Session 2.2: Public Leadership/Collaborative Organizational Culture The 1 st Asian Public Governance Forum on Public Innovation June 2014, Jakarta Panelist: Warren Turner Senior Public Management Specialist Asian Development Bank

“All people are entrepreneurs. Each of us has much more hidden inside us than we have had a chance to explore. Unless we create an environment that enables us to discover the limits of our potential, we will never know what we have inside of us.” Muhammed Yunus founder of Grameen Bank in Bangladesh and winner of the Nobel Peace Prize in 2006

The conundrum: Innovation is inherently risky, experimental and anti- hierarchical. BUT the public sector is traditionally risk averse, bureaucratic, and constrained by red tape, rules, regulations, top-heavy decision-making, and few competitive drivers. Part of the solution: Leadership that is collaborative and participative—Korea’s “Government 3.0” Why does leadership matter? The role of leadership—not to be the innovator—but to create the conditions for innovation Marla Capozzi, “Leadership and Innovation”, WBI (2010) vision, strategy, ideas, communication, facilitation, creativity, solutions

Is Korea’s “Government 3.0” replicable in developing Asia and the Pacific? Context matters Creating the conditions for innovation more likely to be constrained by: 0 Culture 0 Politics 0 Capabilities 0 Resources 0 and so on. Yes, in theory How to make sense of context? View innovation through the lens of organizational change Innovation as “a concept, process, practice, and capability that defines successful organizations” Olivier Serrat, “Innovation in the Public Sector”, ADB (2012)

Drivers within : Organizational performance, and reward {budgets}, job satisfaction, professional recognition, career progression, prestige, and so on External drivers: Top-down political leadership and reformist government Fiscal constraints mean the public sector doing more with the same, or even less Citizen expectations of government service delivery are increasing, especially in emerging middle incomes Why do organizations need to change? Both endogenous and exogenous drivers

Leadership-led Change Leadership is about creating the space for change: 0 Leadership is more about groups than individuals, given that there are likely to be multiple people exercising leadership in any successful change event 0 Leaders are identified more because of their functional contribution to change, rather than their personal traits or authority—the connecting function stands out 0 Leadership contributes to change when it builds change space—where leaders foster acceptance for change, grant authority to change, and introduce or free the abilities necessary to achieve change 0 Leadership manifests in different ways in different contexts, depending on contextual readiness and factors that shape change and leadership opportunities “Development as Leadership- led Change: A Report for the Global Leadership Initiative” World Bank (2010) bank.org/

“Empowering Change: Fostering Innovation in the Australian Public Service”, Australian Government (2010) Empowering Change Leadership is a critical factor in building a culture of innovation in the public sector: 0 Explicitly adding innovation to public service values 0 Using innovation as a criterion in leadership, recruitment, and performance management systems 0 Equipping leaders with the requisite tools and training 0 Identifying agency objectives for innovation performance, and annual reporting on innovation 0 Facilitating openness to new ideas through secondment or exchange programs for staff 0 Encouraging team approaches to solve problems creatively—across agencies and including external stakeholders, customers and suppliers 0 Identifying innovation champions for particular projects or issues Change that benefits the wider community and empowers citizens

Innovation in ADB: An Example ADB’s shareholders demand greater efficiency, flexibility, and responsiveness to needs ADB President Takehiko Nakao includes innovation as priority agenda Organizational change one of ten ADB strategic priorities for 2014–2020 Cross-sectional working groups in five areas to consult and formulate action plans Expectation is changes to staff skills, incentives, performance and institutional arrangements Innovation in ADB’s processes, products, and people

Thank you