Tuesday, November 8, 2011

Reform of business practices is essential


Revelations over the weekend that civil service managers are unable or unwilling to implement a performance  management system designed to ensure higher standards of employee performance come as no surprise.

Illustrating a twin culture of entitlement and subservient acquiesce to preserving a carefully constructed status quo, it’s an admission of leadership failure. As turkeys don’t vote for Christmas, it’s unlikely that civil service managers would ever act to reign in their own salaries, least of all within a system designed to ensure its own sustainability no matter what political administration is in power.

Crafted through years of “partnership” agreements that prevented real change, this state’s largest employer, Government is stuck in a rut of its own making as the latest partnership manifestation, the Croke Park agreement, ensures that undeserved entitlements are ring fenced and protected. 

If this is the case, then there cannot be any real transformative change. We are stuck with funding a dysfunctional civil service unless real transformative leaders emerge. 

These are the people who change the way people act by using narrative intelligence to ensure others are enthusiastically engaged. They get people to change by getting them to imagine and act out a better future. But who is responsible for crafting a fit for purpose civil service?

Politicians should admit to a fact of life, they cannot be transformative leaders. Theirs is the business of compromise, the consensus agreed to ensure re-election. Characterised by the acquisition and retention of power, successful politicians are the ones who are elected and re-elected. They make flexible, generalised campaign promises, to appeal to the broadest electorate and then renege on them. If a politician tries to persuade people to do something different, to show transformational leadership, they guarantee their own demise.

Should we expect politicians to be leaders when we elect them to preside over the body politic? After all what is a minister other than the political head of an administrative department? A Taoiseach, a “prime” minister, who administratively heads the government?

The parable of the boiled frog which remains in the water as the heat is being turned up to be boiled alive is apt. Are we being boiled alive to protect bond holders’ wealth base or is it a case of a collectively hoping a regressive economic cycle will end and people once again feel confident enough to go out and spend money?

As the citizens of Berlin don’t elect Dublin politicians, their narrative differs. In Berlin it’s all about getting errant states to pay their way to protect the might of core EU engine, the German economic model. In Dublin it’s all about regaining economic sovereignty by agreeing to what Berliner’s want: Both hope that we will start spending again. Both act as if economic activity strong enough to pay off borrowings and fund recovery is possible. Both are unwilling to make the decisions needed to re-craft the euro project.

Economist Constantin Gurdgiev says we owe too far too much to have any hope of economic recovery. It seems we will be unable to grow fast enough to fund recovery and fund debt repayments. Translating this to families means the burden of state and personal debt repayments will stifle recovery and government’s austerity programme will snuff out ability to repay. 

The bigger picture is one of some nation states who have excess money and those that don’t have enough. Rebalancing this equation means that as creditor states are as captured as debtors states, debt settlement will have to be shared equally.

Rarely has business, politics and family collided as they have in the past three years. We are living with what happens when business is used by others to achieve their instrumental objectives – wealth and status within a political economy designed to further these business objectives. But it seems this is about to change – not because of transformational leadership – but caused by the social and economic consequence of un-repayable debt.

Government’s muted new insolvency regime indicates a decision that people are to be allowed to fail and get back on their feet again. If a measure of an entrepreneurial society is its capacity to forgive personal failure and allow people to rebuild their lives then it’s a move that shows some responsiveness to a dilemma posed.

That dilemma is encapsulated by a sovereignty status largely dictated by external political forces we have no control over but also framed within our own willingness and capacity to encourage transformational change where we can.

For that to happen ways have to be found to ensure that not only is the civil service reformed but that the society and economic model it’s designed to support is also defined. So far all focus has been on austerity with little or no thought applied to what will be the outcome of years of austerity.  

A version of this article appeared in the Irish Examiner, Business Section, Monday 7th November 2011






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