*Unit 3: Leadership in the Public Sector

Question 1

Define governance. Describe three characteristics of good governance.

Answer 1

Structures within an organization or society that shape the way stakeholders interact. It is internally driven through decision-making processes, policies and procedures, formal and informal rules, role and responsibilities, relationships with stakeholders, and communication channels, and externally focused on goods and services, alongside CSR.

UNDP (1997) 5 Principles of good governance:
1. Legitimacy
2. Direction
3. Performance
4. Accountability
5. Fairness

These characteristics are all related and feed into one another.
Legitimacy comes from positive attributes derived from leadership that does what it says it will do.
Accountability comes from a governance structure that is transparent to stakeholders, and willing to own up to its mistakes, collaborate and consult with stakeholders.
Direction demonstrates an organizations ability to set goals and measures its progress and shifts course when necessary in a way that is transparent and accountable to stakeholders.

Question 2

Describe organizational culture and explain the relationship to governance.

Answer 2

The shared values and practices within an organization contribute to governance effectiveness. If the shared values don’t include transparency, participation, fairness, or accountability the governance of the organization is negatively affected. Decision-making processes and communication rely on an organizational culture of collaboration and accountability.

Question 3

Explain the importance of behavior as a foundation for good leadership and a positive organizational culture.

Answer 3

Leadership behaviour has a direct impact on employee/citizen motivation, communication, ethics, and overall productivity of the organization/institution/sector. The modern paradigm of leadership in globalized, interconnected, and diverse societies requires a new form of leadership with a focus on behaviours that are values-based, collaborative, and consultative. These behaviours shape the organizational culture - the norms, assumptions, shared values and practices - of the organzation/insititution/sector.
If a leader exhibits outdated ‘tradtional’ behaviours of command and control, authority and force, employees/citizens are less likely to be motivated to stay with the company, to give their best work, and to foster good communication channels with leadership. This affects the effectiveness of the company/sector. If a leader exhibits collaborative and consultative behaviours, giving away their power, placing trust in employees to foster leadership potential, recognizing and rewarding their efforts, and displaying genuine humility they are more likely to positively affect the organizational culture and workplace efficacy - a sign of good leadership. leadership behaviours that promote and invite diverse perspectives within an organizational culture contribute to more effective decision-making.

Question 4

Provide an overview and critique of new public management.

Answer 4

Incorporating private sector values (low cost, entrepreneurship, innovation) into the public sector. Contracting services to private and NFP sectors.
Creation of public private partnerships.

Pros: Private sector is a driving force for innovation (infrastructure and technology for example) and has the capital to put upfront. They can provide expertise and experience and minimize public sector investment/government spending. Ability to meet citizen expectations resulting from ease of access and new communication tech provided by the private sector.
NFP sector is thought to be closer to the end-user
Range of stakeholders increases.

Cons: Public sector should value impact over profit. Private sector values profit, even within CSR under the triple bottom line profit is of equal value.
NFP reliance on public grants create competition for resources and a “mission drift” giving priority to project the government will fund.
Need not to lose sight of difference between citizens and customers.

Question 5

What is a public private partnership? What are some of the benefits and challenges to these types of partnerships?

Answer 5

Long term contract between private and public sectors for the provision of public services or infrastructure in which responsibilities and rewards are shared.
Public private partnerships (PPP) are the transfer of financing, construction, and operation of a public service to the private sector. State continues to be responsible for the issue at hand. Private sector partner recoups its investment from public funds over time through user fees (tolls, etc) or through availability payments from gov’t (payment based on the standards being met over time, incentive for private sector to maintain the infrastructure or service to meet needs and standards).
Benefits: Reduce the gap between infrastructure needs and public financial capabilities. Access to private capital and additional revenue streams (e.g. shops inside an airport). Allocates some risk related to design, tech, cost efficient investment, and operation to private sector partner. Public benefits from the innovation, technology, and expertise of the private sector. Improved quality of public sector delivery taking advantage of private sector efficiency. Long term solutions for maintenance and operation.
Challenges: Not suitable for all projects (must be long-term and worth the cost of the PPP). Some private sector companies are not equipped to handle the projects. Issues with public perception of PPP (e.g. user fees create discontent). Can be inflexible (inability for public sector to make changes once private sector has taken the project).

Question 6

Public private partnerships (3P) (PPP)

Answer 6

1. Long-term contracts between government and private corporations commonly used in many countries for the development of infrastructure. The private corporation provides capital for a project which is paid back and profit returned through taxes and user fees related to the infrastructure.
2. A societal needs exceed public sector capacities PPPs are a key factor in the creation and maintenance of public services and infrastructure.
3. Political and social support for PPPs is needed for the success of these partnerships and of the government in power. Backlash through perceived leniency toward the private partner or discontent with user-pay principle can occur.

Question 7

Organizational culture

Answer 7

1. Set of shared values, norms, practices, assumptions, and more that make up the culture of an organization.
2. The culture of an org. shapes its efficiency (employee motivation, ethics, quality of work) and success in tending to issues (env and social impact).
3. Leaders shape the organizational culture through their perceived motivations, actions/example, and leadership style.

Question 8

New public management

Answer 8

1. Approach to public services that applies private sector management principles and practices to improve the efficiency and effectiveness of public sector organizations.
   The incorporation of private sector values (low cost, entrepreneurship, innovation) into the public sector.
2. Increasing societal needs due to rising costs, unemployment, migration, health, global conflict, and global warming make traditional public management ineffective. Public spending cannot keep up with the public need for services and infrastructure.
3. With these increasing issues, governments focus on limiting public spending and maintaining international relations do not always align with the societal need, delaying or sometimes exacerbating the issues at hand. This type of leadership is not benefitting the end users with complex modern challenges as NFPs experience mission drifts to receive funding, public perception of privatization is influential, and the values of this type of leadership contradict the values of public service work (impact > profit).

Question 9

Governance

Answer 9

1. Organizational structures in the public, private, and NFP sectors and in our communities. Internally driven, externally focused. Less about structure and more about organizational culture. Process of decision making and how the decisions are implemented. Governments, Institutions, Businesses, Citizens, and Communities working together to create a better society. Should include education, infrastructure, global warming, etc.
2. Governance is key to functioning societies and for international relations in an increasingly globalized world.
3. Diversity is a key component of good governance to prevent corruption, oppression, injustice, and lack of responsibility. Unfortunately, the values of some leaders in both the public and private sectors may not align with the definitions of good governance. In a local setting this can create instability and discontent. In a global setting this can fuel conflict and impede decision-making on important global issues like climate change.

Question 10

Public service leadership

Answer 10

1. Internet says: a form of collective leadership in which public bodies and agencies collaborate in achieving a shared vision based on shared aims and values…
   Differs from elected officials. “While the elected leadership is clearly important, as it steers the ship of state and is directly accountable to citizens through elections, the sheer size and complexity of the state underscores the importance of leadership within the public service” (course content)
2. There has been a shift in this leadership since the 80s toward New Public Management (aka privatization). Contracting of services to private and NFP sectors. As the issues with NPM have become clearer, public service leaders have moved toward behaviouralism.
   Meet expectations of public who interact with private sector
   and technological advancement (lower call centre wait times, automated online services, etc.) as well as increased challenges such as privacy matters, fiscal constraints, and broader stakeholder base with interconnected and diverse populations.
3. This move to behaviours requires transformational leadership to be effective in the rapidly changing modern world.

“why change? For one thing, we need to change to deal with new challenges: climate change and perspectives on renewable energy, the commitment to the United Nations Declaration on the Rights of Indigenous Peoples, and changes in governance, to name a few. New approaches, including broader consultation, use of social media and information technology, and removal of siloed communication, are critical to forging collaboration and new paths forward. There are four generations at work within the public sector and five to six generations of citizens, each with some unique values and expectations. Addressing the increasing complexity of needs, expectations, and behaviour of citizens requires different types of leadership than what we’ve had.”

“Technology has provided opportunities for service delivery that were not previously available, and this combined with a desire to bring users closer to decision makers is resulting in the transformation of the public sector at many levels.

The guiding principles of this transformation include transparency, sharing of information, enhanced communication, community consultation, and evidence-based decision making. This change in the organizational culture requires behavioural changes in leadership, innovation and creative thinking, and alignment with values and vision. Learning is a priority, as leaders are enablers. The theme of leadership development and its empowering principles will drive the changes.”