Introduction

Paul Callaghan began his career in 1974 as a research economist for a major industrial company on Tyneside and then transitioned into academia. The landscape changed in the 1990s with the advent of the Internet. The emergence of the Internet propelled him into the world of digital entrepreneurship with Leighton Internet and subsequently several other ‘Tech’ businesses. One of his companies, DomainNames.com, was bought in 2000 by Verisign, a Nasdaq 100 company and as a consequence Paul went to work for the American company, leading its European expansion. His return to the Northeast two years later marked the beginning of a 12-year commitment to regional economic development. Paul took on influential roles as the Chairman of the Regional Technology Centre, Business Link Northeast, and then ONE North East, the Regional Development Agency. This shift represented a challenge for Paul, as he transitioned from the fast-paced, profit-driven world of commercial ventures to the realm of public service. This case considers how the differences between these two domains presented a professional shift, compelling him to reconceptualise his role and adapt to the demands and dynamics of regional development.

From Business Leadership to Public Sector Stewardship

The transition from a business leadership role to a public sector position involves a shift in priorities, responsibilities, and leadership style. Public sector leaders are tasked with a broader and more community-oriented set of duties, prioritising the well-being of their regions over profits. They need to be more engaged with the community, foster collaboration, and balance various aspects of regional development. Additionally, they play a crucial role in responding to crises and advocating for their communities, which are distinct from the roles of business leaders. This transition requires adaptability, a different mindset, and a commitment to the public good. Paul was not an exception to the rule. He was confronted with the task of deciphering the public terrain and accommodating the distinct demands inherent in his various roles. The transition from a corporate setting to a leadership position in the public sector entailed a transformation in what he was used to and how he operated.

From Owner to Steward: The transition from the business world to the public sector entailed a shift in Paul's mindset, transforming him from an owner to a steward. In the corporate landscape, his sense of ownership and responsibility was palpable, as his success and that of the company were intrinsically intertwined. His leadership was characterised by a proprietary zeal, where every decision and action were taken with the company's performance in mind. However, upon entering the public sector as a chair, Paul's perspective had to change. The shift from ownership to stewardship became a defining pivot point in his understanding of his role and responsibilities. As a steward in the public sector, Paul's focus shifted from ownership to a broader, altruistic sense of purpose. The organisation's resources and influence had to be directed towards improving the region and serving the public interest.

Political Considerations: Political considerations loom large in the landscape of the public sector, adding a layer of complexity to the decision-making process. Decisions and actions are intrinsically intertwined with the ever-shifting currents of politics, as they are subject to intense scrutiny and oversight by elected officials, who shape government policies and priorities. Leaders in the public sector have to exhibit a nuanced understanding of the prevailing political dynamics, as they directly impact the feasibility and success of their initiatives. One of the critical facets of this understanding involves aligning their proposals and actions with the policies and priorities of the current administration. Consequently, public sector leaders need to be attuned to the articulated objectives and agenda of the ruling government, ensuring that their initiatives resonate with the broader political context. This alignment can be pivotal in garnering support for their endeavours and securing the necessary resources for implementation.

However, the political landscape can be subject to rapid changes, as Paul often experienced. Government policies and priorities may shift with each election or as new challenges emerge. For instance, the 2010 election and the subsequent decision of the incoming Coalition Government to abolish regional development agencies (RDAs) had profound long-term implications for the region, leading Paul to reflect on how he could adapt so that he could continue contributing to the betterment of the region. Leaders in the public sector need a keen sense of adaptability, ready to pivot their strategies and initiatives to remain congruent with evolving political realities. This was in sharp contrast to what he was used to in industry. In the business world, managers often wield considerable control over the destiny of their companies. While they have to contend with external market forces and competitive dynamics, they still possess a significant degree of autonomy in charting the course of their organisations.

Long-Term Vision & Sustainability: In the public sector, adopting a long-term vision is not just a strategic choice. It is a fundamental necessity. While the private sector may thrive on quarterly returns and immediate profitability, public leaders understand that their decisions extend far beyond the bounds of the next fiscal year or election cycle. This perspective compels them to consider the interplay of economic, environmental, and social factors, striving for a balance that promotes the long-term welfare of society. This long-term perspective also necessitates the fortitude to withstand the ebb and flow of political cycles and public opinion. Public leaders often make decisions that may be unpopular in the short term but are essential for the greater good in the long run.

A long-term perspective in the public sector embodies a commitment to sustainability as the most critical issues that regions face require comprehensive, long-range solutions. Public leaders may not even personally witness the full realisation of their endeavours. To illustrate this, Paul quotes the old proverb “A society grows great when old men plant trees in whose shade they know they shall never sit.” Such a long-term perspective is crucial for several reasons. First, public sector organisations exist to advance the well-being of communities, regions, or the public at large. Decisions made today should serve as building blocks for a better future, fostering sustainable growth, social well-being, and economic prosperity. Chairs have to navigate the intricate interplay of present needs and future aspirations. Second, public sector decisions often involve significant investments of public resources. These allocations of time, money, and effort should yield benefits that extend beyond the immediate horizon. The chair's role is to ensure that these resources are utilised judiciously, targeting initiatives that promise enduring value. Third, long-term thinking is integral to sound governance. It involves crafting policies, strategies, and initiatives that can withstand the test of time, providing continuity and stability for the community or region. A sustainable outlook means anticipating potential challenges and opportunities and addressing them proactively.

Business vs. Public Sector Decision-Making: In the business world, decisions are often made swiftly, with a strong focus on immediate results. There is an emphasis on efficiency, and business leaders expect to act quickly to seize opportunities and address challenges. Business leaders, operating in an environment characterised by heightened competition and shareholder expectations, have to balance the need for agility and innovation with the imperative of sustaining financial viability. In sharp contrast, the public sector operates at a different tempo. Public servants and leaders are entrusted with the responsibility of shaping the wellbeing and future of communities and societies. Decisions are influenced by a broader set of considerations that encompass not only economic viability, but also social equity, sustainability, and the overarching welfare of citizens. This mandate for broader societal impact compels a more measured approach to decision-making, emphasising long-term consequences and the equitable distribution of resources. At the same time, the expertise gained from managing commercial enterprises has proven to be highly valuable. By leveraging business principles, public organisations can be managed efficiently and sustainably, all while maintaining a strong emphasis on delivering actions that engage and resonate with the public.

Diverse Board Appointments: The role of a Chair in selecting and appointing board members carries significant weight in ensuring effective governance within the public sector. In this capacity, the Chair serves as a gatekeeper, entrusted with the crucial task of shaping the composition of the board. This entails the identification of individuals who not only possess extensive knowledge in areas relevant to the organisation's mission, but also have a deep dedication to the public interest. The emphasis is on ensuring that board members bring the right expertise to the table, aligning themselves with the organisation's objectives and its duty to the community or region it serves. Board members often bring unique perspectives based on their backgrounds and the constituencies they represent. Some may focus on financial responsibility, while others prioritise social well-being. The challenge for the Chair is to facilitate productive discussions that respect these differences, while keeping the focus on the broader organisational or regional goals. It is a finely tuned balancing act that requires diplomacy, tact, and a profound understanding of the various interests at play. Therefore, the role of the Chair extends beyond mere management. It transforms into that of a diplomat. It involves creating an environment where constructive debates can thrive, and where the best ideas can surface. The art lies in ensuring that individual interests align with collective objectives. This alignment goes beyond just finding common ground. It is about channelling the diversity of perspectives into a comprehensive and well-informed decision-making process that benefits both the organisation and the wider community.

Stakeholder Engagement: Public sector chairs hold a pivotal role that extends beyond managing internal board dynamics. They are at the heart of a complex web of relationships with external stakeholders, which can include government entities, local authorities, and industry representatives. This facet of public sector leadership places the chair in a position of bridging the gap between the organisation's goals and the expectations and interests of these external stakeholders. Managing these external relationships is a paramount responsibility. It goes beyond merely comprehending the unique priorities and objectives of various external entities. It involves skilfully aligning these expectations with the mission of the organisation they lead. Government entities, for example, often hold regulatory and funding responsibilities that directly impact the organisation. Building a cooperative and mutually beneficial relationship with these agencies is essential for navigating the regulatory landscape and securing necessary resources. This requires advocacy for the organisation's needs while aligning with government policies and priorities. Local authorities, on the other hand, are key partners for public sector organisations. Collaborative efforts are critical, especially when initiatives intersect with local development, infrastructure, or community well-being. Establishing rapport with local authorities is essential to ensure that the organisation's initiatives align with the broader regional goals. Industry representatives can bring invaluable expertise, resources, and partnerships to the table. Engaging with these stakeholders often entails striking a balance between the organisation's mission and the mutual interests that can drive progress and innovation.

Collaborative Decision-Making: In public sector leadership, collaboration and consultation with various stakeholders are crucial. This may involve working with elected representatives, community leaders, and other interest groups. Decision-making has to extend beyond the boardroom. Public hearings, consultations, and open dialogues are integral components of the process, providing a platform for diverse voices to be heard. Such engagement opportunities contribute to the legitimacy of decisions and underscore commitment to accountable and responsive governance. Considering the above, decision-making tends to be more deliberative and complex. Each decision carries not only the weight of its immediate implications, but also the enduring scrutiny of the public. Decision-makers need to justify their actions, ensuring that the public's trust is maintained. As such, decisions often require more extensive research, analysis, and consensus-building among multiple parties, including government bodies, local authorities, and communities.

Transparency and Accountability: Transparency and accountability are not just guiding principles for public sector leaders. They are the very bedrock upon which the trust and legitimacy of government institutions are built. In the public sector, leaders are entrusted with a solemn duty to operate transparently and remain accountable to the public and the entities that fund their operations. Transparency in the public sector signifies a commitment to openness and the free flow of information. Decision-making processes are not shrouded in secrecy, but are rather conducted in a manner that invites public scrutiny. Public sector leaders recognise that when the public is informed and involved, the decisions made by the government gain a higher level of credibility and acceptance. Accountability is the other side of the coin. It underscores the responsibility of public leaders to answer for their actions, both to the public they serve and to the entities that provide funding. This demands a rigorous system of checks and balances, with mechanisms for oversight, audits, and reporting in place to ensure that resources are used appropriately.

Public scrutiny is not viewed as a hindrance, but as an integral part of the democratic process. Leaders understand that the public's right to know, question, and critique their actions is an essential aspect of democracy. They have to engage in public hearings, consultations, and open dialogues, where they present their proposals, listen to public concerns, and respond to questions. This interaction enhances the quality of decisions, as it brings diverse perspectives and expertise to the table, often resulting in more comprehensive and well-informed policies.

Bureaucratic Processes: In his experience working in industry Paul was used to direct implementation and control. This was not the case with the public sector organisations, which were often subject to bureaucratic processes and regulations that ended up slowing things down. For instance, one of the most significant hurdles is the process of budget approval. Public sector entities are bound by the scrutiny of financial allocations, with resources drawn from the public's coffers. Decisions regarding budget allocation have to adhere to rigorous procedures, requiring a thorough examination of the proposed expenditure, cost-benefit analyses, and alignment with overarching policy objectives. These evaluations are not simply a matter of financial housekeeping. They represent a safeguard against the misuse or misallocation of public funds. Similarly, procurement rules added to the intricacy of public sector decision-making. Public organisations have to adhere to stringent procurement regulations, which are designed to foster fairness, competition, and transparency. While these rules are essential for preventing corruption and ensuring equitable access to public contracts, they can introduce a layer of complexity and time-consuming processes. Public sector leaders have to navigate such bureaucratic processes with dexterity, recognising that adherence to regulations is not merely a matter of compliance but an assurance of fairness, accountability, and transparency in public operations.

Advocacy Skills:  Advocacy skills serve as a crucial tool in the arsenal of public sector leaders, setting them apart from their counterparts in the business world. In the public sector, the ability to advocate effectively is not merely a valuable asset. It is a prerequisite for securing the necessary support and resources from a wide array of stakeholders, each with their own distinct interests and priorities. In contrast to the business world, where decisions are often implemented directly by corporate leaders, public sector leaders need to persuade and rally multiple stakeholders to take collective action. They need to operate within a complex and interconnected network of government agencies, private sector organisations, non-profits, and community groups. Each of these entities may play a role in the success of a particular initiative or the advancement of a broader public goal. Therefore, advocacy skills are vital for building the bridges of collaboration, engaging with these stakeholders, and persuading them to commit their support.

Advocacy involves not only the art of persuasion, but also the ability to navigate intricate power dynamics. Leaders have to identify the key decision-makers and influencers within different sectors and tailor their advocacy efforts to resonate with each group's interests and objectives. This requires a nuanced understanding of the priorities and constraints that each stakeholder faces, whether it be a government agency responsible for regulatory approvals, a private corporation willing to invest in a community project, or a local non-profit organisation with shared objectives. Advocacy may involve multiple rounds of negotiations, public hearings, and regulatory approvals, demanding persistence, and the ability to withstand setbacks. Of course, the multifaceted nature of advocacy also extends to the realm of public opinion. Leaders need to be skilled in conveying their message to the broader public, effectively communicating the merits of their initiatives and garnering support from citizens.

Conclusion

Adapting to a different pace and style of leadership requires patience, a keen understanding of the political landscape, and the ability to communicate effectively with diverse groups of stakeholders. It is essential for leaders making this transition to embrace the broader societal and community impact their decisions can have and to align their strategies accordingly. Paul’s leadership style had to change and evolve as he transitioned from running businesses to chairing public organisations. His style shifted from being CEO-centric to being more collaborative, strategic, and focused on the collective good in the public sector. Becoming an effective chairperson, particularly in the public sector, is indeed a nuanced and multifaceted role.