WorkshopPeople Management

23th of June 2011

Isabelle Van CauwenbergeBenoit De Visscher

“Decoding the DNAof 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

Public and private senior managers showthe same global business attitude pattern

Public sector senior managers are moreinnovative and conceptual

Public sector senior managers less focused 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 towardscompliance with rules & less towards trusting others

1. Comparable complexity of theorganisational setting

2. Public sector context is less stable

3. Public sector complex interaction with multitude of stakeholders

4. Public sector strong involvmentin policy making

5. Public sector objectives less concrete and unequivocal

6. Public sector lower amounts of indiscretionand managerial autonomy

Our hypotheses challenged and confirmed

Public and private senior managers showthe same global business attitude pattern

Public sector senior managers are moreinnovative 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 towardscompliance with rules & less towards trusting others

With younger managersstarting 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.

They are clearly more result-oriented and persevering and more optimistic when assessing risks.

Public sector senior leaders are more prudent, more conceptually and strategically oriented and more innovative.

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 “short-term”

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

Vision on development

Assessment/Development Centers: to evaluate potential

Learning Centers, Mentoring en Coaching: to develop skills and competencies

From diagnostic to development - overview

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

IntakeIntake

Development center Development center

ReportReport

FeedbackFeedback

Setting goals, understanding contextSetting goals, understanding context

2/3 to 1 day2/3 to 1 day

Consisting of:• competency based and motivational interview• simulation exercises• personality questionnaire• reasoning tests• learning styles questionnaire

Consisting of:• competency based and motivational interview• simulation exercises• personality questionnaire• reasoning tests• learning styles questionnaire

• Evaluation for each competency•Advice on further development•Additional reports: learning style, willingness

• Evaluation for each competency•Advice on further development•Additional reports: learning style, willingness

• Creating self-understanding and acceptance• Future and development oriented

• Creating self-understanding and acceptance• Future and development oriented

Feedback + HRand managementFeedback + HR

and management

•Giving insights•Discuss development needs

•Giving insights•Discuss development needs

DevelopmentDevelopment

WK 1WK 1

WK 2WK 2

WK 3WK 3

WK 4WK 4

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 stimulate learning, and the focus is mostly on learning by doing, with the “theory” element kept to a minimum.

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 CauwenbergeSenior Manager

Moutstraat 56 | 9000 Gent | Belgiumt: +32 (0)9 242 53 51m: +32 (0)497 52 63 33isabelle.van.cauwenberge@hudson.com