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  • APPENDIX

    DUMFRIES AND GALLOWAY COUNCIL

    Enterprising DG Commercial Development Plan

    Prepared by the Head of Enterprising Services

    26 May 2016 Version 1.0

    Version Control: v1.0 Draft for discussion with DGFirst Management Committee on 3rd June 2016

    An overview of the development of an Enterprising Service within Dumfries and Galloway

  • Enterprising DG Page 1

    Executive

    Summary

    This commercial development plan demonstrates our Councils commitment to developing and delivering an enterprising service within

    the Council. This enterprising service Enterprising DG will deliver from within the new Directorate of Economy, Environment and

    Infrastructure, and will deliver for the Council:

    A revised and streamlined management structure, which brings together complementary services and gives us a platform to

    commercialise and grow our service offerings;

    A centre of excellence for enterprising services, which will work across the whole Council to increase our commercial focus;

    Through this more commercial focus, an increased level of activity;

    A platform on which to build our Regions economy, where we work side by side with our Regions small and medium sized

    enterprises to deliver real and sustainable economic growth; and

    A surplus which will be available for reinvestment in the Service, or to support other priority frontline services.

    In delivering these benefits, we have devised a new governance structure, where Elected Members are strategically involved at the very

    heart of everything that we do. This transparency and open book accounting will require the development of new and effective financial

    frameworks within the Council, to ensure a common understanding of our cost base, our approach to charging and cost recovery, and to

    the benefits of being more enterprising in everything that we do.

    Enterprising DG will function as a commercial service provider internally to our Council, and using the freedoms, powers and permissions

    available to us, locally across our Region, and nationally. By delivering quality, value for money services, and by continuing to learn from

    customer feedback, we have a strong platform from which we can build a successful Enterprising DG and contribute in a real and

    meaningful way to our Council Priorities.

    To deliver our ambitions will require change; our revised management structure and our new brand are the beginning. These will be

    followed with a programme of communication and development for our workforce, Elected Members, and others across the Council; we

    will produce a marketing plan, which will provide further detail of the activities to grow our income. These plans and documents will be

    shared with Elected Members for approval in due course.

    The remainder of this document provides a high level summary of the existing plans we have for the development of Enterprising DG.

    With Elected Member support and guidance, and through our skilled workforce, partners, SMEs, and with continued investment to

    maintain our competitive advantage, we can develop a new Enterprising DG that delivers real value for our Region.

    Ronnie Dempster - Head of Enterprising Services

  • Enterprising DG Page 2

    Introduction In 2014, Dumfries and Galloway Council decided to consolidate and develop commercial services within a single service of the Council.

    The outcomes to be delivered were agreed as:

    Boosting Dumfries and Galloways economy putting the local economy at the centre of its strategy, aligning its immense reach and

    capacity behind the economic goals for Dumfries and Galloway, and helping position our Region well to weather the local downturn

    in business opportunities and take advantage of any opportunities to grow the local economy;

    Supporting the Dumfries and Galloway economy through maximising the benefits accrued from existing and future business

    opportunities in partnership with SMEs and micro employers across the Region;

    Generating income seeing the Council actively pursuing commercial opportunities that can bring in income to cross-subsidise other

    essential activities;

    Developing and using a strong commercial acumen where costs, worth and value are key elements of its business approach and

    the Council is better equipped and positioned to use opportunities to generate income;

    Creating an organisation with greater opportunities for more creative models for service delivery; and

    Continued and enhanced work to aid and build resilience in our communities so they are well-placed to take back community

    ownership of locally important priorities best tackled through local community action and supported by the services provided by our

    Council.

    These outcomes build upon the successful delivery of services that have been provided to our Council and external clients for a number

    of years. The provision of these services are already a vital element of our regional economy providing annual services valued at over

    44 million, supporting the employment of 1,400 individuals, annually sub-contracting work valued at 17 million, and building the skills

    and expertise of the next generation of our workforce by providing trade apprenticeships to young people within our Region. This

    business plan establishes the foundation to further grow this significant contribution.

    We have an opportunity to further develop our market knowledge and expertise. We will use our knowledge and expertise to expand

    our service offerings to new markets, new customers, or new services, where there is a clear business case for us to do so, and where this

    direction is approved by Elected Members. Our summary financial plan, demonstrating this growth, is included at Appendix 3.

    It is a fact that small and medium sized businesses find it difficult to win significant levels of contract work from the public sector, due for

    example to issues with procurement processes (principally the time and cost involved in pursuing tenders with no guaranteed return) and

    the packaging of work (where many contracts are seeking multi-trade skills that simply do not exist within many of our small businesses).

    Enterprising DG will provide regular and straightforward routes to market for these small and medium sized enterprises within our

    Region, providing them with access to opportunities that would not otherwise be available to them.

  • Enterprising DG Page 3

    We already have a number of established sub-contractors who provide services on contracts which we have won, and we are constantly

    seeking to expand this listing. An extract from the listing of our current sub-contractors is included at Appendix 5. We maintain our

    listing of sub-contractors, in accordance with EU Procurement Regulations, within a dynamic framework, allowing businesses to join our

    framework of sub-contractors at any time, subject to their demonstration of the required standards. All enterprises within our Region, no

    matter their size, therefore have the opportunity to work with us to deliver services for the communities of Dumfries and Galloway.

    In addition to assisting local businesses to expand and grow, Enterprising DG will have a key role in assisting the Council in addressing the

    financial challenges that it faces. We will do so by providing our services in an economic and efficient manner, therefore increasing the

    financial contribution made to the Council by these services. This is not solely about front end cost efficiencies, we need to review

    internal costs and overheads to ensure value for money and cost effectiveness for Enterprising DG and our Council. Our current estimate

    in respect of this increased financial contribution is also included in our financial plan at Appendix 3.

    Therefore, to be successful, we will provide a range of services, to a number of customers, in partnership with many local businesses, and

    look to develop commercial opportunities that both support our Council and benefit the wider economy of Dumfries and Galloway.

    In delivering the reshape of the Council, it was agreed that this Enterprising Service would be delivered from within the Economy,

    Environment and Infrastructure Directorate. In August 2015, the Head of Enterprising Services was appointed, with the clear remit to

    deliver against this agenda. In delivering the Enterprising Service Enterprising DG the Head of Enterprising Services has developed a

    vision to generate income to support priority front line services by:

    Building the local economy by developing and delivering a range of high quality, value for money entrepreneurial services, in

    partnership with local small and medium sized enterprises.

    To deliver this vision, Enterprising DG will require to be better and different from what we currently have working with renewed pace

    and increasing our ability to react to the market. This is recognised and acknowledged. At the same time, however, we must recognise

    that we already have a proven service delivery and commercial track record, built up over a number of years, of successfully delivering a

    number of these services. We are therefore in the fortunate position of enhancing and improving what we currently do, rather than

    building something that we currently do not have.

  • Enterprising DG Page 4

    In delivering against this vision, each service development by Enterprising DG will therefore