Why does leadership matter? Lesley Garrick 2 nd June 2009 Community Learning and Development Managers Scotland 2009 Annual Conference

2 © 2008 Hay Group. All rights reserved Questions for the next 30 minutes….  Do we really know what difference leadership makes?  How does it impact on organisational and partnership effectiveness?  How does leadership impact on organisational culture and vice versa?  What are the characteristics of well-led organisations?  What is required of leaders in the public and Third Sectors?

3 © 2008 Hay Group. All rights reserved Do we really know what difference leadership makes? Think of the BEST boss you have had……  What did they do?  How did they behave? Think of the WORST boss you have had……  What did they do?  How did they behave? How did you fell when you worked for each boss? Who got the most out of you in your role?

4 © 2008 Hay Group. All rights reserved Leadership impact – how do you measure it?

5 © 2008 Hay Group. All rights reserved Concepts of Leadership Styles and Climate 4 circle model Organizational climate Job requirements 70% impact Leadership styles Individual motives and competencies 30% impact Business performance

6 © 2008 Hay Group. All rights reserved What is organisational climate?  colloquially….how it feels to work in a particular environment and for a particular boss  more precisely….a measure of employees’ perception of those aspects of their environment that directly impact on how well they can do their jobs  first studied 1968 at Harvard (Litwin and Stringer) more recently been linked to emotional intelligence (Goleman, Boyatzis, McKee)  determines how well leaders positively impact “discretionary effort” and indicates how energising the work environment is for employees  can be quantified, providing a tangible measure of leadership effectiveness Climate can directly account for up to 30% of the variance in key performance measures

7 © 2008 Hay Group. All rights reserved Climate – the dimensions

8 © 2008 Hay Group. All rights reserved Climate – the feedback graph

9 © 2008 Hay Group. All rights reserved Case Studies Highly Effective Headteachers: Leadership Programme for Serving Headteachers  performance measured by national reports (OFSTED) and school climate measured  better performers created better climates – the actual climates at the ‘best’ schools were significantly higher than the actual climates reported at the ‘worst’ schools  Gaps reported between ideal and actual climate were significantly lower for the ‘best’ schools than for the ‘worst’ schools Ward Managers : Being Nice is Not Enough  performance indicators were patient satisfaction, absenteeism rates, amount and nature of complaints, number of drug errors and severity, staff turnover rates  across range of indicators ‘best’ wards on average 45% improvement of performance over lower performing peers

10 © 2008 Hay Group. All rights reserved How does leadership impact on organisational culture and vice versa? Leadership Style Inventory

11 © 2008 Hay Group. All rights reserved How does leadership impact on organisational culture and vice versa? Organisational Climate Survey – Primary Scales

12 © 2008 Hay Group. All rights reserved How does leadership impact on organisational culture and vice versa? Organisational Climate Survey – Additional Scales

13 © 2008 Hay Group. All rights reserved What is required of leaders in public and Third sectors?  That they understand what impact they have – and take responsibility for managing their impact.  Why – because it demonstrably affects performance  When have leadership without managerial authority still create climate/still have impact  Deal with climate dimensions – develop authoritative leadership style o ↑excellence o ↑ performance based rewards o ↑ recognition & praise o ↑ mission & direction o ↑ improvement o ↑ organisation & expectations Be your best boss!