Scottish Government

CB(06)1st Conclusions

CORPORATE MEETING

MINUTES OF MEETING HELD IN ST ANDREW'S HOUSE, EDINBURGH

AT 9.00 AM ON THURSDAY, 7 DECEMBER 2006

Agenda Item 1: FOI Report

1. Part of the record of discussion under this agenda item is considered exempt from publication under the Freedom of Information (Scotland) Act 2002 and is therefore recorded separately in a limited circulation annex.

Agenda Item 2: CISG Report (CB(06)03)

2. Mr Gordon introduced paper CB(06)03 which was an update on issues considered by the Corporate Issues sub group at its meeting on 23 November. This sub group had discussed a range of issues, including: an update on the e-HR/HR transformation project; the Balanced Scorecard and Risk Register; the establishment of an Internal Consultancy Network to enhance delivery; an update on the development of a new performance management system following the 2005 pay review; and the FES Quarterly Report. Peter Collings had updated the sub group on progress with the e-HR/HR transformation project. The project team was evaluating bids and arranging site visits from tendering companies. The programme board would oversee the tendering process, and once satisfied that the business case was robust and deliverable would make a recommendation to award the contract for consideration by the sub group on 21 December. The sub group had noted assurances from Dr Collings, the gateway review team, and the Programme Board that due diligence in relation to the tenders received was taking place, and that the views of the users were being incorporated into the development of the system.

3. The sub group had been scheduled to discuss a paper on an analysis of trends in the Balanced Scorecard and Risk Register, but had agreed to defer the paper until January to allow for substantive discussion. The sub group had reviewed the quarterly paper on the Balanced Scorecard and Risk Register and the paper for consideration at agenda item 4 reflected the sub group's comments. The sub group had also given initial consideration to a paper recommending the establishment of an Internal Consultancy Network which was scheduled for discussion at agenda item 3.

4. The sub group had discussed an update on progress with work to develop the performance management and performance related pay system following agreement reached as part of the 2005 pay review. A series of workshops were being held across the office to hear staff views about the design of a new system, and feedback had suggested that the main concern for staff was to have a system that was simple to use, and which built on the strengths of the existing system. The sub group was due to consider options for taking the project forward at its meeting in January.

5. The sub group had considered a quarterly report on Facilities and Accommodation issues, which had in particular focused on occupational health and safety; environment; accommodation; house teams; the motor services unit; contracts; travel and business continuity. There were a number of suggestions to build on the Executive's good environmental record, and work should be done to engage the Executive's network of Environmental Guardians in raising awareness and enthusiasm among staff to support the green agenda.

6. MG noted with thanks the decisions taken by the sub group and that the next meeting of the sub group on 21 December would discuss e-HR, Corporate Budgets, and the quarterly ISIS report.

Agenda Item 3: Consultancy Network (CB(06)04)

7. Ms Vincent introduced paper CB(06)04 which sought approval to establish an internal consultancy service to support and enhance delivery within the Executive. It was proposed that the service would be provided by a network of staff from across the organisation, co-ordinated by Delivery Division. The composition, scope and operation of the network would be further refined and developed after each intervention. The establishment of such a network to support delivery and business improvement was included in the Taking Stock Action Plan, and it was essential that it had the active support of senior management to encourage staff to engage with the network. Clear governance of the network would be necessary to ensure that it met organisational objectives, although specific arrangements would need to be finalised in the light of actions in response to Taking Stock. Following agreement, Delivery Division would continue work to scope out the practicalities of running the network, including how it would be evaluated, and the kinds of intervention which might take place. Work would also be done to analyse the skills and skills gap across the Executive in order to support the development of a network tailored to the needs of the organisation.

8. In discussion the following points were made:

(a) CISG had endorsed the proposals at its meeting on 23 November, and agreed the importance of senior management support for the network in ensuring its success. Lessons could be learned from the work of the Gateway Review teams, where credibility and a clear purpose helped ensure a successful targeted approach across a wide range of business areas. The consultancy network would cover a similar range of business areas, and it would be important to ensure that staff involved in the interventions were chosen from across departments and were appropriately skilled;

(b) While the network would initially focus on areas of delivery, in time consideration would be given to broadening the scope to include the areas of change management and developing our people;

(c) Further consideration would need to be given to the tension between targeting resources at high priority areas, and the format of the network whereby staff involved with interventions could only be released for a short-term period;

(d) The proposals incorporated a number of existing teams into the network, including the Centre of Expertise and the facilitators network. A small team working on Corporate Finance and Governance currently provided a targeted consultancy service, and it would be sensible to include them in the network, while taking care not to overload the team;

(e) Consideration should be given to valuing the network as a resource, and charging its costs to programme budgets. Work should also be done to assess the level of spend on external consultants in order to provide benchmarks for the value provided by the network;

(f) In thinking about the selection of staff to form the network, consideration should be given to the opportunity the network would present for staff to develop skills under the operational area of Professional Skills for Government.

9. MG agreed:

(a) Proposals to establish an internal consultancy network as set out in the paper;

(b) That during the pilot phase, projects tackled by the network should be selected to test the range of issues attached to running such a service across the organisation;

(c) That business areas should initially be encouraged to take up the support of the network on a voluntary basis, although there was scope in the future for interventions to become more directive as necessary;

(d) That governance arrangements should be light touch and that specific arrangements would be finalised in the context of the response to the Taking Stock review;

(e) Delivery Division should consider with Finance Group how work being done on improving financial management across the organisation could be incorporated into the model.

(Action: Ms Vincent, Delivery Division, Office of the Permanent Secretary, Finance Director, FCSD)

Agenda Item 4: Balanced Scorecard and Risk Register (CB(06)05)

10. Ms Vincent introduced the paper which covered the Balanced Scorecard and Corporate Risk Register for Quarter 2 of 2006-07, July -September. The paper highlighted key issues for discussion in terms of the risk register; set out performance information; and asked for agreement on the key messages for staff based on Quarter 2 performance. Although a paper on the analysis of trends within the Balanced Scorecard was due to be considered by CISG in January, some of the trend data was presented in the current document. Further consideration of the trends analysis work would take place within the context of the Taking Stock review.

11. In discussion, the following points were made:

(a) Under BP2 Good Governance and sound financial management, the KPI Accurate monthly cash forecasting, and Risk 19 Inaccurate forecasting of cash drawdown were assessed as red. This KPI related to a specific aspect of financial management within the organisation, where divisions needed to forecast how much actual cash would be required each month, and the exact day that this would leave the Executive's account. This information was essential for Finance to be able to draw down an accurate amount of cash from HMT, and the process required a greater degree of sophistication than was currently being achieved for the assessment to be moved to amber. A more substantive discussion about how to improve the accuracy of forecasting would be helpful;

(b) The assessment of KPI Deliver PA Commitments was appropriate given the current status of delivering partnership agreement commitments and that all appropriate actions to manage risk were in place;

(c) Risk 1 Poor Image/Relationships, under PP3 Build Effective Relations with Stakeholders had consistently been assessed as amber, and actions to manage risks would be updated in the context of the response to the Taking Stock review. Consideration should also be given to the use of the term 'stakeholders' and whether clearer distinctions should be drawn between the assessment of the Executive's relationship with stakeholders, delivery partners, and members of public;

(d) In discussing the trends paper, CISG would give further consideration to achieving a greater meaningful assessment of KPIs and risks, and what could be done to reflect in the assessment where action was in place to manage the risk but where the effect was not yet clear;

(e) On PP1 Connecting with the citizen, although the paper said that no statistics were collected, ERAD gathered responses from key stakeholders including farmers who received grants from the Executive. In considering this issue further as part of the trends analysis it would be helpful to define what success might look like;

(f) Consideration should be given to including a risk relating to preparation for the election;

(g) Risk 16 Control of Public Sector Pay should be revised to take account of an increased likelihood of public bodies seeking above HMT guidance increases.

12. The Permanent Secretary noted that Ms Miller had recently moved to a post on Shared Services policy, and that Stephen Harper would be taking over her role in relation to the Balanced Scorecard. The Permanent Secretary wished Ms Miller success in her new post and thanked her for her contribution to the development of the Balanced Scorecard.

13. MG noted the Balanced Scorecard and the material in Annex A and agreed that the risk register should be revised to take account of discussion and submitted to the Audit Committee for consideration (Action: Finance Group, Cabinet Secretariat).

Agenda Item 5: Finance Issues (CB(06)06)

14. Part of the record of discussion under this agenda item is considered exempt from publication under the Freedom of Information (Scotland) Act 2002 and is therefore recorded separately in a limited circulation annex.

CB(06)06 Monthly Expenditure Report

15. Alyson Stafford introduced the paper which set out the budget monitoring report for the financial year 2006/07. The paper included a high level summary of expenditure for the 7 month to 31 October 2006, as well as details of expenditure to date and forecasts of outturn and potential variances for the year.

16. Ms Stafford said that the current forecast outturn was for a £37m underspend on DEL capital budgets and a £4m overspend on the DEL resource budgets. A breakdown of expenditure for each department was provided, which would in turn be submitted to the Minister for Finance and Public Service Reform for information. The deadline for Spring Budget Revision submissions was 10 January 2007. Management Group noted the monthly expenditure report and highlighted the need for continued vigilance and careful monitoring to ensure budgets were managed effectively and to avoid additional underspend emerging through the remainder of the financial year.

Agenda Item 6: Public Service Reform - Progress Report

26. This item was deferred for consideration in correspondence.

Any Other Business

27. The Permanent Secretary noted that this was Mike Ewart's last meeting before taking up post as Chief Executive of the Scottish Prison Service. The Permanent Secretary said that Mike had made an important contribution in leading the Education Department during a period of significant achievement. He had also made a thoughtful, insightful and humorous contribution to the corporate leadership of the Executive. Management Group wished Mike every success as he left to take up his new post.

Cabinet/MG Secretariat

December 2006