Doing more with less: Six leadership learnings in constrained environments

Authors: Dr Marianne Broadbent and Josh Mullens

Public sector organisations across the country are facing particularly constrained financial environments, with the mantra to “do more with less”.

Sometimes constraints do indeed lead to well-thought-through and innovative solutions. It often forces us to stop doing things we should have ceased ages ago.

Quite often, however, the authorising environment will not necessarily agree to those solutions.

Working through demands and priorities

Understanding the challenge of delivering on competing demands was the subject of a panel discussion at The Mandarin’s Melbourne conference, Rebuilding Public Service Trust and Integrity.

Future Leadership’s Dr Marianne Broadbent was a panel member in the session on how to address the issue of public sector resourcing, particularly as it relates to talent and recruitment. The mantra of “doing more with less” often leads to mutually incompatible demands or the need to prioritise in a way that can be politically unacceptable.

One such example of this dilemma occurred in at least one Australian state a few years ago in relation to that state’s TAFE services. The political demand was to reduce expenditure on the state’s TAFE system while transforming how the organisation operated, along with the requirement for a significant shift to more contemporary and industry-relevant educational approaches.

Concurrently the TAFE leaders were also advised that they could not close any TAFE facilities in any part of the state. Reducing the number of TAFE teachers was also not supported.

The reponsibility to then calmly and carefully explain the challenges of those largely incompatible demands and expectations is an unenviable task.

As Karen Batt, the Victorian state secretary of the CPSU, stated at The Mandarin conference: what public servants do is demonstrate a good level of agility in seeking to fulfil the agenda of the government of the day when there is often little understanding of what it takes to really deliver on those agendas.

In working with public sector clients in executive search and leadership advisory across all Australian states and territories, we have observed (and sometimes been part of) dealing with those expectations. A key focus has been how public sector organisations can demonstrate their agility in anticipating or responding to constrained environments.

Agility in people and talent leadership

At The Mandarin conference, Marianne shared six learnings that can shape effective people and talented leadership in constrained times.

1. Well-crafted and well-targeted professional development matters

We know that professional development has a great return on investment when it is well-targeted, has a clear link to the organisation’s goals, and enables and supports the behaviours desired. We would add that this is especially the case when those behaviours are openly and clearly modelled by senior executives. Often, one of the first things to go in tough times is professional development, but this is incredibly short-sighted. Cutting back on development can lead to skill gaps, decreased innovation, and lower morale – ultimately harming long-term productivity. Among organisations we work with, we have seen the clear benefits of well-crafted professional development programs in attracting and retaining great employees and boosting the reputation of the organisation. Leaders with opportunities to grow their skills, more often than not, demonstrate improvements in performance, increases in innovation and forward-thinking, and new opportunities for upward mobility.

2. Invest in executive and team development for sustainable leadership

Marianne emphasised the critical need for investing in executive and team development. By empowering leaders to grow their teams and nurture talent, we can uplift productivity across the board, especially in the public service. This investment isn’t just about immediate gains — it’s about building long-term resilience. We have worked with both public and private sector organisations who have had to reduce their headcount by 20% or more. When the executive team realised that many people would have much bigger roles, they reserved some funds to support those continuing in the organisation — knowing it was even more important for these executives and managers to be successful. They then ensured that they received significant support in the form of coaching, well-supported feedback for team leaders, and capability and development needs assessment. This enabled them to continue to grow in an environment where they also had permission to do things differently.

3. Provide continuity for high performers to drive long-term value

We often see that emerging high performers in the public sector are moved around to address problem areas or failing projects. Short-term appointments and constant movements to fix capability gaps might solve immediate problems, but will likely undermine long-term value by disrupting continuity. It’s crucial to balance quick fixes with strategic, long-term planning to ensure sustainable success. We need to reward high performers by allowing them to deliver over time and truly claim their achievements, not just have a series of “problem fixes” on their resumes. Alongside this comes the need to hold each person accountable for what they are paid to deliver.

4. Ensure the right blend of employees, contractors and consultants

Marianne noted that there has been much more focus recently on ensuring that, where there is a need for contractors and consultants, there is a guaranteed transfer of skills and IP. This should be part of the agency’s contract with each service provider. She highlighted the recent Department of Defence shift from relying on a technology team that was about 70% contractors to rebuilding an internal technology group for a target of 60% employees. This type of move not only enhances the understanding and management of capabilities but also aligns the workforce more closely with strategic goals. Workforce structure, balance and affiliation matters.

5. Strategic use of interim executives

In times of uncertainty, leverage interim appointments. Bringing in interim executives during periods of transition can mitigate risks and support overburdened teams. These leaders can ensure continuity and momentum, keeping the organisation on track through uncertain times. We are currently seeing regular interim arrangements for three, six and twelve-month appointments across sectors. This allows the organisation to work through how it wants to staff certain areas, without committing to longer term and possibly less relevant resources. The Future Leadership Interim Executive service (Gig Executive) is also finding that there is an increasing pool of talented executives who are keen to work as interims.

6. Understand what drives hybrid work and makes it successful

Marianne stated that, in relation to any working conditions, it is hard to backtrack and remove them even if circumstances have changed. This is particularly the case for hybrid working. The needs and suitability for hybrid and remote work will vary by organisation and industry, and we need to remember that most workers do not have a choice. If you work in a clinical role or a frontline retail role, if you’re a first responder, construction worker or train driver, then you can’t do your job from the comfort of your home. Where hybrid working is a possibility and there are questions about productivity, it is important to remember that productivity is driven by culture and mission — not a physical location. In many situations, though, it is critical to ensure that people come together to enable real exchange of viewpoints, encourage innovation, and ensure really good mentoring is in place. The key to success is creating an environment where people want to work together.

We know that the take up of these six learnings will be uneven across the sector, but the key message is that there are proactive approaches we can take to enable effective people and talent leadership in constrained times.