Opinion

Moving beyond the rhetoric on the Northern Powerhouse

Chancellor George Osborne has spoken widely of the benefits of a Northern Powerhouse.

For the Northern Powerhouse to become more than rhetoric and aspiration, it must deliver outcomes that are meaningful to the lives of people who live and work in the region, says SIMON PRINGLE, head of strategy and corporate development at WYG.

If there is a genuine ambition to rebalance the UK economy and release the latent potential of the north of England, can we learn anything from smart, innovative businesses in the region?  Here are a few thoughts on some of things that they do differently.

Firstly, they tend to have very clear purpose and intent. By this we mean clarity as to why change is important, what is to be achieved and how it will add value. 

Without a well-defined and carefully communicated expression of purpose and intent, even the best systems and processes won’t help deliver meaningful outcomes.  In the context of the Northern Powerhouse, this means gaining some real clarity as to what good looks like to inform the way in which local policies are set, investment decisions are taken and infrastructure is planned.  

The second trait of the most successful organizations is that they tend to have really effective leadership to set the purpose and intent.  Great leaders have always created an impact; those individuals who see what is possible, take brave decisions, make things happen and inspire others to come with them.  These leaders look to the bigger picture and don’t engage in local power struggles or look after their own patch at the expense of the main objective.  

What does this mean for the Northern Powerhouse?  Given the requirements of the devolution process, this need for leadership will almost certainly place a focus on the characteristics of successful mayoral candidates. Will they emerge from the local authority ‘establishment’ or will we see an emphasis on charismatic and ambassadorial individuals who introduce a little more diversity and reflect the characteristics of a good quality FTSE 100 CEO?

In parallel to elected positions, there is a clear indication that leadership will also emerge from the business community.  The recently formed Business North group, amongst other cross sector initiatives, evidences this.  A unified corporate voice will help cut across more parochial distractions and the decades-old habits of local politics.

"Central government must back words with actions and not send contradictory messages to convince a skeptical public that Northern Powerhouse is more than an electoral sound bite." - Simon Pringle. 

WYG's Simon Pringle says government must back words with actions.

Somewhat controversially, it also means central government backing words with actions and working really hard not send contradictory messages.  Decisions such as the one to close the BIS office in Sheffield and relocate the jobs to London are not particularly helpful if one is trying to convince a skeptical public that ‘Northern Powerhouse’ is more than an electoral sound bite. 

The third lesson from the most innovative organisations comes from their integrated thinking, behavior and reporting.  They understand the context in which they operate and focus upon those issues that are material to the creation of value and management of risk.  If the Northern Powerhouse is about anything, it must be about integrated action.  

We already know that, for the Northern Powerhouse to deliver for local communities and business, an effective integrated transport strategy is critical. The Transport for the North proposals have understandably attracted a lot of attention given the materiality of this need.  Transport is not, however, the only infrastructure that requires integrated thinking.  

Energy, for example, is also critical.  Without a joined-up approach to energy policy across the region there is no guarantee that the potential to be a major contributor to the UK’s energy mix will be fulfilled; whether that be in relation to Liverpool’s tidal ambitions, the plans Leeds has for a major Hydrogen project, Cumbria’s energy coast or Teesside’s focus on carbon capture.  Integrated thinking that translates into well-planned infrastructure can underpin the potential for the Northern Powerhouse to continue having a significant energy economy long after the days of coal are behind us.

The need for integrated thinking extends beyond tangible infrastructure. It relates to doing more with what we already have and establishing a presence on the world stage.  It also means the private sector working in close partnership with local and national government across a wide range of social, economic and environmental agendas.  

It is from that collaboration, with effective leadership supporting clear purpose and intent, that the economic potential of the Northern Powerhouse will be unlocked. 

A major conference and exhibition on the Northern Powerhouse takes place in Manchester on 25-26 February. Infrastructure Intelligence readers can get a discount on their conference and exhibition ticket. Just enter the discount code i-i15% when booking online to receive a 15% discount on the currently quoted prices.

View the conference programme here.

Book a place for UK Northern Powerhouse here.

Comments

Federalism for the UK now. I'm sorry but central government is systemically London centric. Asking them to act coherently and in support of the wider nation is like asking the lioness to think about the welfare of a pack of hyenas. Both want the same thing but for different purposes. Only when the North and the wider UK for that matter, can set laws (in a coordinated fashion), vary taxes and have clear lines of accountability between local decision makers and the populace will we see innovation and coherent thought return. Only when the remit of central government is tightly defined and constrained to international affairs; oversight of the regions; coordination and dissemination of best practice will local decision makers truly be free to act innovatively and be subject to transparent democratic processes. Presently scopes are too confused, responsibilities blurred and accountability fudged. We need change to make real progress.