Scottish Government

SB(07)5th Conclusions

STRATEGIC BOARD MEETING

8 MARCH 2007

Present	Sir John Elvidge (chair)
	David Fisher (non-executive)
	Robert Gordon CB
	Nicky Munro CB
	Andrew Goudie
	Kevin Woods
Apologies	Bill Bound (non-executive director)
	Shonaig Macpherson (non-executive director)
In attendance	Sarah Smith
	Sarah Davidson
	David Stewart	acting Head of Finance (agenda item 2)
	Ros Cockerell	Finance (agenda item 2)
	Kate Vincent	(agenda item 3)
	Thea Teale	Senior Staff Team (agenda item 6)
	Fiona Neep	Senior Staff Team (agenda item 6)

Agenda item 1: Minutes and matters arising

1. The minutes of the previous meeting (SB(07)4th conclusions) were formally agreed for publication. Under matters arising, it was noted that Owen Kelly had circulated a revised version of the 'corporate narrative' and a draft newsletter for staff, and that Board members should comment on these items in correspondence.

Agenda item 2: Finance report

2. David Stewart presented paper SB(07)11.

The record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.

Agenda item 3: reports on the Taking Stock implementation plan

3. The following reports were made on progress against the implementation plan:

Running the Business actions: Robert Gordon reported that PBIG was monitoring good progress on the Business Planning work stream, led by Philip Rycroft. On the Communications stream, there was evidence of good thinking, but a case now for additional resource or skills to become engaged in translating this strategy into action. On the Human Resources stream, some milestones had been missed and there was concern about the degree of momentum behind the various tasks which required to be delivered. The Board agreed that it should receive a presentation on the status of the HR actions at its next meeting, and that Robert Gordon should engage with Paul Pagliari in preparation for that, to ensure that the presentation was of maximum assistance to members. (Action: Robert Gordon and the Secretariat)

Making Scotland Work Better actions: Kevin Woods reported that the Delivery Group had focussed on the actions associated with the delivery element of Skills for Success and the internal consultancy network, as well as contributing to the work being led elsewhere on the Business Planning model and the review of the challenge framework. After the election, the Group would require to consider how best to monitor the delivery of whatever commitments the incoming administration had signed up to, and to ensure that adequate project planning was in place locally. There was no slippage to report against anticipated milestones. Andrew Goudie reported that there was no slippage in the areas for which he was responsible, other than a possible delay in publishing the technical notes for the Efficient Government programme for 2006-07. The 07-08 savings target was also under pressure and this was being addressed through the Efficient Government Group as well as within FCSD.

Leadership Actions: Nicky Munro reported that the actions in this section were all on course for delivery, with the exception of 2 which were slightly delayed: SCS 360 degree feedback, completion of which might slip by some weeks, and final agreement of a corporate objective for the SCS which incorporated both behaviours and tasks. Discussions were being held with HR and it was hoped that these would be in place by the May deadline.

Agenda item 4: leadership structures update

4. Nicky Munro introduced paper SB(07)11, which was an introduction to the recent work of the Leadership Group. She said that a great deal of analysis underlay this summary, and that Board members could access the background papers in the usual way. There was clearly much more work to be done in testing and translating any of these ideas into reality, but the Permanent Secretary had thought that it would be useful to share the work with the Board at this point in order to glean any initial reactions.

5. In discussion, the following key points of agreement emerged:

• A variation of the model described as the 'policy model' appeared to be the most suited to the Executive's circumstances, although it would need development to ensure that it captured the strengths of the other 2 models, particularly the important place of Corporate Services at Board level, and the reflection in DG responsibilities of the outcomes of the Spending Review work. A new title would also have to be identified as 'policy' was open to being misconstrued as excluding delivery;
• Clear lines of accountability to and from the Board were essential;
• The role of Directors General in the new structure needed considerable development, including the role of any Director of Corporate Services. The old model, where the DG functioned as the most senior in a line of experts, was no longer possible or sensible. The ongoing work on the roles of Directors and Assistant Directors would also have to reflect the emerging structural solution;
• No structural changes would be put into effect until after the election, but the organisational model should be sufficiently robust by May to form a solid and agreed proposition for discussion with incoming Ministers.

9. The Board agreed that the following actions were required in order to take the work to the next stage:

• An examination of how the preferred model might best maximise the capture of the strengths of the other 2 models which had been discussed;
• Further robust testing of aspects of the preferred model, such as the description of DG and Director commands and the detail of accountabilities;
• An understanding of the journey needed to put a new structure into effect, and how best to manage that transition;
• Development of a narrative explaining the strategy and rationale underpinning structural change, focusing on the benefits to accountability, delivery focus and strong relationships between Directors and Ministers.

10. Nicky Munro was asked to ensure that these elements of work were taken forward during March, drawing on the resources she deemed best placed to assist in individual tasks.

Agenda item 5: Strategic Spending Review update

11. Due to time pressures, this item was postponed to a later date. The secretariat was asked to identify a substantial morning or afternoon time slot in March when the Board could discuss the Spending Review, and reflect on the next stage in the development of the work on leadership structures, (Action: Secretariat).

Agenda item 6: SCS Pay and Performance Management

Part of the record of discussion under this agenda item is considered exempt from publication at this time and has been redacted.

Date of next meeting

12. Thursday 22 March at 08.30.

Cabinet Secretariat

March 2007