Workshop People Management 23th of June 2011 Isabelle Van Cauwenberge Benoit De Visscher “Decoding the DNA of public and private sector leaders” Hudson Research -Key findings -Lessons to be learned Background to this study •In our work with public sector clients, the question often arises as to whether this sector needs a different type of manager: “How alike or unalike are senior leaders in public and private sector?” •Extensive research exists on the differences between public and private sector organisations but less attention has been paid to differences in leadership behaviour. •The objective of our study was to explore differences in leadership traits between public and private sector senior managers. •In order to better understand what differentiates managers from both sectors, Hudson used its Business Attitudes Questionnaire (BAQ) to analyse personality characteristics of over 1000 senior leaders in both sectors in Europe. Methodology Hudson’s Business Attitude Questionnaire (BAQ) was used as a basis for this study • Hudson R&D developed the BAQ based on the widely recognised ‘Big 5’ personality model, which measures 25 aspects of an individual’s personality • This questionnaire has proven to predict professional performance through hundreds of assessment and development centres worldwide Sample population (European) • Senior leaders (N, N-1 or N-2): 1,185 (700 private vs 485 public) • Public sector middle managers (N-3 and N-4): 955 Focus on comparing • Senior leaders: public versus private • Within public sector: men versus women senior leaders • Within public sector: senior managers versus middle managers • Within public sector: age - 40 versus + 40 What we expected to find: our hypotheses 1. Comparable complexity of the organisational setting Public and private senior managers show the same global business attitude pattern 2. Public sector context is less stable Public sector senior managers are more innovative and conceptual 3. Public sector complex interaction with multitude of stakeholders Public sector senior managers less focused on short term results, but rather cautious and mindful 4. Public sector strong involvment in policy making Public sector senior managers stronger conceptual and strategic focus 5. Public sector objectives less concrete and unequivocal Public senior managers are less confident about the outcome of their initiatives 6. Public sector lower amounts of indiscretion and managerial autonomy Public senior managers more oriented towards compliance with rules & less towards trusting others Our hypotheses challenged and confirmed Public and private senior managers show the same global business attitude pattern Public sector senior managers are more innovative and conceptual Public sector senior managers less focussed on short-term results, but rather cautious and mindful Public sector senior managers stronger conceptual and strategic focus Public senior managers are less confident about the outcome of their initiatives Public senior managers more oriented towards compliance with rules & less towards trusting others With younger managers starting to test the limits! Small differences, big impact Some highlights Private sector senior leaders tend to be more communicative and positive in their relationship with other people. Public sector senior leaders are more prudent, more conceptually and strategically oriented and more innovative. They are clearly more resultoriented and persevering and more optimistic when assessing risks. They make up their mind based on rules and regulations and less on networking and communication. Which leader do you need or which competencies do you want to be developed in the non-profit sector in order to guarantee an optimal organizational development in the future? Public versus private sector senior leaders Small differences with a major impact Senior leaders in public sector: • Are more focussed on monitoring rules and procedures and feel they have less freedom in the way they can manage • Are more focussed on long-term policies and on finding innovative and conceptual solutions and less on short-term results • Act in a less competitive way and do not pay so much attention to relationships and networks • Are more inclined to “monitor” and less to “facilitate” • Are more inclined to “control” rather than to “believe and trust” • Are more focussed on “creating a long term strategy” than on “winning in the “shortterm” Public sector senior leaders are more mindful, private sector senior leaders are more result-oriented Public sector: men versus women in senior leadership positions Women senior leaders show a more outspoken profile compared to their male counterparts: • Women focus more on extraversion and especially on “Motivating others” and on adopting a more open communication style. • Women pay more attention to social relationships BUT compared to the average female population women senior leaders in the public sector score lower on “Altruism” – they after all adopt a rather cold attitude Both male and female senior leaders go for a certain degree of thought leadership, with: • Women being more open to changes induced by the organisation • Men being keener on exploring innovative approaches Women senior leaders seem to use a more mindful and warmer leadership style compared with their male counterparts Public sector: senior versus middle management Middle managers have the same profile as senior managers, although less extreme, less pronounced: middle managers seem to be prepared to progressively take on leadership responsibilities. We see the following differences: • Middle managers score lower on typical leadership characteristics (Decisive, Extraversion, Leading, Persuasive, Motivating and Strategic) • Middle managers score higher on more operationally focussed dimensions (Helpful, Meticulous and Rational) Clear leader-follower congruence between senior and middle management level Public sector: The new generation of senior managers: less is more Younger senior leaders in public sector: • Show less autocratic or paternalistic leadership behaviour • Show a higher personal ambition to change things and to do things the way they wish to • Do not tend to spontaneously involve others in the decision-making process • Are not always very optimistic about the outcome • They develop a personal opinion and are prepared to critically question ideas put forward by others In the public sector 10% of the senior managers are less than 40 years old versus 30% in private sector Senior managers in the private sector have a stronger personality profile and appear to get more opportunities at a younger age than their public sector counterparts. Overall conclusions There are differences but let’s not overestimate these differences What public sector managers can learn from private sector managers: wielding influence, not authority • Huge challenge: cope with confrontation without being confrontational • Improve the capacity to build positive, motivating relationships with stakeholders What private sector managers can learn from public sector managers: mindful and instrumental leadership behaviour • Focus on long term strategy and the creative process of building a conceptual vision • Strategic leadership facilitates a charismatic effect An open question as final conclusion Knowing that: • Public senior managers are more focussed on the long term rather than on the short term • Public senior managers are more focused on creating and monitoring regulations and rules rather than on taking high risks How would our economy look today if it had been managed by senior public sector leaders? Leadership development for public sector Coaching on communication, networking and building partnerships When external coaches: massive experience with public sector is a prerequisite Younger public managers: support and coaching in their drive to change things, to implement change and to built a community Recognition of the goals that are achieved by senior public leaders, to increase motivation Senior leaders learn through challenging experiences: explore possibilities of exchanging private and public sector leaders Assessment Centers en Learning Centers: from diagnostic to development From diagnostic to development - overview Vision on development Assessment/Development Centers: to evaluate potential Learning Centers, Mentoring en Coaching: to develop skills and competencies Support your employees “Talent management” is about the development of talent needed for your future organization, by helping realizing the potential of your actual employees Therefore you need a true “talent mindset” within your organization, the belief that talent –Is critical to your organization, today as well as tomorrow –Can be developed (making mistakes is an option) Development Center to start development Measuring strengths, weaknesses and identifying potential to start coaching- and development path Standardized approach cfr. Assessment Rather confronting for participant: measuring first, followed by feedback in order to create awareness A traditional individual DC - example WK 1 Intake Setting goals, understanding context Development center 2/3 to 1 day Consisting of: • competency based and motivational interview • simulation exercises • personality questionnaire • reasoning tests • learning styles questionnaire WK 2 WK 3 Report Feedback • Evaluation for each competency •Advice on further development •Additional reports: learning style, willingness • Creating self-understanding and acceptance • Future and development oriented WK 4 Feedback + HR and management Development •Giving insights •Discuss development needs Example learning styles questionnaire Example willingness to learn Leadership cannot be taught: but it can be learned Hudson’s experience, backed up by empirical studies, shows that: The majority of learning takes place in situ: by creating experiences in the workplace that are specifically tailored to developing specific, identified competencies (both strengths and development needs) A fair amount of development is enabled through coaching and mentoring – particularly when combined with a feedback loop around the experiences garnered in the workplace development track Some learning can indeed take place in a classroom environment, provided that the group dynamic is used to Learning Center in stead of DC • Focus on creating awareness during LC • Safe place to learn: feedback with a coaching attitude, invitation for self-reflection and discovering answers oneself • Participants from same organisation work individually and in small groups • Participants learn by practicing and observing others • No focus on theory: practicing takes 70% of program When using a Learning Center? • You have detected a gap for some competencies within a particular target group at your organization, or you want to focus on some important future competencies • You want to go one step further than potential evaluation, and focus immediately on potential development • You are looking for an alternative to traditional learning more using coaching techniques which gives you bigger added value - You want to give a safe place to try new behaviors and get feedback on it - You want to place the ownership of the personal development to the people - You want to create/develop a culture of feedback inside the organization - You want to give the opportunity to experience the difference between managing and coaching How does it work, a LC? • General: 2 days – 2 to 3 subjects – 4 to 8 participants – several trainers • Program: Some theory and concepts – Simulation exercises – Feedback sessions – Self-reflection – Practicing again and other feedback – Detecting individual strengths and development needs together with other participants and trainers • Prior to LC: setting subjects/competencies, individual interviews on expectations, filling in some tests like BAQ, 360° followed by individual feedback sessions • After LC: integration of insights in personal development plan • Possible follow-up: with (team) coaching, master class Contact: Isabelle Van Cauwenberge Senior Manager Moutstraat 56 | 9000 Gent | Belgium t: +32 (0)9 242 53 51 m: +32 (0)497 52 63 33 isabelle.van.cauwenberge@hudson.com