Download Our Contribution to Scotland`s National Performance Framework

Measuring our Performance
Our Contribution to Scotland’s National Performance Framework
This document highlights the contribution that Scottish Enterprise makes to the Government
Economic Strategy and the national outcomes and purpose targets of the National Performance
Framework.
The National Performance Framework was set up in 2007 to track the progress of the Government
Economic Strategy, aligning Scotland's public sector organisations against the Strategy’s long-term
overarching Purpose and set of National Outcomes. This reflected the central goal of delivering
faster, sustainable economic growth, with a long-term aspiration of delivering a more prosperous
and fairer Scotland. As with the Government Economic Strategy, the Framework was refreshed in
2011. The results of performance against the Framework are published on the Scotland Performs
website*.
The Framework provides a platform for engagement with our delivery partners including Local
Government and other public bodies, Higher and Further Education and the Third Sector. It is a key
mechanism for tracking progress against the Government's public service reform programme,
including better integration of services and improved performance.
In formulating our Business Plan, SE has kept the National Performance Framework in our sights, as
we seek to maximise our contribution to the Government Economic Strategy. Given our remit, we
focus on those aspects of the Framework most closely connected to the objective of increasing
economic growth, such as improving the performance of sectors and companies, increasing exports,
raising productivity and supporting Scotland’s transition to a Low-Carbon economy.
Scottish Enterprise makes a direct or indirect contribution to 14 of the 50 National Indicators in the
National Performance Framework:
SE CONTRIBUTION TO NATIONAL PERFORMANCE FRAMEWORK
Indicators where SE makes an indirect
contribution
Indicators with a direct SE contribution
•
•
•
•
•
•
•
Increase exports
Improve Scotland’s reputation
Increase Research & Development
spending
Improve knowledge exchange from
university research
Reduce Scotland’s carbon footprint
Reduce waste generated
Increase renewable electricity production
•
•
•
•
•
•
•
Increase the number of businesses
Improve digital infrastructure
Improve the skill profile of the population
Increase the proportion of young people in
learning, training or work
Increase the proportion of graduates in
positive destinations
Improve people’s perceptions of the quality of
public services
Widen use of the internet
Indicators we contribute directly to include
•
•
*
increasing exports
R&D spend;
http://www.scotland.gov.uk/About/Performance/scotPerforms
•
•
knowledge exchange for higher education; and
reducing carbon emissions and waste.
The indicators where the SE contribution is indirect, there is a clear interdependence between our
activities and those of others, such as the role of Business Gateway in increasing the number of
businesses, the government in improving the digital infrastructure and SDS, SFC and Local
Authorities (through schools, colleges and universities) in increasing the proportion of young people
in learning, training or work.
Figure 1 (below) shows a more detailed representation of the contribution SE makes to the
published Targets and Outcomes of the Government’s National Performance Framework, across the
priority areas of our Business Plan:






Growth Companies
Innovation
Internationalisation
Low Carbon
Renewable Energy
Supporting Internationally Competitive Sectors
For simplicity, the Low Carbon and Renewables priority themes have been combined.
This shows the direct contribution SE makes – across all of its priority themes –to the Purpose
Targets relating to Economic Growth (GDP), Productivity, and Participation.
The contribution to the Population, Solidarity, Cohesion and Sustainability targets are more
supportive in nature, arising from the indirect contribution SE makes to more general improvements
in the economy and business environment – including the work of others, including our partners.
In relation to the Outcomes of the Government’s National Performance Framework, SE’s major
contribution relates to the first three National Outcomes: making Scotland the most attractive place
to do business in Europe, realising Scotland’s full economic potential, and where Scotland is better
educated, more skilled and successful, renowned for our research and innovation.
Other outcomes where SE makes a less direct contribution include three important social outcomes:
giving our children the best start in life (no. 5), tackling the significant inequalities in Scottish society
(7), allowing people to maintain their independence as they get older (15), and in terms of the
quality and efficiency of Scotland’s public services (16).
In relation to our Low Carbon/Renewables priorities, we make an indirect contribution to the
outcomes that relate to improving the life-chances for children, young people and families at risk
(no. 8), living in well-designed, sustainable places (10), that we value and enjoy our built and natural
environment, protecting it for future generations (12), and that we reduce the local and global
environmental impact of our consumption and production (14).
Under our Internationalisation priority, we make a supporting contribution to the National Outcome
of taking pride in a strong, fair and inclusive national identity (no. 13), reflecting the important role
we have through SDI in promoting Scotland’s identity and reputation in international markets.
Figure 1
SE ACTIVITIES: LINKS TO SCOTTISH GOVERNMENT TARGETS AND OUTCOMES
The Government Economic Strategy sets out high-level targets for increasing sustainable economic growth. These targets, along with 15 national outcomes,
have informed the development of SE’s Business Plan. This diagram highlights the areas where SE activities contribute to National Outcomes and Purpose
Targets as part of the National Performance Framework.
NATIONAL OUTCOMES
7 PURPOSE TARGETS
1.
We live in a Scotland that is the most attractive place for doing
business in Europe
2.
We realise our full economic potential with more and better
employment opportunities for our people
3.
We are better educated, more skilled and more successful,
renowned for our research and innovation
4.
Our young people are successful learners, confident individuals,
effective contributors and responsible citizens
5.
Our children have the best start in life and are ready to succeed
6.
We live longer, healthier lives
To match average European (EU15) population
growth over the period from 2007 to 2017.
Supported by increased healthy life expectancy
in Scotland over tE period 2007-2017
7.
We have tackled the significant inequalities in Scottish society
8.
We have improved the life chances for children, young people
and families at risk
Solidarity
To increase overall income and the proportion of
income earned by the three lowest income
deciles as a group by 2017
9.
We live our lives safe from crime, disorder and danger
10.
We live in well-designed, sustainable places where we are able
to access the amenities and services we need
Cohesion
To narrow the gap in participation between
Scotland’s best and worst performing regions by
2017
11.
We have strong, resilient and supportive communities where
people take responsibility for their own actions
and how they affect others
12.
We value and enjoy our built and natural environment and
protect it and enhance it for future generations
13.
We take pride in a strong, fair and inclusive national identity
14.
We reduce the local and global environmental impact of our
consumption and production
15.
Our people are able to maintain their independence as they get
older and are able to access appropriate support when they
need it
16.
Our public services are high quality, continually improving,
efficient and responsive to local people’s needs
Increase
Scotland’s
Economic
Growth (GDP)
To raise the GDP growth rate to the UK level by
2011
To match the growth rate of small independent
EU countries by 2017
Productivity
To rank in the top quartile for productivity
amongst our key trading partners in the OECD by
2017
Participation
To maintain our position on labour market
participation as the top performing country in
the UK and to close the gap with the top five
OECD economies by 2017
Population
SustainabIlity
To reduce emissions by 80 per cent by 2050
Key:
Growth Companies
Innovation
Major contribution
Supporting contribution
Internationalisation
Low carbon/Renewable Energy
Supporting Internationally Competitive Sectors
Scottish Enterprise’s Measurement Framework
Our performance framework, used to monitor the progress of our entire range of activities, is
illustrated by Figure 2, below.
This shows how the activities we undertake flow from our priorities and objectives, and how these
lead to the outputs and outcomes we are seeking to achieve. The diagram shows how, over time,
these contribute to our ultimate objective of achieving a significant economic impact, realised
through the growth of companies and sectors. This includes the impact we have in terms of
reduction in CO2 emissions, reflecting an important goal of the Government Economic Strategy.
The diagram also shows that the achievement of outputs and outcomes, and – ultimately – impact
varies between different activities, as we seek to balance shorter-term impact (such as work with
companies to improve efficiency, which can realise benefits within 1-3 years), with our longer-term
activity, such as investments in infrastructure, support for R&D, and helping companies to
Internationalise, where the pay-off in terms of economic impact can be over a much longer time
horizon.
The diagram also shows how the assessment of outcomes and impacts depends on an assessment of
how much of a difference our activities have made to the growth (and reduced carbon emissions) of
companies and sectors, both specifically, as well as more generically. Assessing the scale of these
effects drives our approach to evaluation.
As well as informing how we manage our performance, our Measurement Framework underpins the
Milestones and Measures we have set in our Plan, and the associated target ranges, reflecting our
desire to improve our effectiveness and increase the difference we make to the Scottish economy.
Increasingly we share this approach with our partners, to provide greater consistency in terms of the
measures and targets we use, allowing a clearer link between the work of the partners and the
National Performance Framework. This is becoming of increasing importance as we improve how
much we work in collaboration with partners.
This improved measurement is particularly important in five areas with the strongest linkages to the
National Performance Framework:
•
Increased turnover and revenues generated by account-managed companies and other
forms of company support (link to Raise GDP growth, Increase productivity)
•
Increased international revenues, generated through international trade (link to Increase
Exports)
•
Employment (link to Increase economic growth, participation, contribution to
population/cohesion)
•
Leverage of investment and risk capital, into companies, R&D and projects (link to Increase
Innovation and Research & Development spending)
•
The Transition to a Low Carbon Economy, reflected in reduced CO2 emissions (link to
Sustainability, reduce Scotland’s carbon footprint).
The focus on these areas will underpin the development of SE’s overall approach to Measurement in
the coming three years.
April 2014
Figure 2: SE’s Measurement Framework
Objectives
Activities
Outputs
Outcomes
Impacts
Strategic Priorities
Growth Companies
Innovation
Internationalisation
Low Carbon
Renewable Energy
Developing an Internationally competitive
business environment
Our contribution to the ‘Equity’ agenda of the
Government’s Economic Strategy, in terms of
Regional Equity, Equal Opportunities
• Investment
• Business Efficiency, including
reduced CO2 impact
• Increased Turnover/Revenues
• International Revenue Growth
• Employment Growth
• Capital Raised
Investment leverage in terms of:
Helping to increase investment to
increase economic growth, through:
• Risk Capital (SIB)
• Inward Investment
• Investment in R&D
• Capital Investment
• Investment in Infrastructure
Helping sectors to grow, through
• Increased productivity and
competitiveness
• Increasing and sustaining
employment
• Improving investment and
infrastructure
Helping to build a Low Carbon
economy across Scotland
• Capital Investment (incl risk capital)
• R&D (including via collaboration)
• Inward investment/FDI
Performance by supported businesses :
• Forecast/Actual increase in Turnover/
Revenue
• Forecast/Actual increase in International
Turnover/ Revenue
• Forecast/Actual Jobs created/ sustained
• Amount of Capital Raised
• Resource Efficiency/Reduced CO2 emissions
• Infrastructure Investment
Improved Sector Performance
• SE Contribution to Sector Growth
• Contribution to sector performance
from SE projects
• International Revenue Growth
•Employment Growth
The Transition to the Low Carbon
Economy
• Low-Carbon Impact of SE actions
• Contribution from projects that
address major Low-Carbon
opportunities
• Value of SE-backed Resourceefficiency actions
VARIOUS ROUTES TO IMPACT
Performance of target sectors:
• Economic Growth
• Employment Growth
• Increased Turnover/Revenues
• International Revenues
• Inward Investment
• Revenues from Innovation
• Research & Development growth
• Resource Efficiency/ Reduced CO2
emissions
Assessment of how much differential growth
can be attributed to policy action, both in
terms of specific policies and more generically
Growth in Productivity, GVA & Employment
Chemical Sciences
Construction
Forest and Timber Technologies
Textiles
• Strategy & Leadership
• Exports & Internationalisation
• Innovation
Reduction in CO2 Emissions
Supporting Internationally
Competitive Sectors
Energy – Renewables
Energy – Oil & Gas
Creative Industries
Financial Services
Food & Drink
Life Sciences
Technology & Advanced Engineering
Tourism
Universities
Helping businesses to increase growth, by
Improved Company Performance
improving