19th – 21th September 2012.

Tivat, Montenegro

Srdjan Nikezic2, Sveto Puric3
Summary: The project of administration and management reform in the public, private and shareholding sector, is result of the identified requirements for improving leadership development, management and acquisition of talented managers basic skills learning and development throughout the Republic of Serbia. This paper defines the needs for a new approach to leadership in public, private and the shareholding sector of business. The quality of leadership through training, acquiring new knowledge and skills are a prerequisite respond for successfully resistance to the challenges of environment. Keywords: Leadership, development, quality, training, changes INTRODUCTION Strategic Centre for Leadership, Learning and Development (in further text Strategic Centre) should be established as the education - practical service that is focused on strengthening leadership development, including effects on talent. In the future, the focus will be to expand and include continual development of the basic skills of effective and transformational leaders. This leadership development strategy should be defined and developed by the Strategic Centre with the help of eminent academic and economic experts from the outside. Business needs are analyzed and the objective of the strategy is to fill the identified gaps. Strategic center will cooperate with other agencies in the country and abroad, and based on contemporary practice and research.


The work is part of the research project 41010, funded by the Ministry of Science and Technological Development of Republic of Serbia 2 Faculty of Science, University of Kragujevac, Serbia, srdjan_nikezic@yahoo.com 3 Faculty of Law, University of Kragujevac, Serbia, svetopuric@yahoo.com

FOCUS ON LEADERSHIP DEVELOPMENT Strategic center will confront to the current and future significant risks affecting the ability of leadership. It is very important to detect these risks and to ensure the ability of leaders to continue to carry out the perceived needs of the citizens and the community. These challenges include the long-term problem in the area of policy and services that require fast solutions and leaders with diverse abilities and profiles. Also, we are faced with a number of existing employees at risk, including the elderly and the imminent retirement of senior managers, and therefore should provide continual education, promotion and development of leadership skills. In the end, we are faced to new challenges, such as increasing competition of young, educated people, which means that we must build leadership talent within the existing institutions and create leaders out of institutions and to involve them in the institutional framework. LEADERSHIP DEVELOPMENT STRATEGY Leadership development strategy is based on the variable KEY variables with leaders in the public sector and the economy. Variable variables are key goals of development and points that need to be defined as axioms. In Figure No. 1 is shown the imperatives of leadership development.

  The workforce current risks   

 New Challenges

Dealing with complex policy challenges, the orientation of the citizens with an emphasis on executive functions in the administration and the economy. About 40% of the group leader has the right to retire in the next 5 years/80 percent over the next 10 years Only 8% of agencies have active talent management strategy Only 30% have an active succession management Less than 1 in 3 employees in the government sector has assessed the effectiveness of their leadership training and development program as well as high and noted improvements in leadership performance. The labour force in the world of old, and this leads to increased competition for talent;  In 2010, people aged over 65 = 13%  In 2050 people will be over 65 = 23% Leadership Development and Talent Management is a top priority in organizations worldwide. (Boston Consulting Group) Figure 1: Leadership Development Imperatives

In the future, leaders will be functionally different profiled.

There is a possibility to improve leadership development.

Talent management must be built from the inside

Development Strategy Leadership is covered by dimensions: Know - Work - Be as dimensions of leadership. The leadership development program is designed to identify the ten principles of development as the most effective method of combination of learning on the job (50%), continual education (40%) and formal learning in workshops (10%)

4. How to develop a program for future leaders?

40% High potential


5. What are the priorities for the development of leadership competencies?

How to build the current leadership competencies?

Experienced in the role The transition in the role of
6. How to assess the effectiveness of development resources? Cultural

2. What is meant by effective leader in public administration and economy?

Priorities of Citizens changes

Complexity of the development policy

What leaders need to achieve?

Team services Leader

Provision of



Figure 2: Strategy of Leadership Development The strategy is focuses on six key questions that have been identified in its notice as business needs at all levels. Leadership approach of needs development is shown in Figure No. 2 as a strategic response to these questions. Below are given the answers to the six questions in more detail.


STRATEGY ELEMENTS 1: What leaders need to achieve? Strategic center will try to adapt its work to the public and the business sector and business to understand the requirements to be met by the leaders of the present and future. This has included: • Defining functions and interaction between management and leadership. • Appreciation of environment as a key field for business leaders. Readiness for leadership change as a result of turbulent environments. Shaping requires that leaders must be able to achieve in the future. • Understand the needs and expectations of citizens and followers leadership and willingness to respond on the challenges through active changes. Definition of Leadership Leadership is the key variable in the dominant characteristics of management in companies, political parties and society. It is characterized with personality and environment in which he/she operates. Many definitions of leadership are based on personal characteristics of leaders, interpersonal relationships between leaders and followers in the process of achieving goals, leadership as a process or function. Research and contemporary practice have shown that there is a lot of approaches for the development of leadership competencies, as well as many definitions of leadership. The Oxford English Dictionary has defined leadership as:
"The action in the conduct of the group or organization and the ability of leaders to achieve it."

Definition of leadership includes the following elements: • interpersonal relationship between leaders and followers, • ability of leaders to articulate the action of the vision and mission of the organization, party or state. • ability to influence leaders and followers actions align with your goals. Excellent manager is a good leader, and a leader in managerial structure contains all its elements, which shows the interconnection between leaders and managers. Key drivers required for the new concept of leadership At the beginning of 80s of the last century, after a period of relative stability economy and world affairs have changed business conditions and existing patterns, beliefs, values and goals are not able to respond to the changes that have become dynamic and comprehensive. Many, by then a successful company, faced with the crisis and the need to radically change every aspect of their business. This was reflected in the total, political relations in the world. So far the theoretical foundations that were based on an analysis of the personal characteristics of leaders and

managers, and their behavior in different situations, not taking into consideration certain, quite uncharacteristic of quality leaders. These new qualities are demanding a new theory or a new concept of leadership. It is concept of transformational leaders. Transformational leaders seek to change existing patterns, values, beliefs and goals, and create new ones that encourage greater commitment to the followers. Transformational leaders know how to strike a balance between short-term results and long-term vision to establish a strong guiding coalition through complex processes based on the vision of the individual, his courage and willingness to learn and open to followers, leading to the realization of the same goal. The key effect is the efficient restructuring, economic recovery and boom. The key attributes of future leaders in the profile are:  Willingness to respond on increasing expectations of citizens for fast and flexible state fulfills the requirements and provides access to information of public interest.  Ability to provide increased living standards and quality of life.  Establish effective coalition with citizens through the adoption of effective policy and its execution in the shortest terms.  Articulation of needs for deep cultural changes at all levels and responses to those requests.  Formulation of a strategy of rapid technological development and technological change. For effectively responds on needs for changes and creation of a new set of corporate values and culture, to be a factor in the development and transformation, a leader has to be established as a matter of choice leadership skills and learning, not biological destiny. Leaders are born, but created. The leader has to gain the respect of followers defining a clear sense of the course of action, ethical principles and a strong vision for the future. On Table No.1 is presented the current (transaction) demands that a leader should possess, and the new (transformational) requirements which are the result of changes in which leaders must act boldly and with confidence in their necessity. You need to develop a vision of what might be, to mobilize followers to embrace and work on a new vision, for institutionalization of changes that must last for a longer period of time.
The previous requirements that a leader should possess
Expertise and a simple and efficient system that does not change in long period Defining goals, objectives, and the rights and obligations of followers. The short-term objectives, standards, procedures, policies and controls Efficiency (cost reduction) is a key variable in the leadership competencies

Future leaders must …
They recognize the need or demand of potential supporters and teams adjust to changes in the environment Articulate the motives of followers and trying to meet their needs, while also engaging followers as a complete personality Inspire and motivate their followers to change the standards it together, at the same time holding out encouragement to them that such change is possible and necessary

The application of knowledge within their capabilities Rational use of the expertise for decision-making and implementation

Stimulate creative and innovative reference, new perspectives and methods of work with followers Through counseling and teaching develop in individuals of their individual needs, abilities and aspirations, while also encouraging them to participate in shaping the future of group

Setting direction and mobilizing people

Identification of leadership vision to the perception that the leader follower see a confident leader who captivates her confidence and attitudes Table 1: Transactional and Transformational Leadership Requirements

STRATEGIC ELEMENT 2: What it means to be an effective leader? Strategic Center has identified the possibility of strategic leaders. These are:  The leader is drivers of social change that can meet the needs of an authentic follower.  Integration and evaluation of future changes in the compatibility with the changes of the past.  Establishing a balance between short-term results and long-term vision. Short-term changes occur in the range of 6-12 months. The greatest threat to effective leaders feared that if he has too little time to manage the long-term changes and therefore focus only on the annual quarterly results. Successful transformation is the ultimate test of leaders, and that is why they need two skills: building coalitions and creating a vision. To be an effective leader in the strategic combination means: be, know and do An effective leader is different from others because he has: purpose, morality, and the timeframe or time horizon. The effective leader must be able to meet the complex challenges of today and to be civil oriented. To accomplish this you need to know: • how to lead followers, processes, technology. • to developed strategic thinking, excellent communication, leading forth a strong coalition, plans short-term changes and to institutionalize new approach. • haw to be leader, with self-awareness, introspection, initiative, flexibility, authenticity, integrity, skill, establishing interpersonal relationships and teamwork, and empathy.

Performance and Results

People Managing people Stakeholder management Management with Changes Job Financial / Bullion Management Program management Stuff Risk Management Professional / Special Technological skills The Business Case
Public Service Processes

Forming strategic thinking Achieving results

Leader Authentication Self-consciousness Followers Self-regulation Social Consciousness Social skills Situation Situational awareness The position of the follower Collegiality

System Strategic management Analytical skills Public Service "craft" Professional Public Policy Delivery

Communication with impact Cultivating productive working relationships Characteristics of personal integrity and competition

Self-motivation Will / passion Conviction / courage Resourcefulness / adaptability Empathy Elasticity

The complexity of public service Interest of Public Service

Figure 3: Framework for Leadership Development STRATEGIC ELEMENT 3: How to build the existing leadership competencies? This element in the strategic center identified as the efficiency of the existing development of leadership competencies. This includes: • Identification of career critical points and times when you need to take various measures to further develop of individual knowledge and skills of leaders. • Defining the principles for the further development of leadership knowledge and skills through new learning. The end product of learning and knowledge is creativity. Strategic Center has identified four basic stages of creativity: preparation, incubation, illumination and evaluation. Strategic center identifies critical phase of transition from transactional to transformational leadership through the process of the development of leadership qualities within the existing dimension (enterprise, sector, municipalities, Ministries) and new employment in other sectors by promoting new leadership roles. Another critical point is the change of leadership roles at the same time dimension of action through the development of leadership qualities. The concept of leadership development Any research shows that leadership development is most effective when:

• exist a balance between learning on the job (50%), through development programs, training and effective methods of developing leadership skills (40%) and active experimentation through practical training in workshops (10%). • leaders are actively participating in the development of new models, based on the fact that it is recorded that the failure rate among top executives in leading global corporations, nearly 50%, and this failure is largely due to the lack of leadership, not operational and technical skills of individuals. • primary factor in the success of organizational leadership development and leadership skills. • past practices, such as leadership training attended only above-average prospective managers the highest level and this 2-3 times during their careers was corrected. • the need for leadership training and knowledge constant and not exclusively related to the highest level in the hierarchical structure. • Strategic Task city's application development and motivation model based on a "mission, values and pride", which in practice means: invest available resources (expert knowledge) in the development of core values, to prepare each team member to lead, teach tasks when leaders resolved I, and when forming teams, to encourage the development of self-discipline as a means to strengthen the personal pride and require that each act honorably, bravely and with great commitment. Training programs should ensure the implementation of all of these needs. • exist programs based on classroom learning is necessary: to prepare adequate programs that respond to potential listeners and monitoring and evaluation of acquired knowledge in the workplace

Development of leadership competencies-principle: 50-40-10

The development of professional expertise The main roles and rehearsals Experience Action learning projects

Leadership ideas and events University courses

Horizontal learning

Critically impressive experience Micro intervention Organizational leadership The project strategy and the role of comparative A complex problem solving Leader and formatting

Real time-real things-real situations compatibility with the community / stakeholders / customers


Do Figure 4: Example of 50-40-10 principle


The leader is not the product of a certain event or program, but a strong personality with a sincere understanding, knowledge and skills that define him as a successful and tend to inspire followers to follow him. Different situations call for the application of divergent leadership styles, because experienced and motivated followers require a different approach than just employees in the organization. The basic starting point is the existence of a good understanding of the characteristics of followers, their needs, emotion and motivation.

STRATEGIC ELEMENT 4: How to develop programs for future leaders? This strategic element identifies models for improving the potential future leaders. Development of leadership skills extend to the development of leadership skills, knowledge and attitudes of individuals. The great potential and opportunities of individuals who weigh personal success and satisfaction and significant leadership roles assume the following actions: • Defining talent management. • articulating key talent development purposes. • Defining the principles underlying the method of developing their leadership skills. • Designing organizational structure, training talents for leadership. What is Talent Management? Center Strategic defined talent management as a systematic approach of the identification of talented individuals, who through certain personal characteristics or sets of skills and new knowledge, can be successfully carried out the most responsible tasks and achieve goals. Identification of the driving forces for the talents of leaders is related to their ability to accept conditionality, but given the changes and challenges in the future. The will to succeed at something, is often crucial, but they need other personal attributes that have arisen from the knowledge and abilities. Talent management implies that: • Strategies for managing talent need to be aligned with an organizational structure redesign over time. • A rigorous and transparent analysis of the actual potential through a list of competencies expected of future leaders is essential. • Mentoring is the program of developing future leaders and present of a special relationship in which skillful director or manager is helping less experienced colleagues. A mentor is usually a person with upper-level and not immediate superior of all wards. Mentor provides: psychological-pedagogical support and purpose of encouraging career. Principles of design leadership and systems

Strategic Center has developed a series of design principles, based on consultation and research in the most effective way to develop leadership talent in the system: • System design leaders led by competent personnel from the Strategic Centre and experts engaged by the service contract. • Development of leadership accountability program is supported directly educations in strategic center.

• The initial focus is directed towards the development of high potential leaders in responsible positions. • Model design is customizable and can be used as a basis for different types of training leaders in various fields. • Strategic goal is to identify the center with the high potential for successful in the future role of the leader. This is provided through a training process that simultaneously monitors and measures results. • Training programs are focused on adapting the program to the individual needs of each participant. • Development of programs based on the principle of consensus, includes mobility, use of various elements of the evaluation, and it can be arranged and expert measurements. Review of the talent management In Figure No. 5 is shown an overview of the management potential leaders, which begins by identifying key areas that require greater attention to the potential future leaders and Strategic training center as the carrier. Start Identification of core areas
Necessary roles for organizational sustainability (draft Strategic Center)


Identify and assess high potential for a focused area The intensive program development
Performance and potential to succeed in the critical role

Examine each element in order to achieve the best result

The rapid development in order to develop the skills and target needs

Figure 5: Access to training future leaders through Strategic Center

STRATEGIC ELEMENT 5: What are the priorities of the developed application of leadership competencies? In order to implement a leadership development through strategic center identified the factors that determine the priorities in the application: • Ability to maximize the social and economic impact on leadership development. • Minimize duplication and use of inadequate training leadership development programs. The experience of others is often not applicable to our conditions. • Identify areas in society where there is a lack of leadership capacity and take appropriate measures and programs to turn the predispositions of talents and chances for success through learning and training.
10% 40% 50%
Potential applications (responsibility for the environment, understanding the needs of followers, personally underwriting)

Great potential

Transformational Programs (Professional Expertise, Public Policy, suppliers, customers, regulatory issues, strategic opinion, changes in management, collegiality and adaptation)

Transition programs (public sector involvement, ethics and integrity, and social situational awareness, collegiality, strategic opinion, personal trust between the leader and follower)

Team leader (A1)

Menager (A2)

Executive leader (B1)

Multifunctional leader (B2)

Deputy CEO (B3)

CEO, President of the Agency (B4)

Figure 6: Developing leadership priorities

The explanation for the current priorities
Central level Explanation

1. Initial focus- the B role

Cultural impact on organizations can systematically sought to shape leadership behaviour • Ability to foster fellowship and to build leadership cadre • Talent Management begins with learning on the job, and continuing education for the continuous
 Influence is exercised through formal learning


Post-initial focus- the A role

Explanation  Develop a strong team, with the leader at the head and the ability to fill critical positions (programsfor talented)  Provide assurance with many competitive candidates, will be competing for a critical point when they become available 2.The transition to the role  Provide input to organizational culture, leadership and systemic approaches (transformational programs) 3. Experience in business  To provide high performance, breadth and organizational sustainability (experienced leadership development program) Table 2: Explanation of current priorities
1.Big potential

Central level

STRATEGIC ELEMENT 6: how to assess the efficacy of the evolutionary potential? Each learning, knowledge and creativity must be subject to rigorous assessment showing whether planned goals are achieved through training, to determine whether the performance achieved through the market and the public, measurable results, and will the continuous improvement continue. Strategic center will provide continual monitoring and evaluation at two levels: • Assessment of the effectiveness, efficiency and development potential, through leadership development strategy. • Evaluate the individual programs and make the necessary corrections.

Role and tasks of the Strategic Center Strategic center will explore efficient and effective overcome current and emerging risks that occur in a turbulent environment in which leaders work through: • Development of leadership skills is a priority which will be tailored to the social and business needs. • Education but to existing leadership structure that will improve cooperation, collegiality and empathy between leaders and employees. • Forcing a paradoxical way of thinking where the in leadership continuum luck can find two different ideas that do not threaten each other: reducing production costs and increasing product offering quality, cost reduction and improvement of public administration, offering quality services to the citizens, and so on. • The application of modern methods of training leaders. • Improve leadership skills and the continued systematic training. • Development of leadership skills: leadership, motivation, evaluation of the success of the work, change management, stress management, project management, interviewing, conducting business meetings, through creativity and innovation, and finance. • Improve technological skills of the workforce. • The development of TQM (Total Quality Management). • Develop a system of managing agencies, organizations and parties. Strategic center, among other things, need to operate with several key programs: • Leadership archetypes. • The importance of leadership and tasks. • Leadership and basic strategic tasks. • Leadership as a paradigm change. • Leadership skills. • Leadership roles and functions. • Leadership and quality. • Leadership and power.

• Functionally, situational and transformational leadership. • The concept of leadership. • Emotional intelligence leader. • The theories and styles of leadership. • The application of classic styles of leadership. • Contemporary theories and models of leadership. • Complementary relationship between the leader-manager-entrepreneur. • Factors leadership. • The range of leadership throughout the organization and the environment. • Leadership and other management functions. • Leadership and interpersonal dimensions. • Models of leadership. • Different approaches leadership. • Leadership in companies, education, health, justice, parties... • Leadership vision, mission and charisma. • Theory of a great man. In addition, a strategic center need to ensure continual improvement of service users, mediation in the development of new programs and recruiting, support the public and private sectors, as well as local authorities and constantly rigorous evaluation of proposed programs and development strategies. The Supervisory Board is contained of external experts of different fields, who will provide strong support for the work of the Centre, contributing to the development of leadership. The Director and Deputy of Strategic center will create priorities in order to ensure compliance with a strong business environment and the needs of service users.


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