Scotland's National Strategy for Economic Transformation - Delivery Plans October 2022

Programme 6: A Culture of Delivery

Outcomes & Objectives

The task of transforming our economy requires an equally radical transformation in the way we deliver results through the first five programmes.

Our sixth programme, Programme 6: A New Culture of Delivery, sets out the steps we need to take, the structures we need to put in place, and the landscape we need to build to ensure we successfully deliver NSET.

It makes sure that the five policy programmes of action set out in NSET are joined up. It is also key in transforming the way in which the public sector, business and wider civic Scotland listen to, support and work with each other including ensuring that we flex and adapt our Programmes to respond to the economic challenges we face.

Being clear about what we want to achieve and holding ourselves accountable against that is an essential component too, and Programme 6 establishes the metrics and mechanisms to allow us to track and monitor transformation and enable us to continually improve our collective impact.

Projects

Programme 6 will be delivered via three specific projects:

Project 16: Strengthen Accountability and Transparency will lay the groundwork for a culture of delivery and accountability by sharing objectives and clearly allocating responsibilities across all sectors. The new, robust governance structures will increase transparency and enable the Delivery Board and Economic Leadership Group to hold delivery partners across Scotland to account. Where possible, and within the powers that are available to us, multi-year budgets will provide greater certainty and planning confidence for business and delivery partners. The best available data will allow our Delivery Board to take evidence-based decisions, respond in an agile manner and prioritise with confidence, which is particularly important during the current cost crisis.

Project 17: Transform the Way We Provide Support will change the way in which the public sector in Scotland provides support for businesses and provide greater clarity on the support they can expect at a local, regional, national and international level; our strategic guidance to the agencies will ensure that their activity is framed by and consistent with the priorities set out in NSET and that they play their part in its delivery; and we will work collaboratively across sectors to consider how regulation can be used to support economic and societal aims more efficiently and effectively. Throughout this transformation we anticipate working closely with business leaders and organisations to co-produce a robust and effective business support landscape. We aim to build on the work of the Business Support Partnership, which already exists to drive forward change and brings together representatives from the Scottish Government, Scottish Local Government, Scotland's Enterprise and Skills Agencies, and other public bodies with a key role in supporting the economy, such as Skills Development Scotland, Creative Scotland and VisitScotland. By establishing a Centre of Expertise in Equality and Human Rights within the Scottish Government we will also advance our understanding and embed equality and human rights within the economic policy-making process.

Project 18: Measure Success will capture the impact of NSET activity. To support increased accountability, we will publish annual progress reports and ensure a consistent approach to evaluation that will then drive coherent and informed improvements and spending decisions. In line with our commitment to a wealthier, greener and fairer Scotland, our Wellbeing Economy Monitor will ensure we look beyond traditional economic metrics and maintain a delivery focus on driving our recovery to meet climate and nature targets, while ensuring we maximise and share the benefits fairly as part of a just transition, and improve collective wellbeing.

Together, these three projects will provide the structure, accountability, support and data that 'Team Scotland' needs to successfully deliver economic transformation.

Measurement

The NSET Analytical Unit has worked with analytical colleagues, policy and programme leads to identify and agree suitable metrics at levels appropriate to (1) articulate delivery against the overall vision for NSET; (2) track the wider economic context and nuance of delivery; (3) understand whether the NSET actions are being delivered.

A set of high level 'success measures' has been proposed to the Delivery Board:

Alongside regular reporting on progress against delivery by the programmes we are committed to publishing an annual report on progress. The precise format of this will be agreed with the Delivery Board but its component parts will

be drawn from other elements of performance reporting and should be part of a 'framework' or suite of activity which helps the Board understand progress towards delivering NSET.

The approach will include:

• 1. Programme performance and accountability reporting to tell the Board whether activity is being delivered.
• 2. Use of logic models to described how this activity is expected to contribute to Outcomes and Impacts.
• 3. Use of economic context indicators to tell the Board how Scotland is faring with respect to Outcomes and Impacts (the 'success measures'). In the short term movement in these indicators may not be attributable to NSET activity but can track if we are moving in the right direction.
• 4. In time, we will undertake the evaluation work needed to measure the effects of Inputs on Impacts and answer more detailed questions about the impact, or not, of different actions.

Reporting progress to the Board will use standardised reporting of programme performance drawn from the programmes; regular 'deep dives' to explore emerging issues or particular programmes in more depth; and, annual reporting which ties these outputs together to present a compelling, credible narrative of progress against the strategy.

In addition, and in order to understand the impact on users of Project 17 and wider improvements to a culture of delivery, we will work with delivery partners to consider how to incorporate new and existing information covering user feedback on system improvements and support for business in Scotland. This work will include the utilisation of a master customer record across public agencies, providing a real time opportunity to compile effective feedback and data or analytics. Internally, the Centre of Expertise will build knowledge and understanding among policy officials to support the shaping of policies that maximise positive impacts of NSET projects on people with protected characteristics. Periodic surveys will measure the impact over time of the Centre's work on economic policy officials' self-assessment of their level of knowledge and confidence in relation to equality and human rights.

NSET Phase: Delivered by 31 October 2022

Project 16:

Since NSET's publication we have moved swiftly to establish the fundamental frameworks and governance structures that will support successful delivery from the start.

• We have set up a National Strategy for Economic Transformation (NSET) Delivery Board and the Board members were announced on 24 May. Co-chaired by the Cabinet Secretary for Finance and Economy and Barry White, it challenges and adapts any aspects within the identified NSET programmes that do not deliver on the ambitions of the national strategy. The Board met for the first time on 8 June and continues to meet bi-monthly. The Board also receives the most recent economic data to support its work in prioritising NSET workstreams during economic crises.
• We published our first Resource Spending Review in May, including the parameters for resource spend up to 2026-27.
• This supports the development of budget plans at directorate, agency and public body level and supports efforts to monitor and track spending performance.
• We have worked with stakeholders to develop and refine the accountability frameworks and metrics for success, and they are published alongside this plan.

This progress means that strategic oversight and accountability frameworks are already in place, setting the direction, making strategic connections across the system and providing transparency.

Project 17:

Since the start of the pandemic, the Scottish Government has provided over £4.7 billion of financial support to businesses to help mitigate the economic impact of COVID-19. We now have an opportunity to apply the lessons we have learned during the unprecedented challenges of the pandemic to a programme of improvement work that aims to radically transform the way the public sector provides support for workers and businesses. The UK currently faces a rapidly escalating emergency that goes beyond simply the cost of living and is now a more general cost of everything crisis – an emergency on a similar scale to the COVID-19 pandemic. While many of the powers and resources needed to tackle this emergency on the scale required lie with the UK Government, we will continue to do everything within our resources and powers to help those most affected.

• We are committed to working with the business community to develop this – and how we work with business to respond to crises will be a key test of the successful delivery of NSET.
• Scottish SMEs benefit from a variety of support packages including online tools, onsite visits, bespoke energy audits, webinars, information events and advice on funding.
• The Business Support Partnership is actively working with business representative organisations and with Business Energy Scotland to ensure it is as easy as possible for businesses to access advice and support that will help them to navigate the cost crisis.

Since NSET's publication we have begun reviewing the business support and regulatory landscape in order to better inform our transformation and how this can be improved to meet our economic and societal aims for the longer term. The cost crisis brings some of this work into sharper focus.

• In the Spring we issued strategic guidance to our Enterprise and Skills Agency partners that aligns with the priorities and programmes of action set out in this strategy. This guidance underlined the key role the agencies have in delivering NSET and has guided their business and budget planning activity.
• We have been engaging with the Business Support Partnership to explore opportunities to collaborate on the commitments set out in Project 17 whilst building on the work of the Business Support Partnership to deliver meaningful change.
• The Business Support Partnership has agreed a 5 year delivery plan to transform the way in which support is provided to Business in Scotland, with a particular focus on implementing an overall target operating model; better use of data and analytics through introduction of a master customer record; products and services which are formed against a 'design once for Scotland' approach; and ensuring that public representatives who support business in Scotland have skills to reflect the changing needs of our economy.
• We have worked with SCDI to develop and issue an initial survey of their members
• to determine experiences and opinions of regulation development and implementation processes.
• Building on engagement structures developed in response to the COVID-19 pandemic, we have begun engaging with regulators on what they would like to see from future engagement.
• We have committed to consider urgently options within our powers for regulatory action to limit increases and reduce costs for businesses.
• Scottish Government officials and Ministers have engaged with business organisations to identify regulations causing significant cost concerns.
• Officials have worked across government to identify existing and upcoming regulation that may result in additional costs for businesses and any potential mitigations.
• Any changes to planned regulations are complex, with wide-ranging implications, and while reducing burden is key at this time, many of these regulations have important environmental and social aims which cannot be delayed, or indeed bring economic opportunities for sections of the business community.
• We are committed to continuing to work with business on upcoming regulatory requirements to understand any actions that can be taken to mitigate costs or support implementation while still meeting wider aims of regulations.
• Scotland's approach has always been about better regulation not deregulation, recognising the enabling and safeguarding role regulation has, and focuses on adopting 5 key principles of regulation (transparent, proportionate, consistent, accountable and only where needed), encouraging a risk-based, facilitating approach by regulators.
• Following engagement with stakeholders, the establishment of a Centre of Expertise in Equality and Human Rights (the Centre) within the Scottish Government was publically announced on 9 May 2022. The Centre aims to support the continuous building of capacity, knowledge and skills on equality and human rights among policy officials. An internal policy network to provide peer-to-peer support and share good practice has been established, and a foundation training session for economic policy officials has been held.

Project 18:

Alongside establishing these building blocks we have also developed our monitoring and reporting mechanisms for measuring NSET's impact.

• These plans are the result of careful planning and prioritisation and set out clearly: what we have achieved; what and when is being delivered in the near future; and what activity is at the planning and design phase. The plans also show clear alignment with other cross- governmental priorities such as the Tackling Child Poverty Delivery Plan.
• In June, we released the first phase of our Wellbeing Economy Monitor, with monitoring information currently available at national level. This information will help inform policy decisions to reduce Scotland's vulnerability to future financial and environmental shocks, helping build a more prosperous, resilient, equal and sustainable economy.

This progress means that we have the systems in place to deliver NSET effectively.

NSET Phase: In Delivery

Project 16:

Further work has begun on the longer term governance process and will be realised in this financial year.

• We are in the process of finalising the membership of the Scottish Government Economic Leadership Group, which will be chaired by the First Minister and meet on a biannual basis.
• Following each meeting of the Delivery Board, we will publish the minutes and we will also publish the annual progress report each Spring to enhance public accountability and be transparent on the progress we are making.
• To ensure that the Delivery Board has the best available data, we will work with delivery partners and stakeholders to bring forward key evidence which will complement the NSET metrics of success.
• We are also establishing a shared data priorities network with public sector, academia, third sector and business.
• Throughout NSET's delivery we will continuously monitor and track spending performance through the Resource Spending Review period to ensure maximum efficiency and effective use of funding.
• We will also allocate on a regular basis the detailed budgets necessary to deliver NSET so that business and delivery partners have greater certainty and that industry can develop complementary programmes in support of their actions.

Project 17:

Work is underway to prepare the platforms for change on which to build our radical and transformational support programmes.

• We have recently completed our assessment report on progress to date and current approaches to data sets, which will inform the agreed approach as part of the revised Target Operating Model for Business Support in Scotland. This approach will be finalised by the end of the year, and the common business identifier that will be used by every delivery partner introduced starting from Spring 2023.
• We launched a CivTech challenge in June 2022 which invited proposals on how we could use data about businesses to transform the design, delivery and evaluation of business support services across Scotland's public sector.
• We are working with businesses, regulators and wider civil society representatives to consider the impacts of existing regulation and the approach to using regulation in Scotland.
• This engagement will consider the reform of the Scottish Government Regulatory Review Group.
• We will undertake a formal consultation on the reform of the process of regulation, including business regulatory impact assessments and the Scottish regulators' strategic code of practice, which we aim to complete by the end of the year.
• Working with businesses, stakeholders and regulators, we will establish how regulatory reform would help deliver sustained productivity and innovation increases across sectors, and identify regulatory changes.
• We are also building a Regulation Toolkit that will support government officials and regulators in best practice and process for reviewing existing regulation and for the development of new regulation.

This work is creating a stronger, more effective relationship with regulators who are expected to monitor and enforce regulations, ensuring that the Scottish Government considers the impact on regulators of imposing additional responsibilities, and that we showcase the positive outcomes that can be achieved from regulation in particular on public health and the environment.

Project 18:

Our monitoring work is progressing across all levels.

• A second phase of the Wellbeing Economy Monitor is being developed to support local authorities to analyse wellbeing outcomes and economic drivers in their areas. We are consulting with stakeholders to refine the local indicators and make sure the local iteration fully meets the end users' needs. We expect to launch this next development at the end of the year.
• Also towards the end of the year we will provide an update to the data provided at the national level to ensure that it remains current.
• We are mapping current and planned evaluation activity across all NSET programmes to ensure that we are best able to assess impact at programme level and inform decisions on priorities.
• Alongside this we will undertake logic modelling and outcome mapping to ensure that we can credibly tell a narrative ('from left to right') across the programme—i.e. project activity X can demonstrably contribute to outcome Y—consistent with the approach requested by the Delivery Executive to show evidence of delivery against outcomes.
• This work will also inform a common set of guidance and principles on evaluation drawing on recognised good practice. We are working closely with our delivery partners on this to ensure that our collective analytical work is coordinated, impactful and efficient.
• We are in the process of carrying out the initial impact assessment reviews and then will complete the subsequent necessary impact assessments at the appropriate levels across this programme. These will be published as soon after the respective completion dates as is possible.
• Each Programme plan is accompanied by an Equality Impact Assessment (EQIA) and we have also completed an EQIA for NSET as a whole.

These workstreams mean that by Spring 2023 we anticipate having a consistent and sustainable approach to evaluation across all NSET programmes and delivery agents.

NSET Phase: Delivery Pending

Project 16:

Having established the platform for change and the robust structures and procedures to support successful and transparent delivery, we will move to longer-term implementation and a process of continuous improvement.

• We will continue to review and maintain our governance procedures, budgetary processes and reporting structures to ensure they remain fit for purpose and meet the needs of the economic landscape throughout NSET's delivery period.

Project 17:

Once the initial phase of our review work has completed, we will use it to inform deeper research. We aim for this to include:

• Wider survey of business organisations, experiences and opinions.
• Follow up workshops with businesses.
• Building on the engagement with regulators, we will look to develop a regulatory forum to allow Scottish Government and regulators to share information and work programmes. This will help ensure that regulatory action is aligned and best practice can be shared.
• Pulling together the feedback from stakeholders and the outcomes of the review, we will work with Scottish Government colleagues and other partners to embed improvements to the process of developing and implementing regulations to enable appropriate and judicious engagement with business and regulators so that future regulations better meet the overall societal, environmental, and economic aims of the Scottish Government.
• The Centre of Expertise will hold thematic sessions with external partners to explore in more depth how the implementation of NSET programmes and projects can help address structural inequalities in our economy and advance equality and human rights. The first session is expected to take place in Autumn- Winter 2022-23. We will also explore options for an academic partnership to bring insight and expertise in gender economics to policy making.
• We are also consulting stakeholders regarding the impact of forthcoming regulations on Scottish businesses with a view to easing the regulatory cost to them where possible.

Project 18:

As our structures mature we will work to ensure they remain responsive.

• Our ambition and intention for the Wellbeing Economy Monitor is to build on the work already underway and convert the initial report into an interactive tool reflecting the national, regional and local levels.
• Similarly, we will continually review and manage our approach to evaluation so that it remains appropriate and proportionate whilst empowering the Delivery Board, policy officials and delivery partners to prioritise and respond in an agile manner throughout NSET's lifespan.

NSET Phase: In Development

Our ambition is for economic transformation and the necessary radical change to effect this will take longer to realise. In order to fully scope, assess, design and implement the change programmes necessary to meet this ambition we

will need to undertake careful research and design work in the coming months.

Development underway Project 17:

• Building on the excellent work already undertaken by the Business Support Partnership, we aim to develop a revised Target Operating Model, originally developed by the Business Support Partnership, for business support in Scotland. Our collaborative approach will enable us to respond to the needs of businesses through co-production and a systematic approach to service design.
• We aim to use the outcomes of the regulatory reform project to support the broader NSET themes, for example identifying what regulatory reform on process and content may best support Scotland in becoming 'a magnet for inward investment and global private capital' and stimulating entrepreneurship in new market opportunities.

Development to begin Project 17:

• We aim to explore digital opportunities to enhance support available for businesses, such as the introduction of a common business identifier and common access channels as part of our revised Target Operating Model.
• We aim to review international best practice of how regulation can be used to support economic and societal aims. We will look to build this best practice into the Scottish Government's approach where appropriate.
• We will develop a programme of training on equality and human rights for economic policy officials based on feedback from the foundation training sessions to identify specific further needs.

Working with Stakeholders & Partners

Who are we relying on for delivery of the programme?

• Members of the NSET Delivery Board.
• Represented through membership of the Portfolio Board: SOLACE and Enterprise and Skills Agencies.
• Represented through the Economic Leadership Board: COSLA.
• We are partnering with SCDI to develop our approaches to engaging with businesses.
• The Business Support Partnership is led collaboratively by Enterprise Agencies, local government and public bodies.
• The Centre of Expertise will be working with the Enterprise Agencies, equality and human rights stakeholders and academic experts.

Who are we involving and how (partners/stakeholders)?

• We have consulted with numerous stakeholders throughout the design and development of the Wellbeing Economy Monitor, including WEAll Scotland, Carnegie UK and academics from the University of Glasgow, who have informed and helped shape our indicator selection.
• We are working closely with leading business services providers to ensure NSET meets industry standard best practice in programme and portfolio management.
• We are engaging with businesses, principally through the business organisations and sector teams. We will also look to engage with the business sector and other stakeholders through the reformed Regulatory Review Group.
• We will engage with regulators from Scotland and other parts of the UK, initially through existing relationships such as those developed in response to the COVID-19 pandemic.
• In the service of Scotland commits the Scottish Government to actively involving users in the design, development and delivery of policies and services. As we transform the services that offer support to Scotland's business community, it will be essential to involve businesses and business representative organisations at every level of this work.
• We have discussed the Centre of Expertise with a range of equality and human rights stakeholders and academic experts to inform its structure, including with Inclusion Scotland and the Poverty and Inequality Commission, Close the Gap and the Enterprise Agencies.

Who and where will benefit (people, places and sectors)?

• The reform of the processes to design and implement regulations have the potential to benefit the public as a whole as well as businesses across all sectors in Scotland. It should also help ensure that regulators are better able to identify Scottish Government priorities and deliver against the responsibilities set on them.
• The transformation of the provision of business support would benefit current and potential businesses in Scotland in all sectors of the economy.
• The Centre of Expertise is expected to have particular benefits for people with protected characteristics across Scotland as economic policy officials increase in knowledge and understanding of equality and human rights issues.

Governance

Projects 16 and 18 will report directly to the NSET Portfolio Board and subsequently the NSET Delivery Board. The NSET Portfolio Board is chaired by DG Economy, the Accountable Officer for NSET, and includes representatives from key delivery partners across the public sector, including local government. Its role is to ensure programmes are on track, make cross-portfolio connections and resolve issues before progress is reported to the NSET Delivery Board. This board met for the first time on 25 May and meets 2 weeks in advance of the NSET Delivery Board.

Project 17 will report to Ministers as necessary on its work as it develops, including reports and output that will be provided alongside the timetables. Where major decisions are required, these will be submitted to Ministers. We are currently considering the most appropriate and proportionate governance model to provide assurance and oversight but are clear that the Business Support Partnership (including representation from COSLA) will have a key role to play.

As part of the new delivery culture, Programme 6 has also established a new Portfolio Management Office (PMO) with a remit to work with the PMO champions across all NSET programmes in establishing and managing a new set of project management standards and practices to ensure the delivery of NSET. The newly established PMO will also support the main governance arrangements for NSET, including the Economic Leadership Group, NSET Delivery Board and NSET Portfolio Board with high quality assurance documentation with detail from across all programmes to enable monitoring and scrutiny of the delivery of NSET.

Delivery phased timeline

This timeline provides the pipeline of activity and planned milestones as it stands. As budgets become clearer and time progresses other projects and milestones will be added and timelines updated.

Phase 01: What we have delivered to date

Mar-May 2022

NSET Strategic Guidance provided to Enterprise and Skills Agencies

May 2022

Establishment of a Centre of Expertise in Equality and Human Rights

May 2022

Delivery Board Members announced

May 2022

Resource Spending Review published

Jul 2022

Delivery Board approval of NSET Measures of Success

Jul 2022

Wellbeing Economy Monitor released

Oct 2022

NSET Delivery Plans published

Phase 02: What we are already doing

Nov 2022

Workshops with business on wider regulation survey

Feb 2023

Centre of Expertise thematic sessions year 1 complete

Apr 2023

Map current and planned evaluation activity across NSET complete

Jun 2023

Programme of training on equality and human rights launched

Nov 2023

Service management approach to business support launched with rationalised range of products

Phase 03: What we are planning to deliver

Feb 2024

Establish a network with public sector, academia, third sector and businesses to share data priorities

Feb 2024

Centre of Expertise thematic sessions year 2 complete