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The new local enterprise partnerships demand a fresh approach to handling traditional geographic, industrial and political boundaries, says Luke Judd. The formation of local enterprise partnerships (LEPs) will have many implications for local authorities, and are still, to a large extent, ‘works in progress'. They certainly herald a new way of working. What is also becoming apparent is that they also require a new way of thinking about traditional geographic, industry or political boundaries. Certain LEP boards are still in the gestation phase, while some are practically formed, and looking to hold their first meetings in the next few weeks. Clearly, there will be some interesting points to share as the agenda progresses, and some lessons to learn regarding the best way to recruit and shape the boards. When choosing a private sector board for the Sheffield city-region LEP, it was vital to attract people from surrounding areas. (Pic: Shutterstock/Mark William Richardson) The main and most obvious point is that there will be a mix of public and private sector backgrounds on the LEP boards. This throws up numerous issues, including the different ways of working and – potentially – contrasting agendas of the individuals concerned. Particularly, there may be a view from some private sector members that their local authority counterparts cannot work ‘at pace', and are hamstrung by needless bureaucracy and slow decision-making. In my experience, this is not necessarily true, but perceptions can sometimes overshadow the reality, and there may a need to create some quick-wins to show good faith and early progress. Perhaps more pertinently, there is no guarantee that the local authority representatives will all have a cohesive approach, given that they may well be representing very different political views and/or communities with contrasting socio-economic needs. Indeed, the local authority board members, as elected politicians, may well also have half an eye on their forthcoming elections, and there is a danger that they surreoundwill be working towards a more short-term and localised goal. In terms of the private sector board members, a key issue is to get a representative mix from the different geographic locations. For example, for our work to recruit the private sector chair and board for the Sheffield city-region LEP, it was vital to attract people from areas such as Doncaster, North Derbyshire, Rotherham, and elsewhere – to ensure Sheffield was not seen as overshadowing proceedings. Another LEP has apparently simply given each council the chance to nominate one private sector representative from their area, in order to ensure ‘equal representation'. Equally, a diversity of sectors is crucial, to ensure that the ‘heavyweight' industries which tend to be the big employers, do not squeeze out the smaller – often ‘new' – sectors, such as the creative or hi-tech companies, which may well be the growth industries of the future. James Newman, the recently appointed chair of the Sheffield city-region LEP, notes that: ‘The more diverse the geographical and industrial make up in an LEP area, and the more restrictions there are on funding, the greater will be the need for sensible and rational debate around the economic priorities for the region. ‘That is where the LEPs will benefit from the objective and longer-term approach of the private sector board members.' To get all of this right is no easy task, and a lot of the responsibility rests on the chair who, as specified by the Government, has to come from the private sector. In terms of the process, they need to be in place first, so they can help choose their board colleagues, and – assuming the appointment is seen as a good one – they will also act as a beacon – attracting others from the private sector who will see that the LEP means business. They must have a good understanding of the different pressures within local government and, indeed, they will most probably already have very good links with the chief executives and leaders in the authorities in their LEP area. They need to be a strong individual who can manage a diverse bunch, bearing in mind that the board members may well not be used to playing ‘second fiddle'. Most importantly, they must engender a very strong sense of shared direction and responsibility. The individual self-interests of the board members, whether they are about their industrial sector or the jobs in their town, or their electoral concerns, must be put aside for the greater good of the wider LEP area. It brings to mind the concept of ‘collective cabinet responsibility', which has been the method of unifying myriad views and approaches in central government over the decades. This is the crucial trick, and it is this that will reap huge dividends if boards can get it right. Luke Judd is a partner at recruitment specialist, GatenbySanderson

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WHITEHALL

LEP boards need a new way of thinking

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