For many years, there have been concerted efforts to attract leaders with private sector experience into senior roles across the public sector, particularly within local and central government. While there have been notable successes, this has not yet become the norm.
Initiatives such as leadership masterclasses, including those delivered by the Whitehall & Industry Group (WIG), alongside transition support from senior-level outplacement firms, have helped individuals adapt their leadership style to public service contexts. However, a consistent, structured pathway to enable senior leaders, particularly those in mid-to-late career, to move seamlessly between sectors, remains largely absent.
This gap matters. Arguably, there has never been a greater need for diverse thinking, commercial acumen and technical expertise within public services. The sector is facing fundamental change: rising demand, workforce shortages and rapid digital transformation are reshaping how organisations operate and how services must evolve over the coming decade. At the same time, local government reorganisation and the continued shift towards devolution have created a complex and highly pressurised operating environment.
The consequence is a growing shortage of senior leadership capacity. This is evident not only in traditional pressure areas such as social care, finance and planning, but also in emerging, growth-critical areas including transport infrastructure, investment, housing and skills. These overlapping challenges have created a ‘perfect storm' for leadership across local government.
Navigating this will be particularly difficult in the short term. The impact of local government reorganisation alone is placing significant strain on the talent pool, with new unitary councils and combined authorities requiring experienced chief executives and C-suite leaders to establish and lead organisations at pace. Inevitably, this is likely to lead to heightened competition for a relatively small cohort of proven leaders.
In this context, there is a clear imperative to think differently. Reimagining how services are designed, delivered and commissioned will be essential. More commercial and outcome-focused approaches, particularly in procurement and resource allocation, offer an opportunity to alleviate financial pressures while improving outcomes for residents. This is an area where private sector experience can add real value, bringing greater efficiency, stronger financial discipline and enhanced delivery capability.
However, the transition is not straightforward. Moving from a profit-driven corporate environment into the public sector requires more than a simple transfer of skills. It demands an ability to operate within complex, consensus-led systems of governance and decision-making. Successful transition depends on adopting a systems-thinking mindset, strengthening stakeholder engagement and embracing the accountability that underpins public service leadership, rather than attempting to apply private sector tactics and methodologies wholesale.
At the same time, the public sector must reconsider its leadership proposition. Competing on salary alone is neither realistic nor sustainable. Instead, local authorities and combined authorities need to articulate a compelling offer based on purpose, scale of impact, flexibility and meaningful career development. These are powerful attractors when clearly defined and well communicated.
Devolution is also reshaping the nature of leadership itself. Increasingly, leaders are required to operate across organisational and sectoral boundaries, working collaboratively to address complex, place-based challenges. This points towards the emergence of more integrated leadership models spanning the public, private and not-for-profit sectors.
There are early indications of what this could look like. In Greater Manchester, for example, a recent pilot is bringing together leaders from the civil service, local government, the private sector, the voluntary sector and higher education. The programme is designed to strengthen leadership networks and support a shared approach to tackling key policy challenges, with a focus on economic growth and regional prosperity. If successful, it may provide a model that can be adapted across other regions.
Looking ahead, developing leaders who can operate effectively across different sectors and environments will be critical. In doing so, the current economic and organisational challenges can be reframed, not simply as constraints, but as opportunities to innovate, evolve and redefine what effective leadership looks like.
No single sector has a monopoly on solutions. It is through collaboration, shared expertise and a willingness to challenge traditional boundaries that more resilient economies and stronger communities will be built.
Roger Russell is a partner at Faerfield
