Michael J. Pratt and Murray Horn Leadership and Capability Development and Deployment in the New Zealand State Service companies, such as Procter & Gamble, for leadership This article describes the design during 2013 of a model and development (Filipkowski implementation principles of a leadership and capability and Donlon, 2013). The development and deployment (LCDD) model for the state model was then enhanced services system. In this process, an initial prototype model based on our research in was developed to describe a desired future state. It was other jurisdictions, including informed by the best traditions of state services leadership Australia, Singapore and the development, together with models used by the world’s best United Kingdom, and co- creation with stakeholders. Dr Mike Pratt is Professor of Leadership and Sustainability at the University of Waikato, and a This is further discussed in professional director and business adviser. Dr Murray Horn is a former Secretary to the Treasury of New Zealand and bank chief executive, and a professional director and business adviser. the article. Policy Quarterly – Volume 10, Issue 1 – February 2014 – Page 45 Leadership and Capability Development and Deployment in the New Zealand State Service The Better Public Services review Services Commission and implementation delivering on the sorts of social outcomes conducted in 2011 found that improved began in September 2013. described by the ten Better Public Services and more collaborative leadership is One unique feature of the framework goals is changing. The big policy settings a necessary precondition for high- is the deliberate integration from an are now broadly aligned with OECD performing public services (Better early stage in the project of leadership norms, so far more hangs on the public Public Services Advisory Group, 2011). development and capability development. sector’s ability to innovate and execute This conclusion was reinforced by a key The reasons and advantages thereof change well, to successfully enlist all finding from the 21 completed State are explained in this article. The most those whose support is required to deliver Services Commission Performance transformational aspect of the framework outcomes, to realise the opportunities Improvement Framework (PIF) reviews is the concept of a unified state services created by new technology, and to deliver that there are significant opportunities approach to leadership and capability more value for money from the core for improvement in leadership across the development across the state services, as business of the state services. The Better state services.1 In April 2013 the authors opposed to an agency-specific approach. Public Services report notes that success of this article were invited by the state This is a natural consequence of the in these areas requires: services commissioner to facilitate the corporate centre analogy, and of the need s INSPIRING LEADERSHIP THAT CAN ENGAGE the hearts and minds of talented people across the state services Government’s contribution to improved outcomes and call forth the discretionary effort required to deliver superior will depend far more on innovative solutions, stronger performance; execution of change by its own agencies, smarter use s TECHNICAL MASTERY IN CRITICAL AREAS OF capability; and of private partners and of technology, and improved s THE ABILITY TO DEPLOY CRITICAL CAPABILITY across the service to deliver those effectiveness and efficiency in delivering core government outcomes that matter most to New functions and public services. Zealand. Leadership and capability develop- ment and deployment must be capable co-creation of a framework with a broad for a unified service response to many of of meeting these demands. There is cross section of state services leaders the opportunities and challenges facing widespread agreement that, while and stakeholders. This work built on New Zealand today. ambitious, this LCDD model is one that an earlier project for the commissioner The evolutionary framework was the State Services Commission should be conducted by the authors in which we improved iteratively through the co- seeking to implement. sought to model a ‘corporate centre’ for creation process, but the essential The challenges and opportunities the state services using a corporate group elements were readily accepted. Much facing New Zealand are very different from analogy: that is, to consider what the of the conversation focused on the those of the last or previous decades. Post- state services ‘centre’ would look like and extent of transformation required and 1984, the task was to address a crisis and how it would undertake its activities if it the key factors required for successful move to the front of an emerging OECD was like a corporate group headquarters. implementation. A number of innovative policy consensus. The changed approach This frame of reference was applied to approaches to organisational development to macro policy, border protection, leadership and capability development. were created through the process and are taxation, public ownership, regulation Mid-range theory (Laughlin, 1995) discussed here. For example, the idea of and subsidy was well understood and, was employed to develop a skeletal sourcing leadership and development while not easy, could be largely delivered theoretical framework derived from activities from successful experiences centrally via policy change. The ‘burning relevant literature. The framework throughout the state services received platform’ approach to change was used. was then expanded by studying widespread support. The following decade was relatively quiet, leadership and capability development The article concludes with a with limited appetite for reform as New in action, and through discussions with consideration of opportunities for further Zealand rode the wave of a strong global counterpart public sector entities in research, and summary lessons that may economy. Australia, Singapore and the UK. It was be applicable beyond the New Zealand The wave of prosperity turned into further developed through iterative co- state services. the ‘perfect storm’ of the global financial creation workshops with over 80 state crisis of 2007–08. While New Zealand services leaders and stakeholders, and Leadership as a contributor to better public has weathered the storm better than tested through the governance processes services many, the desire to improve relative of the state services and central agencies. Government’s contribution to improving living standards and deliver on the sorts The framework was adopted by the State New Zealanders’ relative incomes and of social objectives set out in the current Page 46 – Policy Quarterly – Volume 10, Issue 1 – February 2014 government’s ten Better Public Services New Zealand now and in the future, G2G also concluded that there was goals now needs to be addressed within a and be clear about their strategy for significant scope for improvement in this far more constrained fiscal environment. delivering that value; area: Government’s contribution to im- b enjoy strong internal leadership s ONLY OF AGENCIES RATED STRONG proved outcomes will depend far more on that can attract talented people and or well-placed on the ‘purpose, innovative solutions, stronger execution inspire them to dedicate themselves vision and strategy’ element of of change by its own agencies, smarter to working with integrity to deliver organisational performance, which is use of private partners and of technology, the outcomes that the agency has about an agency clearly articulating and improved effectiveness and efficiency identified as mattering most to New a future direction to staff and in delivering core government functions Zealand; stakeholders that is consistent with and public services. Success requires c invest in talent by providing its purpose and adds the most value more collaboration among agencies and challenging, interesting and to New Zealand; their private partners because no single important work to do, while also s ONLY OF AGENCIES RATED STRONG agency is able to deliver on these new managing poor performers to either or well-placed on ‘leadership and challenges on its own. Public services improve or to leave; WORKFORCE DEVELOPMENT ON also need to be more client-centric rather d enlist the active support of all those ‘management of people performance’ than provider-centric, which also implies outside of the agency who are AND ON @ENGAGEMENT WITH STAFF a more effective cross-agency approach to necessary to the agency delivering the indeed, only one agency was rated delivering outcomes. These solutions rely far more on discretionary effort from talented people There are many excellent leadership, people with a broader range of capability distributed across a broader range of and performance development initiatives and agencies and activities, than on reforms that are largely policy driven from the capabilities throughout the state services, such centre. Developing that capability and as the PIF, career boards and the Leadership calling forth that effort is, in turn, heavily reliant on inspirational leadership and Development Centre. strong people-management capability across the system. The ‘burning platform’ model of discontinuous change is not most it can for New Zealand; strong on management of people appropriate in this context. Instead, we e demonstrate that they value performance. need broadly-based transformational learning, innovation