From competences to awareness: approaches and activities to support management development in Istat CES Forum on Human Resources Management and Training Budapest, 5 September 2012 Cecilia Colasanti, Antonio Ottaiano, Fabrizio Rotundi

 The general context  Competences, training and development programme  Risk management for a better NSI organizational culture  Case study: survey on risk perception in Istat 2 Agenda From competences to awareness: approaches and activities to support management development in Istat

The general context Public Administration Reform in Italy  Productivity growth  Quality development vs  Financial cuts 3 From competences to awareness: approaches and activities to support management development in Istat

The general context The role of the management  to be leader  to drive the change  to increase production  to save more money  to anticipate critical issues 4 From competences to awareness: approaches and activities to support management development in Istat

The general context How the organization can support management development?  how to add values to competences?  how to raise awareness of the role? 5 From competences to awareness: approaches and activities to support management development in Istat

Approaches and activities to support management development at Istat  training & self-assessment  risk management system 6 From competences to awareness: approaches and activities to support management development in Istat Competence development programmes

Competences, training and development programme Which training for managers  integration of professional know how and managerial competences  work centered learning set  continuity  modularity  involvement of managers in co-design and lectures  top management commitment 7 From competences to awareness: approaches and activities to support management development in Istat

Training activities for Istat’s management A long-term perspective training path ( ) aiming at:  supporting management in connecting Istat’s strategic objectives with their own operational objectives  providing management with tools in order to effectively share with their employees objectives, values, commitment  raising a higher awareness on the organizational wellness issues, in order to improve the working atmosphere within units  increasing attention towards safety-at-work issues and management’s duties in taking care of their employees’ health  strengthening management’s competences in planning and programming their activities 8 From competences to awareness: approaches and activities to support management development in Istat Competences, training and development programme

Training activities for Istat’s management Training methods oriented to continuity, modularity, involvement of participants:  step-by-step increasing methodology  project work activities  support at a distance  blog  : brief seminars(3 hours), base and advanced courses (10-20 hours), on the job training (20 hours) 9 From competences to awareness: approaches and activities to support management development in Istat Competences, training and development programme

Competences development programme – Self-assessment 10 From competences to awareness: approaches and activities to support management development in Istat Strategic objective of the Institute: support managers in reflecting about their own individual effectiveness, through the analysis of the organizational behaviors in their management activities The 360° feedback analysis

Competences development programme - Self-assessment The 360° feedback analysis – the process  the application phase  the preparation of the questionnaire  the choice of the ‘feedback providers’  the communication phase 11 From competences to awareness: approaches and activities to support management development in Istat

Competence development programmes- Self-assessment The 360° feedback analysis – the results  64 managers involved  an individual gap analysis report given to each of them  an individual meeting with an external consultant  a global report for the organization, with a map of areas of improvement and training needs of its management 12 From competences to awareness: approaches and activities to support management development in Istat

From problem solving to risk management Problem solving is “the ability to decide what action to take to achieve a desired state or a given objective, from a given condition and the resources at its disposal”, i.e. “the set of processes for analyzing, addressing and resolving positively situations that could become risky (for their effects)” 13 From competences to awareness: approaches and activities to support management development in Istat  static context managers use problem solving techniques to analyze empirical data, research reproducibility of events and catalogue them  dynamic context managers search effective solutions for critical events using standardized problem solving techniques and sharing results Case study: survey on risk perception in Istat Risk management is “the ability to turn risks in opportunities and is influenced by the history, culture, ethical values, expertise, professional skills and organizational philosophy”

Why risk management is a good case study within organizational culture development?  Everyone is involved  Top management learn to be aware of the impact of dangerous events on the statistical production and administrative processes  Transparency is encouraged, with respect to the most significant business risks, and to the attribution of responsibility  It requires different learning methods: ♪ Traditional, for the theory ♪ Informal, because is spread overall the organization ♪ Learning by doing, for its application 14 From competences to awareness: approaches and activities to support management development in Istat

The scenarios As is  PA work in a general climate of political uncertainty  PA suffer of pressing constraints imposed by EU fiscal consolidation policies 15 From competences to awareness: approaches and activities to support management development in Istat To be  Maintaining a dynamic organization, high productivity, high level of service quality under scarcity of resources  Enhancing and protecting tangible and intangible assets exposed to the turmoil of events

Risk management framework: why and how 16 From competences to awareness: approaches and activities to support management development in Istat  The cross-cutting risks are becoming more and more difficult to be managed  Exponential growth of regulatory makes the compliance with laws a talked-about subject  The increasing globalization implies to manage risks beyond the boundaries of the state of origin  The increased visibility to citizens and communities exposes PA to possible reputational damage

Risk management framework: why and how 17 From competences to awareness: approaches and activities to support management development in Istat ERM is “… a process put in place … by management … used … to identify potential events that may affect the company, to manage the risk … and to provide reasonable assurance regarding the achievement of corporate objectives” The framework takes into consideration the 3 dimensions of a cube: 1. the interactions among the strategic, operational, reporting and compliance objectives; 2. the 8 system components: i. the internal environment; ii. the objective setting; iii. the critical event identification; iv. the risk assessment, according with probability and impact; v. the risk treatment (avoiding, accepting, reducing, transferring); vi. the procedures to verify the risk response taken; vii. the dissemination and communication; viii. monitoring of changes implementation; 3.the organization levels

18 From competences to awareness: approaches and activities to support management development in Istat Thinking about risk perception The risk tolerance is the maximum level of risk acceptance The risk tolerance magnitude depends on:  the ability of top managers to face and take risks and, at the same time, to safeguard strategic objectives and monitor the level of risk exposure  the external (stakeholders involved, type of business, competitive landscape, etc.) and internal (company policies, specific risks, etc.) risk factors

19 From competences to awareness: approaches and activities to support management development in Istat 1.the level of attention given to risk management in planning and monitoring the main activities of the NSI; 2.the coherence between the planning and control system and the risk management framework; 3.the factors that may represent dangers for the organizations (risk factors). The Istat Risk Committee launched an on line survey about the top manager’s risk perception inquiring on: The survey on risk perception in Istat

20 From competences to awareness: approaches and activities to support management development in Istat 1. analysis of internal control environment and organizational culture; 2. definition of objectives and risk management; 3. identification and classification of risk factors affecting the strategies development; 4. evaluation of critical events in terms of severity and probability, according with the Control & Risk Self Assessment (C&RSA), and production of risks catalogue. The questionnaire for the survey comes from the international standard (ISO 31000:2009, AS/NZS 4360:1999; A&O; PD ISO/IEC Guide 73:2002; F.E.R.M.A.) and is divided into 4 sections: The survey on risk perception in Istat

Four dimensions to considerate the incidence of risk factors: 21 From competences to awareness: approaches and activities to support management development in Istat Assessment of the risk perception 1. the perception of risk as critical success factor to achieve each manager’s objective (Size A); 2. the perception of risk as critical success factor to achieve the Institute’s strategic objectives (Size B); 3. the maturity of the control environment within each Directorate (Size C); 4. the maturity of the control environment within the Institute to support the risk management system (Size D)

The radar shows that:  the risk is considered an important component for activities planning within each Directorate (Size A)  looking at the other structures, the Directors don’t believe in the same sensibility of their colleagues, referring to risk factors (Size B);  all the managers show a positive evaluation about the maturity level of the control environment within their own structure and within the Institute (Sizes C and D). 22 From competences to awareness: approaches and activities to support management development in Istat The average of management profile The survey’s results

The risk factors Risk factors are voluntary or involuntary events, caused by internal or external sources, affecting positively or negatively the strategies development or the achievement of objectives In the questionnaire, the identified risk factors, are divided in 3 groups: 23 From competences to awareness: approaches and activities to support management development in Istat a. external to the operational processes b. internal to the operational processes i. regulatory compliance ii. organizational factors iii. technology and ICT management iv. integrity and ethical behavior c. cross-cutting (for decision-making processes).

External:  formal and informal relationship/agreements with other institutions/organizations;  technological innovations that improve quality services and efficiency, but also that represent a cost. 24 From competences to awareness: approaches and activities to support management development in Istat The risk factors Managers focused their attention on the following risk factors: Internal - compliance:  quality of supplied services;  compliance with laws, regulations, procedures, statistical processes.

25 From competences to awareness: approaches and activities to support management development in Istat The risk factors Internal - technology:  availability of ICT resources to support the official statistical production;  possible ICT crash, due to server obsolescence or unpredictable events;  accessibility of information/databases according with separation of duty and need to know principles. Internal - organization:  inadequate skills;  unfulfilling development policies, according to manager’s needs;  innovation of procedures and strong requirement of efficiency in the production processes.

26 From competences to awareness: approaches and activities to support management development in Istat The risk factors Internal - integrity & ethical values:  sense of belonging;  sharing corporate values. Cross-cutting:  leadership and coordination between the cross-cutting processes;  contractual constraints for recruitment process;  contractual constraints with suppliers.

New organizational culture in a NSI From traditional learning to learning by mistakes to better protect Tangible and intangible assets First outcome in Istat Growth of organizational culture, also through seminars, training courses, and the web site 27 From competences to awareness: approaches and activities to support management development in Istat Next step (to be scenario) Standing the risk management approach on its head, turning the active players position with the passive players (colleagues of internal structures that are required to use the system) How to do it?  by considering an uncertain event not necessarily as a threat, but as a possible opportunity;  by strengthening the ability to face critical situations  sliding into the back the predictive ambition based on the historicity of the events and past experiences Risk Management in perspect

Questions? Comments! Thanks for your attention! Risk Committee: mailto: Cecilia Colasanti mailto: Antonio Ottaiano mailto: Fabrizio Rotundi mailto: Federica Navarra mailto: 28 From competences to awareness: approaches and activities to support management development in Istat Credits risk.istat.it