For much of my career, I’ve moved between leadership roles in the private sector and those in the public or not-for-profit world. Each transition seemed, on paper, like a simple change of context. But in practice, it often felt like stepping into an entirely different universe with new rules, new expectations, and a whole new language of leadership.
The biggest shift came moving from the fast-paced agility of startups to the deliberate, often scrutinised rhythm of public-facing organisations. That transition taught me more about leadership than any MBA ever could.
The cultural and structural divide
At first glance, the differences between the public and private sectors seem obvious:
- The private sector tends to be commercially driven, goal-oriented, and relatively autonomous. Decisions are often fast, performance is rewarded, and risk is part of the landscape.
- The public sector operates within a complex framework of accountability, policy, politics, and stakeholder expectation. Progress is deliberate, consensus matters, and decisions must stand up to public scrutiny, often years after they’re made.
I remember vividly one particular moment early in my career as I shifted from running a nimble, founder-led startup into a leadership role with public funding oversight. In the startup, we moved fast, tested ideas, and iterated before competitors even noticed. In the public-facing role, I learned very quickly that pace was not a virtue – process was. I’d suggest a bold idea, only to be met with a wall of risk assessments, committee approvals, and formal consultation.
At first, I found it frustrating. But over time, I began to see the why behind the system: public leadership is less about agility, and more about equity. Decisions must consider not just what’s effective, but what’s fair, defensible, and transparent.
That realisation helped me reframe how I saw leadership. It’s not better or worse, it’s just different. And in many ways, more demanding.
The nuances no one talks about (especially for smaller organisations)
Most comparisons between sectors focus on big corporates and government departments. But I’ve spent much of my time with SMEs, and that’s where the nuances get interesting.
In the private SME, the MD is the culture
When you lead a growing private company, especially one you’ve founded, every decision ripples directly through the team. You’re setting the tone every day through the risks you take, the behaviours you reward, and the way you treat people in tough moments.
Contrast that with smaller public sector bodies, a local authority service, a multi-academy trust, a regional health board. Here, leadership is just as personal, but with far less autonomy. You’re constantly balancing service expectations with budget restrictions and governance structures you don’t control.
The leadership ask is different: one is entrepreneurial and accountable to the market; the other is system-bound and accountable to the public. Both are heavy loads to carry.
Decision fatigue, but for very different reasons
In my private sector roles, the weight of decision-making came from having to make them all. Cashflow, people, sales, product – it was all on my shoulders.
In my public-facing roles, the fatigue came from not being able to make them. Even sensible, low-risk decisions could get stalled in a procedural loop. Leadership became an act of patience and persuasion rather than boldness.
Both settings can burn you out. One burns fast; the other burns slow often with a subtle heat of frustration.
What one sector can learn from the other
Over time, I’ve seen the best leaders borrow from the strengths in both worlds.
From the public sector:
- Stakeholder sensitivity. You learn to consider long-term impact, not just short-term gain.
- Purpose alignment. Mission becomes more than a marketing slogan, it shapes decisions.
- Resilience under scrutiny. You develop a thicker skin, and a sharper instinct for fairness.
From the private sector:
- Pace and responsiveness. You learn to prioritise and act decisively.
- Innovation mindset. Risk isn’t feared, it’s managed.
- Ownership and accountability. Leaders take responsibility and move things forward.
The true test of leadership isn’t knowing how to play by the rules, it’s knowing which rules matter most in the moment you’re in.
Practical tips for cross-sector leaders
If you’re leading across sectors, or stepping into unfamiliar territory, here are a few things that have helped me and the leaders I’ve coached:
- Adjust your tempo, not your standards. In the public sector, speed kills credibility. In the private sector, delay kills opportunity. Learn to read the rhythm of the environment.
- Translate, don’t transplant. What worked in your last role won’t work exactly the same way now. Translate the principle, not the tactic.
- Manage upwards and outwards. In public roles, stakeholders often outnumber team members. Communication becomes a strategic tool, not a courtesy.
- Reconnect to the ‘why’. Whether it’s profit or public service, leadership is always about impact. If you’ve lost sight of the why, so has your team.
- Know when you are the bottleneck. In private SMEs, it’s usually the founder. In public roles, it’s often the system. In both cases, leadership means getting out of your own way, or helping others get out of theirs.
It’s not either/or…
Some of the most effective leaders I know are cross-sector by experience. They’ve led private companies with public purpose, and public bodies with commercial edge. They bring discipline to creativity, and creativity to constraint.
For me, the transition from startup freedom to public accountability taught me to lead with greater thoughtfulness and humility. It reminded me that leadership isn’t about control. It’s about service. Whether that’s to your team, your board, your customers, or your community.
And that lesson stays with you no matter what sector you’re in.
Mark Jarvis
5x Founder | Interim MD | NED | Coach & Mentor
Author of The Very Best Business Handbook You’ll Ever Own
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