Featuring Richard Pengelly  Being a Chartered Accountant can lead to an interesting and varied finance career, but it also opens up wider opportunities for progression into leadership positions. Many Chartered Accountants have gone on to hold senior public sector positions both as Finance Directors and beyond - we met Richard Pengelly to ask him how being a Chartered Accountant supported his career journey and what advice he would give to other professionals as they progress through their career path.  Richard joined the Department for Finance in 1998 having worked in the Northern Ireland Audit Office and in private accounting practice and has gone on to hold the post of Permanent Secretary across a number of Northern Ireland Civil Service Departments such as the Department of Justice, the Department of Health and the Department for Regional Development. Currently, Richard is the Chief Executive of the Education Authority.  What advice would you give to someone as they look to a career in public sector finance?    I would say don’t be afraid of uncertainty or of trying something different - when an opportunity comes up say yes. If I hadn’t of said yes to trying new things, I wouldn’t be in this position today – each new opportunity leads to another, don’t hold yourself back from trying something new because you haven’t done it before. When you try something new or different you develop yourself and learn to adapt, as a leader the ability to be agile, learn and adapt becomes more and more important. Accountants fundamentally are intelligent, ambitious and work hard but all too often they don’t push themselves or think they’re good enough – my advice is back yourself and go for it.   What leadership skills do you think public sector accountants could focus on developing?   As finance professionals we tend to like the detail and when we work through an area we often become the experts in that subject however, as your brief becomes wider you cannot be the expert in everything. I can find myself in a meeting where I am the person who knows the least about a subject and it can be challenging to lean into that uncertainty but you need to think about your own expertise and experience – what you as a leader can bring to the discussion. As you progress in your career it can become less about technical capabilities and more about the people skills – Chartered Accountants are talented, capable and competent – these are skills that you bring to any discussion, meeting or role.   Do you think being a Chartered Accountant helped you throughout your career?    Being a chartered accountant has helped me in different ways, as an accountant you have a qualification that has enabled you to demonstrate the relevant learning and technical skills. In studying and working you develop skills and resilience, balancing studying, working and a home life. As you move into more of a leadership position the focus may move away from technical skills but as an accountant you carry the credibility and professionalism that comes with being an accountant. The transversal skills you develop are a great foundation to approach complex issues for example taking an opinion and examining an issue critically, looking for an evidence base. These professional and technical skills combine with the ethical framework  -  it is that sense of values and ethics that stays with you and supports you though making tough decisions when in a leadership position.    What advice would you give to accountants seeking to develop leadership skills?   Accountants need to proactively seek out opportunities to develop their leadership skills. At the early part of your career you could be in a small team doing a technical job – there may not be a lot of focus on developing leadership skills but you need to seek out opportunities to stretch that skill – you need to start to thinking about the building blocks you need to develop leadership skills and to prepare yourself for that leadership role.   Reflecting on my experience, I have seen technically good people not progress because they didn’t have the people skills or ability to communicate. I have seen competent people struggle because they have felt overwhelmed – not due to their technical skill set but when facing competing pressures, for example with prioritisation and setting clear direction. As you progress success and delivery become more about these leadership characteristics than pure technical skills alone.    What skills do you think accountants need to meet the current challenges across the public sector and into the future?   As a public sector leader it is important to become comfortable with change, it is ever present and we need to think about how we can be agile and responsive while retaining and meeting the requirements of a public sector office. Accountants need to support people to have the right conversation – it’s not about efficiency anymore but rather reengineering what we do and how we do it, we are facing demographic changes and increasing demand at the same time budgets are reducing - finance colleagues can help us unpick that conversation. The finance conversation needs to be more strategic, moving away from focusing on processes or operations but rather looking at the bigger issues – how do we align the resources we have to focus on the key things required to meet our future ambition.  The Ulster Society Public Sector committee recently hosted an online session focusing on leadership skills for finance professionals and an in-person event is planned for the near future – if you are interested in learning more about leadership in a public sector finance context make sure you come along. 

By Graeme Wilkinson, Convenor of the Ulster Society Public Sector Sub-Committee  Chartered accountants play a critical role in supporting the effective delivery of our public services. With unprecedented financial pressures on the public purse and ever-increasing demands to improve services the role of Chartered Accountants in the public sector is more critical now than ever.   There are a growing number of Chartered accountants working in a variety of roles in the public sector and at different stages of their career.  The Ulster Society already offers a range of support to members working in the public sector with plans to build upon this in the future.    To do this, the Society has a Public Sector Committee made up of Chartered Accountants working in the public sector in Northern Ireland who are keen to offer their expertise and make a difference to fellow members. Graeme Wilkinson, Director of Skills in the Department for the Economy has recently been appointed as Chair of the committee.    Graeme says, “Supporting our members is a key priority for the committee over the next few years.  For many members, the workplace has been transformed.  We want to ensure that our members at all stages of their career feel supported and value the services of the Institute.  We also hope to provide an opportunity to network and share experiences.”  Supporting members  The committee is working with the Institute team to review the current training provision and to identify opportunities to enhance the offering to best meet the needs of members. They are also reflecting on the most appropriate mode of delivery with webinars offering a convenient and accessible platform, particularly for those members working across the country.     Graeme says: “How we meet has changed irrevocably since 2020. Whilst we recognise that meeting together in person is important to catch up with contacts and broaden networks, time is a limited commodity for many of us and can be a barrier to attending events.  We hope to bring a balanced offering for members who wish to keep up to date with relevant issues and also provide opportunities for members to meet together for those all-important catchups.  We are hoping members will take time to try out something new and provide feedback to make sure we are meeting the needs of our members. “  The committee plans to offer opportunities for members to meet in person during the year and are looking at developing a half day conference on topics which are relevant to those members working in the public sector.  The committee recognises members avail of CPD from a range of sources and hope to supplement with topics that will be of most interest and also work with other professional institutes to bring a diverse perspective on the topics covered.   Innovation  The committee have discussed the current issues facing the NI public sector and recognise the need to future proof services. The challenges ahead will require the adoption of greater innovation and embracing technology to address some of the knotty problems that have bedevilled us for decades. Creating a culture of innovation is a key policy focus in the economic strategy and a theme for the Ulster Society this year.   Graeme says, “We need to think differently about how we deliver public services. With squeezed budgets and increasing cost pressures we must put our best efforts into alternative solutions to address old and new problems. Technology has provided the potential, but far and away the biggest barrier to change is developing the all-important mindset of innovation in our people. Chartered Accountants working in the public sector have a unique perspective and are often in a prime position to provide solutions.  Therefore, we must support these drivers for change and innovative thinkers.”  The Northern Ireland Audit Office have recently launched their report on “Innovation and Risk Management - A Good Practice Guide for the public sector”.    Dorinnia Carville, Comptroller and Auditor General, commented: “With the realities faced in the public sector changing fast the need to innovate and adapt and to so with speed is no longer an option but a necessity.  If we are to meet the level of innovation required to deliver on government and citizen’s needs and expectations this means that public sector organisations need to take a more deliberate approach to innovation management.   "Innovation will be a critical corporate capacity for public services seeking to reconcile these factors and ensure public services are better targeted, more responsive to end user expectations and needs, and provide better value for money."  There is certainly a role for Chartered Accountants to show thought leadership by providing members with a forum to discuss potential and their experiences with other members facing similar challenges.    In looking ahead to the incoming period in office Graeme commented, “I am looking forward to supporting members working in the public sector through the Public Sector Committee.  Having worked with some great Chartered Accountant’s throughout my career I have had first-hand experience of where we have delivered for the benefit of citizens right across the province.  I would like to encourage members to invest in their personal development by participating in the upcoming events and to get in touch if they would like to know more”.

By Graeme Wilkinson, Convenor, Ulster Society Public Sector Sub-Committee  In March 2022, the Minister for the Economy published a new Skills Strategy for Northern Ireland, ‘Skills for a 10x Economy’. Throughout the extensive research and stakeholder engagement process that underpinned the development of the strategy, and ever since, a consistent message has been delivered by business leaders in Northern Ireland: access to talent and skills is the number one issue impacting our economic performance.   The Skills Strategy covers a broad range of areas where transformation is required however I would like to highlight what I believe is a fundamental challenge facing our economy: addressing Northern Ireland’s ‘low-skills equilibrium’. As set out in ‘Skills for a 10x Economy’ a low-skills equilibrium is characterised by a low level of skills in the population and a corresponding demand for low-skilled workers who receive low pay. This provides little incentive for workers to invest in their own skills and many businesses accepting the constraint that this puts on their growth potential. It is also linked to the key economic challenges we face: low wages, low productivity and low levels of in-work progression.   A strong demand for graduates is evident within the economy and, whilst there are some challenges related to anticipated supply, the key issue at this level is to improve the overall alignment of qualifications to labour market need and to address the issue of underutilisation (the effective utilisation of graduate skills). The low-skills equilibrium is more evident below degree level.   Data gathered on job advertisements placed in 2022 showed that, where qualification requirements were specified, approximately 45% were aimed at individuals with high level qualifications (degree level or above), approximately 40% were aimed at individuals with low level qualifications (GCSE or below) with just 15% aimed at individuals with mid-level qualifications. This problem is known as ‘the missing middle’ and means that there are very few opportunities for individuals to progress in the labour market without attaining degree level qualifications. It also means that businesses are overlooking the potential benefits provided by higher education, and professional and technical education, below degree level.   The NI Skills Barometer forecasts anticipated skills demand over the next decade. It highlights that mid-level qualifications will be the most significant area of undersupply under a high economic growth scenario. This suggests that employers have identified the need for higher level qualifications to unlock growth but have not yet addressed it through their recruitment practices.   With regards to the overarching concern on access to talent and skills, it is important to acknowledge that labour supply in Northern Ireland is constrained with the latest NISRA statistics showing the unemployment rate at 2.8%. Changing demographics, changes to migration policy and low unemployment rates mean there will be no significant addition to labour supply over the course of the next decade.   Therefore, we need to focus on improving the efficiency of our skills system to ensure outcomes better reflect emerging labour market need and support our overall progress towards the objectives of our economic vision by supporting innovation, inclusivity and sustainability. In government, our primary focus is to work with stakeholders to develop the strategic skills framework which provides enhanced efficiency on the supply side. The low skills equilibrium is a supply and a demand problem and it is employers who hold the key to unlocking demand.  I am keen to continue the conversation with businesses across Northern Ireland on how we deliver a step change in the demand for skills and qualifications. Collaboration will be central to successful change, supply and demand must move, as much as possible, in tandem to deliver improved efficiency. We have set out in ‘Skills for a 10x Economy’ the new initiatives which will be added to our existing mid-level education offer, including a particular focus on upskilling and reskilling the workforce through an increasing focus on adult learning, an area where Northern Ireland performs poorly compared to other OECD countries.   In conclusion, there is no quick fix to the labour supply challenge. By working collaboratively, I believe our efforts to address this challenge can provide a catalyst to change how our labour market functions. Change which supports improving innovation performance, increased productivity and better jobs for more people across Northern Ireland.