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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.

[24]J Morgan, ‘Still life with Kennedy', Sydney Morning Herald, 26 May 2003, p. 11.

[25]T Sknotnicki, ‘The top 20 bureaucrats', BRW, 26 June 2003, p. 53.

[26]J Kotter, Leading change, Harvard Business School Press, Boston, 1996.

[27]J Kotter, The heart of change, Harvard Business School Press, Boston, 2002, p. 176.

[28]E Schein, Organisational culture and leadership, Jossey-Bass, San Francisco, 1992 p.147.


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