Strategic commercial interventions: assurance playbook
As part of the drive for continuous improvement we have developed specific and targeted operating procedures in relation to managing strategic assets. This includes detailed policy and guidance, signposting to existing best practice for those who are managing interventions.
Monitoring Framework
What is it?
The Monitoring Framework is a practical guide, primarily directed at colleagues in the Strategic Commercial Assets Division (SCAD) sponsor teams to support in the management of its strategic commercial assets such as Glasgow Prestwick Airport, Ferguson Marine and the Lochaber guarantee. It sets out best practice for the monitoring of these commercial assets.
Using a logic model approach, which is outcome focused, the framework identifies, describes and explains the key data sources necessary to monitor Scottish Government (SG) strategic assets effectively from three main perspectives (management delivery, asset performance, and assurance), and sets out how summary monitoring reports can be compiled by sponsor teams using key metrics.
In practical terms it outlines the key components of a monitoring strategy including Strategy, Objectives, Business Plan, Annual Budget, Business Plan, Business Case, Exit Strategy and Key Performance Indicators. It also sets the role of engagement with the business, internal governance and an information request.
What is its purpose?
The Framework has been created to address key actions in relation to SG management of its commercial assets, and to align with HM Treasury and Scottish Public Finance Manual best practice. It is intended to support SCAD sponsor teams ensuring a more joined approach is taken to the management of the strategic commercial assets by having a unified approach to monitoring and to promote more informed decision making.
It also sets out the roles and responsibilities of different teams and groups that are involved in managing strategic commercial assets. Ultimately, the monitoring approach should help to improve the return on investment across the asset portfolio.
When should it be used?
Whilst the Framework is tailored to SCAD’s strategic assets, it is anticipated that the key principles set out in this guidance will also be applicable to other areas of SG.
The practical approach to monitoring is coordinated by SCAD’s Programme Management Office and is set out in detail within the guidance. Sponsor teams currently report to the Strategic Asset Review Group (SARG) every 6 to 8 weeks and there is a requirement for sponsor teams to report on:
- Key Milestones / Scheduled deliverables for next quarter
- Summary update on previous month’s activities – covering progress against milestones, deliverables and other significant events
- Forward look to next month’s activities – covering intervention team’s main activities / site visits / engagement with parliament / wider company matters
- Progress against any actions from the previous meeting
- Key risks (top risks from intervention risk register or risk summary)
The monitoring framework should be used to formalise the process for capturing the key performance metrics across each asset and to provide a summary to SARG on this basis.
Useful Resources
The Green Book (2022) - GOV.UK (www.gov.uk)
Annex A: Business Investment Framework - Scottish Public Finance Manual - gov.scot (www.gov.scot)
Good practice guide - Monitoring and responding to companies in distress (nao.org.uk)
Contact
Email: SCADPMO@gov.scot