19 February 2008

Minutes of the Scottish Enterprise Board: 19 February 2008

Present

Sir John Ward CBE, Chairman

Jack Perry, Chief Executive

Pat Denzler

Barbara Duffner OBE

Fred Hallsworth

Douglas Lamb

Charlie Morrison

Donald MacRae

Colin McClatchie

Sir Timothy O’Shea

Ray Perman

LEC Chairs

Charles Hammond, SE Edinburgh and Lothian

Apologies

Vic Emery, SE Glasgow

In Attendance

Hugh Hall, Chief Financial Officer

Paul Lewis, MD Industries and Policy

John Phillips, Senior Director, People and Organisational Development

Julian Taylor, Research and Policy

Lena Wilson, Chief Operating Officer

Brian Jamieson, SE Secretary

Imelda Molloy, Corporate Office

Iain Scott, Finance and Performance

Andy Downie, Finance Business Support

Stuart Patrick, Commercial Director Designate

Ed Payne, Finance and Planning

1. Introduction

The Chairman welcomed Members to a Strategy Session of the Board and gave a presentation on the re-focusing of SE following the Government Review. SE’s contribution to the delivery of the Government’s economic strategy would be focusing exclusively on the gaps in Scotland’s economic performance.

In a situation of a pipeline of projects with a constrained budget, prioritisation would be critical. The key would be to adopt the right criteria for prioritisation.

Jack Perry confirmed that SE’s activities had to be directed towards these objectives, sharing risk to enhance leverage and aligning with other bodies whose contribution would also be critical.

The transition programme was now permeating the whole organisation and a report on the workstreams had been issued to the Board for this Meeting.

2. Industry demand statements

Paul Lewis presented the objectives for the Priority Industries mapped against the themes of Enterprise, Innovation and Investment.

(Donald MacRae joined the Meeting).

The Board considered the implications for each in turn:

  • Tourism
  • Food and Drink
  • Life Sciences
  • Energy
  • Financial Services
  • Electronic Markets/Enabling Technologies

It was noted that the structure of each industry required a different approach and very different levels of SE funding.

In each case it would be important to identify dependencies on other bodies and have these clearly understood and accepted. The key to the effective use of SE’s resources would be the value added to the Scottish economy. This judgement would feed into the Resource Allocation session.

3. Operations

Terry Currie and Carole McCarthy joined the Meeting for this item.

Lena Wilson outlined the arrangements for the operational delivery to meet Industry demand, including the deployment of Specialist Services.

Carole McCarthy explained the changing landscape with:

  • The transfer of Government programmes to SE.
  • The review of innovation and commercialisation.
  • The overhaul of European advice networks.
  • The emphasis on company building.

The Board would be interested to see:

  • The scheme of delegated authority.
  • The processes which would support company building.

4. Resource prioritisation

Hugh Hall presented the current estimates of budget availability for the next three financial years. The final figures were still dependent on agreed transfer figures.

Based on these estimates, an indicative allocation was proposed. The Board requested:

  • a set of criteria to enable them to assess the choices made between the categories;
  • that the criteria incorporated a judgement on the economic return from the activities within the categories;
  • that responsibility for each line was assigned; and
  • that consideration be given to whether budgets shifted gradually to reflect choices or whether certain activities were terminated.

5. Change management

Hugh Hall reported on the Transition Teams’ activities as outlined in the issued papers.

John Phillips reported on progress in the staff restructuring which was scheduled to complete by 29 February and on staffing and reward issues going forward.

The Board was updated on the premises review and agreed that decisions should be driven by what was appropriate for SE’s customer – the business base.

Lena Wilson reported further on the governance of SDI. It was confirmed that the Audit Committee would keep this under review.

Brian Jamieson
SE Secretary
February 2008