Positive change in the cross-pollination between industry sectors
Positive change in the cross-pollination between industry sectors
Where before we saw a clear challenge in attracting private sector leaders to the not-for-profit or public sector, these days at Alumni we see more and more examples of leadership skills being transferred between the sectors. Historically, the cross-over movement has been one way: from private to not-for-profit. Finally, we now see a more equal cross-over trend. So, what are some of the main differences and ideals? How can we maintain and encourage this interchange and cross-over between sectors?
Having a leader with a solid commercial understanding at the helm of not-for-profit organisations has become an imperative, as these organisations are having to become increasingly more business-like. The reason is that they are often very large, they look after a lot of money, and they have to be accountable to so many different stakeholders. They also work more with private sector businesses these days. The ideal leader profile for a not-for-profit organisation is someone with both corporate and public sector or not-for-profit experience. They need commercial acumen and experience of managing change. But they also must be completely aligned with mission and values of the organisation they are joining. A general desire ‘to do good’ is not enough.
Anna-Carin Ekman
Senior Consultant and Advisor, Alumni
E-mail
“Over the past years, organisations in the public sector have become much better at marketing themselves, which has resulted in a greater interest and curiosity among a broader candidate base. We also see that the board of public sector organisations is also to a bigger extent populated by professional board directors today and who often bring valuable experience from the private sector.”
Main differences
Not-for-profit or public sector leaders will not have their success measured by financial results, but by using different parameters - including the impact on society, which is actually very difficult to quantify. The ownership structure is also much more complex than in a typical private sector firm: these organisations are democracies and you have to take into account all sorts of different stakeholders - not least donors and volunteers - who all have a very strong view about what the organisation should be doing and how. Another difference is that your board is likely to be much more engaged with the mission of the organisation, than the board of a typical business - they may be members of local regional boards for example, which means they will have a great deal of grassroots knowledge.
A different leadership style called for
You have to be a very open, communicative, consultative leader to thrive in the not-for-profit environment. You can't just tell people what to do; you have to engage them. This often means that change takes longer to affect but it tends to be more embedded and sustainable. Employees of a not-for-profit organisation tend to be naturally more committed to its mission and values than those in a commercial enterprise, but you have to make sure that you keep them - particularly the members of the local and regional boards - as ambassadors, rather than turn them into detractors.
As a not-for-profit leader, in many ways you act more like a politician than a CEO. You need to be adept at winning people over at many different levels, and there is, arguably more at stake than in a commercial firm. You are the ultimate ambassador, not just for the organisation, but for the mission as a whole.
A clash of culture
Moving between business sectors, potentially involves a culture clash. Making the move to private, from a public sector leadership role often still comes with a number of pre-conceived notions such as; not being able to handle the more flexible and fast-paced environment, and not having the business acumen needed. Vice versa, moving into a not-for-profit or public sector responsibility, you are likely to be there to usher in a more professional approach, but you have to be very careful how you communicate the change you want to make. If you need to cut costs or introduce efficiencies for example, people need to understand that you are doing it for ‘the cause’ rather than for its own sake. In the public sector it's a highly complex stakeholder management role you have to perform, and you need to feel very comfortable with managing ambiguity.
The leadership style of our times
Does all this seem familiar? Aren’t these characteristics required in leaders across every sector nowadays? Shouldn’t we see a mass movement of leaders in not-for-profit and public sectors being recruited into the private sector? With changing consumer behaviours, a generational shift, a growing commitment to corporate social responsibility and a greater focus on environmental and social impact, it only makes sense that we now see this growing number of leaders crossing over to the private sector. As the different sectors increasingly see mutual interests the motivation to cross-over becomes more apparent.
We see that the number of social enterprises which are hybrid between commercial and non-commercial organisations, combining the best of both worlds will continue to grow over the coming years. The societal changes around us will further push for a leadership that resembles that which is outlined above and which has been exemplified by many not-for-profit leaders in the past, from which there is a lot to learn. At Alumni these days we talk about a sustainable leadership style ,with an aim to assess leaders based on a model that takes into account a candidate’s values, personality, behaviours, analytical ability and emotional intelligence.
“At Alumni we have built a solid network in both the private and public sectors. We make it our purpose to provide a platform for senior executives, specialists and board members in our network to interchange ideas, connect, get inspiration and learn from the experience of others across industries and sectors. Through continuously challenging and advising our clients and our broader network in all matters related to executive recruitment and leadership development, we can contribute to a sustainable impact on business and society. ”
Leading with an impact on society
Working within executive search and leadership development, we at Alumni have a responsibility to push the bar and challenge the status quo. We need to see our part and contribute in our own way to the Sustainable Development Goals set out by the UN in the 2030 agenda. We can continue to challenge preconceptions and provide insights on the leadership of our time. Our influence over structural complexities remains a challenge, and where for instance differences between compensation levels between sectors remain a reoccurring subject. Everyone will benefit from a greater convergence between commercial and not-for-profit leadership. Tomorrow’s leaders are those with the drive and passion to make a positive impact on the local and global community that their organisation is part of. Regardless of sector, the days of simply delivering bottom-line benefits are long gone and as a leader today you must be able to engage and motivate your people behind a bigger and more meaningful mission.
Alumni
Finding the right job is not only about the salary or the job title but also about finding a job that aligns with your values and aspirations and most importantly – your passion. By identifying and prioritising your values, researching and exploring different career options, and being open to new opportunities, you can successfully navigate this process and find a career that aligns with your values, aspirations and enthusiasm, and it can truly be an opportunity for growth and personal fulfilment. You may be able to achieve this through self-assessment, but remember you also have the option to seek professional career guidance.
Contact us
Perspectives
Coaching leadership
Perspectives
Leadership Development to address the barriers to creating cohesive leadership teams
Perspectives
5 ways that help the board build business resilience