
short-term results and long-term vision to establish a strong guiding coalition through complex
processes based on the vision of the individual, his courage and willingness to learn and open to
followers, leading to the realization of the same goal. The key effect is the efficient restructuring,
economic recovery and boom.
The key attributes of future leaders in the profile are:
 Willingness to respond on increasing expectations of citizens for fast and flexible state
fulfills the requirements and provides access to information of public interest.
 Ability to provide increased living standards and quality of life.
 Establish effective coalition with citizens through the adoption of effective policy and its
execution in the shortest terms.
 Articulation of needs for deep cultural changes at all levels and responses to those
requests.
 Formulation of a strategy of rapid technological development and technological change.
For effectively responds on needs for changes and creation of a new set of corporate values and
culture, to be a factor in the development and transformation, a leader has to be established as a
matter of choice leadership skills and learning, not biological destiny. Leaders are born, but
created. The leader has to gain the respect of followers defining a clear sense of the course of
action, ethical principles and a strong vision for the future. On Table No.1 is presented the
current (transaction) demands that a leader should possess, and the new (transformational)
requirements which are the result of changes in which leaders must act boldly and with
confidence in their necessity. You need to develop a vision of what might be, to mobilize
followers to embrace and work on a new vision, for institutionalization of changes that must last
for a longer period of time.
The previous requirements that a leader should
possess
Future leaders must …
Expertise and a simple and efficient system that does
not change in long period
They recognize the need or demand of potential
supporters and teams adjust to changes in the
environment
Articulate the motives of followers and trying to meet
their needs, while also engaging followers as a
complete personality
Inspire and motivate their followers to change the
standards it together, at the same time holding out
encouragement to them that such change is possible
and necessary
Stimulate creative and innovative reference, new
perspectives and methods of work with followers
Through counseling and teaching develop in
individuals of their individual needs, abilities and
aspirations, while also encouraging them to participate
in shaping the future of group
Defining goals, objectives, and the rights and
obligations of followers. The short-term objectives,
standards, procedures, policies and controls
Efficiency (cost reduction) is a key variable in the
leadership competencies
The application of knowledge within their capabilities
Rational use of the expertise for decision-making and
implementation
Setting direction and mobilizing people
Identification of leadership vision to the
perception that the leader follower see a
confident leader who captivates her
confidence and attitudes
Table 1: Transactional and Transformational Leadership Requirements
STRATEGIC ELEMENT 2: What it means to be an effective leader?
Strategic Center has identified the possibility of strategic leaders. These are:
 The leader is drivers of social change that can meet the needs of an authentic follower.
 Integration and evaluation of future changes in the compatibility with the changes of the
past.
 Establishing a balance between short-term results and long-term vision. Short-term
changes occur in the range of 6-12 months. The greatest threat to effective leaders feared
that if he has too little time to manage the long-term changes and therefore focus only on
the annual quarterly results. Successful transformation is the ultimate test of leaders, and
that is why they need two skills: building coalitions and creating a vision.
To be an effective leader in the strategic combination means: be, know and do
An effective leader is different from others because he has: purpose, morality, and the timeframe
or time horizon. The effective leader must be able to meet the complex challenges of today and
to be civil oriented. To accomplish this you need to know:
• how to lead followers, processes, technology.
• to developed strategic thinking, excellent communication, leading forth a strong coalition, plans
short-term changes and to institutionalize new approach.
• haw to be leader, with self-awareness, introspection, initiative, flexibility, authenticity,
integrity, skill, establishing interpersonal relationships and teamwork, and empathy.
Performance and Results
Know
People
System
Managing people
Strategic management
Stakeholder management
Analytical skills
Management with
Changes
Public Service "craft"
Job
Professional
Financial / Bullion
Management
Public Policy
Delivery
Program management
Stuff
Risk Management
Professional / Special
Do
Forming strategic
thinking
Be
Leader
Followers
Authentication
Self-regulation
Self-consciousness
Social
Consciousness
Achieving results
Communication with
impact
Cultivating productive
working relationships
Characteristics of
personal integrity and
competition
Self-motivation
Will / passion
Conviction / courage
Social skills
Situation
Resourcefulness /
adaptability
Situational
awareness
Empathy
The position of the
follower
Elasticity
Technological skills
Collegiality
The Business Case
Public Service Processes
The complexity of public service
Interest of Public Service
Figure 3: Framework for Leadership Development
STRATEGIC ELEMENT 3: How to build the existing leadership competencies?
This element in the strategic center identified as the efficiency of the existing development of
leadership competencies. This includes:
• Identification of career critical points and times when you need to take various measures to
further develop of individual knowledge and skills of leaders.
• Defining the principles for the further development of leadership knowledge and skills through
new learning. The end product of learning and knowledge is creativity. Strategic Center has
identified four basic stages of creativity: preparation, incubation, illumination and evaluation.
Strategic center identifies critical phase of transition from transactional to transformational
leadership through the process of the development of leadership qualities within the existing
dimension (enterprise, sector, municipalities, Ministries) and new employment in other sectors
by promoting new leadership roles. Another critical point is the change of leadership roles at the
same time dimension of action through the development of leadership qualities.
The concept of leadership development
Any research shows that leadership development is most effective when:
• exist a balance between learning on the job (50%), through development programs, training and
effective methods of developing leadership skills (40%) and active experimentation through
practical training in workshops (10%).
• leaders are actively participating in the development of new models, based on the fact that it is
recorded that the failure rate among top executives in leading global corporations, nearly 50%,
and this failure is largely due to the lack of leadership, not operational and technical skills of
individuals.
• primary factor in the success of organizational leadership development and leadership skills.
• past practices, such as leadership training attended only above-average prospective managers
the highest level and this 2-3 times during their careers was corrected.
• the need for leadership training and knowledge constant and not exclusively related to the
highest level in the hierarchical structure.
• Strategic Task city's application development and motivation model based on a "mission,
values and pride", which in practice means: invest available resources (expert knowledge) in the
development of core values, to prepare each team member to lead, teach tasks when leaders
resolved I, and when forming teams, to encourage the development of self-discipline as a means
to strengthen the personal pride and require that each act honorably, bravely and with great
commitment. Training programs should ensure the implementation of all of these needs.
• exist programs based on classroom learning is necessary: to prepare adequate programs that
respond to potential listeners and monitoring and evaluation of acquired knowledge in the
workplace
Development of leadership competencies-principle: 50-40-10
The development of professional expertise
The main roles and rehearsals
Experience
Action learning projects
Leadership ideas and events
University courses
Horizontal learning
Critically impressive experience
Micro intervention
Organizational leadership
The project strategy and the role of comparative
A complex problem solving
Leader and formatting
Real time-real things-real situations compatibility
with the community / stakeholders / customers
Know
Do
Be
Figure 4: Example of 50-40-10 principle
The leader is not the product of a certain event or program, but a strong personality with a
sincere understanding, knowledge and skills that define him as a successful and tend to inspire
followers to follow him. Different situations call for the application of divergent leadership
styles, because experienced and motivated followers require a different approach than just
employees in the organization. The basic starting point is the existence of a good understanding
of the characteristics of followers, their needs, emotion and motivation.
STRATEGIC ELEMENT 4: How to develop programs for future leaders?
This strategic element identifies models for improving the potential future leaders. Development
of leadership skills extend to the development of leadership skills, knowledge and attitudes of
individuals. The great potential and opportunities of individuals who weigh personal success and
satisfaction and significant leadership roles assume the following actions:
• Defining talent management.
• articulating key talent development purposes.
• Defining the principles underlying the method of developing their leadership skills.
• Designing organizational structure, training talents for leadership.
What is Talent Management?
Center Strategic defined talent management as a systematic approach of the identification of
talented individuals, who through certain personal characteristics or sets of skills and new
knowledge, can be successfully carried out the most responsible tasks and achieve goals.
Identification of the driving forces for the talents of leaders is related to their ability to accept
conditionality, but given the changes and challenges in the future. The will to succeed at
something, is often crucial, but they need other personal attributes that have arisen from the
knowledge and abilities.
Talent management implies that:
• Strategies for managing talent need to be aligned with an organizational structure redesign over
time.
• A rigorous and transparent analysis of the actual potential through a list of competencies
expected of future leaders is essential.
• Mentoring is the program of developing future leaders and present of a special relationship in
which skillful director or manager is helping less experienced colleagues. A mentor is usually a
person with upper-level and not immediate superior of all wards. Mentor provides:
psychological-pedagogical support and purpose of encouraging career.
Principles of design leadership and systems
Strategic Center has developed a series of design principles, based on consultation and research
in the most effective way to develop leadership talent in the system:
• System design leaders led by competent personnel from the Strategic Centre and experts
engaged by the service contract.
• Development of leadership accountability program is supported directly educations in strategic
center.
• The initial focus is directed towards the development of high potential leaders in responsible
positions.
• Model design is customizable and can be used as a basis for different types of training leaders
in various fields.
• Strategic goal is to identify the center with the high potential for successful in the future role of
the leader. This is provided through a training process that simultaneously monitors and
measures results.
• Training programs are focused on adapting the program to the individual needs of each
participant.
• Development of programs based on the principle of consensus, includes mobility, use of
various elements of the evaluation, and it can be arranged and expert measurements.
Review of the talent management
In Figure No. 5 is shown an overview of the management potential leaders, which begins by
identifying key areas that require greater attention to the potential future leaders and Strategic
training center as the carrier.
Start
Identification of core
areas
Evaluation
Examine each element in order
to achieve the best result
Necessary roles for organizational
sustainability (draft Strategic Center)
Identify and assess
high potential for a
focused area
The intensive
program development
Performance and potential
to succeed in the critical
role
The rapid development in order to
develop the skills and target needs
Figure 5: Access to training future leaders through Strategic Center
STRATEGIC ELEMENT 5: What are the priorities of the developed application of
leadership competencies?
In order to implement a leadership development through strategic center identified the factors
that determine the priorities in the application:
• Ability to maximize the social and economic impact on leadership development.
• Minimize duplication and use of inadequate training leadership development programs. The
experience of others is often not applicable to our conditions.
• Identify areas in society where there is a lack of leadership capacity and take appropriate
measures and programs to turn the predispositions of talents and chances for success through
learning and training.
10%
40%
50%
Potential applications (responsibility
for the environment, understanding
the needs of followers, personally
underwriting)
Great potential
Transformational Programs (Professional Expertise, Public Policy, suppliers, customers, regulatory
issues, strategic opinion, changes in management, collegiality and adaptation)
Transition programs (public sector involvement, ethics and integrity, and social situational
awareness, collegiality, strategic opinion, personal trust between the leader and follower)
Team
leader
(A1)
Menager
(A2)
Executive
leader
(B1)
Multifunctional
leader
(B2)
Figure 6: Developing leadership priorities
Deputy
CEO
(B3)
CEO, President
of the Agency
(B4)
The explanation for the current priorities
Central level
Explanation
1. Initial focus- the B role
Cultural impact on organizations can
systematically sought to shape leadership
behaviour
• Ability to foster fellowship and to build
leadership cadre
• Talent Management begins with learning on
the job, and continuing education for the
continuous
2.

Post-initial focus- the A role
Influence is exercised through formal learning
Central level
Explanation
 Develop a strong team, with the leader
at the head and the ability to fill critical
positions (programsfor talented)
 Provide
assurance
with
many
competitive candidates, will be
competing for a critical point when
they become available
2.The transition to the role
 Provide input to organizational culture,
leadership and systemic approaches
(transformational programs)
3. Experience in business
 To provide high performance, breadth
and
organizational
sustainability
(experienced leadership development
program)
Table 2: Explanation of current priorities
1.Big potential
STRATEGIC ELEMENT 6: how to assess the efficacy of the evolutionary potential?
Each learning, knowledge and creativity must be subject to rigorous assessment showing
whether planned goals are achieved through training, to determine whether the performance
achieved through the market and the public, measurable results, and will the continuous
improvement continue. Strategic center will provide continual monitoring and evaluation at two
levels:
• Assessment of the effectiveness, efficiency and development potential, through leadership
development strategy.
• Evaluate the individual programs and make the necessary corrections.
Role and tasks of the Strategic Center
Strategic center will explore efficient and effective overcome current and emerging risks that
occur in a turbulent environment in which leaders work through:
• Development of leadership skills is a priority which will be tailored to the social and business
needs.
• Education but to existing leadership structure that will improve cooperation, collegiality and
empathy between leaders and employees.
• Forcing a paradoxical way of thinking where the in leadership continuum luck can find two
different ideas that do not threaten each other: reducing production costs and increasing product
offering quality, cost reduction and improvement of public administration, offering quality
services to the citizens, and so on.
• The application of modern methods of training leaders.
• Improve leadership skills and the continued systematic training.
• Development of leadership skills: leadership, motivation, evaluation of the success of the work,
change management, stress management, project management, interviewing, conducting
business meetings, through creativity and innovation, and finance.
• Improve technological skills of the workforce.
• The development of TQM (Total Quality Management).
• Develop a system of managing agencies, organizations and parties.
Strategic center, among other things, need to operate with several key programs:
• Leadership archetypes.
• The importance of leadership and tasks.
• Leadership and basic strategic tasks.
• Leadership as a paradigm change.
• Leadership skills.
• Leadership roles and functions.
• Leadership and quality.
• Leadership and power.
• Functionally, situational and transformational leadership.
• The concept of leadership.
• Emotional intelligence leader.
• The theories and styles of leadership.
• The application of classic styles of leadership.
• Contemporary theories and models of leadership.
• Complementary relationship between the leader-manager-entrepreneur.
• Factors leadership.
• The range of leadership throughout the organization and the environment.
• Leadership and other management functions.
• Leadership and interpersonal dimensions.
• Models of leadership.
• Different approaches leadership.
• Leadership in companies, education, health, justice, parties...
• Leadership vision, mission and charisma.
• Theory of a great man.
In addition, a strategic center need to ensure continual improvement of service users, mediation
in the development of new programs and recruiting, support the public and private sectors, as
well as local authorities and constantly rigorous evaluation of proposed programs and
development strategies.
The Supervisory Board is contained of external experts of different fields, who will provide
strong support for the work of the Centre, contributing to the development of leadership. The
Director and Deputy of Strategic center will create priorities in order to ensure compliance with a
strong business environment and the needs of service users.
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