Trust Business Plan 2004/5 b Overview - this year against last year b Financial summary b Follow up action

Overview of 2004/5 Plan - the Product from the Process b The Plan has a balanced budget by the stage of presentation to the Board b Delivery of 2% CRES to PCTs and clear savings plans for next 12 months to manage cost pressures by all major departments b The Plan now covers 26 areas and is far more comprehensive in identifying all the objectives and key local issues for departments across the whole Trust for delivery during 2004/5 b Risk analysis is now at the core of every plan with financial risk noted in finance tables and action plans b ………..continued

Overview of 2004/5 Plan … cont. b Action Plans have been standardised in format (available to the Board for June Meeting) ; the Performance Management System is being developed and monitoring will link more effectively to planning in a continuous improvement cycle b There has been greater involvement by SPPDG and ownership of the plan - a number of groups within the Trust now intend to use the Plan as a reference text and “framework” from which to develop initiatives and review priorities  The Plan will be less then 200 pages covering more areas then last year and with 1.5 spacing for better presentation.

Financial summary Overview b Covered in section 7 (p139) and financial tables (p149) b Increased financial stability and progress on risk issues in 2003/04 which must sustained b Balanced plans but with complex actions to deliver this and significant residual risk issues b There has been financial growth in 2004/5 (p141) but this has been limited to key “must do” targets. b All local PCT SLAs include a 2% cash releasing efficiency used as part funding for generics and to offset a small element of local cost pressures b The Trust has an opportunity in non-recurrent resources to consolidate its position and to be well placed to respond to the strategic agenda and deliver 2005/6 modernisation targets

Financial summary Achieving balance b Implications of cash releasing efficiency targets on service and infrastructure b The savings plans do impact on front line services; physical infrastructure and non-front line staff b Impact on our ability to change and modernise b Directors to comment on their areas b Ongoing cost pressure themes such as prescribing costs; complex and forensic placements b Staff pay issues and workforce modernisation Agenda for Change; Consultant Contract; and Employer superannuation costs

Financial summary Risk issues b Uncertainties in income particularly for Specialist and Education and Training levies b Significant risks on ability to implement the savings plans and slippage on timing. In addition impact on other directorates not fully worked through for all proposals. b Still considerable reliance on non-recurrent funds. b Activity risks on adult acute, ICU Forensic and complex placements b Workforce issues particularly Agenda for Change b Implications of the financial position of our Local Authority partners in the context of the s31 agreements with them b ………..continued

Financial summary Risk issues … cont. b Some small contingency for risk management but already commitments against it b Limited flexibility in sector and through local s31 agreements b Opportunity to use non-recurrent sources to modernise b Performance management key to ensuring we stay on track

Next steps b Board to approve the plan as a document that “resources the strategy” for delivering the key objectives of the Trust for the coming year b Further editing to take place in next few weeks and “Action Plans” to be added in section 8 of the Plan ready for June meeting; document will then be published more widely including the intranet b Development of Performance Management systems linked to the plan  SPPDG to review planning process and further strengthen the organisational confidence in and understanding of the business cycle framework for the Trust