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Leadership in a Chaotic World

Remarks by Wayne G. Wouters at the ADM Forum

October 15, 2009


Introduction

Good morning everyone. Thank you for the warm introduction and the warm applause. When I was Secretary of the Treasury Board, the applause was never this warm!

I am really pleased to speak to all of you for the first time since assuming my new role as Clerk.

I would like to personally congratulate the more than 50 new ADMs. You should be proud of your accomplishments and your recent promotion.

When I look across this room, as Head of the Public Service, I see before me the strength of the leadership cadre in the Public Service.

It makes me feel very well supported in fulfilling my responsibilities as Clerk.

I would like to start by emphasizing how much I appreciate the hard work that you do every day, and your dedication to carrying out the business of government and serving Canadians.

I know that with the pressures and complexities you face on a daily basis, your jobs are not, as we say, for the faint of heart.

The chaotic world of public sector leadership

I would like to focus my comments today on the integral role you play in providing leadership to the Public Service.

I will also share my priorities for you, as Assistant Deputy Ministers. Namely, that you should:

  • Aim for excellence;
  • Renew your workplaces; and
  • “Think big” in your role as ADMs.

Let me start with a brief retrospective on how the world has changed since I became an ADM at the Department of Finance in 1993.

At that time, RIM was not around and we operated without either Blackberrys or the Internet. Imagine how much the world has changed.

The 24/7 news cycle did not exist. In fact, it generally took two to three days for a “hot issue,” if you will, to emerge and go national.

The Access to Information Act was still relatively new. The role of the Auditor General was just beginning to evolve beyond financial audits to those value-for-money audits which we have all grown to love.

While we had to report on our activities as public servants, the proactive disclosure requirements we live with today were not yet part of our reality.

And while files often implicated many departments, there was not yet a clear expectation and imperative for horizontal issues management. It was beginning to evolve, but it was early days.

The Public Service context in which you find yourselves, as ADMs in 2009, is quite different.

Your issues are more complex, driving significant changes in the demands on senior leaders.

It is fair to say that we live and work in a challenging world.

I understand that David Emerson spoke to you last night, and that he was very provocative as he underscored the challenges we face in a global world, Canada’s search for a place in a changing world order, and the role of government after the current global economic crisis.

There is every expectation that Canada will emerge from the recession with many strengths, particularly relative to other countries.

Globalization is not only a characteristic of this economic crisis. It has an impact on practically every public policy issue we face.

Issues such as the spread of H1N1, which is on all of our minds, threats to security in cyber space or the consequences of climate change—these spill over our borders, whether they are physical, virtual or, in our context, departmental.

And Canadians are more and more connected to the world. The 2006 Census showed the incredible diversity of our society. Canadians reported more than 200 ethnic origins.

The diversity of our population needs to be upfront in the development of public policy. Within the Public Service, we must take advantage of this diversity as well.

Our operating environment has to adapt to the ever increasing pace of technological change.

Our business processes are supported by software applications that are often obsolete almost before they are installed.

Some of our information technology platforms have been with us for 30 to 40 years. And the generation of specialists who supported our legacy systems has largely retired.

As the public’s appetite for transparency and full disclosure has been insatiable, we have had to learn how to manage in a fishbowl, so to speak.

I am referring here to all manner of trends.

We face a large volume of access to information requests, audit and reporting requirements, oversight bodies, and the multiple and sometimes conflicting roles and accountabilities of deputy ministers.

We also face unrelenting scrutiny from Parliament and the media.

As you know, we have lived through some pretty significant management failures over the past decade. A government fell, over activities related to the Sponsorship Program.

And we cannot forget the infamous “$1 billion HRDC Boondoggle,” an issue on which the Minister answered more questions in Question Period than any other in the history of Confederation.

These events had a profound impact on the Public Service. New rules, new reporting requirements and new oversight mechanisms became an all-too-common response to these events.

And after more than five years of consecutive minority governments, we find ourselves adapting to a different and more demanding political-public service relationship.

It is difficult to have a long-term focus in this environment.

Ministers and their staff require more of your time. Your deputies rely on you to anticipate and to be on top of every issue unfolding in real time.

Other than that, your jobs are pretty easy, right?

Impact of changes

These changes in our environment have led to a number of important consequences for the Public Service.

First, senior leaders have had to put a lot more emphasis on public sector management.

At one time, the role of DMs and ADMs was to manage issues and to brief ministers. Management was a secondary responsibility. That is no longer the case.

I am referring here to the significant investments in time and resources needed to put in place new management systems and approaches.

As the former Secretary of the Treasury Board, I know this fact all too well. It was me who made you do it!

Second, the Public Service has had to adapt to more rules and reporting requirements than ever before.

There is no question that clear and enabling rules are critical to high performance. When we look at the banking industry, we see a solid framework of rules that helped protect the industry during this economic downturn.

However, we have become preoccupied with rules and trying to avoid mistakes.

There have been too many signals from the top—including, I have to say, from many of us—that we will not tolerate mistakes.

This message has permeated the departments, and I would say, has created more than just a chill. Frankly, risk aversion has taken root.

This has not been positive for innovation. It has not been positive for finding new ways of doing business and delivering better results for Canadians.

Third, we have succumbed to what I would call “short termism.” We simply have little space and time to think “big thoughts” and to look ahead.

Yet, one of the essential roles of the Public Service has always been to be ready to advise the government on long-term trends facing Canada.

This is how we stay ahead of the curve and ensure that we are meeting the needs of Canadians.

The critical role of ADMs

In short, ladies and gentlemen, colleagues, you are leading in a more complex, challenging and stressful world.

To thrive—and may I say, often survive—in this environment requires a high degree of resilience, flexibility and political sensitivity.

And your role is critical.

As senior leaders of the Public Service, you have made a conscious decision to serve our country, to make a difference and to give something back.

And it is you who deliver.

You oversee and develop the advice and policies that help the government to decide how to address the challenges of our time.

You run the programs that support our communities and our businesses, and contribute to our role in the world.

And, as stewards of the Public Service, you are responsible for accounting to Canadians.

You are also responsible for developing your people and leaving behind, when your time comes, a better organization than the one you took over.

So we, the Deputies and I, look to you for leadership.

As an ADM, you are the link between deputies and all other staff. You are the most visible senior managers and mentors for the executive cadre of the Government of Canada.

To summarize, your role is to deliver on day-to-day business, prepare your organization for the future and break down organizational barriers—within your departments and across the Public Service.

And if I could pause here for a moment, I think you are doing a damn good job!

We are living in a very complex world, with a series of minority governments, but I believe that we do serve our governments well. I thank you again for your many contributions to the Public Service.

One excellent example is a very current one.

The Public Service has responded to the economic crisis by implementing the Government’s Economic Action Plan with speed and effectiveness.

Within months, we designed programs, had them approved and started to implement them for Canadians.

This is a tremendous accomplishment.

Priorities for ADM leadership

I have three challenges for you, as individuals and as a community of senior leaders.

My first challenge is: aim for excellence. And let us move beyond the management failures of the past.

I mean this. Having served as Secretary of the Treasury Board for about five years, I assure you that you have, and we have, confronted our weaknesses and we have improved our management practices.

By any measure, we are managing our organizations well.

Consider the facts. The Management Accountability Framework, or MAF, has given us strong evidence that public service management performance is improving, year after year.

The statistics speak for themselves!

Strategic Reviews have brought international recognition of our rigorous, results-based expenditure management system.

And we are effectively managing risks in implementing the economic stimulus package. As the former Comptroller General Rod Monette would say, “We have been responsive – but at the same time, responsible.”

As we continue to strive for further management improvements, let us not lose sight of why we are here.

Our job is to deliver the best services to Canadians and the best advice to government. That is why we came to the Public Service.

Good management performance assists us in achieving our goal of serving Canadians effectively. It is not an end in itself.

Let me repeat, it is not an end in itself.

Achieving true excellence cannot be mandated by the centre. It has to be unleashed locally, under your leadership.

There is no replacement for excellence in leading your organization and your people.

And I mean all of it: performance management, engagement, developing talent at all levels, and of course, dealing with poor performers.

It is true: you are only as good as your people, and we cannot do it all ourselves.

My second challenge is: focus on creating vibrant, modern workplaces.

You know that this is how we attract, retain and enable public servants to serve Canadians better.

We are making very good progress in renewing the public service workforce. I want to acknowledge the former Clerk, Kevin Lynch, who made renewal the priority, and assure you that it will be my priority as well.

Now we need to reduce rules, master risk management and embrace technology in our workplaces.

You, we, are collectively responsible for addressing that term that we have come to know—the web of rules—not just the Treasury Board Secretariat or the Corporate Services in your departments.

I know I said this earlier, but I think it is worth repeating: we need to allow our employees to take more informed risks. And you need to guide your staff with sound risk management frameworks.

This is how we encourage questioning and innovative ideas about how to improve our ways of doing business.

We also have to embrace new technologies in the workplace and use them to collaborate and communicate.

And we can learn a lot from new public servants in this area. Let me ask you: how many of our new public servants will stay over the medium- to long-term in a work environment that has not kept up?

I think this is critical. Giving them a modern work environment is essential to competing for good talent.

Renewing the workplace also means valuing the contribution of each and every employee.

That means new recruits, yes, of course. But we must also continue to value those who have experience and wisdom to impart to others.

In this labour market, we simply cannot afford to leave anyone out.

While it is critical to bring in new staff, they have to learn how to manage new issues. That can only be done through the experience of seasoned public servants, such as yourselves.

My third challenge is: “think big” in your role as ADMs.

You all know the Chinese military strategist, Sun Tzu? Well, in the fifth century B.C., he wrote that “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”

When I say “think big” in your role, I am talking about a couple of things: being a strong corporate player, not simply a player in your department; thinking “big picture” in policy terms; doing a lot more outreach; and being role models for the Public Service.

Let me go through some of these.

In my view, and this is maybe a personal view, we—the Clerk and Deputy Ministers—do not need to do it all. Too many issues have been delegated upward in recent years.

This is no doubt a consequence of our increasingly complex environment. I suspect that we could spend time figuring out why this has occurred, but the fact is, it has.

I see an enormous amount of leadership capacity right here, in this room, and I think we can figure out how to reverse this trend. And I expect you to pick up more of the policy and management agendas.

I am pleased to know that you are going to roll up your sleeves later today and tackle the question of how best you can contribute corporately.

Those who have worked for me, and many of you in this room have, know that I take pride in empowering people. I want to hear your views and if you have good suggestions, I will commit to help you to implement them.

I cannot over-emphasize how important it is for you, as ADMs, to do your job by thinking “big picture,” looking ahead to the future challenges we will face together.

Mark Carney, Governor of the Bank of Canada, said recently: “…policy matters. Aggressive policies arrested the economic free fall triggered by the financial crisis. Policy action is driving the initial recovery.”

You know that your advice is charting the course out of this crisis.

And that the world, after this recession, will undoubtedly be different.

This crisis has not just challenged traditional notions of economic management. It may even change the role of government.

Will we see a greater appetite for government intervention as we move out of this recession?

How will we work with our partners and allies? Will we see a resurgence of global governance forums like the G8 and the G20?

At the same time, the issues that we were grappling with before the crisis are going to come back.

Remember the dwindling labour force, productivity and innovation? They have not gone away. We still need to grapple with those issues going forward.

I need each of you to stay focused on assessing the challenges facing Canadians over the medium term.

And, to accomplish this, I recommend that you cultivate strong horizontal networks and good relations, both within your communities, but also beyond.

Outreach beyond the Public Service to interested stakeholders is essential, I think, to forward-looking policy development and to excellence in leadership.

Ultimately, “thinking big” also means being deliberate in how you bring people along with you. I have always said that people emulate their leaders.

As ADMs, you can have a big impact on the work environment and the value placed on diversity and official languages in the workplace.

Remember that employees pay very close attention to what you say and to how you say it.

You have a responsibility to avoid unintended consequences and to be the best role model for the Public Service when it comes to values and ethics.

Conclusion

I will conclude here.

As I said, the challenges facing the government and the Public Service are not getting easier.

I have left you with three challenges to consider during your deliberations today. I want to see you:

  • Aim for excellence;
  • Renew your workplaces; and
  • “Think big” in your role as ADMs.

Fortunately, you are well positioned to meet these expectations in your role as ADMs—to lead your organizations, not just to manage them.

I urge you to remember, as well, that your jobs have a considerable impact on your personal lives and those of your staff.

I may ask you to do a lot of things, but it is important to take care of your own health and know that the health of your personal relationships is key to excelling at your job.

Many of you have young children. Finding that balance, and how you live it, are critical to being an example for new public servants.

And at the end of each day, remember the satisfaction that comes with getting the job done for Canadians. We do have some of the most fascinating jobs in the country.

I would like now, to turn this forum over to you.

Where do you want to lead? Come up with your own ideas that will help realize your collective ideas for Canada’s largest employer.

Then, I want to hear from you.

Thank you for the opportunity to join you at what I consider to be the premiere event for the ADM community.

I am honoured and proud to be asked to serve as your Clerk.

Someone said to me recently, “Following Mr. Lynch, you have big shoes to fill.” And I said, “I think I will probably try to fit into my own shoes and go from there.”

I take on this role with pride and will serve with dedication. Canadians deserve no less from all of us.

I wish you a productive day.