nw_transitionimplementationplan_v10

Northwest Transition and Implementation Plan for Simplifying Business Support - April 2008 v2.0

2

CONTENTS PAGE Chapter 1. Foreword 3 Chapter 2. Background 4 Chapter 3.

Northwest Region and Our Business Support Environment 5

• Equality and Diversity Chapter 4. Communications Plan 7 Chapter 5. Regional Board 9

• Implementation Advisory Board Chapter 6. Business Support Transition in the Northwest: 12

• Overview

• Northwest Vision Chapter 7 Transition Process 14

• Common Portfolio of Products & Services

• Business Link and Skills Brokerage

• Marketing & Branding

• Procurement & Delivery Arrangements

• Monitoring & Evaluation Chapter 8. The Region’s Commitment to Simplification 27

• NWDA’s Experience to Date

• Strategic Position

• Internal Communications

• Influencing the National Programme Development

• Mapping and Review of Existing Products & Services

• Future Business Support Development Alignment

• EU Funding

• Social Enterprise and Business Support Simplification

Chapter 8. Next Steps & Actions 30


3

1. Foreword As Chair of the Northwest Business Support Simplification Steering Board, I am delighted that the Region has joined forces to produce a Transition & Implementation Plan setting out how it is striving to simplify public sector business support activities across the Northwest. The Region has a strong history of partnership working, and as we move into this key phase of transition to a new landscape for business support services; a collaboration approach across public, private, academic and voluntary sectors is critical to success. It is fundamental to the growth of the Region’s existing businesses and potential businesses that support to help them is targeted in a clear, cost-effective and efficient way within a shared framework. I am pleased that dialogue and co-ordinated discussion to achieving this aim, which started with our first Regional Stakeholder Event back in March 2007 continues at all levels, and that a high number of organisations have been involved to date in regional, sub-regional and local activity. Finally, I would like to thank all those who contributed to the development of this Northwest Transition & Implementation Plan and in particular I would like to express my appreciation to the members of the Northwest Business Support Simplification Steering Board, as indicated below, who continue to show leadership and commitment.

Steve J Bennett, Chair of Northwest Business Support Simplification Steering Board And Vice-Chair of Institute of Directors


4

2. Background

The Business Support Simplification Programme Simplification of business support builds on the Transformational Government commitment; which aims to simplify businesses’ and citizens’ experience of Government services, and specifically for business support aims to reduce the number of business support interventions to less than 100 by 2010.1 The national programme is managed by the Department of Business, Enterprise and Regulatory Reform (BERR) on behalf of HM Treasury. The Government’s vision for publicly-funded business support is for support that is: - Easier for business to understand and access - Better value for public money - Has a measurable impact in achieving economic and public policy goals BERR identifies business support as: ‘Direct (rather than tax-based) support to a business, group of businesses or organisations and to people starting or considering starting businesses. Examples of ways which business support is given include: free or subsidised advice, grants, reduced-interest loans, training or help with finding workspace. The main aim of support can be to help the entrepreneur(s), business(s) or organisation(s) who receive it. Alternatively, the support may achieve broader economic, environmental, social, or cultural goals but will significantly help one or more entrepreneurs, businesses or organisations whilst doing so’. Key components of the programme to achieve simplification of business support activities through a shared framework are: - Business Link - Common Portfolio of Business Products and Services - Marketing and Branding Guidelines - Procurement & Delivery Arrangements - Shared Monitoring & Evaluation

Expectations of the Region Regional Development Agencies and Government Office’s have been charged by BERR with leading transition from the current business support landscape to rationalised and simplified activities within the shared business support framework.

Timescales This Regional Plan must be submitted to the national Transition Management Board (TMB) by 6 May 2008, and will be presented to TMB members at a special meeting on 15 May 2008. It covers the period May 2008 – December 2010 and will be reviewed and updated on a quarterly basis by the Regional Simplification Board. Monitoring reports are required to be submitted to the National Transition Management Body on progress made also on a quarterly basis. 1 Budget Announcement April 2006


5

3. Northwest Region and Our Business Support Environment

The Northwest is the third largest region, of the UK, in terms of the population and the economy, with a population of 6.9m, over 230,000 firms and an economy worth £111billion. However, the Gross Value Added (GVA or output) per head is 17% lower than the England average, contributing to a £20.2bn output gap, and there are over 38,000 fewer businesses in the North West than the England average.2

The 2006 Regional Economic Strategy (RES) identified three major drivers to transform the region’s economy by building on our assets and tackling areas of underperformance:

- improving productivity and growing the market, - growing the size and capability of the workforce; and - creating the right conditions for sustainable growth and private sector investment.

It placed emphasis on providing innovation & knowledge transfer, leadership & management, internationalisation and enterprise business support services.

In meeting the many challenges facing the Region, and set out in the RES, strong partnership working has developed at all levels – regional, sub-regional/city regional and local. Many of these partnerships are focussed on driving up economic performance and are crucial to helping ensure that public sector business support activities are demand-led, aligned, value added and deliver best return on investment.

Currently the business support landscape in the region is fragmented, with over 1500 business support schemes operating at various spatial levels and supporting different aspects of business development. This support is delivered through a variety of networks and delivery organisations and mechanisms and marketed under a multiplicity of brand names.

This fragmentation and volume of business support activities has flowed from

numerous and disparate funding streams, lack of co-ordained policy interventions and the desire to respond to events with new initiatives. :

There is now a broad based acceptance in the region, particularly in the

context of declining public sector resources for business support, that it is important to maximise the effectiveness of public sector funding for business support. This in turn means that in moving forward, and against the background of the Sub National Review and the delivery of Local Area and Multi Area Agreements, partners in the region need to work collaboratively to:

- develop a more strategic approach to public sector business support investment; - have better coordinated processes for determining public sector investment and funding approval decisions; - embed a strong and consistent approach to monitoring and evaluation and ensure an evidence base led approach.

2 Regional Accounts 2006, Office for National Statistics; VAT Registrations 2006, Department for Business, Enterprise & Regulatory Reform


6

Inspiring Equality and Diversity in the Northwest Equality and diversity is at the heart of everything that the Agency does and is immersed in our 'Values and Behaviours'. It affects our residents and businesses and remains at the forefront of the way that the Northwest Development Agency (NWDA) operates internally in the projects and programmes that it delivers; in those that the Agency supports partners to deliver, and in The Agency’s role as a key strategic partner working within a multi-agency regional and national environment. Promoting Equality and Diversity within the region’s business support projects is encompassed by this approach.

A Single Equality Scheme has been drafted by the Agency to allow it to extend its action beyond its statutory duties and to provide it with a plan of action for its approach to equality. This is the first Single Equality Scheme that the Agency has produced and will cover the work that we do as identified through the objectives of our corporate plan 2008 – 2011. It will reflect

• the Agency’s legal duties around Race, Disability and Gender

• new equality strands of Age; Sexual Orientation; Religion and Belief

• the Agency’s belief that secure the economic growth of the region, develop an entrepreneurial culture and boost productivity then it is essential that we capitalise on the diversity of the Northwest's people and communities.

The Scheme will be effective from 1 August 2008 to 1 August 2011, key to the Transition timetable for BSSP. Opportunities to support diversity among NW Business Internally our Single Equality Scheme will be the framework we use within the Agency to mainstream equality and diversity through our:

• business projects and programmes, which are assessed to ensure they promote equality and embrace diversity.

• policies and processes to ensure that support is accessible and encourages participation from diverse organisations.

• our organisational behaviours, including the language that we use and the attitudes we adopt

Externally this framework will provide us with an opportunity to inspire diversity among our business community by undertaking activities such as:

• Promoting a diverse workforce, offering Business Expertise within small personnel departments, to introduce ways of working that avoids unlawful discrimination etc.

• Promoting the benefits of a diverse customer base, potentially through networks such as the Ethnic Minority and Women’s Business Forums.

• Promoting Business Creation among women in innovative ways that tackle the barriers and obstacles faced by women.

• Stimulating enterprise among disadvantaged communities via the Local Community Business Coaching product.

Business Link, as primary access channel for Business Support products, is further developing their delivery service to ensure that it is accessible to all potential clients and takes into account language and cultural barriers when marketing and delivering services.


7

4. Communications Plan The Region has been involved in simplification of business support since March 2007. Both NWDA and GONW have provided dedicated resource and acted as facilitators to the programme; to ensure that the Region has been kept abreast of developments but crucially to also make sure that Northwest views have been consistently input to BERR via the National Steering Group and Product Development Groups particularly. A Communications Plan for 2007/08 was adopted to ensure that as wide a range of stakeholders as possible were able to participate in discussions/activity; shown below are the key timed activities: Activity 2007/08

Timetable

1st Regional Stakeholder Event

27 March 2007

Sub-Regional Partnership Meetings x 5 – Awareness

March - June 2007

NWDA & GONW Website Channels Created April 2007 Sub-Regional Partnership Meetings x 5 – Consultation Process & Regional Structures Update

June 2007

Launch of Regional Steering Board

19 June 2007

Launch of Regional Working Groups

4 July 2007

Creation of NW open forum website channel for consultation

July 2007

2nd Regional Stakeholder Event

1 August 2007

Regional Steering Board & Working Groups meetings held

August & September 2007

Submission of Regional Advice to Consultation

14 September 2007

Communication of Comprehensive Spending Review & Pre-Budget Report

14 October 2007

Regional Steering Board meeting

October 2007

Development of ERDF Investment Frameworks in line with simplification

November – January 2007

BERR BSSP Team 2 Day Visit to Region

23 & 24 October 2007

Regional Steering Board meeting

November 2007

Marketing & Branding Workshop (held by BERR in NW)

November 2007

Communication of Formal Government Consultation Response

20 December 2007

Regional Steering Board meeting with BERR representation

December 2007

Marketing & Branding Workshop (held by BERR in NW)

January 2008

Regional Steering Board meeting January 2008


8

Local Authority Update Communication

February 2008

Sub-Regional Partnership Meeting: Manchester February 2008 Regional Steering Board meeting with BERR representation

February 2008

Dedicated NWDA & BLNW staff nominated for Sub-Regional Economic Development Meetings

February 2008 – onwards

Transition Implementation Advisory Group created

4 March 2008

Sub-Regional Partnership Meeting: Cumbria Economic Development Officers Group (CEDOG)

6 March 2008

Communication of Budget 08 Announcement and Vision

12 March 2008

The Communications Plan for 2008/09 continues these core activities and builds upon them to ensure that all partners & stakeholders have the opportunity to be aware of and directly influence how simplification manifests itself across the Northwest. The Regional Steering Board will continue to meet during 2008/09 with BERR representation on a bi-monthly basis enabling the region to engage in a two-way dialogue with Central Government. More communications activity with the Region is planned for 2008/09 and suggestions for additional methods and channels of communication are welcomed. Activity 2008/09 Timetable Transition Implementation Advisory Group Meeting

1 April 2008

3rd Regional Stakeholder Event

23 April 2008

Sub-Regional Partnership Meeting: Merseyside April 2008 Implementation Advisory Group meeting 6 May 2008 Regional Steering Board meeting with BERR representation

20 May 2008

Regional Steering Board meeting 17 June 2008 Regional Steering Board meeting with BERR representation

15 July 2008

Regional Steering Board meeting 19 August 2008 Regional Steering Board meeting with BERR representation

16 September 2008

Regional Steering Board meeting 14 October 2008 4th Regional Stakeholder Event - TBC October 2008 - TBC Regional Steering Board meeting with BERR representation

18 November 2008

Regional Steering Board meeting 16 December 2008 Regional Steering Board meeting with BERR representation

20 January 2009

Regional Steering Board meeting 17 February 2009 Regional Steering Board meeting with BERR representation

17 March 2009


9

5. Northwest Region Simplification Steering Board Since June 2007, the Region has had a Northwest Simplification Steering Board, with supporting themed Working Groups, to bring together key representation on business support matters across the region and aid early development of simplification principles.

In January 2008, BERR placed additional responsibilities on the Regions to further strengthen such groups in line with transition.

From 2008/09 onwards the objective of the Northwest Regional Simplification Board is to provide leadership, drive commitment and co-ordinate business support simplification activity regionally. With the aim of ensuring that the Northwest can deliver in line with the national policy directives of the Business Support Simplification Programme; and achieve a simplified business support landscape across the region by December 2010. Key Outputs for 2008/09:

• To co-ordinate the production of a regional Transition Management Plan which sets out current business support activities and how transition will take place across the region in line with national simplification principles and policy frameworks.

• To be the communication channel for the Region with the national

Transition/Strategic Management Board at BERR. • To guide progress towards an “enhanced Business Link” service which

provides all Information, Diagnostic and Brokerage activity in the Northwest and is fit for purpose for all client groups.

• To monitor progress towards milestones identified in the regional Transition

Management Plan and provide a quarterly progress report to the national Transition/Strategic Management Board.

• To lead the region in the shaping and implementation of a shared business

support framework. 2009/10 onwards:

• To feed into the Regional Integrated Strategy process to ensure identified business support in the strategy is in line with all simplification frameworks.

• To feed into the setting of Business Link priorities within the region. • To relay relevant information to the national Transition/Strategic Management

Board such as whether a portfolio meets regional, sub-regional and local needs.

• To monitor and evaluate the regional performance of the portfolio and

facilitate collective adjustment of local spending within the portfolio if necessary.

• To ensure that branding guidelines are used and marketing is co-ordinated

through Business Link. • To share best practice across the region and evaluate innovative approaches.


10

General Terms • To act as a consolidated voice for the region into the national programme

development; be a champion for simplification in the region and review progress and agree action accordingly.

• To draw on the knowledge and expertise of members where local and sub-

regional variations exist in business support activities.

• To capitalise on sub-regional and local differentials; particularly to ensure that the product portfolio continues to meet regional, sub-regional and local needs.

• To draw together evidence and articulate as necessary, on behalf of the

region, the business need from public funded interventions.

• To work with other Regional Simplification Boards in other regions as appropriate and provide linkages to other organisations within the region involved in business support strategies and activities as necessary

• To reflect simplification thinking into pertinent policies and strategies such as

Northern Way, City Regional Development Plans, Multi Area Agreements, Local Area Agreements, Sub-Regional Economic Plans and Action Plans together with associated funding steams including Working Neighbourhoods Fund, European Funding, Local Enterprise Growth Initiative and Local Authority Business Growth Incentives scheme.

• To make available to other Board members individual or organisation

responses to any elements of the national business support simplification programme in a timely fashion.

• To communicate any simplification events being held within the region to

ensure adequate opportunity for appropriate representation and attendance by members of the Regional Simplification Board.

Membership The Board will include representatives from all public bodies that fund and commission business support and the private sector. Membership is flexible and can evolve over time as deemed necessary but current Board Members are shown below: Institute of Directors (Chair) Blackburn with Darwen Borough Council Business Link NW Chambers of Commerce NW Confederation of British Industry NW Cumbria County Council Federation of Small Business NW Government Office NW JobCentre Plus NW Learning & Skills Council NW Liverpool Vision Manchester Enterprises NWDA Northwest Universities Association Private Sector Partners Rochdale Borough Council Warrington Borough Council


11

Implementation Advisory Group Under the auspices of the Northwest Regional Steering Board, the Implementation Advisory Group (IAG) was formed in March 2008 and is currently meeting monthly until June 2008. The IAG’s focus is on the development of a user-guide and toolkit to aid the Region’s funders of business support to translate the principles of Business Support Simplification into practice. Their first output has been the development of a dedicated support guide for Local Authorities (as detailed in section 6.3i) currently in draft format to assist through with the Local Area Agreement process.


12

6. Business Support Transition in the Northwest: Overview This plan sets out the arrangements for bringing publicly funded business support in the Region into alignment with the Business Support Simplification Programme, and its purpose as a Transition Management & Implementation Plan is to facilitate the transition of business support from the current state to the new framework required under the national policy programme. Building on the considerable work already undertaken in the Region to date, this plan outlines how the Region’s public funders will strive to reduce duplication, increase alignment and simplify access arrangements for individuals, businesses and organisations. A specific intention for the plan is to promote the advantages and benefits of simplifying business support to all partners with a strategic and funding role in relation to business support and enterprise, with a particular focus on developing practical guidance and advice, supported by a range of exemplars and emerging best practice. The national Business Support Simplification Programme includes all business support services funded by public bodies at national, regional, sub-regional and local level. The following are within scope of this Transition Management Plan, but will have different timelines up until December 2010 for implementation:

- All programmes funded by NWDA which deliver any kind of service to a business end user

- Local Authority funded programmes for business support and enterprise supporting LAA and MAA targets

- Nationally funded and delivered programmes sponsored by Government departments which are active in the Region

- All EU funded programmes that deliver directly to business clients - LSC and JCP funded programmes that deliver directly to business clients - Higher Education and Further Education funded programmes aimed

directly at business end users - Government Office funded programme for businesses

Northwest Vision The Northwest has a 5 point vision for simplification in the Region which was developed by partners and stakeholders through events, meetings and the regional board and is shown below: 1. Create a shared business support framework, particularly for co-investment, to shape public sector expenditure in business support services; 2. Align the principal funding streams in the region to Business Support Simplification principles; NWDA’s Strategic Investment Plan, the 2007-13 EU ERDF Operational Funding Programme, England Rural Development Programme and European Social Funds for the Northwest. 3. Further development of Business Link Northwest as the primary access channel for public sector business support in the Region;


13

4. Undertake formulation, development, procurement, management and delivery of public sector business support services, in line with the Sub-National Review recommendations; and 5. Develop a stronger pool of shared intelligence on the portfolio of business support and its achievement. This will involve greater levels of evaluation, monitoring and sharing of best practice. The process of how business support services will be deployed in the Region must be based on a sound joint strategy for investment; particularly focussed on four strands: Collaboration: Developing shared agreed strategic priorities through discussion and negotiation between partners on the business support requirements of different areas. Co-Investment: Joint decisions at investment-making stage by the relevant investor and range of partners Co-commissioning: At initial concept design, through procurement and finally to delivery arrangement level partners will look to jointly specify and manage business support service to best effective. Co-ordination: Through oversight and the on-going review of the delivery of services by investors and in part by the Regional Steering Board to check whether services continue to be fit for purpose and streamlined for the customer.

Collaboration Policy Drivers Rationale for Intervention Alignment of Strategy Market & Equity Objectives

National & EU – PSA, SNR Regional – RES/IRS, SRAP Local – LAA/MAA, URC

Co-Investment National: BERR / DCLG / DEFRA / DIUS/DCMS Regional: SIP/ ERDF / RPDE / ESF / LSC ERF Local: WNF / LAGBI / LEGI

Co-ordination

National / Regional / Local: Shared Evaluation Customer Intelligence Business Surveys & Research Strategic Oversight Future Product Development

Co-Commissioning Regional: Specify service for common regional elements Manage and procure process with delivery contractor Local: Specify service for local elements Work with delivery contractor Inform and drive client access


14

Transition Process The transition process will involve consideration, review and development of both current and future business support services for the Region within the five key elements of simplification programme framework:

i. Migration of existing and creation of new products and services within the Product Portfolio.

ii. Development of Business Link for all Information Diagnostic and Brokerage (IDB) activity.

iii. Ensuring marketing and branding of business support is aligned with the agreed framework.

iv. Setting up of procurement and delivery arrangements that reflect the agreed decisions.

v. Embedding of the required base-line monitoring and evaluation.

Common Portfolio of Products and Services As announced in the Comprehensive Spending Review October 2007 and Budget Statement 2008, a common portfolio of 18 areas of products and services was developed during 2007/08 with partners following national consultation in June 2007and is shown below on the following 2 pages: Within these 18 areas further detailed products and services (approximately 30) are now being developed by the 8 national multi-partner product development groups. The North West actively sits on and participates in each of these eight product groups Commitment has been given by BERR to ensure that these groups and resulting detailed products are fit for purpose and inclusive of regional and local partners input.

Northwest Transition and Implementation Plan for Simplifying Business Support - April 2008 v. 2.0

15

Group Product Purpose Type of Support (N.B. Examples given are not definitive nor restrictive)

Business Creation To increase enterprise in the UK

Dedicated advice and guidance on how to start a business (idea development, market research, finance etc) including some small grants and loans.

Star

ting

Up

Local CommunityBusiness Coaching

Assisting people in deprived communities and amongst under-represented groups with potential to run their own businesses to consider starting up

Intensive support and advice to potential entrepreneurs through local, community based business coaches. Coaches also promote links between local businesses

Financial awareness and capability

Increase levels of businesses accessing the most appropriate finance for their business

Provision of information, advice and mentoring on financial planning. Provides businesses with the skills to turn propositions into investable opportunities and develop appropriate funding strategies. Assisting enterprises with introduction and interaction with potential investors.

Debt Finance Extend the availability of Debt finance for SMEs with viable business proposition but without track record or collateral

Reduce barriers to access finance for SMEs with viable business proposals through guarantees, partial government underwriting, loan provision (up to £250,000)

Capital InvestmentGrants

Encourage sustainable investment in job creation in disadvantaged areas

Provision of grants and loans to support investment projects that would not go ahead without support and have a good chance of improving productivity and is of benefit to the regional economy.

Innovation Finance Stimulate productivity and economic competitiveness through increased innovation and to encourage businesses to realise the benefits from innovation

Grants and loans to assist businesses (predominantly SMEs) with the costs of R&D activities, use of third parties and demonstration projects involving early adoption of new technologies with a potential environmental benefit.

Acc

ess

to F

inan

ce

Risk Capital Reduce the equity gap for high growth SME businesses when the equity gap represents a barrier to improved levels of enterprise and growth.

Provision of commercially viable equity funds by investing a combination of private and public money ion small, high growth businesses that are seeking up to £2 million equity finance.

Lead

ersh

ip a

nd

Man

agem

ent Skills Solutions for

Business Improving productivity, performance and individual

achievement through investment in skills and competencies of the workforce and potential entrepreneurs

Provide high quality advice and guidance to employers and potential entrepreneurs to create skills solution best meeting their needs. Support for businesses to develop skills of low skilled employees, leadership and management skills of owners / managers. Also help to gain skills / awareness needed to start a business for potential entrepreneurs in disadvantaged or underrepresented groups.

Promoting resourceEfficiency and Sustainable Waste Management

Encourage the efficient use of energy and resources Dedicated advice and guidance to improve business efficiency and competitiveness through resource efficiency and sustainable waste management practices. Specialist advice delivered through a range of activities including (but not limited to) events, networking, technical articles and 1 to 1 business support, with provision of targeted grants and loans.

Ope

ratio

ns a

nd

Effic

ienc

y

Business Expertise for Growth

To improve the performance and productivity of businesses.

Provision of specialist skills and business expertise for SMEs through mentoring and coaching where it is not elsewhere available to enable the take up of new technologies, techniques and processes.

Prod uct

Dev

elop

me t

Innovation Collaborations Increasing Innovation, knowledge exchange and technical diffusion through increased collaborations

Funding to encourage networking to improve knowledge exchange and innovation. Funding collaborative R&D activities and exchange of staff between businesses and knowledge based institutions.


16

Group Product Purpose Type of Support (N.B. Examples given are not definitive nor restrictive)

Business Collaboration Networks

Facilitating bringing together businesses where there may be benefits from collaboration

Grants to intermediaries to set up and facilitate collaboration. Short term support to set up a network.

Shared Business Support Environments

Increase the provision of shared business premises and facilities to help businesses develop and grow

Funding to intermediaries to build, operate and manage business premises with shared facilities and services. Characterised by flexible tenancy and access arrangements.

Getting the most from Foreign DirectInvestment

To increase the contribution of foreign direct investment to economic activity in the UK

Strategic engagement with overseas owned companies. Information and advice tailored to help potential and existing inward investors lower barriers to investing in the UK.

Preparing to Export Increase the number of businesses able to identify and exploit opportunities in overseas markets.

Information and advice on beginning to export or seeking to do business in overseas markets. Limited part funding to invest in capabilities and undertake export market research.

Investigating NewOverseas Markets

Strengthen UK productivity, growth and future economic prosperity by overcoming barriers faced by UK businesses in foreign markets

Provision of tailored information and other help in specific markets (charged for). Limited financial support towards the cost of participating in overseas visits and trade shows for SMEs.

Sale

s an

d M

arke

ting

Dev

elop

men

t

Export Credit Guarantee Assistance for exporters of UK goods and services to win business and compete against foreign competitors.

Helping exporters secure overseas contracts and invest overseas by providing guarantees and insurance where such support is unavailable from the commercial market.

Envi

ronm

enta

l Protecting the Natural Environment

To restore, maintain and enhance a healthy natural environment

Information and advice to encourage and facilitate business practices conducive to improving environmental quality. Compensation to land managers for delivering environmentally beneficial land practices.


17

Migrating Business Support to the Product Portfolio Fundamental to simplification success is the analysis of current publicly funded business support in light of the Product Portfolio. A decision making process and resulting actions flowchart is shown below:

Typically, funders of business support will need to undertake three stages: 1. Map existing business support services

It is envisaged that complete mapping of existing business support services in the Northwest will have been completed by funders by September 2008. Early progression has been made in this area by both the NWDA and the Local Authorities (linked to the current Local Area Agreement process). The inclusion of the remaining business support services in the Region can only be achieved with the consent of the appropriate funding body.


18

It is anticipated that the Regional Simplification Board Members will play an important role both in acting as champions of simplification through early adoption, in collecting the goodwill of partners across the Region and in overseeing the development of guidance and advice and the dissemination of best practice of implementing simplification. 2. Match to the portfolio areas and make one of four decisions:

- Good Match – migrate to the new offer as soon as possible - Fair Match – consider amending then migrate - No match – move to immediate closure - No match – wind down

3. Manage the wind down and closure of products & services under a legacy management plan During stages 2 & 3, key decisions will need to be made on each product’s transition path; these will include such considerations as:

Match to Portfolio = migrate No Match to Portfolio = close/wind down • Duration of existing contracts • Termination clauses in contracts • Necessary consultation periods • Possible bundling aspects • Future decisions on procurement for each product

area and duration of procurement process • Future decisions on marketing & branding • IDB elements to pass to BLNW • Availability of funding

• Duration of existing contracts • Termination clauses in contracts • Necessary consultation periods • Duration of support for client and

completion of “contract” with client • Monitoring & Evaluation requirements • Develop and action a legacy

management plan

As the products in the portfolio have varying embedment dates, the timeline for each transition path will also vary accordingly: - March 2008 Export Credit Guarantee - October 2008 Getting the Most from Foreign Direct Investment Preparing to Export Investigating New Overseas Markets Skills Solution for Business Capital Investment Grants - November 2008 Business Collaboration Networks Shared Business Support Environments - January 2009 Risk Capital Finance Awareness and Capability Debt Finance - March 2009 Innovation Collaborations Innovation Finance Promoting Resource Efficiency & Sustainable Waste Management


19

Protecting the Natural Environment Business Creation Business Expertise for Growth Local Community Business Coaching Progress through Transition A progress log will be created to show the migration activity for existing products & services, this will be placed on the NWDA website and updated monthly. It will be reviewed by the Regional Simplification Board at each monthly meeting and will also form the basis of the regional report required by the National Transition Management Board on a quarterly basis. Through this log all interested stakeholders will be able to see the status and progress of each existing business support product. Development of New Business Support Products In parallel to reviewing existing business support in the Region, just as critical to the success of business support simplification is the development of new products & services in line with the portfolio. Whilst this will be led by NWDA through our Strategic Investment Plan and management of ERDF funds for the Region, a joint approach will be adopted where other funding bodies can indicate where they also wish to fund business support from the product portfolio for sub-regions and localities through an introduction path. Considerations for this will include those shown below; but further detail on this activity will clearly become available during negotiation discussions: Product design released by national design teams

National design teams

NWDA to consider potential contribution of the product to RES targets and decide level of funding

NWDA

Sub regional and local partners consider contribution to targets and decide level of funding (if any)

Sub-regional and local bodies

Procurement methodology decided in light of funding and number of funding bodies

NWDA with other funders

Introduction path agreed

NWDA and funders Endorsed by NW Regional Simplification Board

In exceptional circumstances, there will be requirement for brand new & unique business support products to be created that are not contained within the portfolio. In these circumstances, a business case will be required to be submitted to the National Transition Management Body including the evidence of market failure and case for intervention. This process is to ensure that the product portfolio can remain current and relevant to business, but ensure that replication and duplication does not again occur through the same schemes being developed multiple times at local, sub-regional, regional and national level by different partners.


20

Business Link Business Link (BL) has been announced and confirmed as the primary access channel for all business support services for all client groups3 and to achieve this it will focus solely on its Information, Diagnostic and Brokerage role (IDB). Business Link Northwest (BLNW) was established in April 2007 by the NWDA to deliver an independent, client focused Information, Diagnosis and Brokerage (IDB) service, with the purpose of contributing to a step-change in the rate of new business formation and growth of existing businesses in the North West. In being created in this manner, BLNW met at an early stage the simplification target of ‘primary access channel’; by providing the regional gateway for individuals and businesses. The BLNW Vision is summarised as: ‘Inspiring prosperity to improve the performance of business and wealth of the North West region, enabling all to reach their potential’. In line with the National Framework, the services of BLNW are available to all individuals and businesses within the North West, either through its Universal Service or the Targeted Brokerage. The national framework seeks to segment the business base into the following groups, whilst allowing for further regional segmentation. • Owner managed Pre starts • Owner managed Start-ups • Owner managed Steady State • Owner managed Growers • Corporate Steady State • Corporate High Growth BLNW seeks to service these segments through its core activities as below: - Universal Service is available to all segments of the business base. - Targeted Service focuses on the owner managed growers, corporate steady state and corporate high growth plus the priority sectors noted in the RES4

3 Comprehensive Spending Review October 2007 and Budget Announcement Section 3.46 March 2008 4 RES Priority sectors are noted as: Biomedical, Energy and Environmental Technologies, Advanced Engineering and Materials, Food and Drink, Digital and Creative Industries and Business and Professional Services


21

The Universal Service supports all individuals thinking about starting a business and established businesses; whilst the service is available to all elements of the segmentation framework, in terms of anticipated activity it was expected to reflect the first three elements of the national segmentation guidelines: owner managed pre starts, owner managed start-ups and owner managed steady state. In terms of the North West business base, this equates to some 314,000 businesses. The service has been designed to handle high volumes of IDB engagements, principally through the provision of information via web, phone and email. The Targeted Service focuses on the RES priority sectors and growth firms in order to produce the GVA improvements for the region and consequently dealing with fewer businesses, in more depth. This focuses on the latter three elements of the national segmentation guidelines: owner managed growers, corporate steady state and corporate high growth. In terms of the North West business base, this equates to some 123,000 businesses. Skills Brokerage Key timeline announcements have already been made regarding the transfer of national IDB elements such as Skills Brokerage in particular to Business Link. To ensure integrated brokerage could be achieved in the region as soon as possible the NWDA bid for, and secured, the Skills Brokerage contract from the Learning and Skills Council (LSC) that started in August 2006. BLNW has been operating the Skills Brokerage element of Train to Gain since 1 April 2007 and since then there has been two key policy developments: • The Sub National Review and Pre-Budget Report announced that Skills

Brokerage would be fully integrated with the Business Link brokerage service from April 2009; and

• The LSC published ‘Train to Gain – A Plan for Growth’, announcing a broadening and deepening of provision as a key response to the Leitch review.

A Regional Transition Plan for Skills Brokerage is now in place for the Northwest, and has been recently submitted to the National Steering Group setting out: • Current arrangements for Train to Gain brokerage • Current arrangements for Business Link • Current service standards • Ensuring service standards remain the same or better • Arrangements for managing the transition • Provision of management information • Transfer of existing contacts and databases • Staff transfer/TUPE • Management of existing contracts, leases etc • Working with partners and Stakeholder communications • Marketing and branding Some of these items are naturally less relevant to the Northwest as Skills Brokerage has already been integrated into BLNW, others will be considered throughout 2008/09.


22

Enhancing the Business Link service Nationally, all IDB elements of business support products are migrating to the website; businesslink.gov, this must be replicated at regional and local level. RDA’s have a target of April 2009 to ensure that Business Link is utilised for all IDB elements in business support products and services and all other public sector organisations will have until December 2010 at the latest. Direction of Business Link Northwest is currently provided through a Task & Finish Group composed of Board Members of the NWDA. This group is responsible for ensuring the service develops in line with the principles of business support simplification and has been enhancing the BLNW role in advance of any emerging national policy. In its role of primary access channel for the Region, Business Link NW must develop in the following areas to achieve this requirement:

- Be able to provide an IDB service that will meet the needs of all clients and delivery organisations; as other products will lose any aspect of generic IDB

- Be capable of responding to all types of business: Size – from single person to large corporates Type of business – sole trader, mutuals, social enterprises, publicly listed

etc Ownership – including under-represented groups Stages of business lifecycle – from pre-start-up, to growth, to sale and to

closure - Must be able to respond to local business issues and to offer a platform to

local and sub-regional organisations who will be encouraged to rely on BLNW for access rather than establishing their own access routes and channels.

Business Link NW has, in its first year in operation, made advancements in this area, but there is further development required, with the input of partners to shape and extend the reach and breadth of the IDB service which will suit and service local needs such as disadvantaged communities but managed by a cost effective regional operation. BLNW will engage with a wider range of partners and agree any necessary changes to enhance the BL service and transfer IDB services.


23

Marketing and Branding After almost 9 months of national development work involving a range of partners including public sector funders, Government departments, delivery bodies and the private sector a marketing & branding option has been approved by the national programme board as shown below:

Final guidelines are due by June 2008, and it is expected that conformity with the branding guidelines once confirmed will be included in the transition path for all existing products and the introduction path for all new business support products. Final decisions taken at a national level on the guidelines will have implications for all existing programmes these will need to be managed carefully through the transition phase. There are a range of questions around each option and the potential outcomes, for example, ‘how will local brands which have strong local investment and significant local attachment be managed through the transition?’ The Regional Steering Board has provided feedback on these issues to Central Government directly, through participation in consultative Marketing & Branding workshops held by BERR in the Region and also via BERR representation at the Regional Steering Board meetings. Conformity can only be achieved once we have clarification on these issues.

Business support brand (single brand)

Location or sector (if relevant)

Access point

Identified as backed by government

Boilerplate containing additional information, e.g. multiple funding

sources, details of the wider business support

offer

Theme

Product name

Public sector endorsement

(by exception only)


24

Procurement & Delivery Arrangements Currently there are four models of procurement & delivery that are being proposed by the product development groups for each business support area within the national framework as shown below. Once finalised RDA’s and other funders of business support are expected to reflect these recommendations when making investments, thus ensuring quality of provision, value for money and clarity for clients. 1. National Product, National Procurement Debt Finance Risk Capital Targeted at the Equity Gap Export Credits Guarantee Innovation Collaborations Preparing to Export Investigating New Overseas Markets Getting the Most from Foreign Direct Investment Protecting the Natural Environment 2. National Product, In Region Procurement Finance Awareness and Capability Capital Investment Grants Skills Solutions for Business Shared Business Support Environments Business Expertise for Growth Innovation Finance Business Creation Promoting Resource Efficiency and Sustainable Waste Management 3. Regional Product, In Region Procurement Business Collaboration Networks 4. Regional Product, Co-procurement at Sub-Regional & Local Level Local Community Business Coaching In the Region, we are developing a new framework with sub regional and local partners; through which we can agree strategic priorities including arrangements for co-investment and co-commissioning, particularly to ensure that any delivery arrangements put in place are fit for purpose for all segments of the business support market place, e.g. rural business communities. Our intention is to ensure that all public sector partners are committed to the benefits of simplification and the new procurement and delivery arrangements. In turn, we will jointly seek to ensure that these new arrangements can adequately support local economic development priorities and targets, particularly those which form part of Local Area Agreements and Multi-Area Agreements. For procurement of business support in the portfolio deemed ‘in region’ the following areas shown in the table below will need to be considered; particularly to reflect the recommendations of the Sub-National Review. Where the strategic need exists, our emerging new framework will make it possible for Local Authorities to procure additional capacity within regional programmes for identified local priorities.


25

Issue Determined by: Recommendations from national design groups

National framework

Co-investment opportunities and levels of funding from NWDA and other partners

Contribution to RES targets and priorities Contribution to sub regional and local targets and priorities

The appropriate geographical level of delivery

Target client group

The degree of blending* of products The need to offer holistic services to clients or groups of clients

Potential for co-procurement: • Region/region • Region/local

Degree of common goals, targets and priorities

*Blending In some instances, business support products will be blended in order to offer a holistic service to clients. There are typically three circumstances where this might occur:

- At the individual client level; Business Link or another body working with a client might bring to bear for the benefit of the client a number of business support products together

- At regional level; certain client groups or businesses issues might be best addressed by bringing together a number of business support products in order to create a seamless service to clients.

- At sub-regional or local level where funding bodies or their stakeholders might wish to see a seamless service to clients. For example, where a number of providers of support might be brought together in a particular locality which has prominence amongst the local business community.

Blending of products in this manner will not in any circumstances attract their own marketing and branding guidelines.


Monitoring and Evaluation At national level an effective monitoring and evaluation policy is being developed to be in place from October 2008 and will be consulted on during May 2008. Significant development work has been undertaken by both BERR and RDA’s towards this policy during 2007/08 to ensure that it is fit for purpose for the future. The focus of this policy and processes will be to ensure key public sector decision makers have sufficient data of the right quality to assess performance against objectives and make future decisions on publicly funded business support. The underpinning principles for this work are in the following areas:

- Management information will be required for the successful delivery and operation of the new support products and will include budget variances, numbers of applications, processing times, customer profiles and satisfaction, etc.

- Appraisal process defining objectives, examination of options and weighing up the cost benefits, risks and uncertainties of those options before a decision is made.

- Monitoring will be primarily focussed on providing the information required for the purposes of evaluating the impact and outcomes of the products and overall portfolio. As part of this, monitoring information will provide a timely summary picture on how a policy is being executed, indicates whether targets are being met and helps assess whether changes to delivery are required.

- Evaluation of impacts, outcomes and value for money will determine the extent to which a project/ programme is meeting its overall objectives and ensures that the lessons learned are fed back into the decision making process.

In the Region we are committed to developing a stronger pool of shared intelligence on the portfolio of business support and its achievement. This will need to involve greater levels of evaluation, monitoring and sharing of best practice. This will be a particular feature of the Integrated Regional Strategy as we go forward to ensure that business support in the region is strongly linked to a strong performance framework, and we will continue to work with BERR and other Central Government Departments to ensure that the national frameworks dovetail into regional, sub-regional and local strategies. The NWDA is currently strengthening its arrangements for Monitoring and Evaluation, as part of the future Performance Management Framework as shown in the diagram below; to particularly consider evaluation of investment in large scale business support projects:

26

Concept

Development & Appraisal

Legal

Monitoring & Management

Exit & Evaluation

Investment Decision

Early recognition of potential business support and fit with the Product Portfolio and Business Link IDB

Check compliance with simplification principles and detail eligibility including marketing and branding and procurement & deliveryarrangements

Regular monitoring ofbusiness support activity and reporting centrally

Evaluation in line with national guidelines

Market Failure Assessment


27

7. The Region’s Commitment to Simplification The Region has already shown during 2007/08 considerable commitment to simplification. In particular representatives from the Sub-Regional Partnerships and Local Authorities across the Region have been extensively involved in a number of national working groups to assist in the development of the national framework, as well as taking a lead role in making the Northwest the region that returned the highest input into the national matching aid exercise completed in May 2007 to specifically test out the suitability of the Product Portfolio. Our collective Regional Response to the national consultation in September 2007 also demonstrated to Central Government our level of advancement and progress on achieving simplification in the Northwest across all partners. NWDA’s Experience to Date: The Agency has been committed to simplifying business support activities across the Region since 2006, and has undertaken a variety of key reviews and decisions to support this aim: Strategic Position Our commitment to simplification has been articulated in our Corporate Plan 2008-11 and is reviewed quarterly through our Business Plan Process. It is guiding our Strategic Investment Plan Cycle, and has been embedded in our policy advice for Sub-Regional Partner Action Plans and Urban Regeneration Company Plans. Internal Communications Alongside our facilitation of the external regional communications, we have undertaken an extensive programme of internal communication to ensure that all relevant Agency staff have been kept abreast of developments on the programme via our Board, Sub-Committee, Executive Management Board, Core Brief, Directorate Updates and Team Meeting cascade system. Influencing the National Programme Development Through our representation on the National Steering Group, Product Design Groups and variety of work stream themes within the national programme, we have proactively endeavoured to shape the thinking at the Centre based on views from both the NWDA but also local & sub-regional input and evidence provided by a wide range of partners and stakeholders. We have encouraged the BERR BSSP Team to come to the region to talk with partners, witness our progress first hand and sit as an observer on our Regional Simplification Board. Mapping and Review Existing Products & Services Since November 2006, the Agency has undertaken four stages of mapping and review of existing NWDA funded products and services, the two most notable steps are detailed below: 1. National Grants and Services Directory (GSD) In November 2006, 305 business support entries in the Northwest were identified and on review showed that 40% have already closed. The remaining balance will form part of the ongoing transition activity.


28

2. In November 2007, an independent & external map & review exercise was undertaken to identify all cross-Agency funded projects and programmes showing business support outputs.

From February 2008 detailed work was started on these to further and consider: - Business Link integration for IDB - Project Scoping to Product Portfolio - Marketing & Branding Alignment - Common CRM System Usage - Inform possible future procurement models This work will clearly continue during 2008/09 as the transition phase gathers momentum. Future Business Support Development Alignment The Agency has taken the opportunity wherever possible during 2007/08 to align any business support that is up for contract review, being re-submitted for further funding or being developed from scratch. We have also intervened in projects where we believe there is a clear conflict to ensure that simplification is upheld. Examples of these are: Contract Review – Envirowise. This contract has had its IDB elements embedded into BLNW, including proactive marketing campaigns and use of the common CRM system, plus future delivery of business support products is being aligned to the product portfolio areas. Funding Extension – Lancashire Rural Futures. This contract is being considered in light of the duplicative IDB elements and the product portfolio not singularly providing dedicated rural products. New – Start-Up, Innovation Advisory Service, Access to Finance. All of these newly developed products have been embedded with BLNW and utilise their CRM as the access channel. Intervention – Contracts that do not meet the enhanced market failures requirements set in the business support portfolio or that duplicate activities such as Business Link are being reviewed on a case by case basis. EU Funding The Agency has devoted considerable resource to ensure that the regional deployment of the new ERDF Operation Programme 2007-13, the Rural Development Programme for England 2007-11 and the European Social Fund 2008-11 are investing funds in alignment with simplification principles under the national policy framework.


29

Social Enterprise and Business Support Simplification Social enterprises are defined as “businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or community, rather than being driven by the need to maximise profit for shareholders and owners”. They tackle some of our most entrenched social and environmental challenges in an often innovative way and come in many shapes and sizes and legal forms The Northwest Development Agency recognises that there is latent potential existing among its diverse and talented communities. They accept that social enterprises often prove that social and environmental responsibility can be combined with financial success and are committed to creating an environment in which they can flourish.

The Government's work to promote the role of social enterprise in the economy and society was mapped out in its 2006 strategy, the Social enterprise action plan: scaling new heights. The Northwest has subsequently developed a Social Enterprise Support Framework to ensure that:

• Social Enterprise is inspired and promoted as a respectable solution to social, economic and environmental challenges

• The Agency and other stakeholders recognise that social groups require a approach unique to commercial business to access Business Support and

• Mainstream provision allows flexibility to accommodate the needs of social enterprise

The principles of business support simplification will be embedded within the Social Enterprise Support Framework and, as with traditional business, will utilise Business Link as the primary access channel to reach mainstream business support services. NWDA has already secured funding from the Office of the Third Sector to enhance the activities of our emerging Social Enterprise Support Framework, including the development of Business Link staff to better understand the needs of this valuable sector. Social Enterprise is recognised as a priority within the NW Regional Economic Strategy, European Programmes such as the European Regional Development Fund, and the Rural Development Plan for England, ensuring that resources are effectively targeted at this key sector. NWDA already support the provision of networks for Social Enterprise to enable groups to share good practice, gain confidence and develop formal and informal partnerships. Activities requiring Public sector support currently fall into 7 areas allowing us to effectively target support from within the BSSP portfolio:

1. Awareness-raising of the concept of Social Enterprise (which is currently out of the scope of Business Support Simplification)

2. Stimulating entry into Social Enterprise (through the Local Community Business Coaching product)

3. Networking and clustering (through the Business Collaboration product) 4. Social Enterprise creation (through the Business Creation product) 5. Capacity building (through the Skills Solutions for Business product) 6. Social Enterprise development (through the Business Expertise for

Growth product) 7. Financing Social Enterprise (through the Debt Finance product)


30

8.Next Steps & Actions During 2008/09 the Region’s Transition and Implementation Plan will be updated to reflect progress and required change. However, in the immediate period there are a number of key actions with timelines which partners are invited to note and take opportunity of:

- The submission deadline to BERR of Tuesday 6th May 2008 - Reviewing Regional Stakeholder Event slides and post-event information

from 23rd April via www.nwda.co.uk/simplifyingbusiness

- Proactively participating in the simplification programme both nationally and regionally and by using the website channel for updated programme information through 2008/09 on transition activity including the progress log

- Commitment by all funders of public business support to undertaking mapping

of current activities by September 2008 latest - Further communication via Regional Simplification Board Members and Sub-

Regional Business Support Meetings etc - 4th Regional Stakeholder Event on 26th November 2008

http://www.nwda.co.uk/simplifyingbusiness


31

This Northwest Transition and Implementation Plan for Simplifying Business Support was facilitated and produced by:

Northwest Development Agency PO Box 37 Renaissance House Centre Park Warrington WA1 1XB Tel +44(0) 1925 400 100 Fax +44(0) 1925 400 400 Email: [email protected] www.nwda.co.ukwww.englandsnorthwest.com Contact Mark Hughes, Executive Director, NWDA Enterprise & Skills

Government Office for the Northwest CityTower PiccadillyPlaza Manchester M14BE Tel+44(0)1619524000 Fax +44(0) 161 952 4099 Email: [email protected] www.gonw.co.uk Contact David Higham, Deputy Regional Director, GONW Economic and Regional Issues,

mailto:[email protected]

http://www.nwda.co.uk/

http://www.englandsnorthwest.com/

mailto:[email protected]

http://www.gonw.co.uk/

nw_transitionimplementationplan_v10

Documents

business support transition

business support services

simplifying business

business support environment

funded business support

department of business

northwest region

directors northwest