1. Portfolio/Number/Name:ELL/C1 - Scottish Enterprise
Savings |
2. Programme/Activity: Please
include a short description The Business Transformation (BT)
Programme is in the final year of a
six-year project which has changed many
aspects of SEn practices and procedures to
ensure the organisation is more efficient,
effective and customer focused. It is
anticipated that 'business as usual'
activities will secure delivery of the
savings. |
3. Planned Savings | | 2005-06 | 2006-07 | 2007-08 |
Cash (m) | 5.3 | 5.3 | 5.3 |
Time Releasing (m) | 0 | 0 | 0 |
4. Accountable Officer for
delivery | Eddie Frizzell |
5. Project Manager | Douglas Baird |
6. EGDG account manager | Gillian Woolman |
7. Quality Impact | Describe any impact on the quality
of service delivery. Be specific and
explain if the expectation is positive,
negative or neutral. We anticipate a neutral impact on the
quality of service delivery. |
8. Dependencies | Explain if your savings are
dependant on legislation or other
structural changes being achieved. Savings are independent of legislation or
other structural changes. |
9. Description of efficiency and
actions to be taken | 9.1 How will the saving be made? Be
specific about number/size of contracts,
staff, posts dates etc. Savings will be delivered through a
series of solutions from the Business
Transformation (BT) programme. Now entering
the final stage of the programme, most of
the decisions and actions have been taken
and savings based on those 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 these
respective areas. For example, by the
establishment of 7 new shared
services. Cost Savings = 4.792M The net savings in costs (other than
those associated with staffing) arising
from the implementation of BT solutions.
For example, by the Network's new approach
to procurement, significant economies of
scale are anticipated thus reducing
costs. |
9.2 What action is critically needed to
secure delivery of this saving? Be specific,
and name the key action managers if they are
outwith your immediate management chain (e.g.
in an NDPB.) Delivery of this saving is dependent on
the actions of key staff in Scottish
Enterprise (SEn). The Accountable Officer
of SEn is responsible for delivering them
and the Senior Director of Finance is
responsible for submitting monitoring
information to ETLLD. |
10. Impact on Staffing to achieve the efficiency
gain | If there are to be any changes in
staff numbers (at activity level) to
achieve the efficiency gain, please
indicate how many full time equivalents and
how far you expect savings to be achieved
by natural wastage (show additions as + and
reductions as -). |
| 2005- 06 | 2006- 07 | 2007- 08 |
+ | | | |
- | | | |
Net | | | |
Explanation | Whilst staff reductions have been
identified above, this has released
establishment posts to other areas of
SEn. |
11. Benefits | In general, the benefits of the
Scottish Executive Efficiency Plan are the
enhanced outputs from the resources
Ministers have been able to allocate in
SR04. But if there is a direct connection
between this efficiency saving and the
enhancement of a particular service please
describe it here. This saving is internal to SEn to able
transfer of resources to areas deemed, by
them, to be of higher priority. There is no
direct connection with any other area of
the SR2004. |
12. Gross/Net Cash Savings | 12.1 Please set out the gross recurring
saving and any offsetting recurring
expenditure. 5.3m is the recurring saving to be
released at this last stage of the BT
programme. |
12.2 Against what budget does this
expenditure and saving fall? As noted at 9.1 above, Headcount
savings are against Management and
Administration 515k, whereas Cost Savings
of 4,792k are against both Operational
& Management & Administrative
costs. All these categories relate to SEn.
Within ETLLD this would be monitored
through the funding allocation to SEn. |
12.3 Has this saving been built
into your budget? In respect of SEn, discretionary budget
allocations have taken cognisance of the
profiled savings. |
12.4 If so, what is the maximum allowable
expenditure against the budget data, in each
year, for that saving to be
delivered? In respect of ETLLD, this would be the
funding allocation to SEn. |
12.5 If not, how do you propose to invest
the additional cash back into public
services? N/A |
12.6 What plans do you have to exceed the
required saving? Explain by how much in each
year. (Answer here also if you need to do this
to live within your budget) None |
13. Time - release savings | 13.1 Please explain any time-releasing
savings indicated at question 3. N/A |
13.2 Please describe the method you
plan to use to calculate the cash
equivalent of those time release
savings. N/A |
14. Measurement and
Monitoring | 14.1 How are you proposing to measure the
expected efficiency benefits (e.g. in terms of
costs, level of output or quality of
service)? The forms of measurement are defined in
the SEn BT Benefits Monitoring Framework
(see 14.2) |
14.2 What monitoring & reporting
procedures will be put in place to measure the
efficiency savings (How often will progress
towards the target be monitored? Who will have
lead responsibility for reporting progress and
what procedures will be in place?) The SEn BT Benefits Monitoring
Framework is applied quarterly. Mary
Docherty (SEn) will co-ordinate and manage
the process for all solutions and will
report into the SEn Senior Director of
Finance. The monitoring framework has been
designed to ensure that reporting of actual
benefits achieved is the responsibility of
the respective Executive Board members.
Outputs from the Framework are reported to
the Executive Board and copied to the
Scottish Executive (Enterprise Networks
Division). |
14.3 Monitoring Data: Sources, validation
and risks - What data will be used to
measure progress? Is all the required
information quantifiable and readily
available? If not what action will be
taken to rectify this?
- What measures will be in place
to validate the accuracy of the data?
Who will take responsibility for this?
- Are there any issues or risks
relating to how you plan to use the data?
(e.g. accuracy, difficulties in
collection)
The savings identified in 2005/06
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. Key inputs to evaluation
are:
1. A review of the key data and
documents, such as Cost/Benefits
information and the Project Definition
Document
2. Responses from interviews with
key project staff
3. Analysis of the results of a staff
survey
- What measures will be in place
to validate the accuracy of the data?
Who will take responsibility for
this?
Each project is reviewed by
SEn's Auditors. Project Evaluation
reports are sent to the relevant
operational heads of departments within
SEn for comment and feed back. The
report is then presented to the BT
Steering Group for final review.
- Are there any issues or risks
relating to how you plan to use the data?
(e.g. accuracy, difficulties in
collection)
No identified risks.
|