The
public sector perspective
Similar stories about stressful succession exist in the
public sector, where cultural change has seemed difficult and slow though not
impossible.
It is possible that Kennedy will be
reappointed for a further term. But should this not be the case, the search for
a replacement would need to begin soon if a rerun of the debacle that preceded
Kennedy's appointment is to be avoided.
Joyce Morgan[24]
Brian Kennedy's appointment, in 1997, as Director of the National
Gallery of Australia was said to have been botched when both the Keating and
Howard governments dragged their feet about making the appointment. Now there is
mounting speculation about whether he will be reappointed or a fresh appointment
made.
This arena is obviously more complex because of the additional
pressure of the capital ‘P' political process. Succession planning for chief
executives or heads of departments who are appointed by governments, supposedly
apolitically, might seem pointless when those governments may lose power or the
ministers change, often resulting in the fresh appointment of chief executives
and other senior bureaucrats. As the author of the quote above goes on to note,
Kennedy believes he retains the support of powerful friends who ‘really matter'.
It is not surprising then that cultural change in the public
sector has been slow. I suspect that the passing of the cultural baton may not
have been a high priority in the selection and appointment of senior executives.
For example, in the first 77 years of the Department of Defence, stability seems
to have been the name of the game. During that period there were only seven
secretaries, once called ‘Permanent Heads of Department'-and they seem to have
been living up to their names! Not so any more. In the last seven years there
have been four secretaries, and two of those have been removed for performance
reasons. From one extreme to the other-neither conducive to bringing about
cultural change.
However, there is evidence that the culture is changing on the
‘uniformed' side of defence. The present Chief of the Defence Force, General
Peter Cosgrove, appears focused on the cultural aspects of the defence forces in
his present role, as he was in his former role as Chief of Army. Similarly, one
of the more recent Chiefs of Navy made cultural change a central platform of his
leadership.
The frustrating aspect for the chiefs of the armed forces is that
their appointments are set for only a relatively short term. Unless they are
re-appointed (again subject to the politics of the situation), any cultural
reforms that they have achieved will be short-lived-unless the cultural change
baton is deliberately handed over to a leader with a similar cultural change
agenda. Failing that, and as is the case for all CEOs in both the public and
corporate sectors, newly appointed chiefs have to act quickly to embed a new
culture that will withstand any future changes at the top.
An example of this approach is Centrelink. Centrelink delivers
services, programs and payments for Australian government departments. Sue
Vardon has been Chief Executive of Centrelink since 1997 and has had a long
career in public sector reform. She is said to have ‘transformed a basket case
into one of the government's more efficient operations'.[25]
Vardon has adopted John Kotter's eight-step approach to
implementing change.[26] Interestingly, Kotter lists embedding culture
as the last of his eight steps. He says:
A culture truly changes only when a new
way of operating has been shown to succeed over some minimum period of time.
Trying to shift the norms and values before you have created the new way of
operating does not work. The vision can talk of a new culture. You can create
new behaviours that reflect a desired culture. But those behaviours will not
become norms, will not take hold, until the very end of the process.[27]
Edgar Schein goes even further and argues that you cannot change a
culture anyway; all you can do is set the stage for a culture to evolve.[28]
Arguably, then, the skills of a CEO have to encompass the
immediate ability to change systems, structures and processes and the
longer-term capacity and persistence to show resistors that the changes are
worthwhile. Those CEOs then have to stay around long enough to embark upon
cultural change. With the emphasis currently on delivering results in the short
term, it might not be at all surprising that there is little evidence that
passing the cultural baton rates highly in the selection or succession planning
for CEOs.