The Royal Parks
                  Corporate Strategy 2006-7 to 2008-9 and
                          Year 1 Business Plan

...
1.     INTRODUCTION BY THE CHIEF EXECUTIVE

This is the first Corporate Plan that I have produced for the agency. It sets ...
2.        OUR LONG-TERM CORPORATE OBJECTIVES

The Royal Parks is a government Executive Agency owned by the Department for...
•     Communities
          To increase and broaden the impact of culture and sport, to enrich individual
          lives,...
3.      OUR KEY PERFORMANCE TARGETS

Key Performance Targets (KPTs) for the Agency are agreed on an annual basis and laid
...
KPTs representative of delivery of Objective 4

•   To undertake 3 new heritage restoration projects within the period of ...
SUMMARY OF KPTs

KPT                                     06/07                07/08              08/09
1a. international b...
Royal Parks Strategic and Business Plan version 1.3
Dated 06 Apr 06


                                           8
4.      THE INTERNAL AND EXTERNAL ENVIRONMENT

In order to determine the best way in which to meet our corporate objective...
5.        OUR VALUES

                                        We will value:

                          the natural enviro...
6.        STRATEGIC DIRECTION AND GUIDANCE

                               Clear priorities, clear focus

We are a relativ...
partners to understand what is important to them and benchmark the quality and value
of our offering.

We will establish p...
We will work closely with The Foundation and Guild ensuring that our activities are
complementary and that, between us, we...
In light of our priorities, we shall review our structure and alignment of
responsibilities. We will manage our teams to o...
7. IMPLEMENTATION OF THE STRATEGY AND MEASURING SUCCESS

Through the Framework Document and associated letters of delegati...
8.     RESOURCING – OVERVIEW FOR 06/07 to 08/09

The Royal Parks is funded from three main sources: funding voted by
Parli...
Carparking                   1,060                    1,060         1,060
Other                        1,030              ...
9.     STRATEGIC RISKS

The aim of risk management is to understand the risks that will impact our ability to
deliver the ...
STAFF -
We are unable to retain         •   Ensure succession planning for key roles and skills
the right skills in the ri...
ENVIRONMENTAL -
Changing weather            •   Engage to understand likely scenarios, sensitivity
patterns and Climate   ...
ANNEX A

THE ROYAL PARKS BUSINESS PLAN FOR FY06/07

To deliver the corporate plan we have developed, within the context of...
will build on our relationships and successful delivery of biodiversity projects (for
example the reedbed in St James’s Pa...
KEY PERFORMANCE TARGETS FOR OBJECTIVE 1

KPT                                        06/07               07/08             ...
Biodiversity                                  Acid Grassland                                                              ...
We will produce a Royal Parks Wide Audience Development Strategy by the end of
March 2007. We shall develop two park based...
KEY 06/07 MILESTONES ALIGNED TO OBJECTIVE 2:

                        By end Q1          By end Q2           By end Q3    ...
Having identified where we can add value, we will establish those opportunities which
may be delivered within the core fun...
OTHER DEPARTMENTS

Focus for year one will be on health and education but we will build relationships with
and gain a grea...
Establish        William Bird      Interim Sport      At least one new
strategy and     engaged to        strategy and    ...
Where appropriate we will continue to manage the estate through the granting of
encroachment licences to avoid third parti...
Corporate Objective 5
To deliver greater value for money for the taxpayer through increased
income generation and reduced ...
We will create value through better utilisation of our assets and capability. This will
require an audit of assets (includ...
Foundation/      Clear guidance                       Foundation input   Plans for 07/08
fundraising      on respective   ...
We will establish best practice project management and embed it as a core skill of The
Royal Parks. This will result in be...
ANNEX B

RESOURCING AND FINANCIALS FOR FY06/07

The tables below provides details of The Royal Parks provisional budget al...
The chart below demonstrates the percentage breakdown of administration,
operational and policing budgets for the period.
...
ANNEX C

INTERNAL AND EXTERNAL ENVIRONMENT – THE AUDIT


THE INTERNAL ENVIRIONMENT - WHERE ARE WE NOW?

The last Corporate...
Our customers (whether stakeholders, park users or fee-payers) are important to us and
we have commissioned independent re...
opportunities. Our grant from DCMS is forecast to remain flat in cash terms. Against
this backdrop we have a profile of in...
Advances in web and mobile technology provide significant opportunities to reach
wider audiences as long as we are able to...
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  1. 1. The Royal Parks Corporate Strategy 2006-7 to 2008-9 and Year 1 Business Plan Contents: SECTION PAGE 1. Introduction by the Chief Executive 2 2. Our Corporate Objectives 3 3. Our Key Performance Targets 5 4. The Internal and External Environment 8 5. Our Values 9 6. Strategic Direction and Guidance 10 7. Implementation of the Strategy and Measuring Success 14 8. Resources – Overview 06/07 to 08/09 15 9. Strategic Risks 17 ANNEXES: A Business Plan 06/07 20 B. Financial Plan 06/07 35 C. Internal and External Environment – the Audit 37 D. Supporting Functional Strategies (to follow) Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 1
  2. 2. 1. INTRODUCTION BY THE CHIEF EXECUTIVE This is the first Corporate Plan that I have produced for the agency. It sets out our strategy and direction for the next three years, and provides challenging targets for the agency and its staff. When I arrived, in May 2005, we were part way through the final year of our two year Corporate Plan. That plan set out the agency’s purpose as “to balance our responsibility to protect, conserve and enhance the unique landscapes, environments, heritage and vistas of the eight Royal Parks in London with active and creative policies to encourage wide access to them and increase opportunities for enjoyment, delight, sanctuary, information, education, creativity and healthy recreation for everyone, now and in the future.” And it helped deliver a number of significant achievements – education and community engagement up from around 7,000 participants to 23,000 participants; self generated income up from £5.3m to £6.9m; and two parks gaining Green Flag status. Our new plan builds on these achievements, and sets challenging targets for the coming three years. It also seeks to put The Royal Parks at the centre of London and all the communities and visitors we serve, by better understanding the needs of our customers and ensuring that we communicate fully and openly with customers and our key stakeholders. At the same time, we want to drive up horticultural standards, our international standing, and develop greater financial independence. The next three years will see us starting work on a c£7million project at Bushy Park, hosting the Prologue for the Tour de France and building towards the Olympics. If we are to continue to be seen as a successful agency we will need to deliver in each of these areas. We will also need to improve our offers for education and participation to provide Londoners and visitors with the parks and facilities that they want and deserve. It is an ambitious and challenging agenda but one that we are capable of delivering. Mark Camley Chief Executive Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 2
  3. 3. 2. OUR LONG-TERM CORPORATE OBJECTIVES The Royal Parks is a government Executive Agency owned by the Department for Culture Media and Sport (DCMS). The DCMS Public Service Agreement (PSA) targets for 2005-2008 have been agreed with Treasury. To assist in meeting it’s PSA targets, and within the context of its strategic priorities, DCMS sets objectives for its agencies. The purpose and corporate objectives for The Royal Parks are set down within the Agency Framework Document and the strategic direction, within which the purpose will be met, is endorsed through the Ministerial Advisory Board. Our purpose is: “to manage the Royal Parks effectively and efficiently; balancing the responsibility to conserve and enhance these unique environments with creative policies to encourage access and to increase opportunities for enjoyment, education, entertainment and healthy recreation.” Our corporate objectives and targets must be set within the context of the DCMS’s objectives, targets and strategy. The Public Service Agreement targets for DCMS, agreed by Treasury are: • To enhance the take-up of sporting opportunities by 5-16 year olds so that the percentage of school children who spend a minimum of two hours each week on high-quality PE and school sport within and beyond the curriculum from 25% in 2002 to 75% by 2006 and 85% by 2008 (joint target with the Department for Education and Skills) • To halt the year-on-year increase in obesity among children under 11 years by 2010, as part of the broader strategy to tackle obesity in the population as a whole (joint target with the DfES and Department of Health). • To increase the take-up of cultural and sporting opportunities by people aged 16 and above from priority groups by 2008. • To improve the productivity of the tourism, creative and leisure industries • Efficiency target: To achieve at least 2.5% efficiency savings on our Departmental expenditure limit and Local Authority spending on leisure and culture services (2005 - 2008). Alongside these, DCMS has stated that its strategic priorities are: •Children and young people To further enhance access to culture and sport for children and give them the opportunity to develop their talents to the full and enjoy the benefits of participation Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 3
  4. 4. • Communities To increase and broaden the impact of culture and sport, to enrich individual lives, strengthen communities and improve the places where people live, now and for future generations • Economy To maximize the contribution that the tourism, creative and leisure industries can make to the economy • Delivery To modernise delivery by ensuring our sponsored bodies are efficient and work with others to meet the cultural and sporting needs of individuals and communities. Our Corporate Objectives have been designed to support DCMS in meeting their strategic priorities and wider responsibilities. They are: THE ROYAL PARKS OBJECTIVES DCMS PRIORITY To protect and enhance our “world class” natural park community, 1 environment for the enjoyment of families, children and economy visitors To understand and respond to the needs of our audiences, community, reflecting diversity of needs and use; enriching lives and children and 2 enhancing access to culture and sport young people, economy community, children and To work with other organisations and volunteers to deliver 3 young people, clear education, health, sport and participation offers joint PSAs with DoH and DfES To conserve and enhance the historic built environment of community, 4 the Royal Parks economy, To deliver greater value for money for the taxpayer through 5 increased income generation and reduced dependency on delivery vote funding To demonstrate organisational excellence 6 delivery Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 4
  5. 5. 3. OUR KEY PERFORMANCE TARGETS Key Performance Targets (KPTs) for the Agency are agreed on an annual basis and laid before Parliament; these are published measures on which the performance of the agency against its objectives is judged. While delivery is underpinned by a comprehensive set of corporate deliverables and metrics these KPTs are considered to be representative of delivery against the relevant corporate objective. The representative targets for 06/07 and the proposed targets for the remaining period of the corporate plan are detailed below: KPTs representative of delivery of Objective 1 • To develop a value-based international benchmark methodology for use by 07/08 • To gain Green Flag for 5 parks by end 06/07 and for all 8 parks by 07/08 Rationale for these targets: use of the Green Flag criteria provides a standard for systematic and committed approach to maintaining and improving the quality of parks enjoyed by local communities. In addition it is essential to develop a public value based benchmark that considers scope of utility, volume (number of visitors) and cost. KPTs representative of delivery of Objective 2 • To maintain customer satisfaction above 85% for 06/07 (utilising current methodology) and develop value-based customer satisfaction metric and baseline by end 06/07 Rationale for this target: This target reflects the requirement to gain greater understanding of the needs of the diverse community of park users (with clear alignment to DCMS priorities) and develop a relevant customer satisfaction metric. In the interim the existing methodology will be used to provide a measure of the trend in customer satisfaction levels. KPTs representative of delivery of Objective 3 • Develop and publish clear education and health strategies in 06/07 and set clear metrics from 07/08 onwards Rationale for this target: this reflects the importance of the wider education and health agenda and role that The Royal Parks can play in helping children, and others, develop their talents, maximise their potential and participate in healthy activities. Agreement of the strategies will require demonstrable alignment to relevant DCMS and wider government objectives. Delivery metrics will be set for 07/08 onwards. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 5
  6. 6. KPTs representative of delivery of Objective 4 • To undertake 3 new heritage restoration projects within the period of the plan; initiating one per annum Rationale for this target: These projects will focus on heritage structures which have suffered from lack of investment in the past; enhancing the cultural heritage of communities and reducing the maintenance backlog. The target is a direct measure of the number of restoration projects that have been scoped, initiated and for which funding has been secured. KPTs representative of delivery of Objective 5: • To increase profitable income1 to £7.5M by 08/09 Rationale for this target: This target will be a direct measure of funding from commercial sources, donations and other government departments; it reflects better value for money for the taxpayer, achieving new revenue streams to offset increasing costs (against real term decreases to vote funding) and deliver a wider programme of delivery. In year two we shall add a net contribution (profit) element to this target KPTs representative of delivery of Objective 6: • To achieve savings identified in the Efficiency Delivery Plan • To provide relevant customer interaction facilities during peak visitor hours by FY07/08 Rationale for these targets: An efficiency delivery plan (to 08/09) has been agreed with DCMS aimed at delivering and releasing efficiency savings into frontline delivery. To be a customer focussed organisation we need to review our customer touch points and align our services and resources to provide services that reflect demand and improve the quality of the visitor experience. 1 Where income is defined as any income (from commercial, government or charitable source) other than the Grant from DCMS or Lottery Funding Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 6
  7. 7. SUMMARY OF KPTs KPT 06/07 07/08 08/09 1a. international benchmark Establish Utilise and benchmark validate methodology methodology 1b. to gain Green Flag status 5 Parks 8 Parks 8 Parks 2. increased customer Maintain Implement satisfaction and develop a satisfaction value based value-based metric above 85% metric with (current metric) agreed target and establish value-based metric and baseline 3. To publish and deliver publish Metric Metric comprehensive education and strategies and established from established from health strategies agree targets strategy strategy 4. to undertake heritage Initiate first new Cumulative 2 Cumulative 3 restoration projects project 5. To increase income1 to: £7000K £7250K £8000K set profit target add profit target 6a. To achieve efficiencies £1676K £1751K £1800K 6b. To provide relevant Complete Develop Full customer interaction facilities research and detailed plan & implementation during peak visitor hours scope Deliver quick requirement wins OUR FOCUS To enable delivery of our objectives and targets our organisational priorities for the period of the plan are: • Improving customer focus – engage, understand, respond • Develop brand identity – enhance the customer experience • Developing Partnerships – collaborate, co-operate • Improving commercial orientation – release the potential, utilise our assets • Developing skills – right people, right place, right time Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 7
  8. 8. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 8
  9. 9. 4. THE INTERNAL AND EXTERNAL ENVIRONMENT In order to determine the best way in which to meet our corporate objectives, provide strategic direction and develop our business plans it has been necessary to consider drivers and constraints, which exist with both our internal and external environments. This audit is at Annex C. Based on our analysis of the external and internal environment, the key assumptions that underpin our strategy and business plan are that: • DCMS will remain our owning department for the duration of the plan and that there will be no change to our status as an Executive Agency • Vote public expenditure (with the exception of funds transferred for policing) will rise by £500K in FY07/08 and remain flat in cash terms thereafter • Any significant extension to our corporate objectives (e.g. Olympic commitments) will be offset by an appropriate increase to funding / resource • DCMS will take a balanced and supportive view of proposals to develop new income streams • Capital expenditure and maintenance schedules and requirements remain within the scope of our current financial assumptions and model • We are able to obtain entertainment licenses, under the Licensing Act 2003, and that our programme of events is not significantly constrained by imposed restrictions • Issues and/or incidents relating to terrorism and/or other threats to national security or welfare do not have any major long-term impact on the utilisation of the parks. • Outbreaks of disease or virus within the wildlife population (e.g. avian flu) can be managed within current resource levels and do not have a significant long-term impact on the utilisation of the parks • Further significant Climate Change impact does not occur within the period of this plan (consistent with guidance) and that necessary early mitigation plans to ensure long term sustainability are affordable within current funding levels Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 9
  10. 10. 5. OUR VALUES We will value: the natural environment and our heritage; the views of our customers and stakeholders; the diversity of our parks, our staff, and park users; the opportunity to work with and learn from others; training and development for our people; good leadership and management. Underpinning our objectives, activity and values is our commitment to key government agendas for delivery of Public Value and Sustainability: PUBLIC VALUE We are committed to the delivery of social and cultural public value through the protection and presentation of The Royal Parks assets, provision of relevant facilities and a balanced programme of events and activities; enhancing the experience of the Royal Parks and contributing to wider market value. All of our objectives and targets reflect recognition of the need to build public value. In the development of new metrics we shall balance the public perception of value with acceptable cost, taking into account objective methodologies being developed across other public sector bodies and agencies. SUSTAINABILITY We will continue our clear commitment to environmental issues and sustainability, maintaining our ISO 14001 accreditation. In order to support this we will develop our management systems and continue to seek support from specialist agencies. We will extend the depth of focus for re-cycling encompassing not only our own operations but to further encourage and target re-cycling and environmental protection by our park customers and operators including those organisations running events. We shall position ourselves as a beacon in sustainable management practices and water management, leading other organisations by example. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 10
  11. 11. 6. STRATEGIC DIRECTION AND GUIDANCE Clear priorities, clear focus We are a relatively small agency with limited funding and wide ranging responsibilities. We will prioritise our activities, understanding those activities that we must do, those activities we want to do and those activities that we should stop doing. “Must do” activities will deliver our core objectives while “want to do” will either improve delivery of these objectives or assist in the delivery of wider and related objectives and must be associated with new funding streams. We shall make our priorities clear to our staff and our stakeholders. For the period of the plan our focus will be on: • Improving customer focus – engage, understand, respond • Develop brand identity – the Royal Parks experience • Developing Partnerships – collaborate, co-operate • Improving commercial orientation – release the potential – utilise our assets • Developing skills – right people, right place, right time In year one of the plan priority activities will be: • Communication and engagement; understanding the needs of our customers, stakeholders and partners • Developing our brand identity; understanding how we wish to be seen by our customers and applying a consistent approach to customer interaction • Preparing the way for new income generation; capturing and exploiting opportunity • Developing strategies for education and health; working with DCMS, DfES and DoH towards delivery of joint owned PSAs • Establishing links to the delivery of other departments’ PSAs (e.g. DEFRA and ODPM) • Developing the agency (staff and processes) to better meet the needs of our customers Engage, understand, respond We will engage with representative groups of the whole community including visitor sector. We will be proactive in seeking opinion, listening to and understanding the needs of all our customers and potential customers so that we may adapt our offering ensuring relevance and value. We shall work with our customers, stakeholders and Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 11
  12. 12. partners to understand what is important to them and benchmark the quality and value of our offering. We will establish programmes that increase the number of volunteers within the park environment, progressing education and health strategies alongside our core delivery. Enhancing the customer experience experience We will ensure that the customer receives a consistent quality of service and experience through all their interactions with us and at all customer touch-points within the parks. We will develop a clear identity so that they know who we are and what they may expect from us. Their experience will be improved through appropriate levels of interaction, the provision of relevant services, improved mapping and inspirational interpretation. We shall make a base-line level of relevant, quality information readily accessible to visitors free-of-charge and this will be supplemented by appropriate value added information and advice provided at an affordable price. We will work with our partners within the parks to explore ways of extending the common identity and experience and finding ways of presenting the whole range of opportunities available to them as a “joined up” offering. We will develop our relationship with partners in the vicinity of the parks to provide information and advice on the range of services, events and activities available in and around the parks, further joining up the offering and enabling people to plan their afternoon, day or weekend. We will inspire them to make the most of their time and experience with us. We will develop a single corporate identity and overarching brand values but, at the same time, we shall recognise the need to maintain individual park brands and identity and differentiate the message and approach in our communication to some individual groups. Collaborate, co-operate We will balance the need to protect and enhance the environment of the parks with the need to give access to the parks. We will work with partner organisations, where possible, to share research, experience and best practice. We will help our customers and stakeholders gain value from the parks, enriching their experience and enabling them to understand how they may contribute to the protection of the parks. We will not attempt to do everything ourselves, instead we shall focus on what we do best, working with others to supplement our skills and expertise. We shall target and engage proactively on the development of policy. We shall promote the wider utilisation of the parks, seeking to help in the delivery of the aims and objectives of the government and other partners. To do this we shall improve our level of engagement at appropriate levels and build relationships, demonstrating the value that we can add. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 12
  13. 13. We will work closely with The Foundation and Guild ensuring that our activities are complementary and that, between us, we are optimising opportunities. We shall utilise the resources and expertise made available through the Foundation and their Trustees. We will develop a long term strategy to respond to the risks and opportunities posed by climate change. In the short term we shall develop creative and comprehensive plans for water management, our agreed priority in this context. We shall position ourselves as a beacon in sustainable management practices and water management, leading other organisations by example. Release the potential - utilise our assets We will promote and protect the Royal Park’s brand, the values of the brand and leverage value from it. We will conserve and enhance the unique landscapes, architecture and historical features for the enjoyment of all, now and in the future. We will create value through better utilisation of our assets and capability. While appreciating there may be tensions between the delivery of our core public service with the development of new income streams, we recognise the reality of our funding model and the pressures on government spending; new income streams are vital to the future of the parks. Given the diverse use of the park environment it is unlikely that we shall get universal support for all initiatives. We will be creative, we will be bold and, while recognising the balance of interests, we shall push against boundaries and constraints to provide sustainable funding streams for the parks. We will adopt business process and business behaviours to deliver. Right people, right place, right time Our people are critical to our success. We shall embed a “one-team” culture across the parks. We will provide an environment that values people’s differences, develops leadership skills at all levels, encourages and supports personal development and stimulates and captures innovation. We will review and revise our human resources strategy, finding ways to better involve, encourage, incentivise, measure performance of and reward our teams. We shall develop an efficient process to recruit, re-deploy and retain staff to maintain business continuity and enable agility of response to changing business needs. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 13
  14. 14. In light of our priorities, we shall review our structure and alignment of responsibilities. We will manage our teams to optimise efficiency but retain sufficient flexibility and agility to respond to changing demands and opportunities. We will develop our people to ensure that they are capable of meeting the demands of running 21st Century parks; putting the customer at the heart of what we do, while protecting and enhancing the historic landscape. We will improve the provision of support functions whilst delivering the planned efficiency savings. We shall adopt and maintain best practice (including governance) and meet recognised benchmarks for excellence. HEALTH AND SAFETY: The Royal Parks believes that the health, safety and welfare of its staff, and all those who come into contact with its operations, are of paramount importance. We have therefore introduced a robust but flexible health and safety management system to protect not only our staff but park users, contractors and others. We will continue this trend over the next three years. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 14
  15. 15. 7. IMPLEMENTATION OF THE STRATEGY AND MEASURING SUCCESS Through the Framework Document and associated letters of delegation, the Chief Executive is the Chief Accounting Officer for the Agency and is responsible, within the terms of his delegation, for the delivery of the organisation’s objectives and for meeting the key performance targets. The strategy and plan for the organisation is owned by the Management Board and approved by the Ministerial Advisory Board. Performance against key performance targets will be managed by the Management Board and reported to and monitored by the Advisory Board. The Chief Executive has delegated responsibility for the delivery of each of the corporate objectives and key performance targets to a member of the Management Board. Ownership of the supporting business plan objectives and targets will be delegated, by the Management Board, to responsible individuals. Letters of delegation (financial and otherwise) that are cascaded through the management team will be reviewed following an assessment of the Chief Executive’s delegations. Supporting strategies will be “worked up” for key functions and will form Annexes to this corporate strategy. Work taken forward within the supporting HR strategy will ensure greater clarity of roles, objectives and responsibilities for individuals. In order to ensure delivery of the step changes required to support our business priorities, these will be taken forward within an organisation development programme with oversight by the Management Board. We will refine and publish our planning and budget cycle. We will measure our performance, re-visit our assumptions and engage more widely in the input to and development of future plans. A detailed Business Plan for year one of the Corporate Plan is as Annex A. Detailed financial information to support this plan is at Annex B. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 15
  16. 16. 8. RESOURCING – OVERVIEW FOR 06/07 to 08/09 The Royal Parks is funded from three main sources: funding voted by Parliament; self-generated income; and Lottery Grants. Funding Voted by Parliament Following the outcome of the Spending Review 2004, the Department allocated funding to The Royal Parks for the period 2005/06 to 2007/08. Funding for 2008/09 will be subject to the forthcoming Comprehensive Spending Review, however, for planning purposes, we have assumed a flat cash settlement. The following table sets out the Departmental allocation for the planning period. £000s 2006/07 2007/08 2008/09 Resource: Cash 23,621 24,121 24,121 Non-Cash 2,571 2,571 2,571 Total Resource 26,192 26,692 26,692 Total Capital 900 900 900 From April 2006/07, £7.7m per annum resource will be transferred across to the Home Office to fund to Metroplitan Police Service who will take over full responsibility for policing the Parks from this date. In addition to the above, the Department have made available a further £1m from the Reform Pot towards this transfer. Self-Generated Income Self-generated income is defined as any income other than DCMS allocation or Lottery Grants. It includes income from commercial activities and grant funding from other sources. Most of our current commercial income comes from catering, fees from events, licences and rents, and carparking. For current financial planning purposes, we have taken a prudent approach to the level of income that will be achieved over the planning period, although we will be striving to achieve a step change in income for the future. The table below shows the levels of income that we have built into our financial plans. £000s 2006/07 2007/08 2008/09 Catering 1,730 1,850 1,930 Event Fees 1,700 1,740 1,750 Licenses and 1,480 1,530 1,580 Rents Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 16
  17. 17. Carparking 1,060 1,060 1,060 Other 1,030 1,070 1,680 Total Income 7,000 7,250 8,000 Lottery Grants The Royal Parks has successfully secured a Heritage Lottery Fund award of £4.5m towards the £6.6m restoration of Bushy Park. The HLF funded programme will last for 5 years with the capital restoration works taking 3 years, followed by a further 2 years of resource funding for education and community engagement. The Royal Parks Foundation have successfully secured further funding of £850k towards the programme and continue to fundraise towards the remainder. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 17
  18. 18. 9. STRATEGIC RISKS The aim of risk management is to understand the risks that will impact our ability to deliver the Corporate Plan and ensure that the necessary mitigation actions are taken to limit risk and optimise our ability to deliver. The Board has identified the key areas of risk and is introducing new reports and process to underpin effective risk management. This will be embedded at all levels within the organisation. Our risk management reports will contain risk assessment (impact and probability) and highlight mitigation actions and management of residual risk. We will review long-term strategic risk alongside short term operational risks, prioritising appropriately to ensure that risks are captured and managed effectively to minimise escalation of impact or probability. Consideration of risk has been a key issue in the formulation of our plans. The key corporate risks are: STRATEGIC RISK MITIGATION APPROACH LEGISLATIVE – Local Authorities impose • Continue programme of close communication with significant restrictions on local authorities our entertainment licenses • Utilise research findings (TRP and Westminster) and planning permissions • Review and re-balance programme GOVERNANCE- Income generation • Ensure balanced assessment of risk for all projects projects are seen as • Prepare communications plans controversial • Ensure appropriate utilisation of the Advisory Board to provide recommendations to Minister FUNDING - Income reduces and/or is • Continue to investigate enhancement to and insufficient to offset the protection of DCMS direct funding real term decrease to • Effective cost management and efficiency DCMS direct funding and programmes real term cost increases • Develop income (public sector and private sector) generation sub-strategy • Diversify range of income sources to reduce dependency on DCMS direct funding COST BASE – • Close cost review to ensure we achieve value for Major contract renewals money and other costs rise at • Deliver targeted efficiency programmes where levels greater than our appropriate current financial • Prioritise and reduce commitments where assumptions appropriate Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 18
  19. 19. STAFF - We are unable to retain • Ensure succession planning for key roles and skills the right skills in the right • Ensure proper documented process and clear staff place at the right time to development plans enable delivery • Ensure access to training • Investigate and utilise volunteer workforce skills • Exploit more fully the freedoms of agency status to develop more flexible process, terms, conditions and rewards RESOURCES – We do not have the • Engage early to understand requirement and impact resource or capacity to • Engage to secure funding to meet the demand meet the wider demand of • Adopt a creative approach to secure any short-term the run up to the resource requirements Olympics • Prioritise activity and review long-term planning OPERATIONAL – Key machinery or • Utilise our prioritisation model infrastructure failure • Business Continuity Plans requires immediate • Disaster Recovery Programme funding (within context of the significant maintenance liability in excess of five years worth of funding). REPUTATION – An incident at an • Clear health and safety guidelines in place attraction or event results • Apply risk assessment and implement appropriate in significant adverse controls publicity and potential • Develop a clear and coherent corporate reputational damage. communication strategy • Proactive communication before, during and after events • Develop media network • Well managed reactive communication Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 19
  20. 20. ENVIRONMENTAL - Changing weather • Engage to understand likely scenarios, sensitivity patterns and Climate and impact Change has an impact on • Work with other government departments and the historical landscape stakeholder groups to establish coherent strategy that we are managing • Review and assess the scope of opportunity and risk and/or the use of the for the Royal Parks and develop a clear mitigation parks. plan ENVIRONMENTAL – An outbreak of avian flu • Engage with DEFRA and other agencies results in adverse • Maintain and develop communication cascade publicity, diversion of • Maintain and develop operational plans resources and/or impact • Review priorities and adjust resource and budget to income streams allocations SOCIAL – An increase in vandalism • Clear inclusive policy communicated or intolerance between • Work closely with the MET to ensure that these user groups leads to issues are policed and tackled effectively damage and/or voluntary • Ensure paths and roads are properly designated “exclusion” of a user • Work with partner groups as appropriate to support group (e.g. the elderly) programmes to adapt and moderate behaviours Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 20
  21. 21. ANNEX A THE ROYAL PARKS BUSINESS PLAN FOR FY06/07 To deliver the corporate plan we have developed, within the context of our strategic direction and guidance, a number of supporting organisational objectives, targets and plans with particular focus on the delivery for year one. All these will be taken forward within the context of our priorities: • Improving customer focus – engage, understand, respond • Develop brand identity – the Royal Parks experience • Developing Partnerships – collaborate, co-operate • Improving commercial orientation – release the potential, utilise our assets • Developing skills – right people, right place, right time Corporate Objective 1 To protect and enhance our “world class” natural park environment for families, children and visitors Objective owner: Colin Buttery This requires that we position ourselves to be recognised as a world class organisation for Parks management and maintenance, benchmarking against international partners; conserving and enhancing the unique range of historic landscapes, developing the ecological potential and promoting bio-diversity. We shall continue to develop our relationship with other national and international parks, taking an active lead in development of a process to enable sharing of experience and best practise. We will also take an active lead in the formation of an international “benchmarking club” to identify a methodology and metric that can be seen to be value based taking account of outcome and cost considerations. On a national basis we shall secure “Green Flag” status for all 8 of our parks by 07/08, achieving Green Flags for 5 of the parks during 06/07. However we shall not allow this target to divert our attention from park priorities. We shall work with the authorities and other parks to ensure that the criteria used in the awards continue to be relevant and that the process does not become a burden; in particular we shall seek to influence extension from annual award and review to a 3 year award with reviews every 2 years. We will engage with and partner others and to raise awareness of biodiversity issues, take an active role in the development of National, London-wide and local authority biodiversity action plans and contribute to species and habitat working groups. We Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 21
  22. 22. will build on our relationships and successful delivery of biodiversity projects (for example the reedbed in St James’s Park) to secure support and funding for a continued works. We shall act as the lead member for the Acid Grassland Habitat Action plan within the London-wide context. We will continue to promote and develop wildlife areas working, where appropriate, with partners and volunteers. We shall capitalise on the success of the “Wildlife for All” programme through a three-year follow-on “Wild in the Parks” programme supported by the heritage lottery fund. The programme will focus not only on the development of wildlife areas but on sustainable education programmes for the future. We will pursue the highest horticultural and environmental principles in the management of green space, flora and fauna; protecting and enhancing the natural environment of the parks for future generations of visitor. We will continue our clear commitment to environmental issues and sustainability, maintaining our ISO 14001 accreditation. In order to support this we will develop our management systems and continue to seek support from specialist agencies. We will extend the depth of focus for re-cycling encompassing not only our own operations but to further encourage and target re-cycling by our park users and operators including those organisations running events. Recognising the broad range of risks associated with climate change we will develop a clear risk management strategy. In the first year we will focus on our agreed priority of more efficient water conservation and management, setting a clear example for other organisations and the population in general and establishing best practise. We will develop our Park Management and Operational Plans as we roll out new plans for all the parks alongside our Green Flag applications. We will develop an expanded range of KPIs for our contractors, for example new Landscape Maintenance and Cleansing Contracts and the future Works Contract(s). These will help with our contract management and will also support future benchmarking We will develop our internal Landscape Service. Early work will include producing a park design guide that will support the raising of design standards in the Parks and help achieve efficiencies in new landscape construction projects We will evaluate the potential to launch a new Royal parks Apprenticeship Scheme from 06/07 and will work with our Landscape Maintenance Contractors to raise training levels on our contracts. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 22
  23. 23. KEY PERFORMANCE TARGETS FOR OBJECTIVE 1 KPT 06/07 07/08 08/09 1a. international benchmark Establish Utilise and benchmark validate methodology methodology 1b. to gain Green Flag status 5 Parks 8 Parks 8 Parks KEY 06/07 MILESTONES ALIGNED TO OBJECTIVE 1: By end Q1 By end Q2 By end Q3 By end Q4 Green Flag Review Award of green Applications for 8 management Flag for 5 parks parks for 07/08 plans for all prepared parks International Liase to form Identify Agree Benchmark benchmark club quantitative and methodology qualitative Approved by measure to be Advisory Board included Climate change Review & Prioritise short Long-term risk risk mitigation evaluate term measures mitigation strategy identified Start strategy agreed options for short implementation by the Advisory term water Board efficiency Internal Design Guide Landscape manual launched Service Habitat and Surveys Surveys complete species surveys commissioned for 2 parks completed Wild in the Park Project plan and deliverables agreed. Programme initiated Sustainability Retain ISO Benchmark and Clear guidance accreditation at plan to increase issued for wider audit proportion of organisational re- Set performance green and cycling indicators for timber waste re- Agreement on a contractor re- cycling wider park re- cycling targets cycling policy and implementation plan Apprenticeship Evaluation of Evaluation of scheme cost benefit and 07/08 launch and timeline (go/no identification of go for 06/07) funding Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 23
  24. 24. Biodiversity Acid Grassland Funding secured Co-ordinate Habitat Action and education review of Habitat Plan information / plan leaflet produced Biodiversity Secure funding Functioning for and agree to system for implement SLA electronic records with Greenspace on-line Information for Data entry and Greater London sharing initiated Corporate Objective 2: To understand and respond to the needs of our audiences, reflecting diversity of needs and use; enriching lives and enhancing access to culture and sport Objective owner: Greg McErlean We will develop a programme which targets the “key action areas” identified in user surveys. Because this programme is reactive, based on visitor feedback, priorities are likely to change as remedial works are completed, probably on an annual or bi-annual cycle (also depending on future structuring of visitor research programme). The strategy matrix below gives an overview of RP-wide visitor priorities in the ‘Key Action Areas’ quadrant but it is likely that the mix of issues and their relative importance will vary from park to park. Strategy Matrix – All Royal Parks Key Action Areas Maintain Quality of natural environment Tidiness & Upkeep of park Cleanliness Peace & Quiet Quality of toilets Access Seating Ease of getting Importance Rating No. of toilets around Info. Features Qual. of catering fac. Signposting and maps Friend. of staff Fac. for Children No. of catering fac. Car park fac. Activities for Adults Consider Qual of sports fac. Reallocation of No. of sports fac. Lower Priorities Resources Performance Rating Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 24
  25. 25. We will produce a Royal Parks Wide Audience Development Strategy by the end of March 2007. We shall develop two park based Audience Development Plans per year. We will continue to undertake visitor research and adjust and refine our programme and methodologies to suit TRP’s changing research needs and meeting statutory reporting requirements. We will work with all teams across the agency to ensure that research is relevant and useful for both strategic and operational planning, and that it represents our customer’s views. We will continue non-visitor research in order to better understand the barriers to park use. We will investigate methods of assessing visitor numbers to each Park. We will improve the visitor experience through the provision of improved mapping , enhanced interpretation and in-park information. We will make a baseline level of information about the parks available to visitors free-of-charge. We will investigate items contained within the “Key Action Areas” of the matrix (page 22) and, where appropriate, develop plans for their improvement. We will develop an education strategy that has, as one of it’s core themes: • Presenting information and activities in an exciting, often interactive, manner to encourage and promote use of the parks particularly to under represented groups We will improve the infrastructure and management of the volunteer programme through producing a volunteers manual, a work experience strategy, and a secondment strategy. We will produce the learning journey strategy for the formal and informal educational opportunities for ages 0 – 90 in The Royal Parks by March 2007. KEY PERFORMANCE TARGETS RELATED TO OBJECTIVE 2: KPT 06/07 07/08 08/09 3. increased customer Maintain Implement satisfaction and develop a satisfaction value based value-based metric above 85% metric with (current metric) agreed targets and establish value-based metric and baseline Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 25
  26. 26. KEY 06/07 MILESTONES ALIGNED TO OBJECTIVE 2: By end Q1 By end Q2 By end Q3 By end Q4 Ensure our Develop Put in place Assess results Adjust events audience reflects demographic audience and compare programme to the diversity of profiles for the counting and against balance audience the local local population audience community as necessary community. Key of each park and profiling profiled metrics will be for TRP group measures developed in Q1 social grade, (amalgamated ethnicity and park profiles) age To provide a Undertake Undertake Annual research Review findings, research summer phase autumn phase report published feed results into programme that field research as field research as business planning provides useful appropriate; appropriate; cycle for next information for interim reports interim reports financial year strategic and supplied supplied operational planning To develop Commission Trial favoured Obtain results for robust visitor methodology approach (and if 4 parks (if counts for all study and assess necessary assess methodology parks possible accuracy against permits this approaches manual checks) within the in one Park timescale) Improve maps Project scoped Contract Consultation Production and at park and brief tendered and complete and installation entrances complete awarded design agreed Rationalise and Audit of Review and Design agreed First stage improve quality existing leaflets identification of Distribution of leaflets complete key complete requirements Review extent Audit of Review options Action plan and quality of requirement and completed and public toilet provision agreed provision Corporate Objective 3: To work with other organisations and volunteers to deliver clear education, health sport and participation offers Objective Owner: Mark Camley DCMS, our owning department, has joint objectives with both the Department for Education and Skills(DfES) and the Department of Health (DoH). We will seek to support these departments and other organisations to meet their objectives. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 26
  27. 27. Having identified where we can add value, we will establish those opportunities which may be delivered within the core funding and resources of the agency and those which require additional funding from partner organisations. Where additional funding or resources are required we shall ensure that these are secured, based on benefit and value for money propositions. We will not increase commitment in terms of funding or resources without a clear understanding of the source and sustainability of the required funding. In the first year our focus will be on Education and Health: EDUCATION We shall develop a clear strategy for education based on where we have unique or value added programmes to offer. We shall review the specific objectives of DfES and its supporting delivery bodies and will ascertain opportunities for wider utilisation of the parks and our facilities to help meet those objectives, including access to formal and informal sport as well as effective delivery of the curriculum. We shall engage with the wider community on matters of education to understand demand for park based programmes. We will be creative in the delivery of education projects and programmes, working in partnership with others and engaging the volunteer community. Our ethos will be to deliver quality education opportunities rather than to focus on quantity. We will develop the Wild in the Parks, RSPB partnership programme, involving four London Boroughs to share good working practices and expand the programme to include community and training opportunities within the Royal Parks. HEALTH There are significant opportunities that embrace both education and health and it is here that we will work with others to promote healthy activity and enable access to informal and formal sport facilities and activities. This has particular relevance to the PSA target related to childhood obesity. We shall engage with the DoH and its delivery bodies, including the Primary Care Trusts, to establish opportunities for preventative and “out-patient” health care. We shall also explore the opportunities to actively engage with the voluntary and charitable sector, working with the Foundation, to support joint health-based initiatives. We will partner with other organisations to encourage the use of our facilities for formal and informal sporting events for all age groups with particular emphasis on the promotion of good health and prevention of disease. We will develop and communicate a clear policy for cycling and promote safe cycling to recognise the needs of other park users. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 27
  28. 28. OTHER DEPARTMENTS Focus for year one will be on health and education but we will build relationships with and gain a greater understanding of other departments and organisations, including ODPM and DEFRA, agendas maintaining commitments but remaining sufficiently flexible to re-prioritise and respond to opportunity. KEY PERFORMANCE TARGETS RELATED TO OBJECTIVE 3 FY 06/07 FY07/08 FY08/09 4. To publish and deliver Publish strategy Achieve metric Achieve metric comprehensive education and and agree established from established from health strategies targets strategies strategies KEY 06/07 MILESTONES ALIGNED TO OBJECTIVE 3: By end Q1 By end Q2 By end Q3 By end Q4 Develop Inter- Deliver one Partnership At least two new Relationships department and joint event with meetings joint initiatives with OGDs and stakeholder another established with (and funding other communication government DoH, DfES, streams) agreed organisations plan complete department DEFRA, ODPM for 07/08 Establish Draft strategy Final education At least 2 non At least one non strategy and for education strategy core education core education programme for approved. approved. projects initiated project initiated education Full audit of Alignment of At least £50K education non core external funding projects opportunities secured for 07/08 complete to benefits / At least 100 Core projects for objectives people committed 06/07 initiated on volunteer basis to projects for 07/08 Establish Consultant Interim Health At least one new At least £50K strategy and engaged to strategy and health project external funding plan for health work with us to plan approved initiated secured for 07/08 develop health At least 50 people and sport plan Health strategy committed on Opportunity and plan volunteer basis to evaluation approved projects for 07/08 complete Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 28
  29. 29. Establish William Bird Interim Sport At least one new strategy and engaged to strategy and sports project plan for sport work with us to plan approved initiated develop health and sport plan Sports strategy and plan approved Corporate Objective 4: To conserve and enhance the historic built environment of The Royal Parks Objective Owner: Simon Betts Working with park managers, and key customers we will review the “works” maintenance contract, seeking to improve its methodology to achieve greater efficiencies and improved delivery as part of the requirement to re-let the existing facilities management and works maintenance contract in 2007. We will identify and prioritise key potential restoration projects, including tackling the Accumulated Works Maintenance Backlog wherever appropriate, maximising benefits through joint working and partnership funding wherever possible. We will have produced a plan (required in response to the PAC) by the end of June. We will work with the Foundation to target external funding for a minimum of one restoration project each financial year. We will continue to develop our maintenance and conservation methodology of monuments and historic features, working with English Heritage and other stakeholders to share experience and best practice. As part of our commitment to customer focus we will, from the commencement of the plan period we will introduce interpretation boards on completion of all new significant restoration projects. We will also start a programme of consultation, design and installation to achieve an interpretation plaque for every significant building or isolated feature of special architectural or historic interest. In addition we shall explore the potential and value of identifying and labelling the most notable trees within each park. To assist in raising awareness of the historic features of the parks we will introduce 6 new isolated features onto the website each year. In conjunction with Public Monuments & Sculptures Association, we will encourage extension of the National Recording Project to public monuments and sculptures in the care of The Royal Parks. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 29
  30. 30. Where appropriate we will continue to manage the estate through the granting of encroachment licences to avoid third parties obtaining ownership through adverse possession. In line with Government policy we will progress the registration of all the Royal Parks at the Land Registry. Following consultation with the Land Registry, local authorities, The Crown Estate and adjoining land owners where appropriate we will ensure registration of at least two of the Royal Parks at within year one, with the remaining parks being registered by end 2008. In certain instances registration of freeboard land will be dependent on agreement with adjoining land owners. KEY PERFORMANCE TARGETS REALATED TO OBJECTIVE 4 KPT 06/07 07/08 08/09 2. to undertake heritage Initiate first new Cumulative 2 Cumulative 3 restoration projects project KEY 06/07 MILESTONES ALIGNED TO OBJECTIVE 4: By end Q1 By end Q2 By end Q3 By end Q4 Management of Plan for accumulated management of works backlog backlog agreed (response to PAC) Review and re- Evaluation Existing Final review Re-tender works letting of works advisor contracts complete and FM contract contract appointed reviewed Recommendation Consultation Improved to Review Board with primary methodologies and Management users complete and delivery Board options identified Provide Initiate Commence Complete design Initiate interpretation of interpretation consultation and initiate installation at places, planting for all new Prioritise planning process. least 3 sites and built significant installation having structures installations interpretation Undertake Identify options Establish funding Initiate first heritage and priorities route for at least project restoration one priority Establish part projects. project funding for next priority project Land Progress Secure Submit land Progress Registration discussions with agreement with registration to registration on the Crown interested HM Land remaining parks Estate and local parties on two Registry in to achieve first authorities. parks respect of two registration in parks. 2007/8 Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 30
  31. 31. Corporate Objective 5 To deliver greater value for money for the taxpayer through increased income generation and reduced dependency on vote funding Objective Owner: Jo Brigham Our income (other than the DCMS direct funding) is generated through a number of diverse contracts and initiatives managed through a number of individuals within a number of directorates. Some income generating activities are initiated and co- ordinated corporately while some are initiated, negotiated and managed at local (park) level. We shall gain a better understanding of the full cost of delivering our self generated income and switch the emphasis to growing the net contribution (profit) as opposed to revenue. We will agree our brand values and identity, clearly establishing how we wish to position ourselves in both income generating and free at point of use activity – and how we may need to differentiate aspects of our identity between the two sets of activities. We will continue to develop our relationship with the Royal Parks Foundation, primarily at the HQ interface, sharing information and ensuring that we avoid potential for “competition” for funding and that we pursue all opportunities between us. Where it is in the interests of The Royal Parks, and within the purpose of the Foundation, we will channel opportunities through the Foundation and vice versa. We shall take an holistic view of income generation, review the structure and process (from opportunity capture, through evaluation to delivery) for the development of new income streams to ensure consistency of approach (policy and brand) optimisation and appropriate prioritisation of opportunities. In the meantime we shall establish a “stop gap” process for the capture of innovative ideas and a “cross function” team to conduct the first stage evaluation for review by the management board. We will develop a process (and associated funding model) to ensure that prioritisation for pull through of opportunities is at corporate level rather than dependant upon availability of funding at individual park level. We shall establish the true cost of delivering these income streams (ensure they are financially viable) and ensure that budget is allocated appropriately. We shall establish a model that enables a proportion of the income to be allocated to individual parks, a proportion to be retained for allocation at corporate level and a proportion to be available for re-investment in income generating activity. We shall formulate a clear plan for promotion of The Royal Parks Brand and subordinate family brands, establishing how we might leverage the value of the brand through appropriate licensing mechanisms. From this we shall evaluate options (from licensing of the brand to retail of branded products) and establish a clear plan for product development and merchandising. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 31
  32. 32. We will create value through better utilisation of our assets and capability. This will require an audit of assets (including property and intellectual property) and evaluation of opportunities for appropriate utilisation. KPT RELATED TO OBJECTIVE 5: KPT 06/07 07/08 08/09 5. To increase income1 to: £7000K £7250K £8000K set profit target add profit target KEY 06/07 MILESTONES ALIGNED TO OBJECTIVE 5: By end Q1 By end Q2 By end Q3 By end Q4 Establish Interim First gate Corporate Required changes process for capture evaluation and pipeline process, implemented in opportunity process and progression of funding model 07/08 budget and capture and evaluation “outstanding” and any required plan evaluation team opportunities changes to Pipeline process established complete staffing / implemented structure approved by management board. Income Audit of all At least two At least two new Opportunity income opportunities opportunities progression generating progressed progressed to the activity through initial Advisory Board complete. stage for approval Report and recommendati ons to the Advisory Board Better All properties Marketing and Formal support First stage of plan utilisation of catalogued communication from Crown initiated. assets and prioritised plan approved by Estates. Initial property within plan for Advisory Board Marketing / negotiations utilisation Marketing / management underway Support in management contract agreed principle from contract to tender Crown Estates Merchandising Brand Preferred option TRP positioning “worked up” merchandising proposal Business case implemented agreed by approved by Advisory Advisory Board Board Merchandising options (incl. route to market) evaluated Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 32
  33. 33. Foundation/ Clear guidance Foundation input Plans for 07/08 fundraising on respective to planning agreed roles process communicated internally Income Premises 75% of planned Income of £7000K licences for revenue for 06/07 achieved for events in 8 secured 06/07 Royal parks 95% of planned secured revenue for 07/08 secured Corporate Objective 6: To demonstrate organisational excellence Objective owner: Anne Moore We recognise the challenges of our business priorities and the fact that, for many of these, step change is required alongside business as usual. To deliver the step change required we shall take the activity forward within a balanced organisation development programme. By March 2007, we will have released £1,676k of efficiencies into frontline delivery activities. This will be achieved through a range of measures including reduced reliance on external consultancy, greater use of shared corporate service facilities with DCMS and introducing more flexible ways of delivering results. The full details are set out in our Efficiency Delivery Plan. We will also explore further efficiencies through improved procurement practices in line with recent NAO recommendations. We will explore the benefits to the Agency of introducing the Government Procurement Card (GPC) and work more collaboratively with DCMS on all our procurement activity. We will publish our Human Resource Strategy in support of our wider Corporate Strategy. The overarching aim of the strategy will be to recruit, value, reward, develop and retain staff with the necessary knowledge and skills to enable achievement of our objectives. We follow this up by undertaking a gap analysis against the strategy and developing a detailed project plan for its delivery and eventual achievement of IiP status. One of the first steps we will undertake is to introduce a revised appraisal system that more clearly aligns individuals personal objectives to our business plan objectives, and sets clear targets for development of staff. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 33
  34. 34. We will establish best practice project management and embed it as a core skill of The Royal Parks. This will result in better project control throughout the organisation and the delivery of better benefits through projects undertaken. The Royal Parks believes that the health, safety and welfare of its staff, and all those who come into contact with its operations, are of paramount importance. We have therefore introduced a robust but flexible health ad safety management system to protect not only our staff but park users, contractors and others. We aim to continue this trend over the next three years. KPT 06/07 07/08 08/09 6a. To achieve efficiencies £1676K £1751K £1800K 6b. To provide relevant Complete Develop Full customer interaction facilities research and detailed plan & implementation during peak visitor hours scope Deliver quick requirement wins KEY 06/07 MILESTONES ALIGNED TO OBJECTIVE 6: By end Q1 By end Q2 By end Q3 By end Q4 Organisation Scope for Programme and Implementation Implementation Development programme project plans phase – quick phase – all agreed agreed wins delivered projects on track Meet efficiency On track to Identify further Achieve £1,676k target deliver efficiencies to be savings efficiency target achieved and set revised and/ or through targets for mitigation plan procurement future years agreed practices Improve Project Project pipeline Bid and Process review management and Project investment completed Management appraisal method committee implemented established Deliver HR Publish HR Undertake “gap Milestones from Milestones from strategy strategy analysis” and project plan project plan prepare detailed project plan Introduction of Initial research Decision on Implementation GPC into benefits whether to (depending on implement decision reached) Customer Initial research Initial Review against Full requirement interaction of touchpoints requirement staffing levels / statement facilities complete – first contracts stage recommendations to the board Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 34
  35. 35. ANNEX B RESOURCING AND FINANCIALS FOR FY06/07 The tables below provides details of The Royal Parks provisional budget allocations for 2006/07. ResourceBudget* £000s Income: DCMS Allocation 26,192 DCMS Reform Pot 500 Catering 1,730 Event Fees 1,700 Licenses and Rents 1,480 Carparking 1,060 Other 1,030 Total Income 33,692 Expenditure: Salaries – Administration 2,000 Other Administration 1,540 Salaries – Operational 2,080 Landscape Maintenance 6,370 Works Maintenance 5,000 Investment Project Prioritisation 1,570 Nursery & Other Horticulture 1,640 Cleaning Contracts 860 Gate Locking 300 Utilities 750 Non-Cash Charges 2,570 Other Operating Costs 1,310 Policing 7,700 Total Expenditure 33,690 * Excludes funding and expenditure for Bushy Park Restoration Programme Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 35
  36. 36. The chart below demonstrates the percentage breakdown of administration, operational and policing budgets for the period. Ro yal Parks 2006/07 Pro v is io nal Budg e t 23% 11% Administration Operational Policing 66% The following chart demonstrates the percentage breakdown of forecast funding streams for the period. Ro yal Parks 2006/07 Fo rec as t Inc o me DCMS 80% Catering Events Licenses & Rents 5% Carparking 3% 3% 4% 5% Other Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 36
  37. 37. ANNEX C INTERNAL AND EXTERNAL ENVIRONMENT – THE AUDIT THE INTERNAL ENVIRIONMENT - WHERE ARE WE NOW? The last Corporate Plan helped us to deliver significant achievements with education and community engagement increasing from approximately 7,000 participants to 23,000, income up from £5.3M to £6.9M and two of the Parks gaining “Green Flag” status. We have also demonstrated our strengths in: • maintaining leading standards of Park maintenance and development • horticultural expertise • contract tendering and award of landscape maintenance contracts • engaging effectively with stakeholders and target groups • managing a diverse and extensive events programme • reacting to extremely demanding time-scales for major events • limiting potentially damaging media coverage We have wide ranging responsibilities and an extensive and diverse range of activities and plans. The Annual Review showed that our H&S targets were all met and that staff accidents are particularly low. The H&S audits of our contractors (which include hygiene inspections of our cafeterias and restaurants) also show generally good and improving results. While there is strong recognition of the individual park “brands” the parent brand of The Royal Parks has lower public profile and recognition. We are currently not optimising the advantages of associated branding and not able leverage the full potential of The Royal Parks parent brand. Significant income growth has been delivered in pockets of “best practice” and areas where we have taken a cohesive park-wide approach but the management of separate elements of the income and the strategy for growing income has been fragmented. There is not always clarity with respect to the full cost of delivering these income streams. It is essential that we increase net contribution (profit) rather than gross income from non-core activity. We have developed our website, increasing visits by more than 100% over the last 12 months, and continue to search for new ways to communicate with our customers. However, our ability to monitor park usage (in any reliable way) remains limited. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 37
  38. 38. Our customers (whether stakeholders, park users or fee-payers) are important to us and we have commissioned independent research and engaged with stakeholder and user groups to establish those things that we do well and those areas where we need to improve. In most cases the routes to improvement appear to be increasing flexibility, improving communication and rationalising process. While there is inevitably some negative feedback to the use of our facilities for large scale musical events, independent research shows that this is extremely limited and that the majority of attendees and non-attendees (local and otherwise) support the diverse programme of events that are run within the Royal Parks. It is assessed that demand for events with capacities of 50K+ will decrease (due to the reopening of Wembley) while demand for all other events will remain high over the period of the plan. Our research incorporated feedback on supporting (i.e. not the responsibility of The Royal Parks) facilities and infrastructure and these must be considered in any future plans. Other (politically focussed) research conducted indicates some negative perception relating to our ability to manage the Parks effectively. Personal aspirations and political agendas may attempt to push the boundaries of or even call into question our role in managing the Royal Parks. We are positioned to contribute to wider programmes of education and reform and contribute to the realisation of wider government strategy; where we work in partnership we demonstrate the value of our contribution but the scope of this activity and, in particular, external investment is limited. We require some highly skilled and specialist staff. Our people are passionate about the parks and are one of our key assets but our staff and employment related processes are relatively inflexible and constrained significantly by our civil service parentage. We must be able to recruit and retain the skills we need in a competitive workplace. The majority of our income is in the form of the DCMS grant with approximately 25% generated from other sources. This compares with a quoted 42% for well performing NDPBs within the museum sector. The funding model for The Royal Parks (although not novel) is contentious with some interest groups (e.g. the Friends Groups) believing that greater emphasis should be placed on the government responsibility and less emphasis on generation of commercial revenues; the commercial schemes may then be seen to be contentious. Given the diverse use of the Parks it is unlikely that any single scheme for income generation will secure universal support. EXTERNAL DRIVERS AND CONSTRAINTS POLITICAL & ECONOMIC Government funding overall and the current publicised priorities (particularly in light of the position within the parliamentary cycle) place greater pressure on funding Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 38
  39. 39. opportunities. Our grant from DCMS is forecast to remain flat in cash terms. Against this backdrop we have a profile of increasing cost and relatively low gearing of controllable cost (that which is not subject to long-term contracts). “New” funding from government departments will only be available if we are able to demonstrate value for money solutions that help them meet their own targets and objectives. There are items on the political agenda (e.g. climate change, education, health, social inclusion and the 2012 Olympics) that will bring opportunity for us to engage in “joined up government” and the potential for wider funding. As social and environmental drivers increase the demand for “green space” and change the utilisation of these facilities, there are wider opportunities for commercial investment and sponsorship. The forecast economic environment and, in particular, investment in London support the potential for investment. SOCIAL It is estimated that the population of London will increase by approximately 45,000 per annum through the period of this plan and beyond. While there are changes expected within the overall demographic the nature of employment within the capital (and plans for development) mean that the bias will remain significantly toward the highly skilled worker. Our local customers and potential customers cut across a broad socio-economic spectrum with potentially different needs. International visitors broaden this spectrum further. There are a number of departments and organisations with agendas and objectives for social inclusion, reform and education. The parks can provide valuable and appropriate space and there is potential to work in partnership to deliver associated programmes. The Olympics present a major opportunity and challenge for Britain as a whole, London in particular and the Royal Parks specifically. Use of park space and facilities is already highlighted within the official plans but the challenge and opportunity will extend far beyond this with supporting and ancillary programmes. Unless we engage, influence, manage and react appropriately there is potential for sustainable opportunity to become short or even long-term threat. TECHNOLOGICAL Technology continues to advance to deliver more efficient systems and change the nature of information dissemination and communication. Technology advances may provide more effective and efficient systems and tools to be utilised in the management and maintenance of the fabric of the parks. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 39
  40. 40. Advances in web and mobile technology provide significant opportunities to reach wider audiences as long as we are able to keep pace with developments and expectations. LEGISLATIVE Changes to legislation have removed Crown Immunity with respect to a number of Acts (Planning, Licensing). The Licensing Act 2003 has given new powers to local authorities and greater influence to local residents over the way in which we run our events and entertainment. We do not have crown exemption and are required to obtain licenses from local authorities in order to pursue our entertainment programme. The trend has been towards greater freedom of access to records, data and information. ENVIRONMENT Although significant and sustained climate change is not expected within the period of this plan we must start to recognise the issues that it will raise for the Parks and plan accordingly; this is likely to require long-term mitigation activity within the period of the plan. Over the same period we must be prepared for more extreme weather events including localised storms and changes to weather patterns; a hotter than average summer is likely to bring greater demand while colder or wetter events in the winter may impact on our maintenance programmes. The climate change agenda brings an opportunity for us to work more closely cross-government and with other organisations in the sector. Royal Parks Strategic and Business Plan version 1.3 Dated 06 Apr 06 40

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