Formez- Research and Development News Programs. Convention Formez & Campania Region. Seminars Cycle The frontier innovation on Public Administration

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1 Formez- Research and Development News Programs Convention Formez & Campania Region Seminars Cycle The frontier innovation on Public Administration Lello Esposito, important contemporary artist from Naples, kindly donated this picture, enriched with the colours of the Mediterranean:blue, green and yellow Jim Ewanowich - Seminar of 30 th September 2004

2 The views expressed do not imply the expression of any opinion whatsoever on the part of the United Nations and of Italian Department for Public Administration, and Formez

3 Jim Ewanowich Talent Management - Human Capital Management and Executive in Public Administration Seminar of 30 th September 2004 FIRST DRAFT Formez is running a Program of cooperation for the diffusion of organizational models in the budget and accounting offices in the south Mediterranean countries ; it also covers relationships with the Mediterranean area, in line with the Centre for Administrative Innovation in the Euro Mediterranean Region CAIMED. This program of cooperation is centred on an advanced training Master s diploma for 20 experts in cooperation and development of the Campania Region in the Mediterranean Area. As part of this training scheme, the Centre is organizing a Seminar Cycle Frontier Innovations in Public Administration, with the participation of several international experts. First conference was led by Dr. Jim Ewanowich, Canada. Profile: Jim Ewanovich President of Jim Ewanovich and Associates Human Capital Management Consultants Jim Ewanovich is recognized as a very effective public speaker, lecturer and teacher at international level. This is probably due to his long and successful career. He has recently retired from the government after 37 years of service. He started his career in the Royal Canadian Mounted Police, Crime Detection Laboratories in 1967 and first found his passion for the people side of business as a union official. He recently retired (April 2004) as Assistant Commissioner and Chief Human Resources Officer for the Royal Canadian Mounted Police.

4 He was appointed in October 2000 to a four billion dollar enterprise: the restructuring and modernization of the traditional human capital management of the RCMP, which comprises 23,000 police officers and employees in over 700 locations across Canada and the world. As an manager and executive at the Treasury Board Secretariat for 12 years, he worked with deputy ministers and senior executives across government (over 40 departments and agencies) to persuade senior officials to implement sound, leading edge management practices primarily in the IM/IT and the science sectors. He specialized in key areas such as Human Resource Management and Planning, Organizational Design, Business Planning and Re-engineering, as well as Change Management and Executive Development.

5 Talent Management - Human Capital Management and Executive in Public Administration INTRODUCTION Seminar of 30 th September 2004 Doctor Jim Ewanovich introduced the argument Human Capital and Talent Management through an interactive presentation by examining the human resources role. His presentation, focusing on finding, developing, selecting and managing professionals and leaders in public service, is based on the analysis of Human Resources Management s traditional and new role. In this context, he guided us to the following themes: Traditional Human Resources; Human Resources drivers for change and added value; Human Resources and the Chief Executive Office (CEO); Human Resources linking vision, culture, leadership and performance; Human Resources and executive and key talent management; Human Resources for managers and employees; Finding, Developing and Selecting the next generation of Leaders. The important point arising out from this analysis, is that if the Public Service is to recruit and retain top talent, it needs to have classification and compensation systems that compete successfully for well-qualified employees. Compensation levels and rewards must be high enough to attract a strong applicant pool and retain the best ones among current employees. Performance can develop different ways of doing work, the variable pay approaches must be based on effective performance management systems and objective performance measures. It is also important, that culture and values support a compensation system that it is linked to organization goals. F O C U S Using the Federal Public Service experience as a best practice, this seminar describes a framework by which human resources management in the public sector can be evaluated and turned into an accountable component. The secret of good human resource management is: Talent Management Nowadays, Human Resources Management is acquiring an increasingly complex role. It is gaining a new, expanded role, embracing vision, culture, and brand; human capital management; business intelligence; business decisions; business transformation; autonomous employees. The world needs to change because a culture transformation is necessary. And a change can happen only if basic resources are present: education, health and justice: education - is the key to growth and development of human resources health is important because people must be able to work and must live in a healthy environment justice - it is important to have a system of rules and laws that the people respect and believe in. This set of rules and laws, together with language, define the culture of each country. And we know that culture it is the most important key for successful Human Resources Management. Of course it is known that human capital is increasingly recognised as an important ingredient in Public Administration performance. However human capital is not easily measured. There is a difference between the traditional and the new role of human resources.

6 1. Traditional Human Resources The traditional role is based on three phases that are broadly identified as: Move in - means on one hand, the classification, targeting and attraction of human capital; on the other hand it is the recruitment of human resources using screening, tests, assessment, selection, job security, conctracts and orientation. Move around means training, development, transfers, retention, promotion, labour relations, compensation, benefits, insurances, human capital health and safety. Move out refers to attrition, resignations, pensions, severance, non-voluntary exits, workforce adjustment, health and disability, death, retention, emeritus, volunteers and veterans. The new expanded role identifies human resources with: vision, culture, ethics and values; brand, human capital management, business intelligence, business decisions, business transformation, autonomous employees. What does it mean to talk about Human Capital Management?...to make our workforce the envy of Federal Government.. Human Capital Management: A strategic approach to maximize the capabilities and commitment of Federal employees; aligning human resources to achieve the most effective and efficient accomplishment of their mission. What do Human Resources need? Professional Human Resources need to line up their management goals and individual employees objectives with organizational strategic goals - delivering strategic plans with measurable results. Now, Human Resources must take its own role, moving from a "control" philosophy to a provider of vision and support. Above all, professional Human Resources need to demonstrate benefits to the bottom line - by managing the knowledge, skills and attitudes that create winning organizations. Professional Human Resources can assist their organizations by evaluating the extent to which human capital approaches support the accomplishment of programmatic goals, through the use of workforce planning. Workforce planning efforts, including succession planning, linked to strategic goals and objectives, can enable an agency to remain aware of and be prepared for its current and future needs as an organization, such as the size of the workforce; its deployment across the organization; and the knowledge, skills, and

7 abilities needed for the agency to pursue its mission. This planning will entail the collection of valid and reliable data on such indicators as distribution of employee skills and competencies, attrition rates, or projected retirement rates and eligibility by occupation and organizational unit. The role of HR professionals should focus on: Developing, implementing, and continually assessing human capital policies and practices that will help the agency achieve its mission. Leading or assisting in the agency's workforce planning efforts. Participating as partners with line managers. Reaching out to other organizational functions and components through facilitation, coordination, and counseling. Providing integrated mission support. Individual performance drives organizational excellence, so human resources has an important role. But there are different kinds of performance gaps, and the principle causes are: poor performance feedback, high individual stress levels and health problems, no performance standards, lack of clear individual goals, rewards and compensation not performance based, poor performance continuing to be rewarded, no career planning, fear of failure or punishment, lack of or poor training and low compensation. Human capital support starts at the top and, at the end of the day must add value and drive change. It s necessary to have adequate human resources for the executive work and for the development of workforce management. Resources must be directed at priorities, for an efficient return on increased investment, while decreased administration increases productivity. It requires flexible processes, improved services and cooperative labour relations. Human resources supports the CEO, particularly on the: vision Is my vision clearly understood? supported by mission, mandate, strategies, priorities, plans, values, culture and brand? ; Are my people well led? ; workforce Is my workforce highly productive, innovative, ethical and engaged? Do I have the talent to deliver? ; is environment safe ; Do my human resources policies, practices and programs enable people and the business to succeed?. Human resources business intelligence works on demographics and research, issues and challenges, human resources planning and workforce investment/costs. They look also for governance, policies, strategies, priorities aligned to business direction. When we talk about Executive Talent Management we are talking about the executive cadre, about people and performance. To lead well people, it s important to take into consideration organizational structures, reports, peers and teams. Executive competencies and individual profile identify the kind of human resource whom the organization has to work. Performance management, contracts, results, priorities, competencies, values, measures, leadership and accountability are also important elements for Executive Talent Management. To create and develop a public or private organization means having to do with people, so with human capital. Good and efficient workforce management requires basic employee data that includes:

8 Name, address, sex, SIN, telephone, dependents Health, emergency Bio, Curriculum Vitae Education, professional qualifications, certification Languages Professional development, training, courses Employee identifier Position, group, level, title, FT., PT., job sharing Indeterminate, term, casual, contractor Bargaining agent Service record, pensionable service, previous service, previous employment Competency profiles, career paths Career and learning plans Performance evaluation, ratings Salary and salary history Awards, benefits Leave Management Human resources also supports managers and employees using communications, compensation (salary and full suite of benefits e.g. overtime, allowances, pension), rewards and recognition, ethics, values, disclosure, culture, wellness and lifestyle, branding (history, success stories, employee involvement), diversity (employment equity, programs and services, statistics), and safety (emergency measures, environment, committees, accident and reporting management, risk management, worker compensation). Within this work line, it s possible to measure performance through learning management systems, knowledge networks, competency based management, e-learning, mandatory, operational and personal development; also by using security, charter and human rights, leave and income protection, attendance management, case management, health, discipline and redress, privacy and access to information. Talent Management is critical on the Public Service because this sector needs strong leadership in line with government direction. It needs to build and sustain a competent and productive workforce of excellence. The Public Service has to practice human resources management policies and programs, and finally, must enable the work environment (values, principles, health and safety, diversity, etc.). The elements of executive talent management are: developing the next generation of leaders, finding and delivering leaders the key to performance; aligning the right person to the right work; speeding recruitment, selecting and staffing; enabling smooth succession; closing talent gaps an speeding knowledge transfer; completing management teams; forcing senior management to confront poor performance and reinforcing personal and professional accountability and performance management. 2. Challenges and Keys to Success Succession planning is a minimum required practice in public service. But executive talent management is more than succession planning. The principle components of executive talent management are: Building the business case; Painting a solid picture with demographic data accessing the current situation, issues, future needs;

9 Agreeing on principles and approaches e. g. the best people for the highest priority, merit; Re-defining competencies based upon government-wide, ministry and program needs; Measurement and assessment tools; Executive talent and succession strategy; Orientation, development and continuous learning; Performance Agreements and Learning Plans. But the essential elements that constitute the basis of Talent Management start at the top; the identified leaders and every executive accountable for development. Then, Talent Management looks for governance that includes stakeholders and professional organizations, clear ethics and principles, a national resource centre with a formal structure, a central information source, a performance management framework, performance agreements, contracts, standards, funding, performance measurement linked to mandate and priorities, staffing and selection redesign, mobility and retention strategies, attraction and recruitment strategy e.g. increasing women executives, executive compensation strategy, executive orientation and continuous learning strategy, access to schools of public management, outside recruitment, inside and outside participation in selection, formal policy, infrastructure support and gold room that are also important components of this fundamental theme. Obviously, at this point in our presentation, we can say that all management decisions have a human resources implication. The main challenges were the outdated, time consuming, cumbersome and inflexible civil service systems. In some cases, the inflexibility did not allow them to reward employees after they reach ed the maximum salary levels. In other instances, obstruction from unions and ad hoc changes to the system due to political influences were not motivating factors. The collaboration of key players, such as managers and unions was also believed to be vital to achieving a successful system. Compensation Challenges looks for implementing performance and competencybased pay systems that rewarded top and exceptional performers. Developing and managing benefits; affordability; geographical differences; difficulties in compensation for increased workload; linking systems to organizational goals; union resistance: these were also seen as major challenges to developing an effective and competitive system. Compensation and classification systems are more flexible or variable and consequently, recruitment and retention efforts are more successful. In fact, to have a positive impact on recruitment and retention of human resources, systems have to be internally equitable and externally competitive. 3. Ethics and Values Merit and Selection

10 Succession planning as part of talent management does not mean finding crown princes or preselection. It is the action taken to ensure that qualified professional people are available as needed. Ethics and values are about building an executive and professional cadre of excellence. Other ethical principles are fairness, confidentiality, honesty in dealing with people, openness, transparency in evaluation and selection processes, treating people with dignity and respect. Individuals are accountable for their own careers, management will not shuffle around their poor performers and poor performers will be dealt with using a plan of action to improve or to choose another career. Ethics and values in selection at senior levels changes culture throughout the organization. Ethics and values have become a key factor in the ability of government to meet a rapidly changing environment. Countries need to develop an ethical infrastructure that promotes a new public service culture. However it s true that, politicians and public servants integrity is a critical ingredient in a democratic society. Ethical infrastructure includes a legislative framework that provides accountability and control, codes of conduct to provide guidance, and a coordinating system management body. The most important factor, according to Mr Ewanovich, is the commitment of the political leadership. There is also a need for public involvement and security. There is a growing trend towards a new public service culture that includes a modern mission for the public service to meets expectations and redefined values and to underpin public sector operations in the changing environment. Demographics static and flow st Qtr 2nd Qtr 3rd Qtr 4th Qtr East West North Current State Workforce Workforce Numbers Levels, distribution Average ages Diversity, gender Salary & compensation costs Turnover, attrition rates Geography, location Individual Service Level, length of time in position Retirement potential Qualifications Special talents Assessments Potential (high, Future Needs Positions Select Groups Management Teams Vacant, imminent Key Developmental assignments/ secondments

11 Education Feeder source average) Special considerations Poor fit, poor performer Stepping stone jobs New/different talents Women, diversity, target groups So, it s possible to outline some classification challenge keys facing the public service as: the size, scope, diversity and geography of the public service, managing and gauging the expectations of both managers and employees, the lack of capacity for learning and training, generic vis-à-vis detailed job descriptions, competency-based management systems. Systematic methods and measures include diverse kinds of recruitment. The traditional recruitment methods need to be replaced by innovative strategies involving collaborative approaches and structures. In order to foster development and continuous learning, it s very important to close skills gaps through mandatory knowledge and compulsory programs. The fundamental elements are an overview of the country s context both internally and globally, principle laws and legislation, policy development, government and public service organizations and institutions, relationship of politicians and bureaucrats, accountability, government priorities and role of management and professionals, stewardship and Public Trust. In general, for the public service to recruit and retain top talent, it needs to have classification and compensation systems that compete successfully for well-qualified employees. Compensation levels and rewards must be high enough to attract a strong applicant pool and retain the best among current employees. Performance based or variable pay approaches must be based on effective performance management systems and objective performance measures. 4. Coaching and Mentoring Leadership is an important and crucial variable that leads to enhanced management capacity, as well as organisational performance. A leadership focus plays also an integrating role among different Human Resource Management components including recruitment and selection, training and development, performance management, public service ethics, and succession planning. Leadership development is neither new nor unique to the public sector. Effective and inexpensive support and source of learning is implemented by a new kind of coaching that implies choosing and training executive coaches, private

12 learning, expert insight, supports experiential learning, finding wisdom (knowledge that is proven to be of value), real time problem solving, e-help and online simulation. The benefits of the new coaching are a tool for personal development, for new directors and chief executives, and for those established for a long time in their own role. At the same time it s a tool for those who search challenge or a sounding board to work through new ideas and think about new work programs. To provide a qualify and efficient mentoring and training, the first step it s the identification and selection of a potential leader. Then it is necessary to train them continuously. For this purpose, some countries set up a specialised institution in leadership development. Others put greater emphasis on leadership in existing curricula and establish new training courses for the top executives or senior managers. To become a future leader takes a long time and it is very important to keep up the leadership development sustainable. To do so, it is important to develop a comprehensive programme from the whole-of-government perspectives because it is essential for training and to develop future leaders. Supervisors help employees achieve objectives on a daily basis. Coaching is a behavioural control technique used by the supervisor to give on-going guidance and instructions, to follow development day-by-day and to give feedback. 5. Evaluating Success The evaluation of success according to Ewanovich can be done by using six different ways: 1. Calculating the percentage of people identified as potential leaders. 2. Quality of new appointees after one year. 3. Targets and strategies realized. 4. Executive Satisfaction Survey. 5. Employee Satisfaction Survey. 6. Performance Agreements/Contracts Realized. In conclusion, Mr. Ewanovich summarized his idea of Human Resources Management with the following scheme: Vision, Mission, Mandate Human resources should set their own vision/mission/mandate and, in order to achieve it, they should define issues and challenges, according to their own principles and values, that permit the elaboration of a concrete Issues, strategy or plan. Principles, This model is useful Challenges in everything that we make in our lives. Values Strategies & Plans

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