"Sustainability is typically defined as the place where economy, social realities and environmental health overlap” (Magnin, 2014, 0:37).
Leadership in the 21st century is trending away from centralized authoritative rule and control models of leadership, toward cooperative and communicative values-based styles where input from all levels of an organization is sought out, respected and seriously considered in organizational decisions. In values-based leadership, leadership competencies reflect the personal values of those ultimately responsible for policy making as well as those actively implementing policies. The competencies presented in the following pages are based on values discussed by James M. Kouzes and Barry Z. Posner in their book The Leadership Challenge, particularly in their survey of “Characteristics of Admired Leaders” (2007, pp. 28-32).
Although the following statement was made in reference to the not-for-profit (NFP) sector, it is increasingly applicable to the public and private sectors as well: “the leadership that is required is leadership of the highest order: leadership that is inclusive, transformative and that can help bring fundamental and positive change to meet the needs of the community” (Gibson, MacLean & Macklem, 2008, p. 15). There are competencies that are identifiable as beneficial for leadership in each of the sectors: public, private and NFP, in order to help in meeting unique organizational goals. Additionally, there are competencies that contribute to meeting the responsibilities of all sectors in addressing environmental, social as well as economic issues. In this essay, I will discuss leadership and list competencies in each sector as a separate entity and further analyze how common leadership competencies and complementary, or sometimes contradictory, goals make distinctions between public, private and NFP sectors less obvious than previously.
The mission of public sector organizations is traditionally “to contribute to the greater public good by delivering public services; they value accomplishment over profit” (Study Guide Unit 3, GOVN 500 Moodle). This point of view has also been called the “public service ethos” (Study Guide Unit 3, GOVN 500 Moodle). However, valuing this ethically satisfying culture of working collectively to address diverse and sometimes conflicting public needs is becoming increasingly difficult to sustain as complex economic, social and personal realities increase the demands on sectoral leaders and individual employees. The personal needs of employees cannot be ignored and even the most devoted of employees are members of the general public and as private citizens have needs to be met. For example, reasonable wages, working conditions and job security in order to support work and life balance are very real concerns. Recent job action by public sector unions, for example, British Columbia General Employees Union (BCGEU) and the Public Service Alliance of Canada (PSAC), demonstrates such concerns.
The public service governance structure is based on elected officials and policy makers at multiple levels (including federal, provincial, local and sometimes organizational) making leaders directly accountable to the public they serve. If the elected leaders do not meet the needs expressed by the communities they represent, they may limit their chances of re-election. Leaders within public service organizations share similar responsibilities of accountability to the communities they serve and are also accountable to elected officials for following the guidelines outlined by policy makers. Internal leadership within the public service is ultimately responsible for addressing changing demands on the system with the goal of preserving the unifying cultural values of the public service ethos while delivering and expanding programs and services provided to communities.
Whereas accountability is a necessary competency that public servants need to develop in order to contribute to achieving the goals of their organizations, other competencies are applicable to this sector. The Assignment 2, Part 1 instructions provide a link to sample lists of leadership competencies that are considered crucial for existing leaders as they work toward meeting present goals and future visions. Additionally, they can be used as a guide for hiring future employees. A public service example from the Government of Canada lists the following competencies as important to success within this sector: “create vision and strategy, mobilize people, promote innovation and guide change, collaborate with partners and stakeholders, achieve results, and uphold integrity and respect” (List of Competencies, GOVN 500 Moodle). To these competencies, I would add: problem-solving behaviors, honesty, fairness and trustworthiness. “Competencies are fluid, and in a changing world, continually [evolving]…developing further competencies is open ended—as the world changes, so [too must public service organizations]” (O’Brien, 2023, Assignment 2, Part 1, GOVN 500 Moodle).
In contrast to public service goals, private sector organizations customarily have valued financial growth as a primary goal and increasing profit margins as a sign of a successful business. Leadership priorities have been economically driven and decision-making and organizational goal-setting have been the responsibility of senior leadership within the company. Stakeholders (including employers, investors, suppliers, supply chain workers and related industries) have valued the spin-off advantages of economically strong business enterprises. However, as is the case with the public sector, private sector organizations are beginning to adjust their leadership models to respond to global concerns in environmental, social and economic domains. “With the unprecedented shifts in the global economy, political unrest, changing demographics, and increased risk on investment, some corporations are shifting their focus to sustainability of the planet and their leadership role in promoting human rights and humane labour practices” (Study Guide Unit 4, GOVN 500 Moodle). Private sector leaders are adopting aspects of such initiatives as corporate social responsibility (CSR), social licence and creating shared value (CSV) to help guide their organizations forward in a shared commitment to establish more ethical business practices. “The private sector is becoming increasingly aware that committing to more socially and ecologically responsible business practices is a viable and sustainable direction to follow in these challenging times” (O’Brien, 2023, Forum Post Unit 4, Study Question 2, GOVN 500 Moodle).
To achieve the shift toward more ethically responsible ways of conducting business while at the same time protecting the financial health of the organizations, competent leadership is of great importance. The findings of a 2016 research study investigating private and public sector leader competencies listed the following as essential to success in the private sector environment: “business acumen, visionary leadership, marketing communication, market acumen, interpersonal communication, client service, and timely and opportunistic decision-making” (Darling & Cunningham, 2016). This list of competencies may be suitable to protect the financial values of the private sector, but with the exception of visionary leadership and interpersonal communication, further competencies must be considered to support the changing culture of sustainability and social responsibility emerging in the private sector. Leaders who are embracing these new cultural dimensions as important components of their organizational operations will develop relevant competencies such as: creative problem-solving, accepting personal accountability, encouraging collaboration, inspiring others, promoting empowerment and ensuring the ethical and respectful treatment of others. “The focus in forward-thinking companies in the private sector is shifting toward sustainability and new ways of working, couched in the principles of transparency and accountability” (Study Guide Unit 4, GOVN 500 Moodle).
“The nonprofit and voluntary sector is the contested arena between the state and the market where public and private concerns meet and where individual and social efforts are united” (Frumkin, 2002, p. 1). Organizations in the NFP sector are committed to offering a variety of services, programs, emergency assistance and ongoing support to address diverse needs of communities large and small. Several unique features that distinguish this sector include a large number of dedicated volunteers, a common commitment to addressing a wide variety of societal and environmental needs and a constant challenge of fundraising to finance the work. In the past, NFP funding involved such sources as government grants, donations, fundraising events, charitable foundations and private citizen donations or bequests. In the present difficult economic times, more stable and sustainable funding will be needed. The organizational structure of most NFP groups consists of a board of directors (commonly unpaid) and an operational level (comprised of paid staff and unpaid volunteers). “The board leadership focus is strategic and future-based, while operational leadership focuses on the present” (Study Guide Unit 5, GOVN 500 Moodle). New sources of funding may be high on the list of strategic future plans.
Leadership competencies applicable in moving forward to achieving present and future goals may include those identified in the following example: “The non profit partnership (itself a not for profit) has [an] expansive list of key competencies: managing vision and mission, strategic agility, motivating others, client focus, decision quality, priority setting, delegation skills, ethics and integrity and trust” (List of Competencies, GOVN 500 Moodle). Other competencies such as effective financial planning, competent use of technology and social media, commitment to leadership development and seeking opportunities to collaborate with other sectors would be valuable. “Ongoing leadership development is crucial to the future of this sector not only to help those presently in the NFP field adapt to rapidly changing conditions, but also to attract capable new talent to continue building the capacity and effectiveness of this important sector” (O’Brien, 2023, Forum Post Unit 5, Study Question 2, GOVN 500 Moodle).
As the world is facing unprecedented environmental, social and economic issues, leaders are becoming less concerned with steadfastly preserving traditional sectoral identities and more about addressing universal challenges. Public-private partnerships are an example of two sectors working together to mutually benefit both sectors. Necessary infrastructure projects (such as highways, power grids and public housing projects) envisioned by public sector leaders and constructed by private sector experts share the financial risks and reap the benefits of employment opportunities for private sector workers and enable the public sector to meet the needs of the public they serve. Similarly, NFP sector leaders have adopted private sector strategies of social enterprise to add to their funding initiatives: “wherein business activity contributes to the revenue while also achieving benefits to a particular community” (Study Guide Unit 5, GOVN 500 Moodle). “One of humankind’s greatest challenges this century will be to ensure sustainable, just and balanced development” (Hohnen, 2007, p. 7). All three sectors, collectively and individually, have a responsibility to focus their energies on implementing creative strategies to deal with widespread concerns.
The “triple bottom line” concept “illustrates the convergence of ideas, principles and action in all of the sectors and the importance of the individual citizen in decision making” (Study Guide Unit 4, GOVN 500 Moodle). The triple bottom line or “people, planet and profit” theory relates to social, environmental and economic spheres and expresses the conviction that action to support all three areas is critical for sustainability to exist. “The people, planet and profit slogan may be somewhat simplistic, but it serves as a quick reminder that we cannot be complacent about the future of our planet” (O’Brien, 2023, Forum Post Unit 4, Study Question 3, GOVN 500 Moodle). Although it is important that individuals and groups in all sectors continue to remain true to their values and continue to develop the organizational cultures they have built, it is critical that they find ways to work together for global sustainability.
References:
Darling, S.D. and Cunningham, J.B. (2016). Underlying values and competencies of public and private sector managers. Asian Education and Development Studies, 5(4), 371-387. Retrieved July 25, 2023, from https://www.emerald.com/insight/content/doi/10.1108/AEDS-09-2015-0050/full/html.
Frumkin, P. (2002). On being nonprofit: A conceptual and policy primer. Harvard University Press.
Gibson, S., MacLean, J., & Macklem, K. (2008). Leadership solutions: Building Leadership in Toronto's Nonprofit and Voluntary Sector. United Way Toronto.
Hohnen, P. (2007). Corporate social responsibility: an implementation guide for business (Potts, J., Ed.). International Institute for Sustainable Development.
Kouzes, J. M., & Posner, B. Z. (2007). The Leadership Challenge (4th ed.). San Fran, CA: Jossey-Bass.
List of Competencies, GOVN 500 Moodle.
Magnin, M. [Sustainability Illustrated]. (2014, April 8). Triple bottom line (3 pillars): sustainability in business [Video]. YouTube. https://www.youtube.com/watch?v=2f5m-jBf81Q
O’Brien, J., Forum Posts, GOVN 500 Moodle.
O’Brien, J., Assignment 2, Part I, GOVN 500 Moodle.
Study Guide, GOVN 500 Moodle.
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