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Enterprise & Skills Review Update

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Fiona Wright

on 15 August 2016

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Transcript of Enterprise & Skills Review Update

Enterprise & Skills
Progress to Date

Communications & Engagement
Colleague and Board comms providing updates
Trade union engagement
Work with key partners and stakeholders – importance of consistency of message
Requests for information / meeting attendance co-ordinated and supported by Corporate Affairs

Terms of reference
Achieving the Government’s ambition as set out in Scotland’s Economic Strategy and National Performance Framework
so that our outcomes in respect of innovation, investment (including human capital) and internationalisation lead to a step change in our economic performance and a more productive and inclusive economy.
Ensuring our economic and skills interventions are shaped by users’ needs
, and the opportunities users can create as a result of these interventions; the review will address the requirements of an open, modern, and advanced economy; including the diverse range of opportunities and challenges in Scotland, and how local and regional approaches (that build on national and local assets and relationships) can best exploit and tackle them.

Ensuring that delivery continuously reflects best practice
in terms of achieving effective outcomes, driving improvement and optimising public value in the delivery, efficacy and effectiveness of our interventions. That it is flexible and fits with the evolving fiscal and regulatory landscape of enhanced devolution;

Review terms of reference - a reminder
Review programme structure; membership and remits
Progress to date
Key issues & opportunities
Key messages
Enterprise & Skills
Review Update

Enterprise & Skills
August 2016
SG Review Programme Structure
The review and recommendations will focus on achieving three main aims:
Review Group

Chair Cabinet Secretary Keith Brown & Independent Members
Chair & CEOs
2x meetings with Cabinet
Weekly agency & SG
programme meetings –
represented by Kirsteen
Expert Evidence Group
SG & agency partners;
SDS represented by Gordon
Senior Working Group
SG officials & agency membership; SDS represented by Kirsteen
SG Review Programme Structure
Crawford Beveridge - CEA
Frances Ruane – CEA
Ian Walker - Johnson & Johnson
Stephen Boyle - Chief Economist RBS
Lynne Cadenhead - Bio ID Security
Ross Martin – SCDI
Liz Cameron - Chambers of Commerce
Susan Love – FSB
Grahame Smith – STUC
Hugh Hall - Chair, Colleges Scotland
Andrea Nolan - Convener-elect, Universities Scotland
Vonnie Sandlan - NUS Scotland President
Councillor Stephen Hagan – COSLA Spokesperson
Development, Economy and Sustainability
Mhairi Harrington - Principal, West Lothian College
Professor Sir Ian Diamond - Principal, Aberdeen University
Suzanne Burns – HR Director, STV; Board member
DYW National Employer Group
Jim Duffy - Entrepreneurial Spark
Weekly agency & SG
programme meetings –
represented by Kirsteen
Expert Evidence Group
SG & agency partners
SG officials & agency
Review Group

Chair Cabinet Secretary Keith Brown & Independent Members
Senior Working Group
SG Review Programme Structure
Mary McAllan, Director of Economic Growth
Aileen McKechnie, Director of Advanced Learning and Science
Gary Gillespie, Chief Economic Adviser
Dominic Munro, Director for Fair Work, Employability and Skills
Kirsteen Campbell, Director Corporate Services SDS
Linda Hanna, MD Strategy & Sectors SE
John Kemp, acting CEO SFC
Charlotte Wright, acting CEO HIE
Weekly agency & SG
programme meetings –
represented by Kirsteen
Expert Evidence Group
SG & agency partners
SG officials & agency
Review Group

Chair Cabinet Secretary Keith Brown & Independent Members
Senior Working Group
SG Review Programme Structure
Gary Gillespie - Chief Economic Adviser, Scottish Government (Chair)
Mary McAllan - Director of Economic Growth, Scottish Government
Aileen McKechnie - Director of Advanced Learning and Science, Scottish Government
Kenny Richmond – Economics Director, Scottish Enterprise
Alastair Nicolson - Head of Planning and Partnerships, Highlands and islands Enterprise
Gordon McGuinness - Director of Industries & Enterprise SDS
Martin Fairbairn - Chief Operating Officer & Deputy Chief Exec, Scottish Funding Council
Robin Presswood - Head of Economy, Planning and Employability, Fife Council
Richard Cairns - Strategic Director, Regeneration, Environment and Growth, West Dunbartonshire Council
David McPhee - Office of the Chief Economic Adviser, Scottish Government
Weekly agency & SG
programme meetings –
represented by Kirsteen
Expert Evidence Group
SG & agency partners
SG officials & agency
Review Group

Chair Cabinet Secretary Keith Brown & Independent Members
Senior Working Group
Key Issues &
Unknown degree of possible change

Unknown degree of SDS influence on review outcome

Process rapid and iterative

Duration of the review could lead to uncertainty for colleagues

‘Anecdote’ versus ‘evidence’ – evidence base key

Importance of consistency of message and engagement with partners and stakeholders

Opportunity for SDS to demonstrate clear progress, our record of delivery/what’s working well and ambitions for shaping the future

Key Messages
What's working well?
Focus from the outset on  building new models of public service delivery with a decisive move away from
‘push delivery models’ to ‘pull delivery models’

Early investment in
service design
..... ensuring that we build upon and develop the capacity of the
to play an active role in service fulfillment within future delivery models

systems thinking
approach ensures that we take a strategic approach and look to cause/effect....and thereby achieve sustainable change & improvement (reduce friction in the system; reduce duplication in the system)

Our drive for
aggregation and the development of economies of scale
around back office functions such as ICT shared services

Our ambitions for a
triple return on investment
efficiency gains
improved outcomes
net contributor to Scottish economy – new levels of positive impacts.

The combined effects are
and offer scope for
increased productivity
alongside real and sustainable
efficiency gains

What's working well?
Shaping the future

We will be ambitious to simplify the learner and employee journey

We will do even more to make explicit the inextricable ties between education, choosing a career and getting a job. We will to continue to focus on these early year interventions as part of a whole systems approach.

We will be ambitious in seeking to develop approaches that go beyond current practices of engagement and attachment of individuals with complex needs towards reducing the barriers to their meaningful engagement in the labour market.
We will look to build greater levels of resilience into our workforce so that we can more effectively respond to the every increasing cycles of sector and economic turbulence

Shaping the future

We will be ambitious for a responsive, outcome focused skills system where demand has direct influence over provision

We will redouble and align our efforts so that our collective focus is on jobs and the skills needs of the Scottish economy, industries and employers - the Skills Planning Model will provide a unifying strategy for future skills and employment strategies.
We will build deeper insights into the dimensions of change and seek to understand how future work and working practices may evolve in Scotland

We will be strong proponents of the benefits of data sharing
We will be ambitious for a balanced system attuned to local, regional and national needs; one that includes work based pathways; Sector responsive academies; Co-investment with employers


Scotland’s performance – in terms of palma ratio, Scotland would rank 19th out of OECD countries for income inequality; Majority of adults in poverty in Scotland are now in in-work poverty

On productivity, Scotland is ranked 19th out of OECD countries when measured by GDP per hour worked (third quartile), with pronounced regional differences

In every member OECD country where average wages are above UK levels, productivity is also higher; If weak productivity growth continues, concern this will hamper wage growth and international competitiveness

Regional and local variances – number of areas face likelihood of low levels of employment growth and possibility of population loss and an increase in predominance of low income household; Attainment / achievement gap – most and least deprived areas of Scotland

Graduates in non graduate jobs; 2014 highest percentage of population with tertiary education in European countries – recent evidence of graduates in no graduates jobs and graduate wage premium erosion

Skills shortages and skills gaps persist – likely to be a permanent feature of Scottish labour market, particularly where experienced labour is required, and along with underemployment and utilisation of skills

Complexity of system combined with spending restraint and concerns over skills base – negative outlook for economy and well being of people


Globalisation, technology and automation, societal change (demographic and attitudinal - ageing population and challenge of replacing experienced labour; work/life balance)

Nature of employment changing – new and different skills needs ‘hour glass economy’ – high skilled/high paid and low skilled/low paid ‘hollowing out’; Employment patterns and zero hours will make improving productivity a challenging task

Thoughts & Feedback?
Review Programme

Review group inaugural met August 12 with two planned (August 17 and 31)
Cabinet Secretary met with Chair July 20; future meeting planned for end August
Expert Evidence Group met July 27
Weekly agency/SG programme meetings
Senior Working Group inaugural meeting with agencies August 17
Call for Evidence
Issued by SG July 15 to a wider variety of stakeholders
Workshops being held with service users early August (SDS contributed to invitees)
Consultation period will close August 15
SDS is preparing a submission
Full transcript