A New Leadership Model for NFP Health and Community Care
Leadership in Australia’s not-for-profit (NFP) health and community care sector is undergoing a profound redefinition. The once-familiar rhythms of strategic planning, compliance oversight, and program delivery are no longer enough. With intensifying demand, workforce fatigue, and greater scrutiny on equity and accountability, the sector is confronting a critical truth: the leadership models that once served it well are now struggling to meet the moment.
A significant contribution to this conversation comes from the recent report, Developing a New Leadership Framework for Not-For-Profit Health and Community Care Organisations in Australia, produced by the Australian Health Services Research Institute (AHSRI). Drawing on in-depth interviews and rich sector expertise, the report outlines what a future-fit model of leadership should look like.
At its core, the report challenges the dominance of hierarchical, control-based approaches and instead makes the case for a values-driven, distributed and relational model of leadership. This is not leadership as authority, but as stewardship, not as technical command, but as cultural and emotional intelligence. One CEO interviewed summed it up plainly: “We have grown up in a command and control culture. It’s what’s been expected of leaders… But that is no longer what is needed.”
What is needed now is leadership that is collective, context-sensitive, and grounded in a clear sense of purpose. The report’s authors describe this as “a transformational and values-based model of leadership”—a style that foregrounds ethics, cultural safety, staff wellbeing and systems thinking. Leaders are not expected to have all the answers; rather, their role is to create the conditions for dialogue, trust and shared responsibility to thrive.
This shift in mindset has profound implications, especially for boards and executive teams. The report highlights a worrying trend: many organisations espouse values such as inclusion, respect or equity, but fail to embed these in decision-making or governance. Too often, values are displayed on office walls but not reflected in recruitment processes, staff feedback loops or boardroom culture. “Mission-driven doesn’t mean values-led by default,” the report warns.
Another area where this new leadership model pushes boundaries is in the treatment of workforce wellbeing. Rather than viewing burnout or staff attrition as operational issues, the report reframes them as strategic concerns. Chronic fatigue, emotional labour and role overload reflect deeper systemic problems—and demand leadership that is attuned, responsive and proactive. Compassionate leadership is no longer a soft skill; it is core infrastructure for a sustainable workforce.
Perhaps most urgently, the report calls for a more substantial commitment to cultural safety and inclusion, particularly in relation to Aboriginal and Torres Strait Islander communities. It names cultural competence not as a desirable add-on, but as a core leadership competency. Embedding First Nations knowledge, leadership and decision-making into the fabric of an organisation is not only a moral obligation; it is essential to service legitimacy and impact.
The practical application of this framework is already taking root. Some organisations are revising recruitment policies to centre values alignment. Others are shifting executive structures to allow for shared leadership or investing in reflective practice across teams. Many are rethinking who gets to lead—and recognising that leadership can emerge from anywhere in the system, not just from the top.
At Pluri, we see this report as a necessary provocation. It names what many leaders feel but have struggled to articulate: that leadership in this sector must evolve from control to care, from performance to purpose, from hierarchy to humility. Importantly, it does not propose a one-size-fits-all model, but rather an adaptable framework that invites boards and executives to reflect critically and act boldly.
The full report—Developing a New Leadership Framework for Not-For-Profit Health and Community Care Organisations in Australia—is available via the Australian Health Services Research Institute.
