Executive agencies: Leading change from the outside‐in

Abstract

Writers on ‘New Public Management’ seek to establish a mixed parentage, namely one set of ideas about markets and competition and a second set of ideas about decentralization and empowerment. UK policy‐makers and practitioners in the public sector tend to discuss the two sets of ideas interchangeably, yet they can lead to very different policy and organizational outcomes. This article argues that the Executive Agency initiative is primarily concerned with decentralization rather than markets. However, the majority of Agency leaders or Chief Executive Officers (CEOs) are ill‐placed to argue strongly the case for decentralization, they have a life‐long civil service career to protect and a lifetime of hierarchical relationships with more senior managers from whom they are now expected to wrest control. The observations and experiences of six CEOs recruited from outside the public sector are used to demonstrate the competencies necessary for many Agencies. While private sector CEOs seem well‐placed to challenge the centre, pre‐negotiation before they take the job could do a lot to strengthen their position.