Sir Michael Bichard (Chair), Bonnie Dean, Penny Egan, John Hollar, Geoff Kirk, Jonathan Kestenbaum, Janet Walker, Peter Williams, Chris Wise. Observers: David Evans (DIUS), Jane Hartshorne (DIUS), John Neve (DIUS), Brian Leonard (DCMS), David Kester (Design Council), Ruth Hasnip (Design Council), Helen Jacobs (Design Council), Mike Turnbull (Design Council), Wendy Lanchin (Design Council), Kim Davids (Design Council), Anna Thame (Design Council), Nigel Campbell (Design Council), Priscilla Mungrah (Design Council)
Geoff Mulgan, Jonathan Sands, Richard Williams
01 Welcome, apologies and declaration of interests
The Chairman welcomed Council to the meeting.
The Design Council has a clear direction, some strong programmes in Dott and Designing Demand and a motivated expert team. There are some clear areas for development which are recognised by Council members.
These include:
- Strengthening the visibility of the Design Council within the design community.
- Campaigning around key design issues such as sustainability.
- Broadening recognition of the many diverse fields of design, including engineering and digital design.
- Engagement of high profile business evangelists for design.
- Achieving our vision through a robust enterprise approach.
- A new clear international strategy.
The Chairman underlined the priority he will place on open, broad discussion at Council and simplicity in strategy and communications. He urged the Council to accept the organisation’s financial settlement from government, and to focus on achieving our ambitions and creating a more enterprising culture. He also urged the executive to ensure that the organisation’s finances, processes and reporting are managed competently.
No conflicts of interest were declared.
02 Minutes from the last meeting on 6 December
DIUS requested that on p3, paragraph 9 under Strategy and Planning, the final bullet point was changed to:
‘Council asked for clarification around income and ‘claw back’ of any potential additional or project income the organisation may generate. DIUS clarified that the non-grant in aid income will not be deducted or included in the £6,035million grant in aid. DIUS said that the first 20% above the forecast level of any income could be retained by a non departmental public body (NDPB), but that anything in excess of will be the subject of negotiation between the sponsor and body. Each case would be considered on its own merits.’
Subject to this amendment the minutes were agreed. There were no matters arising.
03 2006-07 accounts
The Chair of Audit Committee gave an introduction to the 2006-07 annual report and accounts.
The Chair outlined that there had been a number of delays to completing the accounts, for example, changes in finance staff and the issues with the pay remit. However, the National Audit Office (NAO) has reviewed and approved this version, as has the Audit Committee, which recommends that the Council approve the accounts, for signature and laying before Parliament before the Easter recess. The Chief Executive assured Council that the report and accounts had been thoroughly reviewed by the executive team.
DIUS requested that the Statement of Internal Control be revised on page 24, third paragraph to read:
‘The decision on the 2005/06 remit was not resolved until January 2007. The 2006/07 remit was breached (by 0.42%). As in 2005/06 this breach primarily related to the pension scheme - due this time to a higher than expected uptake of the scheme by the staff.’
There were no further comments from Council Members and subject to this amendment the annual report and accounts was approved for signature and publishing.
The Chair of Audit Committee went on to give an update on matters under review by the Audit Committee.
- In respect to the 2007-08 accounts, they are expected to be laid before December 2008, with the 2008-09 accounts completed and laid in parliament before summer recess 2009, which will bring the Design Council back to the normal timetable. The Chairman emphasised the importance of bringing the accounts in line with the proper timetable.
- In relation to pay remit, DIUS has commissioned Price Waterhouse Coopers to conduct an audit of the calculation and controls for the Design Council’s pay remit. This audit has now been completed and verbal feedback has been positive.
- The internal auditors Baker Tilly said that following their work they are satisfied that the Design Council has adequate and effective risk management, control and governance processes.
- The Chair of Audit Committee was pleased that the backlog of financial issues has now been cleared so the Audit Committee can now look forwards and consider other matters. William Colquhoun the new Head of Finance was introduced to the Council.
In conclusion the Chairman said he was pleased that the outstanding issues were resolved which would free up more time in Council meetings for wider discussions.
04 Quarter Three Review
The Chief Executive introduced the quarter three review balanced scorecard and risk register. He reminded Council that these had been reviewed by the executive, DIUS and DCMS. In summary, he outlined that it is a positive quarter with work progressing well, and asked Council if they had any comments or questions.
In discussion the following matters were highlighted:
- The Chairman asked what the latest developments were with the Design Against Crime project. The Chief Executive responded that following the establishment of an alliance of key individuals in 2007 by the Home Office, the Design Council is now managing an innovation process based initially around ‘hot products’. The project forms part of our portfolio of evidence showing the vital role design can play in delivering innovation in public services. Through this project in particular we are seeking to initiate and inspire innovative approaches to crime prevention and to produce practical ideas to inform mainstream design and business practice. Council asked whether the UK is a leader in this area and if we are looking at international best practice. The Chief Executive informed Council that the members of the alliance are world-leaders in the field and that the project approach will bring an international perspective.
- Council asked what the outcome has been of KPI 12 on undertaking research into sustainable design. The Chief Executive reminded Council of the research paper presented at the June strategy retreat and the subsequent decisions. These included that sustainability would be fully integrated into Designing Demand and that the focus would be retained within Dott going forward. Other key activities will be within the Design Skills Alliance as well as a new awards scheme.
- The Chairman asked whether the shortfall of income from Designing Demand was an issue (CPI 1). The Chief Executive replied that, as much of this income constitutes RDA contributions to the central function, it is more a matter of timing and cashflow, as the RDAs will only pay these contribution once they have started delivering the programme. What is more challenging is ensuring that RDAs purchase a balanced portfolio of Designing Demand with a mixture of workshops and the more transformative long-term programmes.
- DIUS informed Council of BERR’s proposed review of Designing Demand. The focus is likely to be around lessons learned, the long term future on BSSP to input into future roll out and future development of the programme. The aspiration is for the review to be sponsored by DIUS with results to be fed back to ministers, Council and RDAs’ chief executives before the summer recess in July. All details are subject to final approval by DIUS and BERR. The Chairman urged that the review showcases the case studies and business advocates built up through the programme, which are a compelling endorsement of its value.
- Council asked if there were any developments with the Technology Strategy Board. The Chief Executive outlined that two workshops were held looking at synergies and opportunities between the organisations.
- Council asked if there is any detailed audience feedback on our publications, events etc. The Director of Media, Marketing & Partnerships said that we do evaluate the impact of and action taken as a result of our publications eg DCM and that, as discussed at the Council strategy retreat in June, audience research has been conducted to aid future communications and inform evaluation.
- Council asked for the topline findings from the Dott 07 evaluation. The National Director of Dott informed Council that the evaluation will be completed in mid March and will be shared with Council in May to inform the programme going forward.
05 Finance & Resources
The Finance & Resources Director summarised the management accounts as at the end of December. As predicted and previously agreed by Council, a year end deficit of £270k is forecast which will be covered from reserves.
The Chair of Audit asked whether the organisation was confident of receiving all the confirmed external income in this financial year, as much of it was not yet in the bank. The Finance & Resources Director confirmed that this income has been contracted. In the main it relates to Designing Demand, and can be carried over to the next financial year.
In relation to the pay remit, the Finance & Resources Director had nothing to add to the update from the Chair of Audit Committee under item 3.
06 Audit Committee update
It was agreed that these matters had been covered under item 3.
07 Innovation Review: update
David Evans from DIUS joined the meeting to provide an overview on the Innovation Review. The creation of DIUS in 2007 was opportunity to broaden innovation policy as it was the first time that a department brought together skills and universities with science, and that innovation had a seat at Cabinet. DIUS is already implementing the recommendations of Lord Sainsbury’s Science and Innovation review and is building on this to publish a Science and Innovation Strategy in the spring of 2008. The intention is to produce an annual innovation report.
The current Innovation Review is considering four main areas which will be relevant to the work and aims of the Design Council:
- Stimulating demand: looking at lead markets, the role of regulation and how to stimulate more innovative procurement.
- Creating capabilities: looking at the role of innovation in higher education eg Design London, and in the less developed area of further education. Also looking at knowledge and finance (eg venture capital, grants etc).
- Innovation and place: drawing on existing studies (eg NESTA) and regional projects (eg Dott) to develop policies appropriate to different locales and scales eg national level, local level.
- Public sector innovation: looking to increase the capability within Whitehall for innovation eg an academy for service design.
The Chairman highlighted some of the key opportunities for the Design Council within the Innovation Review, especially around:
- Innovation and place: this is an opportunity to showcase Dott to see how it can be developed in the south west, but also elsewhere and in different formats.
- Public sector innovation: the Design Council has a role to play with others eg NESTA, in working to ensure there is leadership in Whitehall and an impetus to change culture. The Designing Demand programme for public services also fits well within this framework showing how design and innovation can deliver better and more user-centred services.
The Chief Executive added that it is likely the skills work will be included in the DCMS Creative Economy Strategy.
In discussion the following points were made:
- Council asked what the likely timescale was for implementation. DIUS responded that it aims to publish the review in mid March. DIUS is keen that the role of design is recognised in the strategy but is not in a position to guarantee the extent to which it might be included.
- The Chairman asked Council whether it thought any areas had been overlooked for inclusion in the Innovation review. Council suggested that Designing Demand was a major asset for the strategy. DIUS agreed and said it is keen to ensure the programme is rolled-out to all RDAs and nations and the target number of companies outlined in Cox is reached.
- DIUS said it would help where possible to make appropriate connections between members of the DIUS ‘family’ eg the universities, Technology Strategy Board and NESTA. The Chief Executive asked that DIUS support the link with BERR and the enterprise agenda, particularly in relation to Designing Demand. David Evans underlined the importance of a joined-up approach.
- Council asked how DIUS is handling the risks inherently associated with innovation. DIUS replied that it is working with the National Audit Office to find exemplars of public services where innovation has been encouraged successfully and where risk has been managed well. DIUS will ensure that practical tools, training and resources are available to public service managers to encourage a culture of innovation. Council supported this aspiration of trialling new approaches and of good risk management and encouraged DIUS to engage design-professionals to lead these processes, as they have tools and techniques well suited to this kind of work.
- The Chief Executive enquired about innovation performance and where design might feature in metrics. DIUS responded that discussions are underway with the EPSRC and NESTA to ensure that design is one of the components measured.
- Council asked whether one of the main aims would be to stimulate innovation through procurement. DIUS agreed that this is precisely one of the aims of the strategy. They intend to push forward the work started by the OGC on intelligent procurement by communicating best practice, training managers and by getting business people to champion the benefits.
In conclusion, the Chairman and outlined that Geoff Mulgan had agreed to chair a group helping to develop the public services contribution and thanked David Evans for the update.
08 Strategic Delivery Plan 2008-11
The Chairman stated that he had hoped the strategy would have been more developed at this stage for discussion by Council, but that today’s session would focus more on content and the process for completion. Council will have a proper debate around the strategy and sufficient time will be set aside at the next meeting on 27 March.
The Chief Executive gave a verbal update on the status of the plan, the content and the next steps.
Status of the plan: in January Sir Michael Bichard joined the Design Council and undertook a review of its strategy and activities. He met with the Council Strategy Group (Janet Walker, Chris Wise and Bonnie Dean) on 7 February which agreed that the priorities, activities and budget proposed in the draft strategy for 2008-11 were satisfactory. They recommended that the objectives and role of design should be strengthened, the narrative simplified and the enterprise element emphasised. The executive team are now working to revise the plan in line with these recommendations by mid March.
Content: the fundamental thesis, purpose and activities listed in Invest to Compete will remain. The high level messages are focused on the benefits that design and the Design Council can deliver around the national challenges, such as: improving business competitiveness; creating high quality, affordable public services; exploiting new ideas and technologies; improving our everyday lives and becoming a sustainable society.
The Design Council will deliver:
- Innovation services: building innovative capacity and changing culture in the public and private sectors.
- Public and community engagement: engaging with the public and local communities to drive change through innovation.
- Design skills development: ensuring that the UK has world-class, high-level professional skills across the design industry.
- Design policy and promotion: campaigning on behalf of design and supporting the design community.
In terms of staffing and resources the organisation has set a realistic baseline budget which assumes a cautious estimate of new income streams on top of the grant in aid, but will allow delivery of core business, with a sufficiently skilled team, whilst meeting the required value for money savings targets. Over the three years, the total of external income is £6.0million, of which £3.5million is expected to be raised from new sources (the balance comprises planned RDA income for Designing Demand plus smaller sums from commercial events hosted at Bow Street, and bank interest). All financial and staffing projections have been subject to sensitivity analysis, taking into account a ‘pessimistic’ and a more ‘optimistic’ view of the potential to secure additional funding streams.
Next steps: the executive team are working to revise the plan in line with Council and the Strategy Group’s recommendations. David Kester will discuss the draft plan with the Minister of 3 March and his views will be taken into account in the next draft which will be reviewed by the Council via email and the Strategy Sub Group, chaired by Sir Michael Bichard, in mid March. Any comments will be incorporated and the final draft will be reviewed by Council and representatives from DIUS on 27 March.
09 aob
DCMS highlighted that the Creative Economy Strategy will be launched on 22 March. The Chairman took the opportunity to thank Brian Leonard both personally and on behalf of the Council for his support and contribution during his many years at DCMS. The Council wished him well on his retirement and showed their appreciation for his input and advice.