Blueprint Programme Overview ‘to be’ design 20 May 2009

Government expectation that research will help UK out of recession Expectations that the Research Councils will play our part Budget included requirement to re-invest internal savings by RCs into research Government policy statement explicitly refers to RC changes to grant applications to require ‘economic impact’ plans ‘Building Britain’s Future’

Our Vision is to maximise the impact of our knowledge, skills, facilities and resources for the benefit of the UK and its people. Ensure all our activities deliver maximum impact Support world leading research that is both application-led and curiosity-driven. Inspire more young people to study STEM Maximise international reputation Promote and explain the impact of our research STFC Strategy

Focus - IMPACT Economic recovery Energy Environmental change Global security Ageing Future Service Ind. Challenges for UK Collaboration STFC Organisation Cross-organisation roles and responsibilities Measures of success Prioritisation of resource allocation Decision making processes Leadership and behaviours Need to change… RCUK Academics Industry Disciplines Sectors New roles - ?? Roles established – Campuses and Economic Impact ‘To be’ – change in focus

Blueprint projects will deliver: Strong and clear leadership New measures of success Allocation of resources to priorities Fit for purpose organisational structure Agile and effective processes Service oriented support infrastructure Positive and collaborative culture Capability to deliver successful change Blueprint Objectives

Blueprint is important because more streamlined and effective organisation will: Boost stakeholder confidence in STFC, thereby Increasing the effectiveness of our bids for new investment in science and technology, so that we can Deliver more impact for the UK and the lives of people Blueprint

Progress to date Define programme – Operations Board Champions – September/October 2008 Establish Programme Management – October/November 2008 Mobilise development teams – December 2008 Quick wins – from early 2009 – e.g. senior staff conference Principles and outline Blueprint design – January 2009 Senior Staff Conference Carousel – February 2009 STFC “to be” outline design – February to April 2009 CEO and Operations Board walkthrough – April/May 2009 Agreed ‘to be’ outline design – May 2009

Leadership Past What we had Not articulating a clear vision of what STFC is for Communicate pessimism and worry about financial situation Management operating as a set of individuals who protect their turf Discussion can be used to avoid decisions Invisible managers Articulate a clear vision of what STFC is for Communicate a vision of the future, tempered by reality of tough times ahead Management operating as a team Discussion used to help make decisions Visible managers TODAY Present What we have Future ‘To be’ New Vision Document Strategy Process Management Training Strengths Finder Communication Change behaviour Management Training

No agreed strategy for performance management within STFC Inconsistent approach to collecting data and measuring performance Unable to effectively measure performance against corporate strategy and priorities A performance management system is in place identifying targets at corporate level & allowing linkage to targets at both group and individual level The data collected is used effectively and justifies the effort required to collect and analyse it STFC will be able to understand performance levels, make adjustments & provide evidence to external stakeholders TODAY Past What we had Present What we have Future ‘To be’ Strategic PM Framework developed ‘As-is’ Data collection/ reporting documented Corporate Strategy being developed PM Framework agreed PM System In place Corporate Strategy agreed Performance Management

Financial Model Hybrid solution consolidating data from CCLRC and PPARC legacy systems Poor visibility of -cost drivers -contribution from external funding -commitments vs. discretionary spend No functionality to support scenario planning and “what- if” analysis Planning assumptions not recorded on the system and no KPIs or targets on system Integrated, system-based financial model to support dynamic planning and management Visibility of cost and income drivers for all STFC activities Consistent assessment of the financial impact of decisions – scenario planning Budgets aligned to strategy and delivery plan; prioritised spending and investment plans TODAY Workshop to clarify cost model Workshop on plan/budget/ forecast processes Tender process with SSC to engage consultants to deliver model on Hyperion sofware Workshop to define reports and deliverables Engage consultants, agree firm requirement and project plan Workshops to identify and elaborate key planning scenarios Workshops on high-level requirement and project plan Design, build, test, train, roll- out Hyperion model. Past What we had Present What we have Future ‘To be’

Organisational Structure Inconsistent structure inherited from CCLRC and PPARC Directors not treated consistently Lack of clarity about where responsibility lies for making decisions Too many committees with the same people on them leading to inefficient working Consistent structure across the whole organisation Empower all directors through attending operations board Keep support teams close to their customers Encourage working between all departments, as appropriate TODAY Decision to remove layer of business units Plan to merge some departments Keep distributed HR and finance teams Terms of reference for executive board Only top level boards to be EB and OB Create cross-department czars Past What we had Present What we have Future ‘To be’

Core Processes Past What we had Present What we have Future ‘To be’ Separate processes inherited from CCLRC & PPARC Lack of clarity in our decision making processes Lack of confidence in our evidence in decision making Lack of confidence in our delivery Stakeholder (External and Internal) Dissatisfaction Separate Governance arrangements Harmonised processes Visibility of our decision making process to all stakeholders Robust evidence Effective delivery Satisfied and engaged stakeholders Visible and coherent Governance Framework TODAY Advisory Structure in place Documented and agreed processes Senior Staff forum feedback 5 Key decision scenarios agreed Stakeholder communication plan and processes Governance Manual Consultation Pilot of the approach and deliverables underway Published and visible processes Overarching STFC Mgt Statement & Fin. memorandum

Infrastructure IT Pre FFtF Tension between central IT and depts Inability to deliver Post FFtF Devolution and governance gave significant improvement Merger with PPARC Introduced new IT issues Highlighted problems with structure Clear process for making decisions Well-defined responsibilities and lines of communication Structure which can self-regulate and improve Effective processes for project and change management Integration of IT support across the organisation TODAY IT Forums Agreed Committee Structure Draft committee structure Proposed roles & responsibilities Agreed roles & responsibilities Common agreement on issues IT Champion on Ops Board Past What we had Present What we have Future ‘To be’

6 th March workshop bringing people together Key issues Estates decisions made by the Departments because this is where the money is Decision making and governance is a key barrier Money for estates always ended up in science The 3 yr funding system for estates is not practical The existing Oversight Committee is not powerful enough Key issues Estates decisions made by the Departments because this is where the money is Decision making and governance is a key barrier Money for estates always ended up in science The 3 yr funding system for estates is not practical The existing Oversight Committee is not powerful enough Clear process for estates decision making through a new governance structure A well defined and consistent approach across all STFC sites Longer term planning Raised Estate profile Better use of Estate and resources Centralised electronic data Enhanced ability to prepare for successful scientific bids Clear process for estates decision making through a new governance structure A well defined and consistent approach across all STFC sites Longer term planning Raised Estate profile Better use of Estate and resources Centralised electronic data Enhanced ability to prepare for successful scientific bids Today Key people consulted with A new Estates Governance Structure A new Asset Management Plan Database of bids and Inventory of space and Equipment Infrastructure Estates Past What we had Present What we have Future ‘To be’

Blame culture Lack of Direction Org structure not optimal – where are decisions made? Invisible leaders Decisions are not made or carried forward Opaque decision making frameworks Perceived unfairness is one of the greatest sources of dissatisfaction Poor communications Ineffective reward systems Us and them attitude - culture work stream has highlighted that the same thoughts and feelings exist at all sites Staff taking responsibility and ownership Clear direction Clear structure and clear roles and responsibilities of Directors and boards Strong visible leaders Decisions are made and acted upon by all directors One set of policies and HR mechanisms for all staff at all sites Effective communications to receptive staff Effective reward systems and consequences for poor performance Proud to be part of STFC and recognise the strengths of other sites TODAY Director interviews Results of workstream communicated to staff Staff workshops Senior staff conference Key Values defined and communicated to staff Online questionnaire Management recognising and backing the issues raised within this workstream Powerful advertising of culture change programme Powerful Leadership of Culture Change Programme Symbolic action Culture Past What we had Present What we have Future ‘To be’

Ad hoc: some change projects on the corporate register project management frameworks in place but no references to change project requirements a mix of training courses used trained staff not identified no centralised resources A complete list of change projects and initiatives in place, managed to minimise conflicts and pressure on staff, and to maximise benefits A consistent, best practice, approach to managing change projects in STFC. Staff and resources in place to support the projects TODAY draft Change Agenda STFC and Department Change Agendas draft Framework Accredited training identified STFC Change Project Framework Change Leaders Identified Change Leader job spec Training courses set up Web based resources in place Building Change Capability Past What we had Present What we have Future ‘To be’

Organisational change to support delivery of ‘impact’ strategy Rationalised top structure of Executive Board and Operations Board only New structures - with roles, responsibilities and authority limits – to be published on the web Remove organisational layer of ‘Business Unit’ All operations departments report directly to the Chief Operating Officer Some departmental mergers – more work on this with final decisions at next Operations Board Director-level ‘czars’ to be named Responsibilities across STFC to focus on key challenges as they are defined – technology, innovation and for example health, energy, security, environment Decisions based on the RACI process, with a Decision Tree to show who is Responsible and Accountable and who needs to be Consulted and Informed Decisions – 01 May 2009

Improved decision-making processes for delivery of IT and Estates (subject to consultation) in progress STFC’s top three or four performance aims linked from strategy Executive Board started leadership coaching and will consider rolling out to Operations Board (OB) OB will use 360 degree feedback to judge themselves as leaders against the standards set in CRISTAL Senior Staff Conference in September/October to focus on implementation of the STFC strategy and ‘Czars’ Decisions – 01 May 2009

Directors will model acceptable behaviours and invite staff to provide feedback. Behaviours to be encouraged and deemed to make most difference were defined at the Senior Staff Conference as: Collaboration, both internally and externally Leadership behaviours Visibility, leading by example Transparent, open, trusting Enthusiastic and nurturing Innovation and risk taking Responsibility, ownership, empowerment Science and Technology success Belief in STFC Behaviours

Implementation – next steps Early implementation actions and prototypes – ongoing Communicate ‘to be’ and cascade to Departments – May/June 2009 Mobilise/train implementation teams – June/Sept 2009 across STFC within Departments Departmental ‘to be’ Blueprints – July to November 2009 Prioritise implementation based on impact/benefits – November 2009