Civil society and local government organisations are at a critical crossroads, grappling with rising costs, stagnant or reduced funding, and mounting debt. The recent employer National Insurance Contributions (NICs) increase, coupled with the potential for a further period of inflation, are just two of many financial burdens increasing the already challenging operating conditions.
Traditional leadership approaches are no longer sufficient to navigate this landscape. The coming period will likely be defined by significant restructuring, including mergers and acquisitions within the not-for-profit sector and government-mandated reorganisations in local government. At the heart of navigating these complexities will be leadership. Leaders must balance strategic vision with personal resilience to adapt and thrive within an ever-changing and increasingly complex system dynamic.
The leaders of today and tomorrow must be different. While passion and purpose have always been central to civil society and local government, the current climate demands a dynamic and adaptable skill set.
Leaders must be financially literate, with a strong understanding of decision-making under financial, political, and service pressure. In certain civil society organisations, they need to be turnaround specialists, capable of stabilising organisations during crises, streamlining operations, and implementing sustainable solutions.
The challenges ahead present an opportunity to unearth hidden and diverse talent within and beyond the sector. While the strain on organisational capacity and capability will test resilience, it also creates a chance to identify individuals who bring unique experiences and perspectives.
In local government, reorganisation looms. And leaders must act as strategic consolidators, equipped to guide their organisations, members, and communities through complex restructuring processes. They must be collaborative thinkers who can forge partnerships across sectors, leveraging external expertise and embracing fresh perspectives to drive innovation and resilience. All balanced alongside immediate organisational and service needs, with an ever-growing focus on crisis management to address financial pressures while maintaining service continuity.
Leaders need to be able to streamline and restructure operations for efficiency and sustainability, aligning stakeholders, communities, partner agencies, employees, trade unions, and funders. All this comes with the shadow of last summer's riots as a constant reminder of the importance of getting this right.
The premise of change and transformation isn't new to civil society and local government organisations, but the strength and braveness of leadership will be tested, as will the skill set of those leaders who are at the forefront of facing into these challenges. It will cause uncertainty and tension for those who are personally exposed to this period of change and requires empathetic and motivational leadership to keep everyone pointing in the same direction.
The goal through this should not just be about weathering the storm; it's about emerging stronger, with organisations even better equipped to deliver excellent public services. To achieve this will require visionaries who can cut through the system noise, align the differing expectations of stakeholders and those who will be personally impacted by these changes, and seize on the opportunities that emerge.
The challenges ahead present an opportunity to unearth hidden and diverse talent within and beyond the sector. While the strain on organisational capacity and capability will test resilience, it also creates a chance to identify individuals who bring unique experiences and perspectives. Whether from outside the public sector or across its various domains, the cross-pollination of talent can spark innovative thinking when balanced with the contextual expertise of seasoned leaders.
Equally important is recognising latent talent within organisations; those who, with the right support, can emerge as the future leaders of the sector. Diverse leadership teams not only drive innovation but also ensure representation of the communities and employees they serve.
As new public service structures take shape, this focus on diversity must remain at the forefront. With conscious effort and bold decision-making, empowering leaders from diverse backgrounds will deliver both immediate value and long-term impact, cultivating a new generation of inspiring leadership.
David Needham is director at Tile Hill
