WHITE PAPER

Public Sector Leadership Challenges

Are They Different and Does It Matter?

By: John Ferguson, Peter Ronayne, and Mike Rybacki

Contents
Introduction 1
Research 1
Overall Comparison 2
Managing & Motivating Subordinates 4
Organizational Operations & Performance 5
Balancing Multiple Work Priorities 6
Talent Management 6
Building & Leading Teams 7
Discussion & Conclusions 8
Appendix A 9
Leadership Challenge Categories & Definitions
Introduction
On October 1, 2013, the United States federal govern- ist between the public and private sectors. For example,
ment shut down after Congress failed to enact legisla- both are populated with organizations of diverse sizes,
tion appropriating funds for the new fiscal year. Routine budgets, and missions. Nonetheless, major differences
operations were curtailed, 800,000 federal employees are readily apparent. Private sector organizations usu-
were indefinitely furloughed, and another 1.3 million ally focus on profits and shareholder value, and oper-
were required to report to work without known com- ate within a business or entrepreneurial framework.
pensation. Regular government services did not resume Public sector organizations typically focus on regulatory
until October 17 when Congress passed and the presi- implementation of legislation and service delivery to
dent signed an interim appropriations bill. citizens, and operate within a unique constitutional
framework founded upon the separation of powers of
The government shutdown provided a dramatic exam-
the branches of government.
ple of the clash and collision of views surrounding the
role of government and governance. Political leaders Whether one sector is more or less efficient than
grappled with fundamental questions concerning the another is best left to economists and politicians to de-
core functions, size, and funding of government. De- liberate, but the larger question comparing the public
spite their often diametrically opposed views, however, to the private sector does raise important issues about
consistent calls could be heard from both sides of the the nature of leadership. Are there different challenges
political aisle that the government should be run more associated with leading in the public vs. private sector?
like a business. If so, do those differences alter the skills and behaviors
required for good leadership? How might these differ-
Implicit in this refrain is the assumption that business is
ences impact leader development? Answering these
more efficient or effective than government. But are we
questions might benefit leaders in both sectors.
comparing apples to oranges? Certainly similarities ex-

Research
The Center for Creative Leadership (CCL) routinely This data provides rich insights into the similarities,
asks participants in its Leadership Development Program, differences, and critical nuances of public vs. private
targeted to leaders of managers, and Leadership at the sector leadership. And indeed, the story is one of nu-
Peak program, targeted to enterprise leaders, to name ance. As this paper highlights, leaders from both sectors
their three most important leadership challenges. Pro- name similar leadership challenges and prioritize them
gram participants come from all sectors of the economy in parallel for the most part, but the unique setting and
including business, government (both civilian and context found in the public sectorvery much defined
military), education, and nonprofit organizations. For by the Constitutionleads to subtle, but very real and
this paper, we content-analyzed written responses from noteworthy differences.
almost 1,500 U.S. federal government civilian leaders
and a sample of more than 500 private sector business
leaders who attended these two programs over the past
five years. While the results are only applicable to U.S.
federal civilian leadership, we feel that these experi-
ences might also be familiar to state and local govern-
ment leaders.

2014 Center for Creative Leadership. All rights reserved. 1

Overall Comparison
The participants written responses to the question What are your most important leadership challenges?
were analyzed and sorted into 17 categories (detailed explanations of each category are in Appendix A). The
overall results are shown in the graph below:

Organizational Growth 3.3

.07 Business
0.8 Govt
Work/Life Balance
1.2

Interpersonal Conflict
1.4
2.4
2.5
Creating/Changing Culture 3.0
2.9
Building/Leading a Team 3.3
2.5
Strategic Issues 3.5

Develop Agility/Role Transition

5.1
3.9

Leading/Managing Org Change 2.7

4.2

Miscellaneous 0.8
4.6

Leading a Team in a Context of Change 4.9

4.8

Influencing 5.7
6.4

Boundary Spanning 8.0

7.0

Talent Management 6.6

7.9
Balancing Multiple Work Priorities 9.6
7.8

Organizational Operations & Performance 11.2

9.7

Personal Leadership 18.0

14.9

Managing & Motivating Subordinates 12.0

15.2

0 5 10 15 20

Note: Percentages based upon the entire public or private sector sample population.

2 2014 Center for Creative Leadership. All rights reserved.

The results on the left reveal that leaders in both Government and business leaders see Organi-
the public and private sectors cite the same seven zational Operations & Performance challenges
most frequently reported challenges with slight somewhat differently. For government leaders
differences in prioritization. Managing and Moti- it involves dwindling or uncertain financial and
vating Subordinates is the top challenge reported staffing resources, calls for increased efficiency
by government leaders and the second listed by to do more with less, and trying to collabo-
business leaders. Personal Leadership earns the rate within a constitutional system designed to
top spot for business. Both groups cite Organi- disperse power and decision-making (this is also
zational Operations & Performance challenges the major difference in the Boundary Spanning
in third place, followed with slight differences in challenge). For business leaders the issues tend to
prioritization by Balancing Multiple Work Priori- focus on staying current with technology, adapt-
ties, Talent Management, Boundary Spanning, ing to new regulations and policies, and dealing
and Influencing. with organizational and market changes in a
rapidly evolving global economy.
The written responses explain major differences
in prioritization. For government leaders, Manag- Public and private sector leaders both describe
ing and Motivating Subordinates takes on ad- time management and prioritization as issues
ditional importance due to unique environmental central to the problem of Balancing Multiple
factors associated with government service. For Work Priorities. Both groups also see the chal-
example, the annual government budgeting lenge of Influencing very similarly.
process with constantly looming furloughs and
But the similarities and differences at this macro
shutdowns increases uncertainty. Government
level do not tell the whole story. Some categories
workers, or bureaucrats, are regularly maligned
are quite large and contain multiple aspects of
both privately and publicly, which can diminish
leadership challenges that reveal important nu-
employee engagement. Special employee protec-
ances. In the sections that follow we break down
tions can make it difficult and laborious to change
the largest categories into their component parts
employee behavior or remove poor performers.
to show additional detail behind the leadership
And since the government sector is Baby-Boomer
challenges reported by government and business
heavy, a significant percentage of employees are
leaders. Lets explore some of the most illuminat-
nearing retirement eligibility. These factors make
ing categories in more detail.
Managing and Motivating Subordinates (and to
some degree the Talent Management challenge)
more pressing for public sector leaders, while
both groups view the challenge of Personal Lead-
ership similarlyskill deficits in communicating,
planning, confidence, resilience, and emotional
regulation.

2014 Center for Creative Leadership. All rights reserved. 3

Managing & Motivating Subordinates
This primary category comprises four subgroupsMotivating, Developing, Managing (general)
and Problem Subordinatesshown in the following table. The numbers represent the percent-
age of the whole sample (N=1448 for government, N=531 for business) who chose that sub-
group. For example, 6.9% represents the percentage of all government employees sampled who
cited Motivating Subordinates as a key challenge.

Business
MANAGING SUBORDINATES 2.7 Govt
2.7

4.9
DEVELOPING SUBORDINATES 2.8

PROBLEM SUBORDINATES 0.4

3.1

3.7
MOTIVATING SUBORDINATES 6.9

0 1 2 3 4 5 6 7 8

Note: Percentages based upon the entire public or private sector sample population.

4 2014 Center for Creative Leadership. All rights reserved.

Within its primary category, Motivating is the most Developing Subordinates is the most frequently cited
frequently cited challenge for government leaders. For challenge for business leaders. Business respondents of-
them the issue seems more difficult because employees ten discuss the reasonable need to prepare and develop
must assume greater workloads in the face of declining junior colleagues for the next level of responsibility.
resources without the benefit of commensurate rewards For their government counterparts, however, dealing
for performance improvement or excellence. Motivat- with Problem Subordinatesan issue barely cited by
ing also surfaces as getting employees to own their business leadersdrains attention from developing
jobs or take initiative. Though Motivating is the second high potentials. Many government leaders mention the
highest subcategory for business leaders, they cited it difficulty, complexity, and lengthy process involved in
almost 50% less than their government counterparts. removing employees for other than illegal or unethical
While motivating subordinates in either sector might acts. Similarly, government managers feel they can do
involve similar strategies and tactics, the context of a little to correct performance issues when employees fail
resource constrained and closed-system government to cooperate. These issues reflect the carefully struc-
environment produces unique challenges distinct from a tured and regulated process for firing and hiring govern-
potentially performance-based and incentive-rewarded ment employees.
business context.

Organizational Operations & Performance

In this primary category, the impact of government For private sector leaders, the challenges associated with
resource constraints is clearly evident. Budget is by far resources are much less pronounced. In fact, the Miscel-
the key operational leadership challenge with Resources, laneous subcategory is the most frequently mentioned,
Increasing Efficiency, and Manpower Shortages all ranked suggesting business leaders experience a more hetero-
highly. The governments limited and likely shrinking fis- geneous set of operational challenges. These eclectic
cal resources define the public sector leadership land- issues range from maintaining continuous improvement
scape. processes and instituting enterprise-wide project man-
agement to raising the bar on customer care and meeting
regulatory requirements.

BUREAUCRATIC ENVIRONMENT
0.6
0.5

MISCELLANEOUS 4.0
0.6

0.2
MANPOWER SHORTAGE 1.5
Business
Govt
INCREASING EFFICIENCY
1.2
1.7

1.0
RESOURCES 1.9

0.2
BUDGET 2.9

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Note: Percentages based upon the entire public or private sector sample population.

2014 Center for Creative Leadership. All rights reserved. 5

 Balancing Multiple Work Priorities
Business In the context of increasing
STAYING OUT OF DETAILS 0.1 Govt
0.6 workloads, leaders in both
sectors identify their top chal-
lenge as Setting and Balancing
1.8 Priorities. Time Management is
VOLUME OF WORK 1.2
a close second for both groups
as well, followed by Volume of
Work. It seems that the environ-
1.8
TIME MANAGEMENT 2 ment in which leaders operate
has no major effect on how they
describe this challenge. Setting,
2.9 balancing, and shifting priorities
SETTING/BALANCING PRIORITIES 2.7 in a high pressure environment
is difficult for leaders across sec-
tors.
0 0.5 1 1.5 2 2.5 3 3.5
Note: Percentages based upon the entire public or private sector sample population.

Talent Management
0.2
CREATING HR POLICY/PROGRAMS 0.1 Business
Govt
1.0
EMPLOYEE ENGAGEMENT/MORALE 0.5

0.2
RESOURCE/POLICY CONSTRAINTS 0.6

0.2
GENERATIONAL/DIVERSITY 0.8

1.8
SUCCESSION PLANNING/LEADER DEVELOPMENT 2.0

3.3
RECRUITING/RETAINING/TRAINING 3.9

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Note: Percentages based upon the entire public or private sector sample population.

While the top two subcategories reflect the importance of hiring philosophy: business tends to hire for cultural fit
of hiring and preparing organizational talent in both the while government wants to reflect its varied constituency.
public and private sectors, the constrained resource envi- Given the government environment challenges previ-
ronment and structured HR policies of government make ously mentioned, it is surprising that business leaders cite
this a bit more challenging for government leaders. The Employee Engagement/Morale as a bigger challenge than
Generational/Diversity differences could be an outcome their government counterparts.

6 2014 Center for Creative Leadership. All rights reserved.

Building & Leading Teams
EMPOWERING A TEAM 0 Business
0.3 Govt

0.8
STARTING/MERGING A TEAM 0.6

DEVELOPING A TEAM 0.4

1.0

1.6
LEADING A TEAM 1.5

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8

Note: Percentages based upon the entire public or private sector sample population.

Though the Building and Leading Teams category was cited as a challenge only about 3% of the
time across both sectors, a few interesting observations bear mention. Both government and
business leaders agree that Leading a Team is an important challenge. However, business lead-
ers cite Starting or Merging a Team as their second most frequent challenge while government
leaders felt that Developing a Team is more often a challenge. These findings may speak to the
different environments in which teams operate in each sector.

2014 Center for Creative Leadership. All rights reserved. 7

Discussion & Conclusions
In response to the question posed in this papers title Do these differences alter how public sector leaders should
Public sector leadership challenges: Are they different behave, the skills they need, and the development nec-
and does it matter?the answer is perhaps best captured essary to meet those challenges? Probably. Without the
by the phrase: Yeah, sort of. When first looking at the benefit of significant financial incentives and quick merit
primary category data, it might appear that differences be- promotions, motivating government employees may re-
tween the public and private sector exist, but are minimal. quire leaders to incorporate different strategies to inspire
That seems reasonable. After all, leadership in any sector superior performance. Without access to additional re-
involves leading people who, regardless of sector, concom- sources, even when unit performance or challenges merit
itantly share both universal human traits and unique indi- those investments, leaders may need to collaborate even
vidual differences. Deeper understanding of the subcate- more intently and effectively with peers to accomplish the
gory data, however, reveals that more nuanced differences mission. And once these skills and behaviors are identified,
do exist. The environment of government, especially the how can government instill them in leaders through sys-
constitutional structure and financially constrained context temic development, especially in the resource constrained
of the U.S. federal government, does appear to change environment that is causing some of these challenges in
some of the challenges faced by those leaders. the first place?
Leading is challenging in any environment. Leading in the
public sector has some subtle, but noteworthy, additional
challenges that require targeted leadership skills and de-
velopment. With this knowledge, we can all better appreci-
ate and serve those who serve us all.

Appendix A
Leadership Challenge Categories & Definitions
Balancing Multiple Work Priorities: Challenges Interpersonal Conflict with Peers or Superiors:
having to do with time management, volume of An unresolved disagreement of a negative nature
work, delegating, or setting priorities that is personally concerning or impactful to the
leader and involves a peer(s) or
Boundary Spanning: Challenges having to do
a superior(s)
with the need to or the difficulty of crossing hier-
archical, functional, organizational, geographic, Leading a Team in a Context of Change:
generational, cultural or other boundaries Challenges having to do with helping others
with a unit or team to understand and cope with
Building/Leading a Team: Any challenge hav-
change, redesigning group processes or policies
ing to do with creating a new team, integrating
due to change, coping oneself with crisis while
people into an existing team or combining teams,
also leading others through it
or improving team process
Leading/Managing Organizational Change:
Creating, Changing, or Maintaining a Culture:
Being accountable for leading or managing a ma-
Challenges that specifically have to do with lead-
jor organization-wide change or aspects of that
ing or managing a culture change in the organiza-
change, or working inside unhealthy culture
tion
Influencing: Challenges having to do with manag-
ing up, leading without authority, inspiring oth-
ers, negotiation, or getting buy-in for ones ideas/
plans

8 2014 Center for Creative Leadership. All rights reserved.

Appendix A continued
Making a Role Transition: Challenges having to do Personal Leadership Development: Challenges
with the developmental agility required in success- relating to needs for personal and/or leadership
fully moving into a new job, a new department, a development, new awareness of own strengths and
new organization; moving into or out of an assign- development needs, or self-management issues
ment or sector; taking on additional responsibilities
Strategic Issues: Strategic leadership challenges
or dealing with uncertainty as a result of absence of
having to do with vision, mission, broad environ-
direct boss
mental factors that impact an organization, or strate-
Managing & Motivating Subordinates: Challenges gic planning
related to managing, motivating, or developing
Talent Management: Developing or implementing
others, typically subordinates; dealing with problem
HR systems and processes or dealing with human
subordinates/performance issues
resource related issues and problems
Organizational Growth: Challenges that come with
Work/Life Balance: Struggling with decisions or
growth or lack of growth
competing demands and opportunities coming from
Organizational Operations & Performance: Opera- various parts of ones life and/or personal needs
tional challenges such as dealing with budget cuts
in a context of rising demand for services, the need
to create greater group or organizational efficiency,
working in a context of continuous change, dealing
with bureaucracy, increasing organizational perfor-
mance

About the Authors

John Ferguson is the Americas Director of Vertical development. Prior to joining CCL, Peter spent 15 years
Markets for the Center for Creative Leadership (CCL), as a dean and senior faculty member at the Federal
responsible for business, research, and educational Executive Institute (FEI) in Charlottesville, VA, where he
goals across major industry sectors to include govern- directed the flagship Leadership for a Democratic Soci-
ment, healthcare, pharmaceuticals, legal, financial ety program and cofounded the institutes program on
services, and energy. Prior to joining CCL, John spent neuroscience and leadership. Peter holds a PhD from
over 20 years in military, government, higher educa- the University of Virginia and a BS from Georgetown
tion, and corporate leadership positions while living University.
and working in Iraq, Afghanistan, Pakistan, Germany,
Mike Rybacki is a U.S. Army Infantry Captain, selected
Korea, the Philippines, and the U.S. John holds an MBA
to serve as a leadership and management instructor
from Duke University, a BS in Engineering from the U.S.
in the Department of Behavioral Science and Leader-
Military Academy at West Point, and is completing a
ship, United States Military Academy at West Point.
PhD in Economics. He is certified in executive coaching,
Mike served as an infantry platoon leader in the 82nd
psychometric assessments, facilitation and simulation
Airborne Division and an infantry company commander
methodologies, and is a Six Sigma Black Belt with Lean
in the 3rd Infantry Division, leading both a platoon in
and DFSS.
Afghanistan and a company in Iraq. He is currently an
Peter Ronayne, PhD, is a Senior Faculty member at the MBA candidate at Duke University, where he is also
Center for Creative Leadership where he designs and teaches as a Visiting Assistant Professor in the Duke/
delivers open-enrollment and custom programs with NCCU ROTC Detachment. Mike earned a BS in Systems
a focus on public sector leadership and organizational Engineering from the United States Military Academy.

2014 Center for Creative Leadership. All rights reserved. 9

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