Strategic Centre for Leadership, Learning and Development Advisory Board Meeting 28 February 2011 Agenda and Meeting

1. Strategic Centre for Leadership, Learning and Development Advisory Board Meeting 28 February 2011Agenda and Meeting Papers

2. Agenda items

3. At the Advisory Board meeting on 28 February, we ask that you note progress, provide direction and advice, and endorse the proposed leadership development strategy and talent management system design principles for ongoing work

4. Agenda Item 2Progress Update

5. The Strategic Centre for Leadership, Learning and Development will initially focus on its key role in building the leadership capability of the APS The ongoing sustainability of the Australian Public Service depends on how well we identify & develop our leaders. We know that properly resourced, the Strategic Centre will play a crucial role in building an APS better able to achieve challenging program goals against a backdrop of an increasingly complex delivery environment and new risks to be managed. We understand that we have a number of challenges as we build strategy and systems to assist to unlock the potential of the APS leadership group and ensure individuals are supported to achieve goals. We will work in partnership with our Agency colleagues to optimise leadership performance to deliver better business outcomes.

6. Following a 3 month period of consultation and research, we are now in the early stages of designing the leadership development strategy

7. In line with Advisory Board direction, we have focused on enhancing our understanding of the APS context in addition to gathering evidence of effective practice from other organisations and theory & research Board direction Consult widely with stakeholders Communicate through business lens Tentatively adopt the 70:20:10 model as frame for development Identify key terms for leadership, talent management, etc Future documents to increase reference to data and focus on outcomes for citizens Rationale for framework and business connection to be strengthened Outline elements of talent management Core learning principles should outline capability application in the workplace Action taken Extensive APS consultation including Secretaries, Deputy Secretaries Heads of Corporate, HR practitioners Strategy and communications based on alignment with business requirements 70:20:10 model basis for development interventions in both leadership development strategy and talent management approach Proposal identifies and defines key terms Strategy based on data and research (APS and contemporary) and aligned to citizen centric service delivery Talent management system outlines elements of individual program Leadership development strategy focuses on capability application in the workplace

8. Consultation, co-design and ongoing research are features of our approach in recognition that the implementation of the strategy and talent system represents a substantial change for system participants Have met with more than 40 Agencies and this consultation is ongoing; Secretaries, Senior Leaders HR Professionals Ongoing research: Leadership capability development and talent management literature International & Australian State government leadership development approaches Private sector

9. Research & consultation has shown that there is support for the benefits that the Strategic Centre can bring Emphasis on the crucial and necessary role that learning & development and especially leadership development plays in reforming the APS. To overcome existing APS workforce risks: Imminent retirement of senior leaders Lack of confidence that we have the systems in place to ensure capable successors Capability gaps in current workforce that have impacted delivery To mitigate emerging challenges Ageing demographics - competition for talent To meet complex long term challenges, innovation, citizen centric policy & services, effective implementation of policy direction and the cultural change required to meet these challenges.

10. Research & consultation has shown that there is support for the benefits that the Strategic Centre can bring Support for our development approach (in particular consultation) and agreement with the importance of us continuing to consult and develop a �fit for purpose� solution Acknowledgement that the Strategic Centre is well placed to bring a different and fresh approach, thought leadership and leadership development solutions focused on the future requirement Recognition that there is much to be gained in ensuring the development $ is spent efficiently and effectively

11. Building the leadership development strategy

12. Leadership development and talent management are being pursued in the context of a broader human capital management agenda designed to integrate reform activities The fact that I am here and have the title of Chief Human Capital Officer reflects a conscious decision The fact that I am here and have the title of Chief Human Capital Officer reflects a conscious decision

13. We have taken the direction of the Blueprint & contemporary human capital thinking to start from emerging business need, rather than what we currently do�.

14. Starting with the end in mind, the Strategic Centre value proposition is twofold; enhancing whole of APS leader capability & bench strength through quality leader development and enhancing system performance through support for Agencies

15. We will work towards specific benefits that we will track & measure

16. Agenda Item 3Outline of draft leadership development strategy & talent management system design

17. The Leadership Development Strategy and Talent Management System � high level design

18. We�ve built up the proposed approach based on changing nature of the demands on leaders in the APS and targeting key points in leader�s development

19. 1. What do APS leaders need to be able to achieve?

20. Being a leader remains a combination of leadership & management, however changing complexity means the capability demand is different and greater�. Leadership�is an influence relationship among leaders and followers who intend real changes that reflect their mutual�purposes 1 Leadership is a combination of being able to understand and make sense of the future requirements, formulate plans to get there and motivate people to come with you 2 There is a danger for public sector leadership development if the focus is solely on leadership without the technical skills required for management 3

21. It is imperative that the APS pro-actively builds its leadership capability to effectively confront both current and emerging challenges

22. Changing work requirements in the APS and beyond have led to a change in the requirements of leaders

23. 2. What does it mean to be an effective APS leader?

24. Being an effective leader in the APS is a combination of knowing, doing & being Leadership capability is a combination of �knowing, doing and being� (Nohria and Khurana, 2010). To be able to meet the complex challenges facing us and be truly citizen centric, our leaders need to: Know how to lead � people, processes, technology Behave in ways consistent with achieving results � strategic thinking, communicating well etc Be a leader � self awareness, authentic leadership, public service vocation

25. Being an effective leader in the APS is a combination of knowing, doing & beingDRAFT framework Strategic leadership � what it is and how to do it; extent to which this is really about management, such as how to drive change and achieve a vision � not just about having a vision How to understand and manage complexity Develop the need to think in systematic terms, especially in relation to the policy process � academics to provide content for this Strategic innovation � how to harness internal APS capabilities to navigate the environment, harnessing and leveraging new technologies and disciplines and use time as a resource Risk management �Policy Learning�: how to do program reviews well; design and implement trials and experiments to support innovation (Patricia Kelly noted this has been discussed with Finance) establishing feedback loops from delivery back into policy design: did policy ideas achieve their outcomes?� Policy impacts must be measurable Implementation issues: ensuring work on citizen engagement, co-design and service delivery included in policy design; making sure policy and implementation are linked Program management: implementation, relationships with third party providers Program failures � lessons need to be learned Link day to day management issues to risk management and reviews Basic skillset: Word/Excel; networking; research skills; communication; public sector finance; use of case studies to enhance organisational learning and review Organisational design Strategic leadership � what it is and how to do it; extent to which this is really about management, such as how to drive change and achieve a vision � not just about having a vision How to understand and manage complexity Develop the need to think in systematic terms, especially in relation to the policy process � academics to provide content for this Strategic innovation � how to harness internal APS capabilities to navigate the environment, harnessing and leveraging new technologies and disciplines and use time as a resource Risk management �Policy Learning�: how to do program reviews well; design and implement trials and experiments to support innovation (Patricia Kelly noted this has been discussed with Finance) establishing feedback loops from delivery back into policy design: did policy ideas achieve their outcomes?� Policy impacts must be measurable Implementation issues: ensuring work on citizen engagement, co-design and service delivery included in policy design; making sure policy and implementation are linked Program management: implementation, relationships with third party providers Program failures � lessons need to be learned Link day to day management issues to risk management and reviews Basic skillset: Word/Excel; networking; research skills; communication; public sector finance; use of case studies to enhance organisational learning and review Organisational design

26. 3. How do we build our current leadership capability?

27. Evidence from other organisations and theory informs us that good practice involves integrating leadership development into the business of the organisation Balance between job learning (70%), reinforced by relationship based learning (20%) and classroom based learning (10%) Most senior leaders participate & model the desired leadership behaviours and culture

28. Leadership development is achieved through multiple interventions, aligned with individual development needs. The key elements can be combined in numerous ways according to need�.

29. Whole of APS leadership development interventions designed at key transition points will include on the job learning (70%), relationship based learning (20%) and classroom learning (10%).

30. 4. How do we build our future leaders?

31. Evidence suggests that our high potential program should start with understanding the nature of the critical future roles APS leader input Better clarity of talent identification approaches and links to succession Identification of critical roles within agencies and broadly across the APS Talent reviews/profiling with executive group ownership/participation Each leader/agency identified the risk of talent/succession selection based on a concept of elitism Research suggests Leadership talent strategies align with organisational strategy updated over time Rigorous, transparent analysis of high potential Chief executive and senior executive commitment are the strongest determinant of success of any leadership strategy

32. Talent system design principles are based on consultation and research Talent management system designed to be owned and driven by senior leaders Strategic Centre supports senior leadership in its leadership development responsibilities Initial focus on SES, with intent to expand to include high potential EL�employees The design will be adaptable as a model for agency talent management programs to support agencies in establishing talent management Talent identification is based on high potential to succeed in future roles, aspiration, capability and engagement - high performance is the �ticket to the game� Talent identification will ensure that unlawful discrimination does not occur Talent management is focussed on development needs with a tailored �program� based on those identified individual needs Development will include mobility, placements and other appropriate interventions

33. The proposed talent management system starts with identification of business and capability risks Business & capability risks

34. 5. What are the priorities across the leadership development system?

35. Initial priorities for leader development are high potential band 2 program (for transition to Band 3) and refreshed transition and experienced SES leader programs

36. There are two elements we have taken into account in proposing priority of initial leadership development effort

37. 6. How do we evaluate effectiveness of the strategy & programs?

38. We are placing a strong emphasis on evaluation so we can continue to improve the quality of APS leadership development What the APS tells us: Evaluation and quality assurance are essential elements of leadership development, with rigorous methodology Evaluation measures need to address learning and business objectives The APS requires leading edge development programs that are quality assured The APSC should provide quality assurance for development interventions What the research tells us: Evaluation determines worth, merit, value, effectiveness of development Evaluation includes assessing and making value judgments on whether development program objectives are achieved and on the quality of processes utilised Understanding ROI and putting it into context requires a framework to distinguish and integrate efficiency, effectiveness and impact

39. There are three dimensions to our evaluation model

40. Agenda Item 5Strategic Centre Business Model

42. The key business processes of the Strategic Centre align directly with the human capital strategy process and have a strong emphasis on evaluation and refresh of strategy

43. Our proposed business processes will involve providing quality assurance of available learning interventions for Agencies and, where appropriate Strategic Centre management

44. Contact details Ian Fitzgerald, Chief Human Capital Officer, 02 6202 3705, ian.fitzgerald@apsc.gov.au Jane Gunn, Group Manager, Strategic Centre for Leadership, Learning and Development, 02 6202 3909, jane.gunn@apsc.gov.au Donna Russell, Director Talent Management Strategy, 02 6202 3797, donna.russell@apsc.gov.au