FROM THE DG EDWIN MORGAN
‘UK plc needs long-termism, not political
partisanship’ Whatever the outcome of Brexit, future governments need to be more far-sighted and accountable if we’re to drive business growth, writes the IoD’s interim director general
Sitting down to write this column, I’m painfully aware of how far the political landscape may have shifted by the time of publication. Brexit has made a mockery of all predictions and will continue to do so. Furthermore, whatever happens come 31 October, the uncertainty won’t end there. The confusion is headache-inducing for those dealing with awkward lead times. For the countless IoD members trying to make investment plans, it constitutes a much more serious affliction. The number of unanswered questions and the sheer range of issues to consider, particularly under a no-deal scenario, make it nearly impossible for many businesses to be fully prepared. But even at this stage there are measures that companies can take, some of which are set out by our head of Europe and trade policy, Allie Renison, on p52. Much of the IoD policy team’s work in recent months has been to sift through the Brexit noise and outline what businesses can do to get ready before November. With the official guidance so liable to change, this has proved to be a running battle. But these efforts should benefit even those companies that feel they wouldn’t be affected by a disorderly Brexit. The more that can be done to mitigate the potential operational consequences of upheaval, the more attention and
funding the government can devote to its many other priorities.
Political to-ing and fro-ing is hardly restricted to Brexit, of course. Business leaders must adjust to the vagaries of politics in other areas too, not least infrastructure or our skills and education system. “More long-termism needed” is a common refrain among our members. It’s the prerogative of any government to chart its own course. The power to shake things up is an essential part of the political system. But, while partisanship can make it tempting to scrap existing programmes for the sake of it, this should be avoided where possible. Instead, we should consider new measures to inculcate more long-term thinking and accountability in politics – a key theme of the latest report from our chief economist, Tej Parikh, on rebalancing the British economy (see p44). Placing the Industrial Strategy Council on a statutory footing similar to that of the Office for Budget Responsibility, for instance, could help to establish some consistency for businesses engaging with successive governments’ productivity strategies.
All the uncertainty surrounding Brexit has undoubtedly affected many businesses. In the process, it’s also thrown into sharp relief the difficult terrain where politics and business overlap.
To contact
the IoD’s policy unit, email policy-unit@
iod.com
STAYING AHEAD OF THE CURVE
It’s often said that all political careers end in failure. It doesn’t have to be the same for company directors. One of the greatest – but most rewarding – challenges facing a business leader is ensuring that your business is well set for the long run, even after you’ve left. That means making a succession plan that enables the firm’s next generation of leaders to continue its success. Seeking continuity, many boards will look to promote from within, but this can present its own challenges. For one thing, the step up to directorship is much larger than it may at first appear to many managers. To help members address such issues, the IoD is launching a professional development programme called Future Directors. This course will introduce rising stars to the role, giving them the skills to contribute in your boardroom for the future (visit
iod.com/training for further information). The calibre of the UK’s business leaders is one of the things that distinguishes this country on the global stage. At the IoD, we embrace any chance to keep our members ahead of the curve in this regard.
Edwin Morgan is the IoD’s interim director general. To have your say visit
iod.com/policyvoice. Follow the institute on Twitter via @The_IoD
director.co.uk 13
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