2012 will bring big changes to the Federal IT industry. WashingtonExec gave local executives the opportunity to share their thoughts on where they see the government contracting industry headed.
Today’s New Year’s insight comes from Paul Dinte, Founder, Chairman and CEO of Dinte Global Executive Search.
Paul Dinte: Having just returned from a global meeting with my partners, I had an incredible opportunity to step away and reflect on some of the more prominent trends occurring here in Washington, DC –the epicenter of the government contracting world. The market for government contractors is more competitive, more challenging and filled with more uncertainty than ever before. Budget cuts, national debt pressure, and OCI issues create challenges and opportunities for companies and the executives who lead them. Cyber security, health care informatics, cloud computing, mobility, UAV’s and nation building, are growth areas and offer enormous opportunities.
As an executive search firm, we have the unique opportunity to interact with a multitude of senior executives and board members and learn about – in real time mode – the significant issues affecting the government contracting community. We hear the following recurring themes:
1) Innovation and Adaptability: Companies that are doing well in this market have dared to be different from their competitors. They have challenged the status quo to take advantage of the changing market conditions. They have cut and reorganized their organizations, acquired new competencies/products/leadership to position themselves for long term growth and success. They have aligned their business and people strategy with the new marketplace opportunities.
2) Succession Planning and Talent Management: The pipeline for executive talent capable of meeting the market challenges is inadequate. The transfer of skills and competencies from other industries is limited. Executives are grappling with the dilemma of who can ascend to leadership across all functional areas as well as how to retain and develop talent for sustainability and diversity.
3) Federal Government Acquisition Strategy: Government contractors are facing a dramatically new competitive landscape highly charged with issues around pricing, protests, and performance measurements.
At a recent luncheon with select government contracting CEO’s hosted in my boardroom, the conversation focused on the key leadership role which appears to be the most challenging. It didn’t take very long for all to confirm that identifying and attracting the contemporary leader for business development was the highest priority. This seems to be one of the most critical leadership jobs where most organizations struggle. No other position within the organizational structure appears as much a priority for the CEO whose responsibility to shareholders and stakeholders is to grow, build and leverage. Other leadership roles which were close behind included business unit leaders, operating executives, and some of the more pertinent functional leadership jobs including the chief financial officer, chief human resources officer, and chief contracting executive.
As the market continues to evolve, let us not forget that opportunities surge for the very best leadership talent. Government contractors seeking to take advantage of the new competitive landscape will be continually challenged to acquire, develop and retain those leaders who exemplify these exceptional qualities and competencies.