Cew Case Studies

CEW CASE STUDIES The Treasury The Leadership Shadow Values, context setting, message repetition and emphasis • Deliver a compelling case for gender balance • Provide regular updates and celebrate success Introduction What I say

Rewards, recognition, Behaviours, symbols, accountability relationships • Understand the numbers • Be a role model for an inclusive and levers; set targets My culture • Hold yourself and your How I act • Build a top team with a critical How I measure Leadership The Treasury is the Australian government’s central economic policy agency, providing advice team to account Shadow mass of women • Get feedback on your own • Call out behaviours and to the Treasurer and other Treasury Ministers. Treasury is engaged in a range of issues from leadership shadow decisions that are not consistent with an inclusive culture macroeconomic policy settings to microeconomic reform, to social policy, as well as tax policy and international agreements and forums. Treasury works with a ‘whole-of-economy’ perspective, understanding government and stakeholder circumstances, and responding rapidly to changing events and directions’ (http://www.treasury.gov.au/About-Treasury/OurDepartment). How I prioritise

Disciplines, routines, interactions The Department is divided into five groups: the cream of economics and finance graduates. • Engage senior leaders directly Fiscal, Macroeconomic, Revenue, Markets, and It’s also sticky – many who join choose to spend • Play a strong role in key recruitment and promotion decisions Corporate Strategy and Services. their entire career in Treasury, with their work a • Champion flexibility for men and women vocation, and many describing their workplace Treasury employed 881 people as at 30 June 2014, as a ‘family’. But historically, Treasury also had with most working in the Canberra hub and a a reputation for employing a narrow cohort of small number based internationally. Women What is a CEW case study? The Leadership Shadow: professionals – the Treasury ‘type’. The workplace make up 49 per cent of this total, and 33 per atmosphere, according to feedback from those Chief Executive Women has undertaken a series of case In 2013 Chief Executive Women collaborated with the Male cent of Senior Executive Service (SES) rank (with both inside and outside Treasury, was perceived studies analysing the genuine progress made in a number of Champions of Change, a group established by Sex Discrimina- women at SES Band 1: 33 per cent; SES Band 2: organisations in Australia. This analysis has been undertaken tion Commissioner Elizabeth Broderick made up of CEOs from to be professional, conservative and very clubby 36 per cent; SES Band 3: 29 per cent at 30 June in response to strong feedback from organisations which some of Australia’s leading private and public organisations. – dominated by introverted intellectuals rather 2014). bought and used a key Chief Executive Women tool: the The group is committed to changing the unacceptably low than alpha males. Gender Diversity Toolkit (formerly known as the CEO Toolkit). number of women in leadership in Australia. Chief Executive Because of its pivotal role in government, and the To produce this case study, Chief Executive Women under- Women worked with the Male Champions of Change to create “It was a very male place where…there was intellectually demanding and technical nature took a series of detailed interviews with a range of Treasury a model called the Leadership Shadow, which helps leaders one way of operating.” External female employees, members of Chief Executive Women and external everywhere to listen, learn and lead by under standing the of many roles, there is strong competition for experts and commentators as well as a detailed review of the impact of their personal actions on creating gender balance. graduate entry and indeed all roles in Treasury. “Walking into Treasury is like walking into policies, practices and outcomes at the Treasury. The model’s key elements – what I say, how I act, what I prioritise The department has been long regarded as a a chess club. It’s a different kind of masculine and how I measure – have been used in this case study. prestigious and even elitist workplace attracting culture.” Male EL2

Myths about Treasury, its practices, ABOUT TREASURY demand is growing and means a shift away from After that crucial point, the numbers of women people and norms circulated (see box). more traditional skills. This has meant the low progressing plummeted. Treasury sought exper- The ‘cleverest little agency in town’ syndrome rates of senior women and progression of female tise from outside the Department (a significant Some of these continue to have an graduates in Treasury has become much more change in itself) to conduct employee consulta- impact on the progression of women This is a meritocracy – talented people automatically rise than just an HR concern. As Dr Parkinson himself tions to examine the opportunities and challenges in the Department. The tribal norms – the mythical Treasury ‘type’ starts as a graduate made it clear, it is a risk to future capability. faced by Treasury women. The findings revealed In early 2011, former Deputy and has perfect technical skills above all systemic and behavioural gender bias and a Secretary of Treasury, Dr Martin “Treasury has to change… Robust debate and intellectual jousting means anyone with ideas range of examples of overt sexism which sent Parkinson was appointed as More interconnectedness is required than ever can be heard and valued shock waves through the Department. Secretary having returned from and Treasury is being asked to deal with new heading the Department of Pay and promotion practices are always fair and transparent issues all the time. And the graduate pool is “I remember very clearly hearing the findings Climate Change from 2007. In his changing... the cohorts are becoming more with my Executive Board, and Nigel Ray turned to Flexibility is not a career de-railer four years away, Dr Parkinson had diverse.” Female EL2 us and said “we are not leading the organisation built the Department of Climate we thought we were leading”. The Executive Smart individuals are more important than teams “We need to adapt working style to the Change from scratch, creating a team Board was bound together on this issue from ‘new normal’. Just working harder will not with diverse technical expertise and The mantra ‘whatever it takes’ is what it means that moment onwards. We could see clearly work and is not sustainable. There’s nowhere experiences. Dr Parkinson, in his earlier to identify as Treasury why we were having difficulty holding onto near as much ‘certainty’ in what we need to Treasury career, had been concerned women in Treasury.” Dr Martin Parkinson Treasury is a family – we all feel like insiders do to respond to the government of the day about the low number of female SES than before. We need to adapt to having fewer These findings were the basis for a series of steps and on his return was struck by the people, more ambiguity and uncertainty. That taken by the Treasury Executive Board – the senior limited improvement that had occurred despite means job sharing, improved teaming, better leadership team – to identify and address a range reasonably balanced numbers of male and personal resilience… of structural and cultural factors contributing to female graduates and previous efforts to build Treasury had seen little change in the number of the slow progress of women, which collectively a pipeline of women for the most senior roles women progressing to the top. There is increasing The quality is not different, but the way we get became known as ‘the Progressing Women over many years. demand for advice from Treasury that reflects there is different.” Female SES Initiative’ (PWI). shifting social, political and economic trends, and “At Treasury, we’d focussed on addressing In mid -2011, a report analysing data on the a ‘new normal’ - responses at short notice rather While the impact of the PWI continues to emerge, the symptoms not addressing the underlying recruitment, retention and progression of women than the more predictable rhythm of operation the latest data shows increasing levels of women problem.” Dr Martin Parkinson in the Department was released. The results were employed at EL1/EL2 and SES by mid-2014. in the past. stark and surprising. Rather than showing that “Men and women had allocated roles. But A broader set of skills is now needed to succeed women took longer to progress through each The increase in senior female leaders Treasury now has to create an internal system in Treasury, as many of those interviewed for level of seniority, stalled by long absences due to comes not just from changes to policy and which is more reflective of the way culturally this report pointed out. Technical expertise child bearing as many had presumed, it was clear processes but a significant shift in attitudes. Australia works now.” External female must be combined with agility, adaptability and that women and men progressed in relatively For Treasury, one of the key challenges was A number of senior executives both within and sophisticated communication skills. Awareness equal terms until they hit EL1 level, two steps always going to be gaining intellectual outside the Department also recognised that of the breadth of talent to meet this emerging before reaching SES. acceptance of gender imbalance as a core problem

Chief Executive Women | Case Study 2014 | The Treasury | 4 Chief Executive Women | Case Study 2014 | The Treasury | 5 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 EL1 Total Staff 220 211 210 215 213 Total Female 99 103 108 110 111 % Female 45% 49% 51% 51% 52% EL2 Total Staff 208 200 181 186 179 affecting the ‘what’ Treasury Total Female 78 79 76 81 80 and theirs. We didn’t recognise that there was a strong male culture, and that younger delivers, as well as the ‘how’. This % Female 38% 40% 42% 44% 45% has significant ramifications for a females didn’t want it, and it inhibited their workforce that has typically prided SES Total Staff 96 97 87 90 90 ability to advance.” Female SES itself on its objectivity and excellent Along with internal analysis, the research by an ‘conceptual and analytical’ skills: a Total Female 22 21 21 22 30 external consultancy revealed a series of problem belief that you can think your way areas with men largely believing slower career out of any challenge had become % Female 23% 22% 24% 24% 33% progress for women was due to family respon- a part of Treasury’s identity. While sibilities while women saw many other barriers this too is a work in progress, signs of success are the Leadership Shadow, which helps leaders startled, and even incredulous, reactions from impeding their progress. These included the on the increase. everywhere to listen, learn and lead by under- both men and women. dominant communication and leadership style; standing the impact of their personal actions on In 2012 Dr Martin Parkinson joined the Male Many, particularly those that had progressed to the “at all costs” approach to delivery; and the creating gender balance. Champions of Change group, established by Sex senior levels, held firm beliefs that Treasury was assumption that the most talented people would Discrimination Commissioner Elizabeth Broderick in The model’s key elements – what I say, how I a smoothly oiled meritocracy which inherent- be promoted based on applications received to 2010 and made up of CEOs from some of Australia’s act, what I prioritise and how I measure – have ly and consciously identified and valued talent. advertised positions. Practices such as individuals leading private and public organisations. The group been used in this case study. A series of detailed The employee survey findings and other data being ‘tapped on the shoulder’ to take on oppor- is committed to changing the unacceptably low interviews were also conducted with a range of suggested otherwise. Feedback in the form of tunities, such as special projects, only acted to number of women in leadership in Australia. In Treasury employees and external experts and consistently low numbers of women in senior reinforce these barriers. 2013 Male Champions of Change collaborated with commentators. ranks and bias in practices left a number of Gender bias in some systems had been Chief Executive Women to create a model called executives feeling they could barely recognise normalised so it was difficult for men and women their own organisation. to even recognise much less address. Although “I was taken aback, like the rest of my available as an option, electing to work flexibly colleagues, but not as much. I had been was regarded as a career de-railer. Detailed analysis Stage 1: What I say worrying about this issue for a long time. I of career progression found women were didn’t like what we found, but it was a relief pigeon-holed early on as great team leaders, and to have found the issue.” Dr Martin Parkinson less actively seeking opportunities to broaden and deepen their policy experiences. This was The senior team was very surprised by the inadvertently creating negative assumptions information: “We don’t see ourselves as these about women’s skills and abilities particularly unfair people.” External female in the core areas measured in performance The first steps in Treasury’s renewed commit- environment – to take a detailed reading of the management and an impact on women’s promotion ment to progress women had to come from the Department’s climate as well as the policies and “The research shone a light on the issue, rates to SES. top. But before Dr Martin Parkinson could send practices that affected women. The process of and the evidence we needed to hear came a clear message on what was needed and why, collecting detailed information about the status from our junior female colleagues. There Despite a level of shock and denial, the focus it was essential – particularly in a data-driven of women in Treasury at times produced some was a disconnect between our experience from the leadership team and the clear results

Chief Executive Women | Case Study 2014 | The Treasury | 6 Chief Executive Women | Case Study 2014 | The Treasury | 7 meant the need to act was taken seriously. The IWC is chaired by the Secretary and includes all external consulting report was delivered to the members of the Executive Board, plus a mixture Executive Board in mid-2011 and soon after of men and women across different levels and Dr Parkinson spent two hours addressing all Groups in the Department. Stage 2: How I act staff about the issue and the results, and taking Critically, two women with experience in prom- questions. He made it clear the commitment was inent leadership roles external to Treasury, Sue non-negotiable, telling his audience, “if you think I Vardon from the public sector and Rachel Cobb am on a frolic and you can wait me out, then you from the private sector, were asked to join the are wrong”. IWC, bringing experiences and perspectives to One of the most striking discoveries as Treasury “Unconscious bias training opened a lot of “The lid’s been lifted - all of a sudden we have the table and an opportunity to challenge and tackled this issue was the lack of awareness peoples’ eyes.” Female SES permission to change things and to talk about hold the mirror up to long held cultural beliefs about which specific personal behaviours, and For some men and women in Treasury, unconscious these issues.” Female SES and practices. The IWC develops the program aspects of Treasury processes and systems bias training was their first taste of what it feels for the PWI, including milestones and reporting created a culture which, in Dr Martin Parkinson’s It was soon apparent that the message sent like to be an outsider within the Department. mechanisms to staff. Nigel Ray, Executive Direc- words, “struggled with gender”. This was an that day to the entire Department was a Cultural change has only been possible as a tor of Fiscal Group, is the Progressing Women emotional as well as an intellectual challenge, circuit breaker. Instead of dictating strategy, result of individuals having their own ‘aha’ sponsor, and his involvement emphasised the and it became clear that Treasury needed the leadership team asked each group to moments, and making a conscious decision commitment of the most senior ranks to tackling external expertise and guidance. Again in Dr Martin provide a plan for progress which addressed to act differently. Anecdotes and stories from the issue as a core operational challenge. Parkinson’s words, there was a “sense that concerns in their own environment. Dr Martin conversations that conveyed important women were powerful and helped Treasury staff Parkinson stressed the need for strong data The PWI has five areas of strategy focus: information happened between men, in a way that to understand that it was about more than just analysis, which appealed to many Treasury leadership, governance and accountability; excluded women and some men”. individuals acting alone, but about spotting the employees given that it was “the Treasury workplace policies; training and networks; perfor- systems and patterns in collective behaviours. way”, but made it clear accountability rested mance assessment and career development; and Unrecognised bias training focuses on helping with a broad group of managers and influencers measuring success. individuals to be mindful of the impact of Seeing a willingness to embrace change at throughout the ranks and not just the top personal behaviours on others (especially when the most senior levels gave many in Treasury The case for change enunciated by Dr Martin team. Improved gender balance was positioned as in groups), detecting patterns in those behaviours the courage to participate and permission to Parkinson began to percolate into different strate- a strategic business issue and not as a feel-good and connecting those patterns to outcomes. challenge the status quo. The gender research gies across groups. The message was clear – don’t HR exercise. A number of initiatives were soon Unconscious bias training was prioritised: Dr revealed there was a real need for women or men wait for orders from above, it’s your workplace and established across the Department, with some Martin Parkinson and the IWC initially attended, throughout the department to be able to call out everyone plays a role in ﬁnding out how to change trial and error inevitably producing important followed by SES and EL2 staff and has most behaviour that was not inclusive without fear of it. Each of the ﬁve Groups in Treasury were asked lessons for further success. recently been rolled out to EL1s. Feedback has reprisal, built on awareness of the consequences to present analysis and a plan. Fiscal Group, led been positive with many finding the process of failing to do so. In late 2011, an Inclusive Workplace Committee by Nigel Ray, was the first to respond to the challenging but illuminating. (IWC) was established as a decision-making body, challenge, establishing a high benchmark with Forthright communication norms were also to guide and monitor the development and a keen analysis of, and frank disclosure about, “It doesn’t tell you what to do but changes entrenched in some sections of the Treasury with implementation of longer-term strategies. The areas of concern and priorities for change. the way you think.” Female SES common use of a ‘male’ style to argue a case and

Chief Executive Women | Case Study 2014 | The Treasury | 8 Chief Executive Women | Case Study 2014 | The Treasury | 9 less emphasis and reward for a more nuanced “Letting one person dominate a meeting sion for each Group to report to the IWC, and de- prepared with good intentions, had become in- and less confrontational approach. This meant usually means that we were assuming that scribe the issues they had uncovered. Small cross terpreted in a way that amplified the preference women could encounter double standards, with one person has all the ideas. Similarly, robust functional teams drawing from a variety of levels for technical capability over all other skill sets. a risk of being labelled bossy if they reflected the intellectual jousting actually isolated and of seniority were formed to prepare each Group While this structural change is continuing, there dominant male style. prevented certain people from participating report, and outline the proposed steps to address has been scrutiny of the existing system and a in the debate. Instead of interpreting this as a those issues. Actually crunching and distributing gender bias lens applied. One of the findings was “More leadership development is required. sign of weakness or intellectual feebleness, it’s the data was a crucial step in galvanising action that while graduates were indistinguishable be- People need to have more conversations and about recognising that it’s just an aversion from individuals and Groups. fore arriving in the Department, within a short be held accountable for follow-through.” to competitive confrontation, and that that time male graduates were rated higher on aver- “Understanding that the issues might not age than women in the crucial area of ‘concep- Male SES could be gendered.” Female EL2 be the same [for each Group], plus the experi- tual and analytical’ performance, which is not an ence of having to own the problem through explicit feature of the ILS, but embodied in other [doing] the analysis was invaluable.” Male EL2 criteria. The IWC’s decision to put all reports and IWC no- Stage 3: What I prioritise “This change will hopefully break the power tices on the Intranet allowed a level of transpar- of the cult of C&A (conceptual and analytical). ency described as ‘unprecedented’. Information Treasury is highly wedded to that criterion.” about hiring/promotions has also been made Female SES available to all employees. Flexible work The insights gained from unconscious bias train- Accountability and transparency “Making information available to the whole ing also delivered another organisational bene- Department - hiring, promotions, proportions An ‘if not, why not’ approach to flexible work re- From the launch of the PWI, there has been a fit: leaders in Treasury (both men and women) of performance management allocations - was quests has been introduced to help challenge bi- strong emphasis on all leaders and managers quickly understood that it wasn’t enough to iden- revolutionary. It has taken a lot of the heat out ases about working norms. The approach states being accountable for change in their teams tify the problem, they had to do something about of the discussions. I love that Treasury can be that all roles may be worked flexibly unless there and Groups rather than relying on prescriptive it. The lid had been lifted and Treasury had per- so honest about what is actually happening, are business reasons that the proposed arrange- direction from above. The need for senior mission to change and to talk about these issues. that it is acknowledged and now we are doing ments are not suitable. Inspiration for the ini- leadership to hold each other accountable was also something about it.” Female EL2 tiative came directly from Dr Parkinson’s mem- “I didn’t think of the gender issue as a firmly established. While Treasury has a set reporting bership of the Male Champions of Change, and taboo previously, but it is funny how these structure, many employees reported it is less Performance management review exposure to CEO David Thodey’s approach at things just don’t come up. Now it always hierarchical than some other Departments, with A review of the Performance Management sys- Telstra. Drawing on ‘typical’ Treasury attributes comes up.” Female SES decision-making more frequently delegated to tem (PMS) was conducted and a decision made of competitiveness, and having the benefit of lower levels and roles. It was therefore essential As the PWI developed, and responsibility was to move the entire department to the Integrat- smaller size, on learning about the strides taken that the rationale for cultural change and the delegated to leaders at many levels, a range of ed Leadership System (ILS) which until then had at Telstra, Dr Parkinson thought “I bet we can do means to tackle barriers was not confined to strategies was introduced with varying levels of only been used for Treasury SES. Treasury had it faster than David Thodey can!” Senior staff senior ranks. success. But several key planks for the program been using a ‘customised’ performance manage- who have worked part-time and in other flexible were quickly identified. The key to dispersed responsibility was the deci- ment set of criteria since 1998 which, although working arrangements participated in open

Chief Executive Women | Case Study 2014 | The Treasury | 10 Chief Executive Women | Case Study 2014 | The Treasury | 11 forums to discuss their experiences as part of Work Planning/Allocation Mentoring The realisation that the leadership skills of a community of practice, and employees were managers would drive the success of the program The specialised work of Treasury tended to result Mentoring programs have had mixed results at consulted about flexible working arrangements actually emerged after the formal mentoring in employees being streamed from the beginning Treasury. A program was introduced for EL1/ and invited to join a Flexible Work forum. program was launched. Treasury came to under- of their careers, sometimes inadvertently along EL2 staff but implementation for the SES proved stand that successful mentoring was not going to In 2014, 13 per cent of Treasury male and female gender lines. A number of senior leaders in more difficult due to a lack of suitable mentors come from an off-the-shelf program. The ingre- staff worked part time, a subset of flexible work Treasury noted that female graduates joining and the need to change cultural attitudes. dients for effective leadership and inclusiveness arrangements, with around three fifths of these Treasury were, on the whole, much more “work “The original view was that mentoring was had to develop organically over time. in executive level or SES ranks. Access to job- ready” than the majority of male recruits. remedial. It tied back into dominant cultural share arrangements and home-based work has “Female graduates had the maturity to attribute of self-sufficiency at all costs/ also been offered. Furthermore, a number staff manage and co-ordinate a range of people and individualism.” Female SES involved in the Financial Systems Inquiry chose to outputs. [Young women] do those roles, get continue to work flexibly while on the Secretariat. praised for it and get promoted the first few In the past this sort of opportunity may not have times on the back of it. Then they apply for been contemplated by staff who work flexible EL2 promotion and they can’t engage with hours or by staff with family commitments. Stage 4: What I measure the Selection Committee on policy. Males had However, feedback suggests there is a continuing depth on policy (because they’d done so much concern that using flexible work practices risks of it having not had the opportunity to develop creating a career stigma and more work is need- a broader skill set initially). But on [promotion The emphasis by Dr Martin Parkinson on account- “The Executive Board were clear that ed to identify and address this perception. A core to EL2 and SES] policy experience trumped all ability for all aspects of the women in Treasury targets were an important part of identifying step in this process is for managers to actively other skills. Then the women would leave because program has made measurement of progress a what success would look like, and keeping co-ordinate teams and work opportunities, rather they weren’t being promoted.” Female SES than corralling high performing individuals and strong focus. Benchmarks were a core require- momentum focussed.” Male SES As part of the PWI, managers were encouraged ment for the PWI, with each group establishing tasks. Treasury has begun formalising this change “We may not hit [our targets], but if we don’t, by introducing a “cluster” model, where staff to think about who was given certain tasks and their own framework and some basic Depart- we’ve given our people permission to call on from different teams can work across groups on opportunities to gain certain experience, and ment-wide requirements were also established. the Secretary and the Executive Board and a particular topic, forcing teams across Treasury look at development options that avoided creat- For the first time in its history, Treasury introduced demand ‘what are you going to do about it?’” to think more broadly about issues: ing siloes and broadened skills. gender targets and reporting in 2011. It was the Dr Martin Parkinson “We’ve always had successful teams in “Managers needed to think proactively move that Secretary Martin Parkinson agonised Treasury, focussing on the task at hand. But about who got what work, and look at alloca- over the most, anticipating the ensuing debate The reality has been that after the initial debate what we are now better at are elements of tion as more than just a means to an end for about compromising merit and boosting numbers on announcement, targets have quickly become the matrix management model. We’ve formed Treasury as a Department, but as a develop- rather than addressing underlying issues. The ‘business as usual’. In 2013 Treasury also formally clusters – and people are accountable for ment opportunity for people at Treasury too. goal is for 35 per cent women in the SES by 2016 committed to gender reporting using the frame- sharing knowledge and drawing out capability An understanding that you needed to invest (the current proportion is 33 per cent), with a work developed jointly with the Australian Stock in others”. Dr Martin Parkinson in individuals more broadly.” Male EL2 longer term target of at least 40 per cent. Exchange and adopted by the Male Champions

Chief Executive Women | Case Study 2014 | The Treasury | 12 Chief Executive Women | Case Study 2014 | The Treasury | 13 of Change which has committed to better trans- this kind of progress difficult and outside their However some Groups came up with their own kind of change, there has been backlash around parency in reporting the number of women comfort zone. There has been some confusion way of tackling the need for widespread commit- the focus on women rather than inclusiveness. in senior leadership. Treasury reported on the about the various approaches within Groups. ment and action. This is rarely expressed formally but reinforces progress of women for the three senior layers the need to continually articulate the thinking “In Markets Group, PWI has a very devolved “Revenue Group established “divisional of management in the Australian Public Service model. Commitments have been made at a and reasons for the program. Commission’s State of the Service Report 2012– champions”: so they could really understand Divisional and Unit level, committing to 13. Gender balance has also now become a key the exact nature of the issues in their area “There’s been a bit of backlash about why actions that will lead to outcomes, which are KPI for managers. No strict formula was dictated and keep others on track and engaged. There women should get this and people still say you broader than just targets. But the challenge for meeting targets or delivering progress, with are 15 people from various levels of seniority got promoted because you are a woman.” has been that there has not been enough groups developing their own approach. and gender.” Male SES Female SES visibility across Markets Group about what “Being able to do the individual Group diag- we were delivering.” Female SES As with many organisations embarking on this But Dr Parkinson and the Executive Board have nostics was a masterstroke. As was the decision to get Groups (in Treasury) to report individually to the IWC.” Male SES There is no substitute for visible personal leadership The devolved responsibility for progress has inevitably led to a A deep understanding of the views of women and men in the organisation is a variety of initiatives within critical ﬁrst step; barriers found were due to subtle attitudes and behaviours Treasury, some more successful than others. Change has been External expertise can provide credibility and a safe space to explore rapid in some areas and slower in confronting issues others. Some elements were not LESSONS smoothly handled or attention “External members of the IWC were a key theme, the view from was spread too thinly in the initial the outside plus their ability to constructively challenge cultural phases. LEARNED norms that were second nature.” Female EL2 “We tried to do too many things at once and under-esti- Accepting difﬁcult messages strengthens resolve mated the complexity of some things.” Female SES The impact of PWI is continuing “A lot of people were shocked by the data, it was a real shock for the but there have been Department but we’ve moved beyond that now.” Female SES While the message about engagement with the changes has several key lessons learnt, reported Engaging unexpected champions can stem resistance and expand conviction resonated for some, others find by Treasury to the MCC the idea of being monitored on Making all leaders accountable for inclusiveness in their workplace enables greater momentum

Buy-in is required from all levels, not just senior management

Chief Executive Women | Case Study 2014 | The Treasury | 14 Chief Executive Women | Case Study 2014 | The Treasury | 15 been clear about why they started with gender “Ultimately the PWI is about diversity & For Dr Parkinson the effort and progress so far and why gender should continue to be front and inclusivity. But we’ve struggled with gender, has been both hard won and gratifying but he is centre. Many other segments of diversity will and we should start here. It has morphed into well aware much more remains to be done after benefit from the new skills acquired by Treasury something that is broader, but that has his departure. Perhaps his most rewarding legacy, staff through the PWI. happened organically.” Dr Martin Parkinson however, is the robust intellectual engagement that now matches the practical steps taken to address gender balance in Treasury:

“I thought we’d fall short of 35 per cent Sustaining the change (targets for women in senior roles), but we are at 33 per cent. We’ve made progress strengthening the cohorts. We’ve authorised the conversations. It was clunky for a while but we have to have those conversations. It’s uncomfortable, for the first 12 months, but The future of the PWI following the departure of development, which will outlast individual leaders. now we are able to have subtle and nuanced Dr Martin Parkinson in December 2014 remains a The PWI programs will also evolve to reflect conversations about gender. We couldn’t have challenge for Treasury. Feedback for this report the growing maturity and skills in the Depart- done that before, and it has morphed into confirmed some concerns about sustainability of ment. Even more importantly, context about the conversations about diversity and inclusion. the PWI but also growing confidence that a solid way these changes were introduced in Treasury And then became a conversation about lead- base has been established. While research by the needs to be communicated so that new recruits ership and accountability. We are an organi- Groups conﬁrms that leadership on gender balance understand the importance of PWI. sation of problem solvers, and now we have a has and is having an impact, some staff also remain “The Steering Group in Markets Group common language about the issues we need unsure of how this process relates to them. have actively promoted discussions with new to solve.” Dr Martin Parkinson After the initial success more work is needed starters. It is informal enough so that people to embed the purpose and benefits of PWI. can ask open questions, and really under- “PWI is evolving, and it has to have a life stand why PWI is so important for Treasury.” beyond Martin Parkinson. We need to main- Female SES tain the momentum and can’t let it go under- The link between the PWI and the future of Treasury ground.” Female SES is, however, resonating right across the Department.

Dr Parkinson, Nigel Ray and the Inclusive Work- “If we are successful under PWI, then in 10 place Committee have focussed on structural years’ time we are more open in a number of changes, like the changes to the performance ways with more integration across the 5 groups/ management system and the incorporation of cross fertilisation. A more agile workplace and unconscious bias training in standard leadership the ability to work differently.” Female EL2

Thank you to those who have assisted with the preparation of this CEW Case Study for sharing and particularly:

CEW Business Engagement Chair Kathryn Fagg, who guided development and launch of the Case Study

Co-authors of the CEW Case Study: journalist and author Catherine Fox & Heather McIlwain, Executive Director, CEW

Dr Martin Parkinson PSM and the Executive Board of the Treasury, for being so generous with their time and open about their experiences & insights

The following individuals interviewed for the purposes of the Case Study: Dr Martin Parkinson, Nigel Ray, Jan Harris, Christine Barron, Amanda Cattermole, Steve French, Emma Greenwood, Jane Halton, Caroline Walker, Marisa Purvis-Smith, Vicki Wilkinson, Melissa Cranfield, Andrew Dietz, Luise McCulloch, James Chisholm, Mary Balzary, Lina Wong, Cliff Bingham, Jenny Wilkinson, Kathleen O’Kane, Kirsten Embery, Jess Mohr, Richard Ziolkowski, Sandra Roussel, Josiah Munro, Gillian Beer, Sue Vardon, Rachel Cobb and Deborah May

Elizabeth Pickworth & Bonnie Brown, CEW team This work is copyright Chief Executive Women and may not be published, transmitted, broadcast, copied, reproduced or members reprinted in whole or in part without the explicit written permission of Chief Executive Women.