Scottish Government

1. Portfolio/Number/Name:ELL/C1 - Scottish Enterprise ( BT Savings) Cash Releasing Savings

2. Programme/Activity:

The Business Transformation programme ( BT) which has changed many aspects of SEn practices and procedures to ensure the organisation is more efficient, effective and customer focused was completed in March 2006. It is anticipated that "Business as Usual" activities will continue to secure delivery of the savings achieved in the final year of the programme.

3. Efficiency

3.1 Current target; £m

2005-06

2006-07

2007-08

Cash

5.3

5.0

5.0

Time

0

0

0

3.2 Efficiencies delivered; £m

2005-06

2006-07

2007-08

Cash

5.0

-

-

Time

0

-

-

4. Accountable Officer for delivery

Philip Rycroft

5. Project Manager

Rebecca Robinson

6. EGDD Portfolio Manager

Hilary Pearce

7. Description of efficiency and actions to be taken

7.1 What is the efficiency improvement? How will the saving be made?

Savings will be delivered through a series of solutions from the BT programme. Most of the decisions and actions have been taken and savings based on earlier actions are now being realised in the following two areas:

Headcount reduction - £515K

The net savings in staff and running costs arising from the implementation of BT solutions through reducing the number of staff requiring to be employed in those respected areas. For example by the establishment of 7 new shared services.

Cost Savings -£4.792M

The net savings in cost (other than those associated with staffing) arising from the implementation of BT solutions. For example, by the Network's approach to procurement, significant economies of scale are anticipated thus reducing costs.

7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement?

Delivery of this saving is dependant on the actions of key staff in SEn delivering the BT solutions to plan.

8. Associated costs

8.1 Are there any development or redundancy costs associated with the delivery of this efficiency?

No direct costs

9. Measurement

9.1 What are the inputs that will be measured?

The savings identified for these three years are the final savings of a multi year programme that have been realised as a consequence of the development of 25 different projects. The evaluation design and approach has been based on a standardised evaluation framework applied to each project.

9.2 What are the outputs that will be measured?

See 9.1

9.3 What is the baseline for inputs and outputs?

The baseline is 2004/05

10. Quality cross-check

10.1 What quality indicators are being used to ensure that quality of service is maintained or improved?

None

11. Monitoring

11.1 What are the arrangements for monitoring the delivery of efficiencies?

The SEnBT Benefits monitoring framework ceased to be relevant at the end of the BT Programme in March 2006 as it had not been intended that savings for the BT Programme would be monitored post 2006. However, as these targets have been applied by the efficient government, SEn will continue to claim recurring savings of £5m in 06/07 and 07/08 based on an assurance that the processes and projects in place to enable the realisation of the £5m savings in 2005/06 are still firmly embedded in the organisation. However any changes to these projects and processes that result in any decreases or additional gains will be notified.

12. Reporting

12.1 What are the arrangements for reporting the delivery of efficiencies?

See 11.1

13. Dependencies

13.1 Explain if your efficiencies are dependant on legislation or other structural changes being achieved.

No dependencies

14. Use of savings

14.1 How are the efficiencies released from improvement activity being used to improve front-line services?

Efficiencies are released into SEn's annual budget and included in the prioritisation of annual budget allocations to operational activities.