System leadership
The connected city: System leadership for urban complexity
Viable place-based projects are becoming harder to get off the ground while community need continues to grow. We talked to four senior leaders about navigating this complexity through system leadership.
Systems thinking is rapidly gaining traction in the built environment sector as placemakers confront the ever-increasing complexity of operating in the built environment. Unavoidable financial and legislative realities interact with growing community need and political ambition to ensure solutions are never simple.
So what is the role of leadership in place-based systems where collaboration is the only way to effect change, and no single organisation holds all the cards? We spoke to four experienced leaders across the sector to find out how they navigate this landscape.
Thanks to Devonshires for supporting this project
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In complex systems – which town centres or economic zones undoubtedly are – social and economic dynamics cannot be directly controlled or confidently predicted. This demands a mindset shift toward “leadership of place” – an inclusive model built on systems thinking in a spatial context that emerged more than 15 years ago.
System leadership and the bigger picture
Having identified the recent interest in systems thinking in the sector, our Future London Leaders programme now provides a grounding in this approach to understanding this interconnected and unpredictable reality. Above all, we emphasise that leaders need to see the bigger picture so they can respond flexibly within changing environments.
“You never know what is around the corner, particularly in a longer-term contract,” says Caroline Mostowfi of legal firm Devonshires, the sponsor of the Future London Leaders programme. “There needs to be flexibility built in, and as lawyers, there’s only so much you can do to provide for that.
“Projects should have structural flexibility and built-in processes so parties can agree to do something slightly different, and representatives are empowered to make those decisions needed to respond to changing needs whilst managing risks and costs.”
With flexibility comes a recognition of the limits of organisational powers. While leaders have statutory and financial levers at their disposal – such as planning, highways, or licensing – applying system leadership means using these tools to influence and align, rather than command. A system involving real people responds far better to human encouragement and shared purpose than to top-down control.
“If we attempt simply to see the world as the things which we can directly do, then our ability to shape the world is highly limited,” explains Peter O’Brien of London Borough Hounslow. “We have significant agency as a local authority, but that agency can be multiplied many times over by engaging in the broader systems within which we operate.”
Our interviews highlighted an acute awareness among senior leaders of the importance of aligning diverse stakeholders – spanning cross-sector partners to local communities. Vision and storytelling cropped up repeatedly, underscoring the vital role narrative plays in place leadership.
“A large part of trying to make a system work is just speaking the same language,” says Nabeel Khan of the Oxford Street Development Corporation. “A lot of my time is spent translating one partner’s aspirations into how that would work for another partner, and then hopefully getting to a place where we’re speaking a common language.”
How “radical candour” helps build trust
As Director of Transformation at L&Q, Alison Handley highlights the importance of trusting relationships within long-term partnerships. She emphasises that partners can only achieve genuine collaboration and mutual success if they are able to move beyond polite diplomacy, to build relational trust. That enables them to have honest and – what might sometimes feel like, uncomfortable – values-led conversations.
“We focus quite a bit on ‘radical candour’ at L&Q – addressing something directly because it comes from a place of genuine care,” says Alison. “With this as the basis, you’ve both got permission to be direct and straight forward with your candour, because you care about the outcomes that they’re seeking, as well as the ones you’re seeking.”
While each leader operates in a different part of the sector, their experiences point to shared leadership capabilities needed to navigate complexity in the built environment. Five core themes emerged from our conversations on understanding and applying a system leadership approach:
- Managing conscious trade-offs
- Translation and speaking a common language
- From influence to stewardship
- Pragmatism and operational flexibility
- External macro pressures and connected impacts
Through our work on leadership and the power of networks, Future of London regards understanding the complexity of interconnected systems as an essential leadership capability. Drawing on the insights of our interviewees, we explore the five themes and provide some highlights from our discussions.
Download The connected city as a PDF
Five themes for system leadership
These themes emerged from in-depth conversations with our expert interviewees, drawing on points made by at least two and often three. Where points were specific to individuals, we have attributed them.
1. Managing conscious trade-offs
Leading in a complex system requires accepting that no organisation can satisfy every competing priority simultaneously. Leaders shouldn’t expect optimal outcomes across all fronts, focusing instead on making deliberate choices about where to allocate money, leadership focus, and capacity.
When conditions or viability change – as they frequently do in long-term regeneration – leaders cannot simply stall; they must actively evaluate what concessions are acceptable to keep the overarching vision moving forward.
Crucially, as Alison Handley points out, managing trade-offs effectively depends on establishing a pre-agreed framework or clear non-negotiables from the outset. Without that shared understanding, one partner’s necessary compromise can easily feel like a critical loss to another partner.
Balancing ambitions for long-term community outcomes against the immediate financial realities of what your organisation can deliver on its own is a core part of system leadership.
2. Translation and speaking a common language
Different sectors – housing associations, health authorities, or private developers – operate with their own distinct pressures, jargon, and priorities. When leaders from different disciplines come together, they often struggle to build momentum because they are not speaking the same language.
System leadership demands a conscious effort toward translation. Leaders must act as interpreters, taking the aspirations and technical requirements of one partner and reframing them so that other stakeholders understand how those goals align with their own interests.
This requirement for plain English translation works internally too. Using management-speak with delivery teams or local audiences can create confusion and may alienate key partners. Stripping away jargon creates the common ground needed to build trust and move partnerships forward.
3. From influence to stewardship
Leadership based on organisational authority can break down in place-based partnerships where no single organisation holds all the powers, land rights, or financial resources. While public authorities hold significant statutory powers such as planning and licensing, treating these powers as levers for control can lead to friction and gridlock.
Instead, effective placemakers adopt a stewardship approach. They recognise that formal powers exist to convene partners, build coalitions, and influence outcomes across a wider geographic area.
This shift requires humility and curiosity. Local authorities have significant agency, but as Peter O’Brien points out, that agency is multiplied exponentially when leaders acknowledge what they cannot do alone and focus on enabling others within the system.
4. Pragmatism and operational flexibility
Long-term development initiatives rarely unfold according to the original plan. While structured governance sets baseline parameters, the real success of a partnership relies on the individuals operating it day-to-day having the pragmatism and authority to adapt.
Maintaining operational flexibility requires balancing immediate problem-solving with a constant focus on the long-term destination. When unexpected challenges or minor disputes threaten progress, effective leaders step back to take the conversation to a higher level and remind all partners of what Nabeel Khan calls the “grand mission”.
By pairing this overarching vision with a flexible, give-and-take approach on the ground, partners can navigate unforeseen obstacles while remaining true to the goals of the collaboration.
5. External macro pressures and connected impacts
Places do not operate in isolation; place-based partnerships must constantly navigate external forces beyond their direct control. Projects spanning a decade or more are exposed to macro shocks – including inflation, economic shifts, global events, and evolving regulatory requirements like post-Grenfell safety legislation.
As spatial systems are deeply interconnected, intervening to solve a problem in one area can create ripple effects across other parts of the partnership. Leaders cannot design effective regeneration strategies or delivery models within narrow organisational boundaries.
Instead, as Caroline Mostowfi emphasises, leaders must maintain strong political literacy and horizon-scan for regulatory shifts. They need to design flexible frameworks that absorb macro shocks, share risk equitably or at least appropriately, and account for wider economic and social benefits.
Interviews with our experts
The following Q&As are edited highlights from wide-ranging conversations that underpin the core themes identified above.
- Alison Handley, L&Q
- Nabeel Khan, Oxford Street Development Corporation
- Caroline Mostowfi, Devonshires
- Peter O’Brien, London Borough of Hounslow
How system leadership supports delivery inside organisations
Large organisations are complex systems in their own right. ALISON HANDLEY, Director of Transformation at L&Q, highlights why trade-offs, holistic thinking and collaboration are essential to effective systems leadership.
What is the core leadership capability required to implement a whole-system strategy?
The ability to make trade-offs is essential. Every organisation has to make difficult choices to achieve its strategic goals. You can’t lead a systems-based organisation effectively without first understanding how its different parts are connected, and how decisions in one area affect outcomes elsewhere.
Is leadership capability regarded as an enabler to deliver those plans?
Absolutely. Our aim is to develop an operating model which enables reliable, consistent outcomes for residents, whilst maximising value for money. Leaders have a key role to play in shaping how an organisation operates, ensuring it is structured and organised in a way that enables it to deliver its plans.
How has adopting a systems approach impacted the organisation?
It has created a non-negotiable need to collaborate. You can no longer design solutions in isolation. Systems thinking shows us that everything is connected. What might look like a fix for one area could create unintended (and sometimes, negative) consequences in another.
As a result, we place a lot of emphasis on developing holistic solutions, which are achieved through a process of organisation wide co-design. This helps ensure that different parts of the business are aligned and working towards shared objectives.
Are you thinking of the wider sector as part of your complex system?
Yes, very much so. We aren’t just thinking about L&Q.
The broader question is, what does it take to be a good landlord, when you manage a large number of homes in primarily urban areas?
Our work on L&Q’s operating model can help answer that, and contribute to wider debates about what a successful blueprint for large housing associations could look like.
It’s also important to recognise what this means for how we work with others. An organisation with clearly defined services and a strong, systems-based approach is better placed to build effective partnerships. Ultimately, this is about creating a greater impact, with better outcomes for the residents and communities we serve.
Alison Handley is Director of Transformation at L&Q Group, where she is responsible for the design and implementation of their organisation wide target operating model.
Why leadership qualities such as pragmatism and flexibility are key
As a senior legal advisor in the built environment sector, CAROLINE MOSTOWFI frequently helps clients navigate long-term, multi-sector partnerships such as the joint venture regeneration projects. She advocates for openness and risk-sharing as key qualities in system leadership.
What is the legal advisor’s role in supporting long-term partnerships?
From a legal perspective, we’re always acting in our clients’ best interests. But even when we’re transacting, it’s always collaborative where risks are shared risks. We recognise our role as an advisor, but we also recognise clients are in a partnership with a common goal often for the longer term. It’s important that the people representing organisations can have those conversations needed directly, rather than doing everything through lawyers.
What defines effective leadership when partners come together in a joint venture?
Leadership is about finding solutions and being pragmatic in the pursuit of a common objective, not just holding your line all the time. Instead, it means finding a way which works for both partners. That way, the partners can both come out of the situation successfully while remaining true to the vision and spirit of the partnership.
Why do cross-sector collaborations sometimes struggle?
One of the challenges in bringing different partners together is those parties not speaking the same language leading to barriers in understanding and co-operation. NHS bodies, housing associations, and local authorities each have their own set of pressures and requirements. This makes it quite difficult to get the momentum that’s needed with all parties pulling in the same direction at the same time.
What makes a long-term partnership succeed in practice?
Successful partnerships are not just because of the contractual agreements in place. It’s because of the people, pragmatism, trust, and taking the long-term view. It requires the flexibility and authority to make collective decisions within good governance. These qualities build confidence in the individuals who are fronting that partnership.
What factors prevent partnerships from delivering?
The last few years have shown us macro factors affect everybody, from COVID to the war in Ukraine and beyond; the effects trickle down Additionally parties are operating in an increasingly regulated environment. Changes in law have become far more prevalent in the built environment. Therefore, appreciating risk allocation and the flexibility to adapt with a clear understanding of who’s picking up the cost to implement changes is gaining more importance.
Caroline Mostowfi is a partner at the law firm, Devonshires. She focuses on projects involving infrastructure matters, ranging from public-private partnerships (including PFI), asset transfers and joint ventures to estate regeneration development projects. Devonshires is the main sponsor for the Future London Leaders programme.
Understanding comes before collaboration in complex systems
Since his appointment as chief executive of the new Oxford Street Development Corporation, NABEEL KHAN is focused on understanding a complex array of stakeholders in London’s West End. As a committed system leader, he explains why this is crucial.
How has systems thinking helped you address challenges in the built environment sector?
I’ve always worked in regeneration, but I’m not a planner, architect or economist. That lack of a single discipline forces me to approach every challenge with open curiosity, asking basic questions and creating the safe conditions needed for different professions to collaborate. In a complex system, one person can’t cover all the angles so it’s about getting many voices around the table.
How do you build trust when working with multiple stakeholders?
You can’t do genuine collaboration without initially listening to understand what drives each stakeholder. That has to be approached with curiosity because if you don’t truly want to understand the system you’re operating in, you can’t influence it.
How can leaders keep partnerships focused when tensions arise?
Sometimes it’s human nature to zoom in on how we are going to work through a particularly irritating issue, but it can be helpful in those moments to elevate one’s thinking and ask people to remember the grand mission. Elevating the discussion can help in some of those tense partnership moments.
What is the role of statutory powers in regeneration partnerships?
It’s about influencing, not controlling. I have been in rooms with others from a local authority background where being from the planning authority is interpreted as needing to be in control. My big lesson is that those statutory functions mean you’ve got influence, but that doesn’t mean you have control.
How do you approach tough commercial negotiations when viability changes?
We need to get comfortable with trade-offs. Be clear about your red lines, but once you’ve articulated those red lines, everything else is flexible. Every development I’ve worked on has involved trade-offs, and given challenging viability conditions, that’s even more the case now. You have to make a judgment call about the trade-offs you’re willing to swallow, and what the impact of that will be.
Are there any other lessons for system leaders?
If you want to do genuine system leadership, you’ve got to look across sectoral boundaries and learn from others. The final thing is to learn how to get people together. The whole act of convening has generated cross-pollination of ideas and flowing of outcomes. We just don’t do that enough.
Nabeel Khan is chief executive of the Oxford Street Development Corporation and has extensive experience in urban planning, economic development and regeneration across London. He previously led the Growth & Environment department at Lambeth Council.
Why local economies as complex systems, and what that means for growth
Hounslow is one of the largest local authority area economies in the UK, and PETER O’BRIEN is responsible for placemaking and inclusive growth at the council. He explains why treating the borough’s “Golden Mile” of tech and media business as a complex system shapes his approach.
What is your understanding of system leadership?
The work of local authorities is incredibly varied, with hundreds of business units doing completely different things. Leaders in that space often find it more comfortable to think about systems rather than highly prescriptive ways of working. Thinking about system leadership brings me to the role of local authorities as stewards of place.
What does stewardship of place mean for a council?
It means thinking about the various levers available to us; acknowledging humbly what we can and can’t do ourselves, and recognising where we need to work with others. Our focus as stewards of place is the Golden Mile. We’re really clear on the vision, co-created with our community, business partners and other key stakeholders. We own almost nothing on the Golden Mile, yet it is our largest economic area and hugely important to our borough.
How do you apply a systems view to major economic assets in Hounslow?
Take the West London Orbital – it’s a complex thing to make a case for, but you’ve got to understand what that investment unlocks. The Golden Mile is separate from the West London Orbital, but in some ways the Golden Mile helps to make the orbital happen, and vice versa. To sustain that over generations, means they work closely in tandem as part of a system.
What are the critical skills for place leaders?
Telling a good story in a way that makes people see the vision and want to be part of it is essential. That comes from getting your story clear and having your own narrative that you carefully curate, constantly monitor, and make sure is landing. Investors invest heavily in a place because they see that place, the product, and the coalition of parties that you pull together as investable.
How do you engage with potential commercial partners?
I view any first contact with a potential partner as an opportunity for us to feel each other out. I spend a significant amount of time listening to what they’re about, their values, how they think about things, and what they want to achieve, listening with a mind to whether there is alignment.
Peter O’Brien is Executive Director – Placemaking & Growth at Hounslow Council, and previously worked in regeneration and economic development at Haringey Council.
Download The connected city as a PDF
The paper has been produced in association with law firm Devonshires, a long-standing partner and supporter of Future London Leaders. Find out more about our leadership programme.
Our thanks to Devonshires and to all the interviewees for generously sharing their time, insights, and experience.
