SB(07)16th Conclusions
STRATEGIC BOARD MEETING
THURSDAY, 5 JULY 2007
Present
Sir John Elvidge (chair)
David Fisher
Bill Bound
Robert Gordon CB
Philip Rycroft
Richard Wakeford
Apologies were received from Kevin Woods, Andrew Goudie and Shonaig Macpherson.
In Attendance
Owen Kelly
Sarah Smith
Sarah DavidsonDonald Cameron
Ginny Gardner (For Agenda Item 4 only)
Malcolm Reed (For Agenda Item 5 only)
Lesley Fraser (For Agenda Item 6 only)
Alex Smith (For Agenda Item 6 only)
Alyson Stafford (For Agenda Items 6 only)
Agenda Item 1: Minutes and Matters Arising
1. The minutes of the previous meeting (SB(07)15th Conclusions) were agreed. Under matters arising the Permanent Secretary noted that Sarah Davidson had circulated guidance to Directors General and Directors about the preparation and handling of Cabinet business, and that guidance in the form of an office notice would be circulated to all staff the following week.
Agenda Item 2: Report from Cabinet
2. Ms Davidson reported on the Cabinet meeting held on Tuesday, 3 July and said that Cabinet had discussed handling of the response to the incident at Glasgow airport on Sunday, 1 July and that the First Minister had expressed appreciation for, and confidence in, the response by the emergency services and officials.
Agenda Item 3: Risk Management
3. The Board discussed actions in place to address emerging risks to a successful transition to the new administration.
Agenda Item 4: Employee Survey (SB(07)33)
4. Ms Gardner introduced paper SB(07)33 which invited the Board to comment on and agree plans for the implementation and support of the 2007 Employee Survey. Ms Gardner said that it would be helpful for the Board to consider proposals on coverage of the survey and to comment on the respective roles of directors and directors general in following up action from the 2006 survey and the 2007 survey once agreed.
5. In discussion the following points were made:
(a) The Employee Relations sub group of the Permanent Secretaries Management Board had recently agreed proposals to develop improved outcomes from employee surveys, and in particular to obtain more consistent data across the civil service. Proposals for conducting the 2007 should therefore not be seen as creating a precedent for future surveys of Executive staff;
(b) Proposals to include eligible staff within COPFS were sensible since data would be collected in a separate report and would not feature in the Executive's corporate report;
(c) Given that responses from employment agency staff surveyed in 2006 had not highlighted any significant differences from permanent staff, other than on issues which the Executive had not control such as the nature of temporary contracts and employment law, there appeared little value in including temporary staff in the 2007 survey;
(d) In considering the respective roles of directors general and directors in continuing to follow up actions from the 2006 survey and from the 2007 survey, care was needed to ensure that individual DGs were engaged in issues where there was read across a number of relevant directorates and that the Board should have responsibility for addressing a small number of top level organisation wide actions of strategic importance;
(e) Reports from the survey would be available at directorate level and attitudes to senior managers would be relevant in the context of pay settlements for senior staff and Agency chief executives;
(f) It would be helpful, if time allowed, to be able to consult directors on the nature of the survey. In particular, clarity was needed about coverage of the survey in relation to Agencies. In considering coverage it would be important to distinguish between staff that were managed by the Executive (such as some Agencies and included in the survey) and those not managed by the Executive (such as NDPBs and not included). Although it was important to remember that Agency staff received a distinct survey tailored to their particular circumstances; and
(g) Consideration was needed about whether the survey would adequately collect information about staff views about the new ways of working and organisational structure including the Board itself particularly among C Band and SCS staff.
6. The Board agreed that:
(a) COPFS should be included in the 2007 survey but that employment agency staff should not be included;
(b) Should Directors General wish consult directors about the nature of the survey that they should do so and ensure that any further issues are identified for consideration by the Board by the end of July;
(c) Directors General would be responsible for taking outstanding actions from the 2006 survey and new actions from the 2007 survey which were relevant across their family of directorates, other actions should be delegated to individual directors. The Board would be responsible for identifying and driving forward a few high level actions of strategic importance;
(d) The revised questions from the 2006 survey were appropriate subject to further consideration being given to the point recorded at paragraph 5(g) above (Action: Ginny Gardner and Permanent Secretary);
(e) A list of Agencies included in the 2006 survey should be circulated (Action: Ginny Gardner). Any proposed additions or deletions to coverage of the survey must be brought back to the Board for agreement.
Agenda Item 5: Forth Crossing Peer Review (SB(07)32)
The record of the discussion under this agenda item is considered exempt from publication at this time and has been redacted.
Agenda Item 6: Finance Update (Oral update)
7. The Finance Director updated the Board on a number of finance issues. Ms Stafford said that that work previously discussed by the Board on accountabilities and governance was progressing well. Work to develop a formal scheme of delegation work would be brought back to the Board on Thursday, 9 August. The proposals were presently being road tested by colleagues including Corporate learning Services in relation to Professional Skills for Government.
8. There were 4 finance projects underway as part of the transition programme: recasting programme budgets for the new organisational landscape; recasting administration budgets to reflect the new structure; Monitoring and reporting; and re-designing the "sub-structure"/chart of accounts in preparation for new SR entries from April 2008. Ms Stafford said that the first quarter position on budget monitoring and forecasting 2007-08 would be considered by the Board on Thursday, 9 August. In the meantime, Directors General were being asked to scrutinise forecasts to ensure that any of the new administrations 100 day commitments which were to be absorbed in this year were taken into account. It would also be important to continue to focus on monitoring capital expenditure. It would be helpful if Directors General were to encourage relevant directors to make attendance at departmental audit committees in relation to approval of the annual accounts and other finance related meetings to ensure compliance with best practice and the assurance process. Some short term realignment of finance teams was planned as part of the transition programme and Ms Stafford would bring back to the Board any significant longer term proposals for discussion. The Board noted the update from the Finance Director.
Agenda Item 6: Programme Boards (Paper SB(07)35)
9. Bill Bound introduced paper SB(07)35 which invited the Board to comment on and agree a draft competency profile for non-executive directors in light of its decisions about the role and operation of Programme Boards being established to support delivery of the strategic objectives. Professor Bound said that the draft profile had been prepared in consultation with the existing non executive network and it would be helpful for Directors General to consider whether it properly reflected the support and challenge role needed for Programme Boards. Paragraph 4 of the paper proposed next steps for assessing current non executive directors against the competency profile and for holding an external competition as necessary to supplement the current pool. The discussion was also intended as an opportunity for the Board to consider the operation of Programme Boards more generally.
10. In discussion the following points were made:
(a) Consideration was needed about where monitoring and scrutiny of finance should sit within the new structure;
(b) Although some standardisation was required to ensure consistency of reporting to the Board and to Cabinet, Directors General should have scope to design the operation of Programme Boards in a way that reflected the particular circumstances of each strategic objective;
(c) External communication should focus on the outcomes achieved as a result of each programme Board's work rather than structures, however it would be important to be able to communicate internally how Programme Boards related to the wider organisational structure;
(d) The competency profile was appropriate subject to making clearer the role in supporting Directors General personally. It would also be helpful to clarify the distinction between Programme Boards and running the business in DG families and to clarify the involvement of non executive directors in relation to both; and
(e) Further clarity was needed about the distinction between the non executive role in providing challenge and assurance and subject specific external advisors.
11. The Board agreed:
(a) The competency profile subject to drawing out more explicitly the role of the non executive director in supporting Directors General as critical friend and the proposed next steps in paragraph 4 of the paper;
(b) That Bill Bound and the Permanent Secretary should discuss points raised in discussion about the distinction between the role of non executive directors in relation to assurance and subject specific advisers (Action: Permanent Secretary and Bill Bound);
(c) Directors General should agree the remit, scope and ways of working for their programme boards and that that no further central guidance was required; and
(d) That some standardisation was needed around reporting information to the Board and to Cabinet and that Paul Gray and Alyson Stafford should work up proposals for consideration by the Board in August (Action: Paul Gray, Alyson Stafford and the secretariat).
Agenda Item 6: Freedom of Information Handling (Paper SB(07)34)
12. This item was deferred to a future meeting.
Any Other Business
13. There was no other business.
Date of Next Meeting
14. Thursday, 9 August at 8.30am.
Cabinet and Corporate Business Secretariat
July 2007