Mar 6, 2013 - also find ways to leverage new tools to enhance efficiency and enable collaboration. .... including social
TEN TOP SKILLS Changing Dynamics in the Public Sector A Discussion Paper
An initiative supported by
Wilson Foundation
The Public Policy Forum is an independent, not-for-profit organization dedicated to improving the quality of government in Canada through enhanced dialogue among the public, private and voluntary sectors. The Forum’s members, drawn from business, federal, provincial and territorial governments, the voluntary sector and organized labour, share a belief that an efficient and effective public service is important in ensuring Canada’s competitiveness abroad and quality of life at home. Established in 1987, the Forum has earned a reputation as a trusted, nonpartisan facilitator, capable of bringing together a wide range of stakeholders in productive dialogue. Its research program provides a neutral base to inform collective decision making. By promoting information sharing and greater links between governments and other sectors, the Forum helps ensure public policy in our country is dynamic, coordinated and responsive to future challenges and opportunities. © 2013, Public Policy Forum 1405-130 Albert St. Ottawa, ON K1P 5G4 Tel: (613) 238-7160 Fax: (613) 238-7990 www.ppforum.ca
INTRODUCTION The role of a professional public service is to support and execute the decisions of the elected government, deliver high quality public services that meet community needs, and manage public resources and information in a responsible manner. As it is our public policies and services that allow citizens and businesses to thrive and succeed, the work of the public service contributes directly to national prosperity in a highly competitive and interdependent global economy. In this context, a highperforming public service is vital to meeting global challenges and building strong communities. From fiscal constraints and shifting demographics to new technologies and changing expectations, public sector organizations are operating in an increasingly complex landscape that demands greater innovation in service delivery, policy making, and organizational management. The public service also needs to adapt to evolving political relationships and accountability pressures that further complicate the role of government. Amid rapid change and growing complexity, exploring how emerging challenges are redefining public sector leadership competencies will help all levels of government to meet the needs of Canadians in the years to come. Much research has been done on the changing nature of government. This discussion paper highlights some of the common trends and their potential implications for capacity building in the public sector. The challenging dynamics outlined in this paper are evident across jurisdictions and provide a basis for further discussions on developing public service leaders of tomorrow.
CHALLENGES AND OPPORTUNTIES FACING THE PUBLIC SECTOR Given that the public sector must continually adapt to changing contexts, understanding current and emerging challenges helps to identify opportunities for new approaches and competencies. Although public service dynamics tend to be context-specific, there are a number of common trends, resulting in similar implications for capacity building across the public sector.
Growing Complexity Governments have always had to deal with difficult issues. But the current speed of change, degree of interdependency, range of interests, and level of public exposure create an even more complex environment. This new playing field has been characterized as volatile, uncertain, complex, and ambiguous.1 Policy challenges are increasingly global, with wide-ranging economic, social, political, and environmental implications. When issues span across sectors, effectively managing the needs of multiple stakeholders and taking a holistic approach to policymaking become imperative.2 Such interconnectedness also means that unintended consequences and uncomfortable trade-offs are harder to avoid. 1
Ellen Van Velsor, Clemson Turregano, Bill Adams, and John Fleenor, Creating Tomorrow’s Government Leaders: A White Paper, Centre for Creative Leadership, 2010: http://www.ccl.org/leadership/pdf/research/creatingGovernmentLeaders.pdf 2 st The Honourable Jocelyne Bourgon, ed., A Public Service Renewal Agenda for the 21 Century: The New Synthesis Project, Public Governance International, 2011: http://observgo.uquebec.ca/observgo/fichiers/74317_NS6_RT_report_5-2.pdf
As recommended in the 2011 World Economic Forum report, The Future of Government: Lessons Learned from around the World, the public sector must transform into flat, agile, streamlined, and techenabled organizations to respond to rapidly changing contexts that require more horizontal government and collective action.3 More than ever, issues are cutting across departmental mandates, jurisdictional divisions, and sectoral interests. Given the sheer complexity of the issues facing today’s leaders, sustainable solutions require multiple actors. For example, the frequency and scope of global crises such as economic recessions and natural disasters demonstrate the growing importance of a whole-ofgovernment approach focused on mobilizing internal resources and external networks to advance shared priorities.4 Technology is also accelerating the pace of change and increasing the opportunity for public scrutiny. Under such circumstances, the public service must not only learn to react quickly, but also find ways to leverage new tools to enhance efficiency and enable collaboration. Like any large organization, the public service needs to adapt to remain relevant and effective. Because organizational transformation demands collective effort, leadership development across the public service, rather than just within the senior ranks, will help ensure that real change can be implemented at all levels and sustained over the long-term. This means challenging the hierarchical culture endemic in most bureaucracies to allow talent and knowledge to be maximized throughout the organization.5 While measures must be taken to achieve greater efficiency, leading in an increasingly complex environment will take more than process or structural change. Public service leaders have to become adept at managing risk, engaging employees and citizens, and building relationships across political and sectoral boundaries.6
Political Oversight and Influence Managing political relationships and accountability pressures has always been a sensitive part of public sector leadership. High-profile scandals in Canada, the US and internationally over the last decade, coupled with increasingly intense and polarized public scrutiny through social media, have led to a further decline in public trust and a stronger focus on fighting government corruption and incompetency, whether perceived or actual. From the Gomery Commission to the Federal Accountability Act, the emphasis on public and parliamentary oversight has created an even more process-laden, riskaverse climate. While the provinces and territories all have access to information laws in place, recent issues around access to health data and growing public focus on accountability in public health care are also calling into question the rigour and impact of oversight regimes across the country. With transparency and accountability taking precedence in public sector management, Canada now has more agents of Parliament than any other Westminster-style government,7 and the frequency of public 3
Global Agenda Council on the Future of Government, The Future of Government: Lessons Learned from around the World, World Economic Forum, 2011: http://www3.weforum.org/docs/EU11/WEF_EU11_FutureofGovernment_Report.pdf 4 Peter Ho, “Coping with Complexity,” in Government Designed for New Times, McKinsey & Company, 2012: http://www.mckinsey.com/features/government_designed_for_new_times/coping_with_complexity 5 Ibid 6 Bourgon, ed., A Public Service Renewal Agenda for the 21st Century 7 Kathryn May, “Thirty years of business-like “reforms” have backfired on the public service: expert,” Ottawa Citizen, 06 March 2013: http://www.ottawacitizen.com/news/Thirty+years+business+like+reforms+have+backfired+public+service+expert/8053644/sto ry.html
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servants appearing before Parliament has significantly increased.8 Expanding the scope of the Access to Information program has also led to a significant rise in the number of annual requests filed.9 While accountability should be a top priority for any public sector organization, “the biggest obstacles to constructive change in the public service today are the excessive controls, reporting requirements and limitations on authority that prevent managers from focusing on excellence and being innovative in how they do their jobs.”10 Whereas elected officials set the direction for government departments, public service leaders play an advisory role and execute decisions. Today, the traditional role of providing strategic policy advice has evolved into more managerial duties under the current oversight regime, where public service leaders are expected to simply implement government policy, focus on operational management, and respond to daily crises.11 In fact, policy development is no longer the primary domain of the public service as political strategists, interest groups, private consultants, think tanks, and engaged citizens are playing a more active role in shaping government decisions.12 With less influence on policy making and more emphasis on ensuring accountability, fewer opportunities exist to build the public service capacity required for policy analysis and long-term planning, especially with increasing churn within the upper echelons.13 In addition, the distrust between politicians and public servants is creating a difficult atmosphere that further undermines government innovation in policy making and service delivery.14 As issues become more complex, declining policy capacity and rising political tensions will certainly pose challenges for effective public sector leadership.
The Austerity Trend Since the global financial crisis in 2008, governments around the world have been struggling to find more solid economic footing. As more countries face declining births and aging populations, meeting future service and health care demands with a shrinking workforce becomes an even greater challenge given current government debt levels. In Canada, the combined government debt is now over $1 trillion,15 with gross national debt-to-GDP at 85.6% and net debt-to-GDP at 34.6% in 2012.16 Although municipalities are prohibited by law from running budget deficits, they continue to lack much needed revenue sources for such expenses as infrastructure spending and economic development programs.17
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Public Policy Forum, Ten Tough Jobs 2010: Profiles of Leadership Positions in Canada’s Federal Public Service: http://www.ppforum.ca/sites/default/files/ten_tough_jobs_2010.pdf 9 Ibid 10 Clerk of the Privy Council, Seventh Report of the Prime Minister’s Advisory Committee on the Public Service, March 2013: http://www.clerk.gc.ca/eng/feature.asp?pageId=314 11 Deloitte and Public Policy Forum, Innovation in Government? Conversations with Canada’s Public Service Leaders (2011): http://www.ppforum.ca/sites/default/files/11-916G%20PS%20PPF-Innovation-Strategy-report-EN-WEB.pdf 12 Ibid 13 Public Policy Forum, Ten Tough Jobs 2010 14 st Public Policy Forum, Canada’s Public Service in the 21 Century – Destination: Excellence, 2008: http://www.ppforum.ca/sites/default/files/ppf_PS_report_final_en.pdf 15 Bill Curry, “Why (most) Canadians can expect higher taxes,” The Globe and Mail, 22 February 2013: http://www.theglobeandmail.com/news/national/why-most-canadians-can-expect-higher-taxes/article9002826/ 16 International Monetary Fund, “Government net & gross debt 2013,” World Economic Outlook Database, April 2013: http://www.imf.org/external/pubs/ft/weo/2013/01/weodata/index.aspx 17 Mario Lefebvre, “Canada’s Cities: Struggling Financially but Still Solvent,” Hot Topics in Economics Blog, The Conference Board of Canada, August 30, 2012: http://www.conferenceboard.ca/economics/hot_eco_topics/default/12-0830/canada_s_cities_struggling_financially_but_still_solvent.aspx
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Adapting to new fiscal constraints will mean doing more with less through creativity and collaboration. Despite the importance of innovation in a time of austerity, governments often resort to more conventional approaches to deficit reduction. For example, as a response to the current budget deficit, the federal government is planning to reduce public service employment by almost 30,000 positions over a five-year period, with most cuts having the greatest impact on service delivery.18 Fiscal challenges facing Alberta, Canada’s wealthiest province, will mean that social programs and the public service will also face cuts.19 For the most part, the federal cuts in public spending are supported by many Canadians, and some even recommend further reductions.20 The perception of a bloated, overpaid bureaucracy persists in many parts of the country, demonstrating a lack of public awareness about the value of and need for a professional public service.21 The disconnect between public perceptions and real pressures contributes to the risk-averse environment in government, as political leaders continue to prioritize immediate, short-term measures, including spending cuts, over more long-term strategies, such as supporting public sector innovation. Additional barriers to government innovation include siloed approaches across the public sector and limited expertise in leading broad transformative change.22
Evolving Technologies As technological change is ongoing, governments must constantly adapt to new ways of working, sharing information, delivering services, and engaging citizens and stakeholders. Web technology, including social media, is not only reshaping the marketplace, but also transforming the relationship between governments and their citizens. From info tracking and mapping tools to public engagement and collaborative platforms, technology can be used to support transparency and accountability, as well as enable participatory governance.23 These tools also provide the public sector with opportunities for improving services and advancing innovation. Moving toward more open and networked government requires an appreciation of both the risks and the benefits involved. Public service leaders must continuously reassess potential cyber security threats as new technology is introduced. Some of the key concerns include human error, multiple entry points, data mining, and internet scams.24 Moreover, the use of social media to engage internally and externally will involve further security, privacy, and ethical considerations.25 In the Canadian context, finding the 18
David Macdonald, “The Fog Finally Clears: The Job Impact of Federal Austerity,” in Behind the Numbers - April 2013, Canadian Centre for Policy Alternatives: http://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2013/04/Fog_Finally_Clears.pdf 19 Josh Wingrove and Dawn Walton, “Canada's wealthiest province cuts deep as Alberta embraces austerity,” The Globe and Mail, 07 March 2013: http://www.theglobeandmail.com/news/national/canadas-wealthiest-province-cuts-deep-as-albertaembraces-austerity/article9474700/ 20 Eric Grenier, “Canada Budget 2012: Cuts Supported by Most Canadians, According to New Poll,” The Huffington Post Canada, 03 February 2012: http://www.huffingtonpost.ca/2012/03/02/canada-budget-2012-cuts-federal_n_1315952.html 21 Deloitte and Public Policy Forum, Innovation in Government? 22 Ibid 23 Global Agenda Council on the Future of Government, The Future of Government: Lessons Learned from around the World 24 Ibid 25 Ryan Deschamps, Kathleen McNutt and Wayne Zhu, eds., Environmental Scan on Social Media Use by the Public Sector Administration, Public Engagement and Citizen Centered Services, Johnson-Shoyama Graduate School of Public Policy, University of Saskatchewan, October 21, 2012: “http://www.schoolofpublicpolicy.sk.ca/resources/Government/Environmental%20Scan%20on%20Social%20Media%20in%20t he%20Public%20Sector/Environmental%20Scan%20of%20Social%20Media%20Use%20in%20Governments_pdf.pdf
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right balance between managing risk and enabling interaction and collaboration is particularly challenging given the level of distrust and control at the political level, as well as the channels of access and the diversity of interests among citizens.26 Even though there are risks involved in open and networked government, the public sector cannot ignore changing citizen expectations about online access to information and services. On average, Canadian internet usage is nearly double that of the global rate of online activity.27 As patterns of behaviour shift in the general population, the public service, like other sectors, needs to align its approaches to ensure that it remains relevant. Expanding online services and information, as well as providing mobile access, are just some examples of how to modernize government for the 21st century.28 Exploring new technologies could lead to greater efficiencies and cost savings in the long run. However, governments need to invest in building the capacity to effectively utilize these tools and manage related risks. They must also realize that while savings are possible, some investments are necessary simply to meet public expectations.29
The Demographic Transition While the specific implications of demographic change will vary across regions, population aging will inevitably lead to lower tax revenues while increasing demands on health care and social services. These fiscal pressures are especially troubling as the public sector faces intensifying global competition for talent, as well as the loss of expertise and leadership from the retirement of baby boomers. Moreover, adapting to rapidly changing technology requires ongoing investments in capacity building. Governments across the country are already grappling with these issues, along with other demographic trends, such as growing diversity, the shifting gender balance, and intergenerational workplaces. Between 2006 and 2011, the percentage of federal public service employees under 40 years of age and that of employees over 55 have both increased.30 Considering recent increases in older cohorts, it is worth examining employment policies and practices that allow mature workers to thrive in the workplace and transfer their knowledge to the next generation. As for younger workers, they tend to be better educated, more tech savvy, and more demanding of their employers.31 In particular, Generation Y has higher expectations regarding employee engagement, career opportunities, and flexible workplace arrangements.32
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Jeffrey Roy, Social Media’s Democratic Paradox: Lessons from Canada, European Journal of ePractice, no. 16, June/July 2012: http://www.epractice.eu/files/Journal_Volume%2016-Interactive_Final_3.pdf 27 Omar El Akkad, “Canadians' internet usage nearly double the worldwide average,” The Globe and Mail, 23 August 2012: http://m.theglobeandmail.com/technology/tech-news/canadians-internet-usage-nearly-double-the-worldwideaverage/article569916/?service=mobile 28 Clerk of the Privy Council, Seventh Report of the Prime Minister’s Advisory Committee on the Public Service 29 Ibid 30 Treasury Board of Canada Secretariat, Demographic Snapshot of the Federal Public Service, 2011: http://www.tbssct.gc.ca/res/stats/demo11-eng.asp 31 Clerk of the Privy Council, Seventh Report of the Prime Minister’s Advisory Committee on the Public Service 32 Vinod Rajasekaran, The Road to Retention: Youth Perspectives on Transforming Organizations into Choice Employers, Public Policy Forum, 2010: http://www.ppforum.ca/sites/default/files/The_Road_to_Retention_EN_web.pdf
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Faced with similar demographic shifts, provinces and territories are implementing a range of public service initiatives aimed at improving performance. In Saskatchewan and British Columbia, the public service is applying the Lean approach, which focuses on building an organizational culture that is customer or citizen-centred.33 With multiple generations working together, accommodating diverse needs and interests, as well as creating a workplace culture that values and enables collaboration will be important for recruitment, retention, corporate memory, as well as organizational effectiveness and innovation. Shifts in gender and ethnic diversity are also taking place in the public sector. According to the 2011 demographic profile of the federal public service, over half of the workforce is female and the percentage of female executives has increased almost tenfold in the past 30 years.34 The percentage of visible minorities has also risen, from about 10% in 2005 to close to 13% in 2011.35 These shifts indicate a positive trend as a more diverse public service, one that reflects the citizens it serves, helps ensure that policies, programs, and services reflect and meet the needs of the changing population. Creating a representative, inclusive public service is a common priority across all levels of government. For instance, the Ontario Public Service Diversity Office developed a leadership learning program to create internal champions of diversity, accessibility, and inclusion among senior officials.36 To continue to promote workplace inclusiveness and benefit from diversity, employment policies and practices must accommodate a range of needs and interests, as well as provide more opportunities for meaningful employee engagement.
RESPONDING TO CHANGE “The vision that is beginning to emerge is one of a Public Service with a capable, confident and highperforming workforce that works collaboratively with citizens and stakeholders. The Public Service of tomorrow will also fully leverage the power of new technologies and seek innovative whole-ofgovernment opportunities for improved efficiency and effectiveness. And it will be agile and able to anticipate and respond to the evolving needs of Canadians and the Government.” -Twentieth Annual Report to the Prime Minister on the Public Service of Canada The challenges facing the public sector are not going to go away. To ensure better outcomes, public sector organizations across the country will need to transform their culture and modernize their practices by embracing collaboration, innovation, and technology. Collaboration includes engaging employees as well as citizens, stakeholders, and other sectors. Innovation involves managing risk while encouraging experimentation. And technology provides the enabling tools that help build collaborative, innovative, and streamlined government. 33
BC Public Service, Being the Best – 2012: http://www.bcpublicserviceagency.gov.bc.ca/down/BeingtheBest.pdf 34 Treasury Board of Canada Secretariat, Demographic Snapshot of the Federal Public Service, 2011 35 Ibid 36 Ontario Public Service Diversity Office, 2011 OPS Diversity Annual Report: Toward Inclusion: http://www.mgs.gov.on.ca/stdprodconsume/groups/content/@mgs/@aboutmin/documents/resourcelist/stdprod_088640.pdf
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This whole-of-government transformation requires strong public service leadership to build political support, inspire employee engagement, oversee organizational change, and manage ongoing adaptation. In August 2005, the Public Service Human Resources Management Agency of Canada and the Public Service Commission of Canada released an updated Key Leadership Competencies Profile of the public service leadership skills needed to meet the challenges of today and tomorrow.37 As the public sector context has undergone significant changes since 2005, we need new research to better understand how new realities redefine leadership competencies for the public service of tomorrow. Providing a starting point for building a more comprehensive vision and pathway for public service leadership, some key questions for consideration include: •
What competencies are essential for public service leadership today and in the future?
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What values and ethics become more important in the face of shifting public sector dynamics?
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What differences exist between leadership capacities in the public service versus other sectors?
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How do leadership skills differ across positions, departments, and levels of government?
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How can the public sector build the necessary capacity to drive effective governance?
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Does the public service need to be rebranded to improve perceptions and attract future talent?
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Canada Public Service Agency and the Public Service Commission, Key Leadership Competencies, Treasury Board of Canada Secretariat, 2007: http://www.tbs-sct.gc.ca/tal/kcl/dwnld/klc-eng.pdf
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