Invest NI: 'Profound divisions' damaging organisation, review finds

“Profound divisions” at the top of Invest NI are having a damaging impact on the organisation, an independent review has found.

Invest NI is Northern Ireland’s economic development agency.

Its operations and organisation have been reviewed by a panel led by Sir Michael Lyons.

The review found that “relationships at senior levels within Invest NI are damaged and are harming the performance of the organisation”.

It concludes that Invest NI needs urgent improvements in leadership, operations and public accountability.

In the course of their review the panel referred two potentially serious whistleblowing cases to the Department for the Economy, which is Invest NI’s “parent” department.

The panel also uncovered an extremely difficult relationship between Invest NI executive leadership team and its oversight board.

They found a lack of understanding among some very senior managers regarding the board’s responsibilities for oversight and strategic direction

The reviewers were so worried, that before they had finished their work, they raised concerns with the senior official the Department for the Economy.

They also heard “widespread concern” that the board, and in particular its chair, Rose Mary Stalker, had at times become too involved in operational issues.

However they added that they understand that this may be “the result of frustrations concerning a perceived lack of transparency within the organisation.”

A written submission from a group of senior managers said that some board members have been “perceived as pursuing their own agenda, with an increasingly ad hoc approach and a lack of coherent policy”.

Invest NI’s interim chief executive, Mel Chittock, told the review that there had been “unhelpful” operational interference from the board.

There was also evidence of some difficult relationships between the cohort of senior managers themselves as well as “confusion and poor delegation” from some managers.

The review has also raised questions about a central plank of Invest NI’s support for businesses which is known as the “client company” model.

It means that when certain criteria apply, specific companies become eligible to receive tailored, ongoing support.

The review said there were strengths to this model but it means that a sizeable amount of Invest NI’s financial support is tied up in repeat assistance to a very small number of firms

It has recommended that a diversification of the client base, with less emphasis on “curating” a series of established relationships, which encourages the culture of repeat subvention.

Sir Michael Lyons said: “There remains a need for profound change and reform within the agency in terms of how it is run, the way in which it operates, and how it is perceived across its wide programme of work.”

A statement on behalf of the Invest NI chair and board said the review was welcome.

“We recognise the need to be a more outgoing and better partner with the wider NI public and private sector to deliver sustainable and inclusive economic growth throughout Northern Ireland,” the statement said.

Invest NI said the board was “committed to the transformative change needed for Invest NI to become a more efficient, agile and outcomes focussed organisation delivering an even greater impact throughout the economy”.

Invest NI said this change had already started and the review would help the organisation move forward.

The organisation said time to consider the recommendations in detail would be needed.

“We are determined to transform this organisation, building on its strengths and working in partnership with the department and our stakeholders to build an ecosystem that delivers a growing economy that works for all.”