‘Reform and repurposing’ at Invest NI

In response to the Independent Review Panel’s finding that “profound and fundamental change” was needed in order to align Invest NI with the aims of the 10X economy, the Department for the Economy (DfE) has published an action plan to resolve the challenges identified.

The action plan contains within it 35 strategic actions, all of which are direct responses to the 17 recommendations of the Independent Review Panel, who stated that despite Invest NI having a budget of over £160 million in each of the last five years, the body has “little, if any” bearing on economic of productivity and the organisation is in need of “reform and repurposing”.

Organisational reform and the 10X economy

Key to this reform and repurposing will be the response to the recommendations of the review panel with regard to the Invest NI board and structure, chief among those was the appointment of a permanent Chief Executive Officer. Having pledged to have a new CEO in place by January 2024 at the latest in the action plan, published in early October 2023, Invest NI appointed Kieran Donoghue as its permanent CEO in late October 2023. Among Donoghue’s first tasks will be undertaking a review of Invest NI’s middle-tier structures to “improve efficiency and effectiveness” and to communicate to staff how their roles contribute to delivery of the 10X vision.

Serious questions were raised within the review as to how Invest NI supports and aligns with the 10X economy vision currently being pursued by the Department for the Economy. Further reforms at the boardroom level seek to assuage these concerns. No later than April 2024, the board will design and implement a new leadership structure intended to the deliver upon the 10X vision and other priorities. Starting in December 2023, and then occurring annually, the board will also complete a board effectiveness review that evaluates how the board and leadership team are fulfilling their roles.

The review panel’s criticism was not focused solely on Invest NI; DfE was also criticised for an apparent lack of communication with Invest NI with regard to strategy, policy, and guidance. To address this, the Department is to provide written guidance to Invest NI no later than September 2024 in order to give the organisation a “clear understanding of its role in delivering” the vision.

A new policy oversight and support system will also be established within DfE, including the creation of a new central policy unit that will coordinate policy development across the Department and develop an improved support system for staff with regard to policy development.

“Invest NI, like all public bodies, must do more with less in the constrained budgetary landscape, and difficult decisions must be taken to ensure this plan is implemented.”
Department for the Economy Permanent Secretary Mike Brennan

The green economy

Also identified in the review was that Invest NI has been “slow to recognise the significance of the green economy” and slow to support the delivery of DfE’s Energy Strategy. The review recommended that Invest NI “urgently” engage with both DfE and the Department for Agriculture, Environment and Rural Affairs “to agree on the policy priorities in relation to the green economy” and that Invest NI should “develop a clear and ambitious plan to determine the appropriate financial and human resources required to deliver upon these priorities”.

In response, Invest NI will establish a green economy division led by an executive director no later than October 2024 and embed net zero and green economy targets into its business plan, governance, and delivery models. The action plan also states that Invest NI will promote the green economy by “delivering industry leading expertise and targeted investment to generate green jobs and drive cross sectoral growth in emerging green market”.

FDI

Addressing the review panel’s criticisms of Invest NI’s approach to FDI and inward investment – where a lack of clarity on how the investment secured subsequently supported the 10X vision and a lack of oversight on the quality of the investment was alleged – Invest NI will develop a “robust” framework to monitor its overseas footprint.

Relatedly, DfE will deliver the next phase of trade and investment under the 10X principles, which will seek to align “inward investment policy to those sectors and clusters where we have a proven competitive advantage” and put “front and centre our unique dual market access proposition”.

Subregional economies

“Invest NI needs to be more outgoing and a better partner, especially in the context of subregional cooperation,” the review stated, citing a need for a more co-ordinated, partnership approach at the local level with a focus on employability, skills, and land and premises issues.

Further recommendations included that Invest NI regional offices have a more pronounced influence within the agency and that Invest NI should bring forward a strategy for the development of industrial land and property in partnership with other stakeholders.

The action plan commits to the publication of said plan no later than September 2024. The DfE, through its Director of PLACE and City Deals, has also pledged to develop a subregional economic plan, which will include subregional targets, again due for publication no later than September 2024.

‘Constrained budgetary landscape’

Commenting upon the launch of the action plan, DfE Permanent Secretary Mike Brennan said: “We have taken the time necessary to get this action plan right, ensuring its implementation will not only be impactful, but is aligned with the 10X triple bottom line of innovation, inclusivity, and sustainability.

“Invest NI, like all public bodies, must do more with less in the constrained budgetary landscape, and difficult decisions must be taken to ensure this plan is implemented.”