Scottish Government

SB(07)6th Conclusions

STRATEGIC BOARD MEETING

22 MARCH 2007

Agenda item 1: Minutes and matters arising

1. The minutes of the previous meeting (SB(07)5th conclusions) were formally agreed for publication. Under matters arising, it was noted (paragraph 1) that the newsletter which had been cleared by Members was due to be published that day, and that, in Owen Kelly's absence, the continuation of discussion about the 'corporate narrative' would be deferred to a future meeting.

2. In relation to the issue of the January dip in payment performance, (paragraph 5) Robert Gordon reported that PBIG had raised this matter with Richard Dennis, the Project Manager. He had indicated that the dip was indeed consequential on the Christmas and New Year break, and evidence suggested that performance was now back to variation around 95%, (3% below the target). There was scope for further discussion about the appropriateness of the target and whether the cost of improving performance by an additional 3% was justified in the light of competing priorities. However, before this could reasonably take place, it would be important to ensure that: performance was being fully driven within the current system; that seasonality was being addressed rather than simply accepted; and Division Heads were taking this aspect of their responsibilities seriously as part of the overall effort to demonstrate organisational competence in running core processes. The Board agreed to give the new system 3 months to settle in, and invited PBIG to review the performance information again at that stage and to report to the Board as necessary. (Action: Robert Gordon and PBIG secretariat)

3. Robert Gordon also updated the Board on action taken to ensure delivery of those actions in the Taking Stock implementation plan relating to Human Resources. The opportunity had been taken to clarify the milestones, and the Director of Change and Corporate Services would attend the next Board meeting to provide an high level narrative on performance against the expected targets. The Board recognised the work done by PBIG in support of HR, and agreed that it would be helpful if the meeting with Mr Pagliari focussed on the strategic direction for HR over the coming 6 month period and the relative priorities within that timeframe, and on the impact that the recent activities were having on the organisation. In this context, it would be helpful if Mr Pagliari were able to provide the Board with evidence of the customer perception of the services currently being provided. ( Action Robert Gordon and Secretariat).

Agenda item 2: Replacement Forth Crossing

4. The Permanent Secretary said that Cabinet had indicated that it expected the Strategic Board to play a key role in overseeing the project to provide a replacement Forth Crossing. Given the size and strategic importance of this project, it was appropriate that it should receive particular attention at Board level. However, it would be important to ensure that the personal accountability of those responsible for delivering within the formal Project Management framework was not in any way compromised. It was noted that lessons could be learned from the experience of the Infrastructure Investment Group (IIG) in terms of bringing a number of players together, and that this model might assist in addressing some of the complexities which would be outwith the scope of Transport Scotland alone to resolve.

5. The Board agreed that the approach should be one which adds value to the Project Team, and which enabled delivery of the project to be embedded within the wider Scottish context. Draft terms of reference for the Board's engagement should therefore be drawn up by the Secretariat, in discussion with the Project Team, which were explicit about the Board's reciprocal commitment to and expectations of the Project Team and Cabinet respectively. (Action: Secretariat). In the first instance, the Board would wish to satisfy itself that the Project's governance arrangements were appropriate, robust and drew on the best possible international experience of best practice for delivering major projects of this nature. To this end, the Board agreed that the IIG should commission external advice to enable benchmarking to be done against the best in the world. (Action: Andrew Goudie). The Project Team would make a presentation to the Board in late May or early June.

6. The Permanent Secretary said that Board members would require to focus on 3 principal tasks in April and May: namely the preparation and support required in the immediate pre and post-election period (due to be discussed in more detail at the meeting on 5th April); the next stage in preparation for the Spending Review; and the continuous task of keeping the Taking Stock implementation programme on track. It would be important to maintain momentum over this period, and Board members were invited to identify any issues which would benefit from attention during this period so as to be fully ready for the start of the new administration. (Action: all Board members).

Agenda item 4: Spending Review - contingency planning

7. This item was addressed in paper SB(07)14, the contents of which had largely been overtaken by the announcement contained in the Chancellor's Budget Statement of the previous day to the effect that the UK Spending Review would be concluded in the autumn of 2007. It was unlikely that there would be an announcement at UK level before the second week in October, which had obvious implications for the Scottish timetable, and discussions with the Parliament's Finance Committee would be required to test the scope for extending or varying the scrutiny period. It was recognised that there were some risks for 2007-8 inherent in such a late settlement and these would have to be examined carefully. In the meantime, the anticipated Executive activity from May onwards, working on the basis of estimates, would not change significantly.

Date of next meeting

8. Thursday 5 April at 08.30.

Cabinet Secretariat

March 2007