Wednesday, January 18, 2012

DPE Advisory on Professionalisation of Below Board Level Management in CPSEs



The Department of Public Enterprises(DPE) has issued guidelines regarding professionalization of Boards of Central Public Sector Enterprises(CPSEs). These guidelines are advisory in nature and have been developed as it was noted that generally below Board level incumbents assume board level position in CPSEs.

The advisory has been issued to print the issue of professionalism of below Board level management in CPSEs into sharper focus and enable CPSEs to implement this process at the earliest keeping in view their resource availability and HR practices currently being followed. The broad advisory has the following four main components:

(A) Define: The CPSEs should identify the critical roles in their respective companies and the desired profile/competency framework of an incumbent to discharge such role(s) keeping in view the organization’s vision, mission, business strategy and assessment of requirements from future leadership. The competency framework may also be developed where the roles are undergoing a transition viz. Lower management level to idle management, middle management to senior manag3ment, senior management to board.



(B) Assess: The CPSEs should assess the performance of their below Board level incumbents by any or some of the following methods for assessments.



· Assessment Centre

· Performance Management System

· 360 Degree Feedback

· Psychometric test

It may be mentioned that the above list is only indicative and the CPSEs may utilize any other prevalent system for assessment of performance of their below Board level incumbents.

(C) Groom & Develop: The next step should be to groom and develop a select group of executives who are seen as having high potential by the concerned organization in order to fill leadership positions in the future. The developmental process could take any of the following forms depending upon the specific requirements of the CPSEs.

· Training

· Executive education

· Coaching/mentoring

· Developmental assignments

· Rotational assignments

· Action learning

· E-learning

· Individual development plan



(D) Developing a leadership pipeline and succession planning: The CPSEs need to develop a comprehensive leadership pipeline which would ensure continuous and timely supply of high performance individuals who will occupy critical leadership roles as identified by the concerned company. The suggested process of succession planning is:

i) Identification of critical leadership positions

ii) Determination of leadership criteria

iii) Identification of potential successors for each key role based on PMS, experience,

background, 360 degree feedback, assessment centre, psychometric test etc.

iv) The Board of respective CPSEs may finalize the list of potential leaders and also

provide inputs such as special assignments, job rotation etc. to enable the high

potential individuals to develop greater expertise.

In order to have a focused approach, an empowered Leadership and Management Learning Centre can also be devised keeping in view specific requirements of the concerned CPSE.

As the CPSEs have diverse backgrounds in terms of their operations, working/business environment, existing HR systems, talent cool availability, available financial resources etc., therefore each CPSE has been asked to devise a system which best caters to its specific requirement. The advisory is an overall broad framework for developing a meaningful and comprehensive system for professionalization of their Board level management.

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