In pursuit of commercial success, are public sector boards losing sight of their values?

Sep 14, 2023
3 min read

Updated: Aug 3

Across Australia’s not-for-profit and public sectors, there’s a growing trend of appointing CEOs with strong commercial backgrounds. While these leaders bring strategy, growth, and sustainability to the forefront, the shift raises a deeper concern - are public sector boards compromising core organisational values in this process?

This article explores how values and commercial leadership can (and must) co-exist. We look at the risks, the reasons behind this shift, and how boards can protect the integrity of their mission while embracing modern leadership.

Women in white tops smiling, holding documents in an office. Text reads "Leadership That Aligns" with leadership-themed message. Blue background. Public sector boards.

Why public sector boards are seeking commercial CEOs

Not-for-profit organisations are increasingly expected to operate with the rigour of private businesses—achieving financial sustainability, demonstrating outcomes, and managing complex funding streams. Public sector boards, particularly in the aged care, disability, and community sectors, have responded by prioritising commercially experienced CEOs.

These leaders bring with them:

Strategic financial management skills
Data-driven decision-making
A focus on operational efficiency
Scalable growth planning

While these qualities are valuable, the trend can unintentionally push purpose and values further down the agenda.

Why this shift matters in the NFP and care sectors

Unlike private companies, NFPs are grounded in purpose. Values such as empathy, community connection, equity, and ethical leadership are not optional—they’re the foundation.

Risks of sidelining values in leadership include:

Misalignment with mission: CEOs who lack alignment with core values may unintentionally shift focus away from service delivery or community impact.
Loss of trust: Staff, volunteers, donors, and clients often engage with NFPs because of their values. If these are diluted, trust and engagement can erode.
Culture disruption: A commercially driven approach that doesn’t consider people-centred leadership can damage team morale and psychological safety.
Board conflict: Values misalignment between the CEO and board can lead to strategic confusion and governance tension.

How public sector boards can maintain values while pursuing growth

Boards don’t need to choose between values and commercial acumen, AICD’s Not‑for‑Profit Governance Principles guide how mission integrity and operational performance can coexist in board leadership. The two can be intentionally aligned. Here’s how:

Integrate values into recruitmentEnsure CEO candidates are assessed on cultural fit and value alignment—not just their CV or financial achievements.
Use values-based interview questionsAsk about ethical dilemmas, stakeholder engagement, and decision-making in challenging scenarios.
Offer leadership development with a values lensProvide ongoing coaching and support that fosters inclusive, ethical, and people-focused leadership.
Embed values in KPIs and success metricsBalance financial outcomes with impact measures, staff satisfaction, and service quality indicators.
Champion values at board levelThe board itself must live and model the organisation’s values, guiding culture from the top.

How Anson helps boards build aligned leadership

At Anson, we support public sector and not-for-profit boards to build leadership that balances commercial thinking with deep ethical alignment. Our executive search and board advisory services help you:

Recruit for values-based leadership
Develop robust CEO onboarding frameworks
Create accountability systems that integrate mission and metrics

We also offer resources such as tailored interview guides and leadership reflection tools to support better recruitment and governance outcomes.

Key takeaways

Public sector boards are increasingly appointing commercial CEOs—but must stay grounded in values.
Values define an NFP’s mission, identity, and culture—diluting them can risk long-term trust and impact.
Boards can successfully blend commercial skill with ethical leadership through intentional recruitment and governance.
Embedding values in leadership is not a luxury—it’s essential for sustainable, meaningful impact.

Frequently Asked Questions

Why are NFPs recruiting CEOs with commercial backgrounds?
To respond to increasing demand for financial sustainability, strategic growth, and operational efficiency in a competitive funding landscape.
Can values and commercial leadership truly co-exist?
Yes. When boards prioritise value alignment and provide the right support, leaders can drive financial outcomes without compromising purpose.
What should we ask in CEO interviews to test values alignment?
Use behavioural questions focused on stakeholder relationships, ethical decisions, and scenarios involving community needs or value-based trade-offs.
How do we measure success beyond financials?
Consider social impact metrics, client satisfaction, team wellbeing, cultural indicators, and alignment with your strategic mission.

Ready to lead with integrity?

Your board has the power to shape the future of your organisation through every leadership decision. Let’s make values the compass, not the casualty of growth.