“Managing Risk:A Leadership and

Learning Perspective”

A presentation at theFMI Ontario Chapter P.D. Day

St. Michael’s College

Prepared by: James Kendrick, PhDChief Learning Officer and Director, OPS Learning & DevelopmentCFLL

February 17, 2010

Always learn. Learn all ways.

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Overview

• The Changing World• The OPS Context• Today’s Key Message• Governance• Leadership• Key Leadership Shifts• Factors that Impact Risk

Management• Covey’s “First Things First”

(1994)• Managing Risk by Minimizing

Decision-making Errors

• The Johari Window• Leaders Get into Trouble When• Organizational Consequences• Learning as a Value

Proposition• Learning Definitions• Single-Loop and Double-Loop

Learning• When do Organizations Fail to

Learn?• Managing Risk in the OPS

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The Changing World

• Globalization• World economic crisis• Security and mobility• Demographics• Technology• Environment• Citizens’ expectations• Accountability

• Policy-program-service delivery links

• Think globally, act domestically• Horizontal and vertical

integration • Leadership and outcomes

focus• Minority governments

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The OPS Context

• A new global and domestic scene:– Ontario’s growing interdependence on other countries– Economic protectionism in U.S.– Trust and ethics issues– $25 billion deficit– Increasing life span– Decreasing fertility rates– Immigration not a quick fix

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The OPS Context (Cont’d)

• A vibrant and professional workforce:– OPS widely recognized employer of choice– Home to best and brightest in province– Delivers excellent public programs and services

• OPS needs to maintain its relevance:– Doing more of the same even if it is better will not be good enough– To remain relevant, the OPS will need to continue to evolve and adapt– OPS must be modern, proactive and engaging

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Today’s Key Message

GOVERNANCE = LEADERSHIP + LEARNING +

RISK MANAGEMENT

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Governance

… the process whereby power is exercised, decisions are made, citizens or stakeholders are given voice, and account is rendered on important issues…

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Leadership

… the ability to influence a group toward the achievement of common goals …

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Key Leadership Shifts

• Technical proficiency (1970s)

• Integrated leadership with emphasis on behavioural and experiential development (1980s/1990s)

• Refined basics with focus on key themes, e.g. results-oriented management, managing across boundaries, innovation and change, service delivery (2000s) …

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Factors That Impact Risk Management

• Organizational size and structure• Communication systems and mechanisms• Decision-making processes• Relationship between lines and functions• Ability to question freely organizational assumptions, e.g.

being able to challenge ways of doing things without disrupting service

• Effective use of technology • Organizational culture• Performance and reward systems

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Urgent Not urgent

Important

Not important

Covey’s “First Things First” (1994)

TIME WASTERS

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Managing Risk by Minimizing Decision-making Errors

Type I Errors:occur when information is accepted as true when it

is actually falseMaking a decision that should not have been made

Type I Errors:occur when the organization accepts as false

information that is actually trueNot making a decision that should have been made

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Known to self Not known to self

Known to others

Level field Blind spot

Not known to others

Upper hand Ignorance

The Johari Window

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Leaders Get Into Trouble When …• They overshoot on friendly behaviour, e.g.

– find it difficult to say, “No!”– do not want to make waves – do not provide “honest” assessments or feedback

• They overdo obedience to the chain of command, e.g.– accept blindly task authority and task structure– adhere to established ways of doing things– uses authority to influence others and to get things done

• They underemphasize active leadership toward common goals, e.g.– do not take up enough space and dominance – will not speak out or validate assumptions

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Organizational Consequences …• No innovation and creativity

• Not enough comprehensive treatment of issues

• Not enough rigorous debate about assumptions and options

• No bold advice provided to senior leaders and/or elected officials

• No adaptation achieved or relevance maintained

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Learning as a Value Proposition• Learning is a currency in improving employees’ technical skills

linked to organizational objectives (Chris Argyris)• Helping organizations achieve their performance expectations

and objectives (Dave Ulrich)• Developing leaders and managers (Morgan McCall)• Developing systems approaches and action learning (Nancy

Dixon)• Managing the white water of organizational change (Randy

White)• Improving employees’ sense of worth and value (Gary Latham)• Learning how to learn (Kerry Bunker)

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Learning Definitions• Organizational learning:

– A system of actions, actor, symbols and processes that enables an organization to transform information into valued knowledge which in turn increases its long-run adaptive capacity

• Training:– A formal procedure for acquiring the knowledge, values, skills or

abilities that are required for successful performance in a job or occupation

• Professional development:– The process by which one undertakes personal improvements to

achieve career plans or goals

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Single-Loop and Double-Loop Learning

• Single-loop learning:– Adjustments made to maintain or to improve organizational

performance against a set of values and norms that remain largely unchanged

– Example: Addressing a values and ethics issue with an employee in order to correct behaviour, to reprimand if required, and to enhance effectiveness and performance

• Double-loop learning:– Changes made to both correct performance and to validate

underlying assumptions for further learning and adaptation– Example: Exploring the supervisory relationship of the

employee, examining the orientation and basic training provided, looking for related trends, identifying what the organization has learned as a result

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When Do Organizations Fail to Learn?

• Failure to acquire new knowledge• Failure to act, to experiment• Failure to share information• Failure to test and retest basic assumptions• Failure to capture knowledge and know-how from people

exiting the OPS• Failure to adapt, to innovate, and to strive for excellence

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Managing Risk in the OPS• We need to help educate OPSers about what managing

risk and serving in the public sector means• Organizational cultures need to value diverse thinking and

experimentation• People need to be able to critically challenge the status quo• We need to be open to new ways of doing things• People need to see their senior leaders as role models• Systems and processes need to be put in place to

encourage and reward good risk management• We need to be able to maximize our successes and

minimize our failures while learning from our mistakes

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Today’s Key Message: Again

GOVERNANCE = LEADERSHIP + LEARNING +

RISK MANAGEMENT

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QUESTIONS ?