CEO Challenge: Developing an effective sponsor relationship
Overview
Sponsorship became a significant focus for the Cabinet Office ‘Public Bodies Programme’. In May 2022, the Cabinet Office released the ‘Arm’s-length body sponsorship code of good practice’ aiming to provide a common standard for departments to adhere to, though largely focused on action of sponsorship teams.
The sponsorship code of good practice sets out why sponsorship is essential, what effective sponsorship entails, and how it can be undertaken. The Code requires departments to:
- Strive to deliver best practice in six key sponsorship capabilities; and
- Progress through three levels of maturity – ‘emerging, maturing and advanced’.
This approach recognises the variety of public bodies so HM Government Departments should be confident in complying with the Code or explaining why compliance is not necessary or appropriate. The desired intention is for these measures to promote a more effective relationship between HM Government Departments and arms’ length bodies, providing better public services.
In practice, though, reality can be different. The relationship experience can vary according to the different type of departmental sponsor, or even specialist area within a sponsoring department.
With thanks to our contributors:
- Danny Williams, Chief Executive, Active Travel England
- Elysia McCaffrey, Chief Executive, Gangmasters and Labour Abuse Authority
- Carolyn Bartlett, Chief Strategy and Transformation Officer, Valuation Office Agency (Host)
Summary
Establishing an effective relationship can be difficult, with a range of sponsor arrangements in place and experiences of churn in sponsors. Investing time and focus in building effective is worthwhile, resulting in better outcomes for both the public body and the sponsoring department. There are many examples of excellent sponsor relationships. Participants identified some of the key features and benefits of these, and learnings from their own experience of working with sponsoring departments.
Case studies
Case study 1
Active Travel England is the government’s executive agency responsible for making walking, wheeling and cycling the preferred choice for everyone to get around in England.
ATE is sponsored by the Department for Transport (DfT). The public body emerged out of DfT as a ‘proto-organisation’, and for the last year or so, has operated as an independent Executive Agency from its York headquarters.
The intention was to set up an ‘independent and muscular’ entity. The route to setting up ATE as an Executive Agency, was rapid but not without challenge in establishing the right sponsor relationship dynamics, and this has taken much longer to bed in.
The ‘muscularity’ of the ATE Board has been key to steering the sponsor relationship. A nationally recognised Chairman has given ATE the clout it needs as a new independent public body. Advisory board members have also been utilised to great effect with a mandate from the Board to influence on behalf of the entity in line with the sponsoring body’s policies.
The sponsor relationship management had to be re-set. ATE’s Chief Executive now has more than one point of contact with the sponsor department and has been nominated by the sponsor to work with other boards and programmes within the Department. This multi-contact approach has significantly sped up decision making for ATE. The positive outcome is that ATE is now leading in certain strategic areas, and DfT in others.
Case Study 2
The Gangmasters and Labour Abuse Authority (GLAA) is a government agency with a mission of stopping worker exploitation through being a robust and effective regulator, working as an essential law enforcement partner, and sharing expertise to address labour abuse.
GLAA was set up as a Regulatory Non-Departmental Public Body (NDPB) in 2005 following the Morecambe Bay cockle pickers disaster. Sponsored by the Home Office, GLAA now has police style powers to arrest and prosecute offenders.
The current CEO came to GLAA with 20 years’ experience as a civil servant and having sponsored the Equality and Human Rights Commission. This has informed her approach to establishing an effective sponsor relationship.
From the outset, the CEO invested in the sponsor relationship and has been clear in stating what GLAA needs from their sponsor, believing that the sponsor’s role is to enable the public body to succeed. Discussions with the sponsor department take place several times a week, involving different people on specific issues. When embarking on something new the GLAA runs teach in sessions with the Home Office and has found that this can help in securing sign off with ministers.
This approach has proved effective in establishing a supportive working relationship with GLAA’s sponsor department, however, there are several areas that are a challenge for example lack of access to ministers and permanent secretaries.
Shared recommendations
- Establishing the right governance structure can enable the Chair to set the tone with the lead sponsor and develop the Board from its assurance role into an advocacy role. An independent advisory board can provide practical advice, whilst acting as an umbrella, supporting the organisation.
- Expectations need to be managed carefully with the sponsor, especially regarding risk that the Department will carry as sponsor. Delegation letters with a clear set of objectives can help to clarify the shared responsibility between sponsor and public body.
- Having regular and multiple points of contact with a sponsor unit can be effective in establishing personal relationships and strengthening the relationship overall between the two parties.
- If possible, direct access to ministers can put the public body in a more powerful position, but sponsor units should always be kept informed of the approach.
- Keep closely connected to the sponsor unit. Relationships can be placed under strain in the normal course of business. Therefore, it’s helpful if the CEO understands the Department’s perspective, and has strong personal relationship with the sponsor unit and across the Department.
