NHS Education for
Scotland
Property and Asset Management
Strategy
2015 Review
Document Control
Version
Draft 1.0
Date
Feb 2015
Author
LD
1.1
Mar 2015
LD
Comments
Draft for FPM Committee and Board
Draft for Board
NHS EDUCATION FOR SCOTLAND
PROPERTY AND ASSET MANAGEMENT STRATEGY
NHS Education for Scotland
Property and Asset Management Strategy
Executive Summary
1.
4
Background – Strategic Objectives and 2010 Property Strategy
4
Where are we now?
5
Where do we need to be?
6
How do we get there?
7
Conclusions
8
Introduction
9
Property and Asset Management Strategy Objectives and Benefits 9
Methodology and Content of the Property and Asset Management Strategy 10
2.
3.
Background - Strategic Objectives and 2010 Property Strategy
Who we are
12
Key National Policy Drivers
12
Strategic Framework
12
2010 Property Strategy and Implementation to Date
13
Where are we now?
Asset Performance Appraisal
4.
14
14
3.1.1
General Description of Estate Assets
14
3.1.2
Tenure
15
3.1.3
Estate Age
16
3.1.4
Estate Condition
16
3.1.5
Estate Utilisation
17
3.1.6
Estate Functional Suitability
20
3.1.7
Estates Quality
21
3.1.8
Estates Statutory Compliance
22
3.1.9
Estates Environmental Performance
22
3.1.10
Estates Annual Costs and Backlog Maintenance
Where do we need to be?
12
23
26
National and Strategic Objectives
26
Planned Changes to Service and Delivery
26
Asset Performance – Required Key Improvements and changes 27
Scenario planning
5.
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How do we get there?
30
32
Projected Strategy Impact
36
Projected Strategy Benefits
37
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Investment Plan
38
Risk Management
38
6.
Implementation Plan
39
7.
Performance Monitoring
41
8.
Conclusions
43
Appendices
44
Appendix 1 – Estate Details and Asset Performance assessment
Appendix 2 – IM&T asset details and performance assessment
Appendix 3 - NHSScotland National Asset and Facilities Performance Framework
Appendix 4 – Investment Plan Summary
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Executive Summary
The purpose of this document is to consider and detail the Property and Asset Management Strategy for
NHS Education for Scotland. This document presents a review of the Property and Asset Management
Strategy prepared in 2014, updating the estates data to reflect changes made during the year and
ensuring the strategy remains applicable and appropriate.
The Property Strategy covers all of the existing property held throughout Scotland in support of the
strategic and operational requirements of NHS Education for Scotland (NES) and sets out a forward plan
for the next 10 years (2015 to 2025) reflecting its future strategic direction.
The organisation believes a Property and Asset Management Strategy (PAMS) is a vital component of
the overall suite of strategic plans for the business. Property and other assets are an important facilitator
of improved corporate performance and a review of the performance of the property can ensure strategic
objectives are supported and that best value for money is being achieved. This review considered the
Strategic Objectives arising from the recent review of our Strategic Framework to identify key property
objectives essential to support our business needs.
The development of the Property Strategy consists of 3 principal stages:

Where are we now? A Property Appraisal of the existing premises is undertaken to assess the
ability to meet our operational requirements.

Where do we need to be? An examination of the Strategic Objectives and future operational
business requirements is undertaken to re-consider the likely future property needs of the
organisation, along with identifying property issues currently inhibiting service delivery and
efficiency.

How do we get there? Reviewing our property appraisal findings against our current and future
property needs led to the identification and assessment of options to address the arising issues
and opportunities. These options were each evaluated financially and non-financially to
determine a preferred option.
Background – Strategic Objectives and 2010 Property Strategy
NHS Education for Scotland is a national special health board, responsible for supporting NHS frontline
services delivered to the people of Scotland by developing and delivering education and training for
those who work in NHS Scotland. We have a Scotland wide role in undergraduate, postgraduate and
continuing professional development and we maintain a local perspective through centres in Edinburgh,
Glasgow, Dundee, Aberdeen and Inverness with over 1000 staff who work closely with our frontline
educational support roles and networks.
In developing our Strategic Objectives, NES has a role to support the key national policy drivers of the
Quality Strategy and the 20:20 Vision.
NHS Education for Scotland has recently prepared a refreshed Strategic Framework for 2014 -19. The
“Quality Education for a Healthier Scotland” strategic framework 2014-19 builds on the work started in
our 2011-14 framework of the same name. This outcome focussed framework will ensure our work
supports the Healthcare Quality Strategy in delivering safe, effective and person centred care and the
workforce development required to achieve the 20:20 Vision. It is therefore vital our PAMS can fully
support the Strategic objectives of ensuring there is a workplace environment which is fit for purpose and
where there is excellent access to education for healthcare staff; together with the key outcome of
supporting “an efficient and effective organisation where our staff are supported to give their best and
achieve their potential.
In 2010, our Property Strategy identified the need to rationalise our 3 leased properties in Edinburgh city
into one new property, reducing our space by approximately 45%. In November 2012 NES commenced
operating from 102 West Port, Edinburgh and vacated our previous 3 commercially leased premises.
This strategic project initiated the development and implementation of our Workplace Strategy and Agile
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Working toolkit which has delivered a successful model to achieve considerable space utilisation and
functionality performance improvements.
Our 2010 PAMS also identified the need to address our Glasgow accommodation. In December 2013,
Scottish Government approved a business case to acquire further space in the part ground floor of 2
Central Quay and to negotiate a new 10 year lease for both this new ground floor space and the existing
3rd floor space which had a lease expiry of 2017. Following this approval, the lease acquisition was
finally concluded in early October 2013 with a lease entry date of 21 October 2013. A 3 phase
programme to firstly fit out the new ground floor space and then refurbish and reconfigure the existing 3 rd
floor (to upgrade the condition and improve utilisation and functionality) was completed in August 2014.
This enabled NES to vacate the Clifton House premises by the lease expiry of November 2014.
Where are we now?
This strategy document provides a comprehensive performance appraisal of the existing assets of the
organisation (as at January 2015), including the property portfolio, detailing current locations, use,
tenure, condition, functionality, quality, statutory compliance and space utilisation. This assessment has
enabled the assets to be examined with regard to their suitability to support the organisation’s business
objectives and future demands.
NES currently occupies 10 properties across the main cities of Edinburgh, Glasgow, Aberdeen, Dundee
and Inverness. These properties are used for both office accommodation and training facilities. Six of
our 10 properties (60%) are occupied under shared agreements with other NHS and health related
educational organisations. The remaining 40% of sites (4 number providing 68% of our overall estate
space) are occupied under commercial leases. None of our sites are over 50 years old, with the age
profile being 44% of our space up to 10 years old, 31% being 10 to 29 years old and 25% being between
30 to 50 years old.
The table below summarises the property performance assessment of the overall estate as at January
2015:
Summary of Property Performance
Facet
Very
Satisfactory
Satisfactory
Not
Satisfactory
Unacceptable
Physical Condition
53%
29%
19%
0%
Functional Suitability
53%
32%
16%
0%
Quality
53%
30%
17%
0%
Fully Utilised
Under Utilised
Empty
Overcrowded
89%
11%
0%
0%
Space Utilisation
In terms of the condition of our estate, 82% of our estate is in condition grading A (as new) and B
(satisfactory condition, operating as intended). The remaining 18%, in an operational but poor condition
(grading C), relates to our Aberdeen accommodation in Forest Grove House and our dental centres in
Edinburgh, Glasgow and Dundee in this condition grading of C.
Our space utilisation currently ranks as 89% of our space being fully used and 11% being under used.
The functionality assessment further reveals 16% of our overall estate space being “not satisfactory with
significant change needed”. Analysing the functionality and space utilisation facets together on a room
by room basis assists in building a more comprehensive picture, revealing areas perceived to be under
pressure and under-used areas failing to deliver the functionality required for the current work and
training activities. For example, our previous accommodation in Glasgow at 2 Central Quay and Clifton,
presented under-used owned offices in both locations, under-used open plan areas at Clifton and
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overcrowded open plan areas at 2 Central Quay – this has been resolved by the re-configuration of the
workplace layout and facilities. The functionality and space utilisation for ADEC also presents a picture
of some rooms being perceived as under pressure (e.g. offices) and some rooms being under-used. In
these situations it is therefore important to consider options to improve the overall configuration of the
total space. For Dundee Ninewells, Dundee TCGP, Aberdeen Forest Grove House and Inverness
Centre for Health Sciences, the space standard key performance indicators reveal opportunities to
improve utilisation to secure efficiencies and endeavour to reduce net property costs. Further work is
proposed in the next 2 years to undertake measured utilisation surveys to accurately determine the
utilisation of these premises and review our space requirements and strategy.
Our existing backlog maintenance costs for the estate (defined as the cost of bringing the estate back to
condition B for physical condition and in our case for our demised leased areas only) is approximately
£125K. 65% of this total relates to Forest Grove House in Aberdeen which will be considered as part of
the planned options appraisal for our Aberdeen accommodation.
During 2014, our IM&T Strategy has been superseded by a more comprehensive Digital Strategy.
Central to this strategy is the continued support of the Workplace Strategy and improving agile working
by targeting equipment and systems, reducing the overall number of devices. The recent rationalisation
of the estate in Edinburgh and Glasgow has also enabled reductions in WAN and LAN costs and usage,
and a programme to reduce the number of server rooms across the entire estate has been progressed.
The Digital Strategy has initiated a review of all infrastructure based corporate IT services, evaluating
difference cloud based delivery models and plans to migrate to cloud based services in 2016.
Vehicle assets and medical equipment assets within NHS Education for Scotland are limited and of an
approximate value of £350K. A summary has been provided in sections 3.3 and 3.4.
Where do we need to be?
The purpose of this section is to determine how the organisation’s asset base will need to change to
enable and facilitate the delivery of our strategic and corporate objectives.
This has considered an examination of the future delivery objectives and possible changing service
needs of the organisation (e.g. Digital Strategy, Directorate Improvement programmes) and National
Strategies and policies (e.g. Quality Strategy and the 20:20 Vision). The overall NHSScotland workforce
vision in relation to service re-design will require educational development programmes and professional
development to adapt and respond to such changes. Our own workforce plan projection outlines, at the
present time, a possible minor/insignificant drop in numbers over the next few years.
It is therefore considered important that the estate provides flexibility in the balance and allocation of
space for our workforce and also in space and facilities for training provisions. This also needs to take
account of future technological advancements (e.g. the Digital Strategy). This is further reinforced by our
scenario planning exercise which considered the possible impact to our PAMS if the scenarios of
increasing/reducing services demand or static/decreasing resources occur. This exercise revealed our
current strategy of leased accommodation and co-location under service level agreements enables us to
be flexible and agile to adapt to possible future changes.
The “where do we need to be” section also considers the key changes required in the physical asset
base from the issues the performance appraisal highlights. The KPI’s detailed for each property in
appendix 1 allows a direct comparison across our offices for efficiency and equity of accommodation. In
particular the space utilisation KPI’s (space standards and desk ratio’s) for Aberdeen (Forest Grove
house and ADEC), Dundee (Ninewells and TCGP) and Inverness reveal opportunities to potentially
improve space efficiency and ultimately therefore reduce property costs. For Forest Grove House this
opportunity is assisted by a forthcoming lease expiry point and for Dundee, the possibility of relocating
further TCGP activities is given potential by the recently reconfigured space at Dundee Ninewells. Our
workplace strategy and agile working toolkit will enable this improvement to be taken forward and enable
NES to continue to strive to meet best practice and SG/SFT benchmarking targets on office
accommodation space standards and utilisation.
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For our Glasgow accommodation in Clifton House and 2 Central Quay, the issues identified in 2014 for
condition, functionality and quality have been addressed by the Glasgow accommodation project which
was completed in August 2014. For our dental education centres in Glasgow, Dundee and Edinburgh to
remain fully operational in future years, plans require to be developed with the relevant partners to
ensure the condition can be maintained at least at Grade C, with objectives to make improvements to
condition grade B.
How do we get there?
This review of our Property Strategy confirms the current geographical positioning of our office
accommodation and training facilities serves our strategic objectives in the short to medium term. The
Strategic review indicates the workforce profile and associated workplace demands for space are not
expected to generate any significant change in the short to medium term (i.e. in 5 years). Service redesign and planned changes in the organisation, including our workplace strategy and agile working
programme, indicate the need for our strategy to be flexible to adapt to possible medium to longer term
requirements (i.e. 5 to 10 years). Our current tenure approach (i.e. co-location and shared
accommodation where possible, commercial leases providing sub-letting/assignation rights and hire of
venues around the rest of the country to meet the demand of our stakeholders delivery needs) are
therefore considered to remain appropriate to meet our current needs and provide sufficient future
flexibility to adapt to change as required. The scenario planning exercise presented common themes to
continue to drive our space utilisation to the most efficient model and also reinforced our current tenure
approach (i.e. co-location and commercial leases of appropriate terms and assignation rights) remains
the most appropriate strategy.
Given that our geographical locations and tenure strategy are considered to be appropriate for our
objectives, our strategy development is focussed on the improvements required from the performance
appraisal of the existing assets.
The implementation of our property strategy and workplace strategy in Edinburgh in 2012 and Glasgow
in 2014 enabled us to evidence that our original 2010 strategy delivered significant performance
improvements in the estate asset performance assessments as detailed within section 5 of this
document. Our Glasgow accommodation project has enabled us to deliver further performance
improvement across the estate asset performance during 2014, addressing the functionality, condition
and space utilisation facets previously presenting issues, together with removing the previous backlog
maintenance costs of approximately £987K for 2 Central Quay and Clifton House.
Section 5.0 of this document details the issues/opportunities on a properties/cities basis and sets out our
preferred options and asset strategy for moving forward. This includes considering the continuing roll out
of our workplace strategy and agile working toolkit to all offices.
In summary, following the successful completion of our Glasgow accommodation project in August 2014,
our strategy continues to outline the intention to undertake options appraisals for our Aberdeen and
Inverness accommodation with the focus on improving space utilisation, reducing property costs and
addressing functionality issues. For Aberdeen, the timescale will be in alignment with an opportunity for
a lease expiry at Forest Grove House. Our Aberdeen and Inverness offices provide accommodation for
approximately 8% of our total workforce (based on headcount) and are approximately 20% of our overall
current estate area. It is estimated the overall space required in Aberdeen could be reduced by
approximately 40% of the current provision and for Inverness by approximately 15% of the current area.
A detailed space requirement exercise (including a measured space utilisation exercise for a 4 week
period) is currently in progress to establish exact office and training room needs to feed into the planned
options appraisals to confirm these estimations.
An implementation plan has been detailed in section 6.0 of this document, outlining the management,
governance and decision making arrangements within NES for implementing the PAMS.
The potential impact to the performance assessment of the detailed Property and Asset Management
strategy being implemented has been considered to help determine what success would look like. The
forecast impact of the strategy to the estates National Asset and Facilities Management performance
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KPI’s is included in the table in Appendix 3 of this document, highlighting that the projected forecast for
the NES estate for 2020 will achieve the NHSScotland targets for the relevant KPI’s. The forecast
impact to the key facets of the estates asset performance assessment are summarised in section 5.0,
detailing the performance as at 2010, as at January 2014, the current assessment in January 2015 and
the projected assessment for 2020 should the strategy be implemented.
Conclusions
In conclusion, it is recommended the Property and Asset Management Strategy (PAMS) outlined in this
document is implemented by NES to enable the current property appraisal issues and future operational
requirements to be addressed.
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1.
Introduction
The purpose of this document is to detail the Property and Asset Management Strategy for NHS
Education for Scotland, following a review in the early part of 2015.
NHS Education for Scotland is a special health board, responsible for supporting NHS services
delivered to the people of Scotland by developing and delivering education and training for those
who work in NHS Scotland.
The organisation believes a Property and Asset Management Strategy is a vital component of
the overall suite of Strategic plans for the business, and as such should be reviewed at least
annually and in any case alongside any strategic organisational reviews. This objective aligns
with government best practice guidelines [NHS CEL 35 (2010)] which strive to ensure that NHS
property is used efficiently, effectively, coherently and strategically to support National Strategic
Objectives (e.g. 20:20 Vision and Quality Strategy).
NHS Education for Scotland believes Property and other assets are an important facilitator of
improved corporate performance and therefore a detailed review of the performance of assets
can ensure the benefits of a good strategy are realised. We consider the benefits to be: strategic
objectives are being fully supported; that the assets enable and facilitate our people to deliver
the services we provide in an efficient and effective manner; and that best value for money is
being achieved.
Property and Asset Management Strategy Objectives and Benefits
The Property and Asset Management Strategy considers the period from 2015 to 2025, with a
detailed focus on the next 5 year period of 2015 to 2020, setting out a forward plan to reflect the
organisations future strategic direction. The key asset groups included in the strategy are
estate/premises, IM&T infrastructure and equipment/hardware, vehicles and any medical
equipment owned by NHS Education for Scotland.
The NHS Education for Scotland Property and Asset Management Strategy has been developed
in consideration of a number of core principles, strategic objectives, national objectives and
criteria as follows:

To enhance corporate performance, enabling our Strategic Objectives to be delivered
efficiently and effectively, facilitating our people to deliver the services we provide.

To further embed and develop our Workplace Strategy and associated Agile Working
Strategy and toolkit, ensuring new ways of working are enabled to provide our workforce
with facilities and technology to work in a flexible and agile manner, suitable for their
work styles and work patterns.
This objective aligns with the Scottish Government/Scottish Future Trusts “Smarter
Office Programme” which sets objectives to rationalise the Government Estate by using
office/non-clinical spaces in a smarter and more efficient manner. NES will continue to
benchmark our performance against others (public and private bodies), seeking to
ensure we maximise utilisation of our accommodation to minimise our property costs.

To ensure that our premises comply with all requirements laid down by Statutes,
including in relation to health, safety and welfare and access.

To ensure that our assets provide premises which are retained in a good condition,
providing good functionality and quality of space in support of our strategic objectives.
We will continue to assess the performance of our assets in the areas of condition,
functionality and quality and develop our strategy to ensure National Asset and Facilities
Performance Framework NHSS 2020 targets are achieved by our organisation.

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To ensure our premises enable, encourage and assist the development of improved
integration and multi disciplinary practices in line with our Strategic objectives. This will
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be achieved by implementation of our Workplace strategy, ensuring our accommodation
is designed in a flexible manner, enabling the organisation to easily adapt when
organisational change occurs or strategic/corporate objectives develop.

To develop an agile/flexible property strategy to be able to adapt more readily and easily
to the future, considering how our accommodation is best arranged/located, sized in
terms of use to support potential service delivery changes and organisational structural
changes.

We consider our people to be vital to our organisations success, with their associated
knowledge and intellect to be a significant asset, therefore a strategy which aims to
retain our people is key.

The national and UK wide nature of our work means that many of our staff work out of
one or more offices. In terms of geographic locations, proximity to major rail and air links
are essential to ensure that these staff can work as effectively as possible and retain
good communication with colleagues, significant stakeholders and management. This
also links to our Agile Working strategy and the provision of our workforce with
appropriate technology and access to accommodation wherever they may be working
from.

Our premises should be located where NES educational services can most effectively
support NHS organisations and practitioners. In practice this frequently means close
proximity to NHS service delivery, particularly major hospital sites. We will continue to
work with our key stakeholders to ensure the requirements for our service delivery in
terms of location is understood to support the delivery of national objectives.
Methodology and Content of the Property and Asset Management Strategy
In 2010 a Property Strategy was developed by NHS Education for Scotland and has been
progressed in line with the implementation plan for our Edinburgh and Glasgow accommodation.
This review and development of our Property and Asset Management Strategy has involved the
following 3 principal stages:
Where we are now?
This stage involved re-surveying and re-assessing the assets performance (e.g. condition,
functionality, utilisation, quality, statutory compliance and environmental performance) and
updating the asset information details (e.g. premises details, space, tenures and running costs),
taking into account any strategy implementation works undertaken to date.
A risk based methodology for the property performance appraisal was applied to decide on the
level of assessment deemed necessary for each property. The assessments were made in
accordance with the guidance within the “Estate Asset Management - Property Appraisal
Manual” published by NHSScotland (Health Facilities Scotland/Capita Document) and is now
being held in the NHS wide Estates Asset Management System (EAMS).
Where do we need to be?
This stage involved an examination of our Strategic Objectives, National Strategies and
objectives and future operational business requirements to re-consider the likely future asset
needs of the organisation, along with identifying property issues currently inhibiting service
delivery and efficiency. This then enabled us to review and identify how the asset base will need
to change.
How do we get there? (Strategy Development)
This third stage involves bringing together the changes identified as being required to the asset
base to fulfil our objectives when measured against the current asset base, identifying the
preferred options to form our Strategy.
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This Property and Asset Management Strategy document has been structured to follow these 3
key stages following a summary of our Strategic Objectives and background and update on our
original 2010 Property Strategy and subsequent annual reviews.
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2.
Background - Strategic Objectives and 2010 Property
Strategy
Who we are
NHS Education for Scotland is a national special health board, responsible for supporting NHS
frontline services delivered to the people of Scotland by developing and delivering education and
training for those who work in NHS Scotland. We have a Scotland wide role in undergraduate,
postgraduate and continuing professional development and we maintain a local perspective
through centres in Edinburgh, Glasgow, Dundee, Aberdeen and Inverness with over 1000 staff
who work closely with our frontline educational support roles and networks. Our aim is to
improve health and care through education and significant proportion of our work focuses on the
clinical workforce, with a large part of our funding used to pay salaries for doctors, dentists in
training. In addition we prepare professionals for practice in clinical psychology, pharmacy,
optometry and healthcare science and we provide access to education for the nursing, midwifery
and allied health professionals and for healthcare support workers and admin, clerical and
support staff. We also support public service reform and current policy priorities through
education for improving quality, service re-design and leadership and management, with
particular emphasis on enabling sustainable quality through the 20:20 Vision.
Our vision is “Quality Education for a Healthier Scotland”.
Our mission is “education that enables excellence in health and care for the people of Scotland”.
Key National Policy Drivers
In developing our Strategic Objectives, NHS Education for Scotland has a role to support the
following key NHSScotland policies and other external policy drivers:




Quality Strategy – to ensure that everything we do is integrated and aligned to deliver the
highest quality healthcare services for the people of Scotland.
20:20 Vision – that by 2020 everyone is able to live longer healthier lives at home, or in a
homely setting. We will have a healthcare system where we have integrated health and
social care, a focus on prevention, anticipation and supported self management.
Christie Commission – developed recommendations for the future delivery of public services
which focuses on four main areas to drive improvement and reform including: a decisive shift
towards prevention; greater integration at local level driven by better partnership; a more
transparent focus on performance; and workforce development.
Francis Report – Recommendations from the public inquiry following serious failures in care
at Mid Staffordshire NHS Foundation Trust included: “enhance the recruitment, education….
and to integrate the essential shared values of the common culture; develop a set of
fundamental standards ….. with professionally endorsed and evidence based means of
compliance.”
Strategic Framework
NHS Education for Scotland prepared a refreshed Strategic Framework for 2014 -19 last year.
The “Quality Education for a Healthier Scotland” strategic framework 2014-19 builds on the work
started in our 2011-14 framework of the same name. This outcome focussed framework will
ensure our work supports the Healthcare Quality Strategy in delivering safe, effective and person
centred care and the workforce development required to achieve the 20:20 Vision.
Key outcomes to support innovation in priority areas of our business are set out in this refreshed
strategic framework. In developing these we have asked our stakeholders about their priorities
and we consulted with our partners. The themes that emerged reflect a strong need to support
the Quality Strategy and the 20:20 Vision through the supporting 2020 Route Map and 2020
Workforce Vision, enabling the workforce to achieve sustainable quality in health and care
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services which cross traditional organisational and professional boundaries. Full details of our
Strategic Framework and the outcomes are available on our website.
In relation to our Property and Asset Management Strategy, key strategic outcomes are that of “a
workplace learning environment which is fit for purpose and where there is excellent access to
education for healthcare staff” and “an efficient and effective organisation where our staff are
supported to give their best and achieve their potential”.
It is vital our Property and Asset Management Strategy can fully support the Strategic
Objectives, allowing continued close proximity to the majority of our stakeholders and partners,
access to and delivery of education services at the geographical locations required; in
educational environments fit for purpose; enabling and assisting the development of improved
integration and multi disciplinary working; and having the ability to be flexible to adapt to services
re-design.
2010 Property Strategy and Implementation to Date
In our 2010 Property Strategy, our existing estate consisted of 13 property interests located
throughout Scotland – seven held under a commercial lease and at six locations we co-located
with key stakeholders/partners through occupancy agreements.
Our Property Strategy identified the need to rationalise our 3 separately leased office
accommodations in Edinburgh (Thistle House, Rose Street and Lister) into one new city centre
location, taking lease break/expiry opportunities to enable us to reduce our space by
approximately 45%, reduce our property costs, improve the functionality issues experienced by
split locations and overcome condition/quality issues with the properties. In February 2012
approval was received from Scottish Government to proceed with the lease acquisition of one
new city centre property and vacate the existing 3 leased properties at their expiries. In
November 2012 NES commenced operating from West Port 102, West Port, Edinburgh, fitting
out the grade A office accommodation in line with our Workplace Strategy and developed Agile
Working Toolkit. Two years on from the move to West Port, during 2014 we progressed a review
of our Workplace Strategy. This review included a measured space utilisation survey and also a
staff questionnaire on the workplace and its ability to support agile working and operational
needs.
Our Property Strategy further identified the need to consider options for our existing Glasgow
accommodation in 2 Central Quay and Clifton House to address the impending lease expiry of
Clifton House in November 2014 (shared with NSS who vacated the other 2 floors leased in
2012/13). In December 2013, Scottish Government approved a business case to acquire further
space in the part ground floor of 2 Central Quay and to negotiate a new 10 year lease for both
this new ground floor space and the existing 3rd floor space which had a lease expiry of 2017.
Following this approval, the lease acquisition was finally concluded in early October 2013 with a
lease entry date of 21 October 2013. A 3 phase programme to firstly fit out the new ground floor
space and then refurbish and reconfigure the existing 3rd floor (to upgrade the condition and
improve utilisation and functionality) commenced in October 2013 and was successfully
completed in August 2014. This enabled NES to vacate the Clifton House premises by the lease
expiry of November 2014. An early surrender agreement was also negotiated by NES/NSS with
the landlord to enable the lease for Clifton House to be terminated at the end of August 2014,
securing savings on property running costs for this vacant period.
Our Glasgow accommodation was fitted out and refurbished to provide accommodation in line
with our Workplace Strategy to maximise utilisation and ensure the functionality supports our
strategic objectives. The design of the Glasgow space was informed by the Post Occupancy
Evaluation and Lessons Learned from the Edinburgh rationalisation (West Port) project, which
led to minor adjustments to ratios of workstations for 2 work styles and some ancillary support
spaces. A post occupancy evaluation has just been concluded for Glasgow, consisting of a
measured space utilisation exercise and a staff questionnaire.
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3.
Where are we now?
Asset Performance Appraisal
The purpose of this section is to provide a comprehensive performance appraisal of the existing assets
of the organisation, including the property portfolio, detailing current locations, use, tenure and running
costs. An appraisal of the current condition and performance has also been undertaken to assess the
assets suitability to support the organisations business objectives and future demands. For the Estate
elements of the assets, the 6 facets of this assessment include an appraisal of condition, statutory
compliance, space utilisation, environmental management, functional suitability and quality.
During 2013 and 2014 the NES property portfolio has been re-surveyed and re-assessed as part of the
preparation and review of the Property and Asset Management Strategy. In a number of cases this has
included checking measurements/dimensions of space/rooms to ensure the overall space recorded is
accurate. The measured surveys of our Edinburgh Dental, Glasgow Dental and Dundee Dental sites in
2014 have led to increases in the floor areas recorded for these premises (hence, the increase in our
overall total estate area in the estate details).
3.1
Estates Assets
The details and performance of the Estates Assets as at January 2015 are detailed within this section,
including the General Description of the assets, tenure details, age profile and the 6 facet appraisal
which includes Condition, Utilisation, Quality, Functionality, Statutory Compliance and Environmental
Performance. The total annual running costs are also summarised.
Appendix 1 provides the full details of the asset performance appraisal for each property for each facet
considered.
3.1.1
General Description of Estate Assets
The current NES estate consists of 10 property interests located throughout Scotland, primarily located in
the main Scottish cities.
The following table summarises the 10 properties, their locations and their principle uses:
Property and location
Principal Uses
West Port, 102 West Port, Edinburgh
Office Accommodation and Training Space
2 Central Quay, 89 Hydepark Street, Glasgow
Office Accommodation and Training Space
Forest Grove House, Forresterhill Road, Aberdeen
Office Accommodation and Training Space
Inverness Centre for Health Sciences, Old Perth Road, Inverness
Training Space and office Accommodation
Dundee Ninewells, Level 8, Ninewells Hospital, Dundee
Office Accommodation
Dundee TCGP, McKenzie Building, Ninewells Site, Dundee
Office Accommodation
Aberdeen Dental Education Centre, Foresterhill, Aberdeen
(ADEC)
Dental Training Space and office
Accommodation
Dundee Dental Education Centre Frankland Building, University of
Dundee, Dundee (DDEC)
Dental Training Space and office
Accommodation
Edinburgh Dental Education Centre, Lauriston Building, Lauriston
Place, Edinburgh (EDEC)
Dental Training Space and office
Accommodation
Glasgow Dental Education Centre, Sauchiehall Street, Glasgow
(GDEC)
Dental Training Space and office
Accommodation
Note: In addition to the above, NES have a minor number of staff working from other NHSScotland sites. These shared spaces, eg
at Perth Broxden Centre for Dental Training, have not been listed as a NES site due to the limited and shared space being used.
The estate consists of predominantly office accommodation together with academic and practical
teaching facilities.
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In 2012, the number of our properties was reduced from 13 to 11 by the rationalisation of 3 Edinburgh
offices (Lister, Rose Street and Thistle House) to one new property (West Port). In 2014, this was further
reduced to 10 properties by the vacation of Clifton House in Glasgow. This previous estate represented
an element of ‘legacy estate’ in that a number of properties were inherited by NES following its creation
in 2002. The split location of our office accommodation in Edinburgh at that time and in Glasgow (2CQ
and Clifton House) is as a result of the previous Government policy to relocate central/headquarter
functions form Edinburgh to Glasgow. This policy was then abandoned in 2007 at which point NES were
in the early stages of relocating and had created an advance base in Glasgow (Clifton House).
The current geographical positioning of our office accommodation and training facilities is considered
appropriate to serve our strategic objectives and enables us to continue to work in partnership with other
NHSScotland bodies and educational establishments.
3.1.2
Tenure
NHS Education for Scotland occupies premises under a combination of commercially leased offices and
through co-location/occupancy agreements with key stakeholders and partners (i.e. Territorial Boards
and Universities).
The illustration below summarises the percentage of space (m2) commercially leased across the estate
and the percentage of space under shared occupancy agreements.
Tenure Types - Percentage of NES Space (m2)
Occupancy
Agreement
32%
Commercial
Lease
68%
The majority of our commercially leased space is from our Edinburgh and Glasgow offices (totalling
5,851sqm, 49% of our overall estate in terms of square meters). The majority of our workforce (77%) are
located in either our Edinburgh or Glasgow offices, reflective of the national role and remit delivered by
our organisation.
In terms of the percentage of properties (number of sites), the graph below illustrates the majority of our
sites are occupied via co-location options and shared premises with a Territorial Board or University:
Tenure types - No of sites expressed as a
Percentage
Commercial
lease
40%
Occupancy
Agreement
60%
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This Strategy of sharing space with other NHS and health related educational organisations, allows
continued close proximity to the majority of our stakeholders and partners, building strong relationships
and partnership working. It also enables us to deliver education services at the geographical locations
required by our stakeholders, in the main using shared teaching facilities to maximise utilisation and
achieve cost efficiencies.
We remain committed to a continuing strategy of sharing space with other NHS and health related
organisations where appropriate, in accordance with the principles of the Scottish Government
objectives. We plan to engage with other NHS Boards regarding future estates plans to improve overall
utilisation of shared areas and future proof asset solutions to ensure they align with future teaching
methods.
Appendix 1 provides further details on the Tenure type and lease expiry (where applicable) for each of
our properties.
3.1.3
Estate Age
The age profile of our properties are summarised in the chart below.
over 50 years old
0%
Age Profile
up to 10 years
old
44%
30 to 50 years
old
25%
10 to 29 years
old
31%
Appendix 1 provides further details on the Age profile on a property by property basis.
The most significant proportion of our estate is under 10 years old (44%), with all our estate meeting the
NHSScotland 2020 Vision target of being less than 50 years old. The properties falling into the 30 to 50
year old category are 3 of our Dental Education Centres (Edinburgh, Dundee and Glasgow) and are
occupied in shared agreements. The condition facet highlights these centres to be in an operational
condition, with their age currently not impeding their ability to support our service delivery.
3.1.4
Estate Condition
The physical condition of our properties has been re-assessed and updated during 2014. We have used
the risk based methodology set out by NHS Estate Asset Management Property Appraisal Manual to
decide on the level of assessment – all of our 10 sites have now been appraised to level 3 (detailed
inspection at room level) .
In accordance with The Royal Institute of Chartered Surveyors (RICS) Guidelines and also the NHS
Estate Asset Management Property Appraisal Manual, the condition was appraised and ranked
dependant on its overall condition in accordance with the following definitions:
A
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Excellent/As new condition (generally less than 2 years old).
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Expected to perform as intended over its expected useful service life
B
Satisfactory condition with evidence of only minor deterioration.
Element is operational and performing as intended.
C
Poor condition with evidence of major defects. Element remains
operational but is currently in need or major repair or replacement.
D
Unacceptable condition. Non-operational or about to fail.
The chart below summarises the condition ranking of NES space, expressed as a percentage of space
(m2) for each of the 4 gradings defined above:
COperational
but requiring
major repair
19%
Condition Ranking
BSatisfactory
29%
DUnacceptable
0%
A - Excellent
52%
Appendix 1 provides further details on the overall Condition Ranking of each property.
In terms of percentage of properties (number of sites) in condition grading A or B, NES has70% of sites
(7 number sites). Three number sites, Forest Grove House, EDEC and GDEC have a condition grading
of C. The condition of the main building services (Heating, ventilation/cooling, power and lighting) in
particular leads to the overall gradings for these premises, reflecting the age of the facilities.
The percentage increase from 33% being graded excellent in 2014 to 52% this year, reflects the benefits
secured from the Glasgow Accommodation project, enabling the reconfigured space at 2 Central Quay to
be upgraded and the poor space at Clifton House to be vacated and disposed.
3.1.5
Estate Utilisation
The analysis of current space utilisation assesses how efficiently and effectively the available space is
being used and helps establish if the premises are fully utilised, overcrowded or underutilised.
To assess our estate utilisation, we use the following methods and data to develop a full analysis of our
performance:




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Space Ranking – the 6 facet survey assessment as set out in the Property Appraisal
handbook, rating the buildings/rooms as Over-crowded, Fully used, Under-used and
Empty. This data is included in the Estates Asset Management system.
Space Types – we consider our overall space in terms of Floor Area and then further
separate this space to identify space used for training activities. This enables us to then
benchmark our office space for staff on a more comparable basis with best practice and
SG/NHS targets.
Room booking information – In May 2013 we implemented a new room booking system
for our Edinburgh West Port and Glasgow offices, enabling us to obtain a more accurate
picture of room bookings and use.
Measured Space Utilisation Surveys – During 2014 we commissioned measured space
utilisation surveys in our West Port and 2 Central Quay offices, utilising technological
equipment over a 4 week period which measures actual use at workstations, meeting
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

spaces etc. This enables detailed and accurate use data to be provided on space
utilisation which can be analysed by different space types, different floor areas, time
periods etc. A similar exercise is currently in progress in our Aberdeen accommodation.
Space Utilisation Audits and Targeted Observation Studies – in a number of our
buildings we have completed targeted observation space utilisation audits to verify
actual use of desks, ancillary support spaces and central support spaces. Targeted
observation studies have also been useful in noting behaviours and issues in the
configuration and use of the existing space to help inform the functionality of the
accommodation.
Using Headcount and Whole Time Equivalent (WTE) numbers, we determine the desk
per Headcount and WTE ratios, Space standards per Headcount and WTE (on a total
area and office space only i.e. less training space). This enables us to make
comparisons across our own sites for equity and also benchmark to other organisations
and best practice.
The illustration below provides a summary of the space ranking for all NES premises.
Over crowded
0%
Space Ranking
Under utilised
11%
Empty
0%
Fully used
89%
Further details of the space ranking for each of the premises are included in Appendix 1. This appendix
also details the following key performance indicators for each property: desk per headcount ratio, desk
per WTE ratio, Space standard per headcount, space standard per WTE, Space standards for office
space only (i.e. excluding training spaces).
In analysis of our space utilisation ranking, we would highlight that these key performance indicators
require to be carefully interpreted and require to be analysed for issues using room/desk level data
together with the functionality assessment. Data from the Targeted Observation studies and data
gathered from surveys/questionnaires (e.g. Post Occupancy Evaluation assessments for West Port) are
also valuable for obtaining an accurate picture of use to identify issues with current layouts/configurations
of space which may also be impacting utilisation.
The measured space utilisation surveys completed at West Port and 2 Central Quay during 2014 have
provided a valuable source of detailed data to inform reviews of our workplace strategy. We consider
this investment will enable us to refine our workplace strategy model and enable us to make informed
decisions regarding possible further improvements to our space utilisation. Staff questionnaires/post
occupancy evaluation surveys have also been valuable to ascertain the current cultural position in
relation to attitudes towards agile working and the move from “my space” to “our space” to “any space”.
Together, the measured surveys and staff feedback, are enabling us to consider realistic options which
take into account the required cultural change and associated timescales for improving space utilisation
at these premises.
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We consider similar measured space utilisation surveys would be a worthwhile investment in our
remaining premises to help accurately determine the space utilisation and then review our space needs
and strategy.
The following graphs illustrate the comparison in space standards and desk ratio’s across our premises:
Desk to Headcount and WTE Ratio's
Comparison Graph across all sites
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
Desk per Headcount ratio
Desk per WTE ratio
Scottish Government (SFT) has an advised target ratio of 0.8 desk:1 WTE.
Space Standards for Office Accommodation (excl Training space)
Comparison graph across the sites
40
35
30
25
20
15
10
5
0
sqm/HC
sqm/WTE
For the space standard KPIs we have used the space standard based on the office space only, removing
the space used for training purposes, to provide an equal comparator. For our Edinburgh and Glasgow
offices, where central support space consists of larger meeting rooms used for training and internal
meetings, we have included an appropriate proportion of the area based on the average percentage use
for internal meetings (based on room booking information).
Our developed Workplace Strategy which we have implemented to determine the space needs and
space configurations for our West Port and 2 Central Quay offices, has enabled us to achieve
considerable improvements in space utilisation. In our 2010 Property Strategy, for our 3 Edinburgh sites
of Thistle House, Rose Street and Lister, our average ratio of desks to headcount was 1:1.2 (i.e. 1.2
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desks for each person) and our ratio of desks to WTE was 1:1.34. This has been reduced to 1:0.75 for
desk to headcount and 1:0.85 for desks to WTE. Our overall gross space reduced by approximately
45% in Edinburgh, enabling the space standards to be dramatically improved through the occupation of a
more efficiently designed modern space. This required significant change management activities to
achieve this shift in approach to sharing desks and no owned offices.
Our Glasgow accommodation project has resulted in the desk:WTE ratio’s being improved from 1:1:01
desks:WTE for 2 Central Quay and 1:1.34 at Clifton House to an overall Glasgow ratio of 1:0.98.
The graphs clearly highlight that there are further opportunities to consider options for improving space
standards and desk ratios in a number of our properties. Our Strategy will require to be considered and
prioritised against the potential gains in terms of operational benefits and net cost savings.
3.1.6
Estate Functional Suitability
This section of the property appraisal assesses how well the available accommodation supports the
delivery of the business operational needs, examining space relationships, support facilities and location.
This element was assessed by means of a combination of visual inspection and discussions with key
personnel and end users against a set of functionality related criteria. The criteria includes questions
regarding space relationships (e.g. does the space allow safe and effective delivery of the service, is it
sufficient for the departments to function appropriately and are critical rooms appropriately sized),
location (e.g. proximity to clients/key stakeholders and access by public transport) and support facilities
(e.g. meeting rooms and welfare facilities). An overall ranking is then assigned using the following
standard definitions:
A
Very satisfactory, ideal accommodation, no change needed
B
Satisfactory with only minor change needed
C
Not satisfactory with significant change needed
D
Unacceptable in its present condition, major change needed
The chart below summarises the percentage of space (in m2) across the NES estate in each of the 4
functionality gradings.
Functionality Ranking
C - Not
Satisfactory
16%
B - Satisfactory
32%
A - Very
Satisfactory
52%
DUnacceptable
0%
Appendix 1 provides further details on the overall Functionality ranking of each property.
The 2015 assessment, following the Glasgow accommodation project, has enabled our overall
percentage of space falling into Very Satisfactory and Satisfactory to increase from 71% in 2014 to 84%
in 2015.
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The data for functionality is gathered from the assessment on a room by room basis for all the properties.
The areas falling within grading C, not satisfactory, represent 16% of our current total floor area and are
spread over a percentage of the floor area/rooms of 7 of our properties (the full area details can be
viewed within Appendix 1). These particular areas are essentially failing to provide modern office
accommodation with the appropriate space configuration to meet the work styles and activities and or the
most appropriate size of rooms for their current use.
Analysing the functionality and space utilisation facets together assist in building a more comprehensive
picture, revealing some office areas being perceived to be under pressure and some under-used areas,
all contributing to failing to deliver the functionality required for the current work and training activities.
We anticipate the detailed measured space utilisation surveys will provide greater understanding of exact
utilisation, and functionality issues can be further examined by re-evaluating future space requirements
considering our workplace strategy and future student numbers. While the premises may not be failing
to support our current operational needs and can be considered satisfactory in relation to functionality as
they will enable us to deliver future needs, they may not be the most efficient and effective arrangements
for our future space needs.
3.1.7
Estates Quality
This facet is an assessment of whether the current accommodation provides a comfortable, modern,
pleasing environment in which service delivery can be provided. Again, this element was assessed by
means of a combination of visual inspection and discussions with key personnel and end users against a
set of quality related criteria. The criteria related to amenity (e.g. does the facility/accommodation offer
pleasing comfort and working conditions, is it well signposted and does it provide sufficient privacy when
needed), comfort engineering (e.g. does the facility offer an acceptable environment it terms of lighting,
heating/cooling, ventilation and noise) and design (e.g. is the internal/external environment attractively
designed and well furnished etc).
An overall ranking is then assigned using the following standard definitions:
A
A facility of excellent quality
B
A facility of satisfactory quality with only general maintenance
required
C
A facility of less than satisfactory quality with investment needed
D
A facility of poor quality with significant investment needed
The chart below summarises the percentages of space (m2) for NES properties in each of the 4 quality
rankings.
C - Not
satisfactory
17%
Quality Ranking
B - Satisfactory
30%
A - Very
Satisfactory
53%
DUnacceptable
0%
Appendix 1 provides further details on the overall Quality ranking of each property
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None of the NES estate is considered to be of such poor quality that it requires significant investment in
relation to the quality facet, with the majority of the estate (83%) deemed as very satisfactory or
satisfactory (an increase of 10% from 2014 due to the completion of the Glasgow project).
3.1.8
Estates Statutory Compliance
This facet includes an assessment of compliance with all statutory guidance and legislation relating to
the estate including fire, health, safety and Disability Discrimination Act (DDA).
This is to highlight any required actions or issues in relation to the premises in terms of statutory
compliance for which there is a likely cost to complete works to address or if an issue presents an
ongoing risk.
For this facet, the standard ranking protocol does not apply. Within the NHS, a Statutory Compliance
Audit and Reporting Tool (SCART) is used by many Boards to review and document compliance over a
large number of aspects. NES currently does not use this software, largely as the use and configuration
of our estate being leased accommodation in shared premises/buildings means that a significant number
of the aspects to be considered are not as relevant (e.g. Compliance with Scottish Health Technical
Guidance Notes for clinical areas, Boilers and pressure vessels and fire alarm systems).
However, NES has made use of the SCART question set to undertake detailed (level 3) reviews of
statutory compliance for each property, ensuring our obligations are fulfilled and also checking landlord’s
obligations are fulfilled.
During financial year 2013-14 we completed a programme of work to address actions identified from our
previous review. This included the tendering of a new planned maintenance contract to ensure all
necessary planned maintenance activities (e.g. emergency lighting testing, fixed wiring testing, air
conditioning maintenance, legionella prevention measures etc) have been identified for all premises and
are now being undertaken as part of one managed contract. Remedial works contracts have also been
undertaken for fire risk assessment identified works (e.g. upgrading emergency lighting in GDEC,
improving fire evacuation signage etc) and legionella prevention measures identified via the risk
assessment (e.g. removal of dead legs of pipework, increasing temperatures of hot water boilers etc).
With the implementation of these actions during financial year 2013-14 and also some further minor
works in financial year 2014-15 we consider we will be compliant and will have only minor low risk items
to be addressed on an ongoing basis.
We will continue to review our statutory compliance as part of our annual assessment, including reviews
on our Fire Risk assessments, to ensure our statutory compliance matters continue to be managed and
controlled appropriately. We will also continue to work with the NES Health and Safety Advisor and any
external auditors (eg Rospa completed an 18001 audit in 2013) in relation to premises health and safety
matters.
3.1.9
Estates Environmental Performance
During financial year 2014, NHS Education for Scotland commenced utilising the Corporate Greencode
(HFS Software tool to monitor legislative compliance). An appropriate Environmental Management
System is in development and baseline data has been gathered, where possible, on our energy and
waste use. Our Sustainable Development Action Plan sets out an objective to develop our performance
monitoring and set targets for reductions in energy and waste. The Sustainable Development Action
Plan also identifies actions in relation to improving sustainability in relation to travel and procurement
processes. Our Sustainable Development Programme Board is in place to consider targets and review
monitoring figures, agreeing actions and interventions as necessary.
In view of the above, our level of appraisal for this facet is level 1 this year. We plan to include a level 2
appraisal in our 2016 Property and Asset Management Strategy Review, detailing the status of the
Environmental Management System and progress with performance monitoring.
We would note, that as many of our properties are occupied on a shared occupancy agreement we are
frequently unable to determine our individual consumption figures for energy in particular due a lack of
sub-metering arrangements. Assumptions will therefore often need to be made on a proportion of overall
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consumption for the building and we will work with our landlords to develop potential environmental
actions.
In relation to the performance of our properties in terms of energy efficiency from the Building Fabric and
services, reflected by an Environmental Performance Certificate (EPC) our move to West Port enabled
us to move to a building with an EPC rating of B. This achieved improvements by moving from Thistle
House and the Lister building which were both G rated. (The EPC rating grades the building, for which an
“A” rating is the most environmentally efficient. These gradings are independently established by
accredited assessors). For Glasgow, improvements were also made by moving from Clifton House (G
Rated) to 2 Central Quay (C Rated for Ground floor and D rated for 3rd floor). Planned works to the
ground floor unit during our fit-out project also enabled the Central Quay performance of building
services to be improved in terms of energy performance (e.g. movement sensors for lights, heat recovery
on building services plant etc).
For both our West Port and 2 Central Quay properties, we incorporated measures in the design of our
demised areas to seek to improve energy efficiency. Reviewing our energy use we have noted both are
currently less than the CIBSE benchmark on energy consumption per m2 for office premises. Our
environmental and sustainability focus is therefore predominantly on targeting waste and reducing paper
use which is considered to currently be above typical office usage.
3.1.10 Estates Annual Costs and Backlog Maintenance
Annual Running Costs
For financial year 14-15 the annual property running costs are summarised for each property in the table
below:
Total Space
Costs for 1415 (£)
Space Cost
- £ per sq.m p.a.
West Port 102, Edinburgh
£1,282,389
£384.52
2 Central Quay (3rd floor space only), Glasgow
£1,087,602
£432.36
Forest Grove House, Aberdeen
£393,785
£388.10
Inverness Centre for Health Sciences (incl Medical and Dental)
£584,109
£478.33
Aberdeen Dental Education Centre, Foresterhill
£182,061
£259.72
Dundee Dental Education Centre, Dundee
£52,000
£37.75
Edinburgh Dental Education Centre, Lauriston
£44,816
£89.45
Property
The total property costs include rent, rates, service charges, water and drainage charges, insurance,
energy costs and cleaning costs, inclusive of VAT where applicable.
For Dundee Ninewells, Dundee TCGP and Glasgow Dental Education Centre, no separate property
costs are recorded as occupation is part of an on overall service delivery agreement.
Backlog Maintenance Costs
The backlog maintenance cost of the estate is defined as the cost of bringing the estate back to condition
B for the facet of physical condition. It also includes any outstanding non-compliance issues attributed to
the statutory compliance facet. It does not include any items which can be rectified by way of normal
annual maintenance budgets.
A summary of our backlog maintenance profile is noted in the table below. The total backlog cost for
each of our premises is detailed in Appendix 1. This is established from the Estates Asset Management
System data, updated from the surveys completed during 2014, and categorised in accordance with
SGHD guidelines into risk levels.
All our backlog maintenance costs relate to non-clinical
accommodation.
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Backlog Maintenance Costs - Risk Profile
Property Type
Low risk
Moderate
Risk
Significant
Risk
High Risk
Total
Backlog
Non clinical
accommodation
£109,913
£13,300
£0
£0
£123,213
89%
11%
0%
0%
For the NHS Education for Scotland estate, during financial years 12-13 and 13-14, due to a combination
of rationalising our Edinburgh and Glasgow offices and condition survey and statutory compliance works
programmes, the majority of our sites have insignificant (i.e. less than £5K) backlog maintenance costs
that are low risk items. This is due to 81% of our estate now being in Condition grading A or B.During
our Glasgow accommodation project in 2014, the backlog maintenance for 2 Central Quay and Clifton
House of approx £987K was addressed. Relocating activities from Clifton House and vacating this
property, along with the refurbishment of our existing 3rd floor space at 2 Central Quay has brought the
condition grading of our main Glasgow accommodation to A. The planned investment during FY2013-14
and FY14-15 of approximately £1.4million of construction costs (i.e. exclusive of fees and furniture and
fittings) addressed the condition, functionality, quality and utilisation issues.
Our updated assessment during 2014, as noted in Appendix 1, notes the sites that are in condition
grading C, as Forest Grove House, EDEC and GDEC. The estimated backlog maintenance costs (risk
adjusted) to bring these back to condition rating B is £123K. The majority (89%) of this backlog cost is
related to low risk items, with a further 11% rated as moderate risk. The profile of the backlog
maintenance costs in Appendix 1 reveals that £82K of this sum relates to Forest Grove House in
Aberdeen which has slipped into condition grading C in the last year (largely relating to interior finishes
for which we have delayed expenditure until the proposed options appraisal establishes a preferred
option in preparation for the forthcoming lease expiry in 2017).
Please note the backlog maintenance costs are for our demised areas and our lease obligations only.
The costs therefore do not reflect the backlog maintenance obligations of our landlords in relation to the
building fabric and main building services which impact on the overall condition and quality grading of the
facilities.
For EDEC and GDEC, as these buildings are owned and managed by other NHS Boards, potential
improvement plans will require to be discussed and agreed with them in relation to the overall building
fabric and building services. Our costs are therefore currently for our demised area and limited to
internal fabric and small power, data and lighting.
3.2
IM&T Assets
The details and performance of the Information Management and Technology (IM&T) assets are detailed
within Appendix 2. This includes a summary of the number of infrastructure assets (e.g. cabling
networks, servers and communication systems) and equipment assets (desktop and mobile). The value
of the equipment and performance factors are also detailed within this appendix.
The NES IM&T Strategy has been superseded by a more comprehensive Digital Strategy. This has been
developed during 2014. Central to the Strategy has been the creation of a Digital Group within NES into
which the previous IM&T group has been subsumed.
IM&T assets, in alignment with the Property Strategy and associated Workplace Strategy, continues to
focus on supporting the workforce by targeting improving equipment and systems in support of agile
working. The rationalisation of the Edinburgh offices, the completed Glasgow accommodation project
and work in Inverness has enabled the reduction from the original 15 server rooms in operation in 2010
down to the current 4. The rationalisation of offices also enabled the reduction in WAN and LAN costs
and usage. There was a further plan to migrate IM&T infrastructure in Dundee and Aberdeen offices into
Edinburgh and Glasgow but this plan has been superseded by performance impact issue from the
Inverness work and the Digital Strategy. The Digital Strategy has started a Cloud Transition Programme
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that will review all infrastructure based corporate IT services in 2015, evaluate differing Cloud delivery
models and plan the migration to Cloud based services commencing April 2016. This will have the
specific objective of shutting down all service delivery assets by March 2017. The NES network will still
be maintained but the strategy will be to migrate from flood cabled connectivity to wireless during 2017.
Equipment (desktops and mobile devices) have been refreshed in alignment with the accommodation
rationalisation projects and the overall numbers reduced from 2100 items in 2010 to 1091 items
currently.
To support the mobility/agility required in the office accommodation, investment has been made in a new
VOIP telephone system for the Edinburgh rationalisation project and the Glasgow accommodation
project, enabling the previous PSTN based system to be updated to ensure the systems functionality
meets the current and future user needs.
The provision of Multi-Functional Devices (MFD’s) and “follow you” printing services has removed
personal printing and scanning assets. These types of assets (desktop printers, scanners and fax
machines) have been reduced to circa 30; a reduction from over 100 at the beginning of 2012.
The Digital Strategy states that further investment in the Audio Visual and Video Conferencing (AV/VC)
facilities has been suspended until the Cloud Transition Programme reports on the future of these
services. The current assets provide excellent functionality in support of learning activities and remote
access for those unable to travel to our main city offices for training/meetings and as such the services
will be maintained but the platform for delivery will be evaluated.
Together with the Facilities Management team, utilisation monitoring of equipment in the meeting and
training rooms will continue to verify the most effective and appropriate levels of equipment are available
in the appropriate spaces to meet operational needs.
3.3
Vehicle Assets
Vehicle assets within NHS Education for Scotland are limited to a very small number of leased cars for
eligible employees and an owned Mobile Skills Clinic Training Unit. The present net book value of this is
£66K.
The leased cars are governed by the NES Lease Car Policy and are accessed via a service from NSS
who are responsible for the management and administration of all our leased cars.
The Mobile Skills Clinic Training unit, used for delivering high quality learning, teaching and assessment
for various agencies at settings remote from the traditional skills. Agreements have been reached with
NSS and Scottish Ambulance Service for garaging, servicing and maintenance. The vehicle is
approximately 6 years old and we anticipate the requirement for a replacement will be considered during
2015/16 for a decision in 16/17 to continue to deliver the operational service requirements.
3.4
Medical Equipment Assets
As with vehicle assets, the Medical Equipment assets owned by NHS Education for Scotland is limited
with a present net book value of circa £300K. This extends largely to medical equipment used in
practical training environments and has shared use with our stakeholders. The equipment extends to
such items as Cardiology Simulator, microscopes, birthing simulators and ophthalmoscopes.
Our current strategy and approach is for the medical assets typically to be owned and managed by the
partners whose premises they are in and with whom we share the use of. We do not anticipate any
significant future investment in additional or replacement medical equipment assets.
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4.
Where do we need to be?
The purpose of this section is to determine how the organisation’s asset base will need to change to
enable and facilitate the delivery of our strategic and corporate objectives.
This review has been
undertaken considering 2 main components. Firstly, an examination of the future delivery objectives and
possible changing services needs of the organisation, considering national strategies and policies and
corporate strategies. Secondly, considering the key changes required to the physical asset base from
the issues the performance appraisal highlights. Together these will identify the main strategic themes
the PAMS need to respond to.
National and Strategic Objectives
Within section 2.0 we have summarised our key national policy drivers and refreshed strategic
framework. Our “Quality Education for a Healthier Scotland” strategic framework is focussed on ensuring
our work supports the Healthcare Quality Strategy in delivering safe, effective and person centred care
and the workforce development required to achieve the 20:20 Vision. Key themes that have emerged in
consultations with our partners is a strong need to support the Quality Strategy and the 20:20 Vision
through supporting the 2020 Route Map and 2020 Workforce Vision, enabling the workforce to achieve
sustainable quality in health and care services which cross traditional organisational and professional
boundaries.
In relation to our Property and Asset Management Strategy, key relevant strategic outcomes are those of
“a workplace learning environment which is fit for purpose and where there is excellent access to
education for healthcare staff” and “an efficient and effective organisation where our staff are supported
to give their best and achieve their potential”.
It is therefore vital our Property and Asset Management Strategy can fully support the Strategic
Objectives, allowing continued close proximity to the majority of our stakeholders and partners; access to
and delivery of education services at the geographical locations required in educational environments
that are fit for purpose; enabling and assisting the development of improved integration and multi
disciplinary working; and having the ability to be flexible to adapt to services re-design.
Planned Changes to Service and Delivery
A programme of Operational Performance Improvement is ongoing within NHS Education for Scotland,
leading to organisational change which the PAMS will require to be responsive to. Most significantly,
transformation programmes are developing for the following business areas:




Digital Strategy – During 2014 our Digital Strategy was developed to create a new vision for NES
as a digital organisation. This work is aimed at helping us to deliver another key outcome from
our revised Strategic Framework: “Improved use of technology through a consistent approach to
how we provide our digital services with measureable outcomes for learning, user satisfaction,
accessibility and impact.” This work remains in its early stages, but will have implications for our
internal structures, for how our customers engage with us and how we deliver education and
training in the future. An important facet of this Strategy, is the Cloud Transition programme that
will review all infrastructure based corporate IT services during 2015, examining the options for
migrating to a cloud based delivery model. This development work will therefore inform our
future PAMS reviews regarding the shaping of the physical assets (estate and IMT infrastructure
in particular) in the delivery of services, training and also indicate the needs of our workforce.
Medical Directorate – The Vision of the medical directorate has seen a move from a structure of
regional deaneries to a single/national deanery. Work is continuing to re-structure work activities
from being undertaken on a geographical basis and move to a national workstream basis.
Dental Directorate – This is also moving from a structure of geographical/regional delivery
centres to a model of national workstreams.
Finance and Corporate Resources – A Finance Transformation project is progressing the move
to a centralised model and re-structure of the processes and organisational arrangements of
finance services. IM&T are also evaluating and refreshing their strategy, service delivery model
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and resources/organisational structure; and will be aligning this work to the outputs from the
Digital Strategy review.
The overall NHSScotland workforce vision in relation to service re-design will require educational
development programmes and professional development to adapt and respond to such changes. New
programmes of training are being commissioned and developed in support of the 20:20 Vision (e.g.
Family Nurse Partnership Programme).
Our Workforce Plan projection for NHS Education for Scotland outlines there is expected to be a
minor/insignificant drop in numbers over the next few years (less than 3%) across the organisation.
It is therefore important that the estate provides flexibility in the balance and allocation of space for our
workforce and also in space and facilities for training provisions. This also needs to take account of
future technological advancements (i.e. the Digital Strategy) and the move to increasing on-line training
delivery.
As noted above the planned delivery changes in a number of NES operational (i.e. non direct training
delivery) areas (i.e. Medical, Dental, Finance and Corporate Resources) are following a trend of moving
from a model based on a geographical delivery model and moving to a centrally managed workstream
delivery model in terms of overall systems, administration, management. It is envisaged these
organisational changes may lead to minor alterations in the workforce numbers at the various current
geographical locations. 77% of our workforce are currently based in our Edinburgh or Glasgow offices,
working in Scotland wide roles, with the remainder focused on training delivery at main cities, on partners
premises and in convenient conference facilities around the country to meet the profile/demand from the
trainees. This model is flexible and cost effective in supporting our stakeholders needs, the national and
strategic objectives and enables us to adapt easily to service delivery demands across Scotland.
Asset Performance – Required Key Improvements and changes
The asset performance assessment identifies a number of areas where there are issues with
functionality, condition, or space utilisation and where improvements could be made to deliver
efficiencies and better support our objectives.
The KPI’s detailed for each property in appendix 1 allows a direct comparison across our offices for
efficiency and equity of accommodation. In particular the space utilisation KPI’s (space standards and
desk ratio’s) for Aberdeen (Forest Grove House and ADEC) and Inverness reveal opportunities to
potentially improve space efficiency and ultimately therefore property costs. For Forest Grove House this
opportunity is assisted by a forthcoming lease expiry point.
For GDEC, EDEC and DDEC, to remain fully operational in future years, plans require to be developed
with the relevant stakeholders to ensure the condition can be maintained at least at Grade C, with
objectives to make improvements to condition grade B. Work to examine the space utilisation by means
of measured surveys, together with re-examining the future teaching needs will enable us to also
consider our space arrangements and endeavour to secure efficiencies in utilisation and by improved
functionality.
NES Workplace Strategy and Agile Working Toolkit
Following our Property Strategy development in 2010, we embarked on the development of a Workplace
Strategy to determine our space needs for Edinburgh and Glasgow. This was driven by the estate
performance appraisal in 2010 recognising that space utilisation was poor and the functionality of the
space (configuration and balance and size of workstations, ancillary support space and central support
spaces) required re-considering to fully support strategic objectives, work styles and patterns. It was
also identified this could bring substantial savings and efficiencies in property and facilities management
costs.
The Workplace Strategy examined in detail the work styles and patterns of our workforce, together with
the training delivery needs. Four predominant work styles were identified for our workforce and desk
sharing ratio’s and ratio’s for ancillary support spaces (i.e. study booths for confidential work and
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concentrated/quiet activities, 4 to 6 person meeting rooms) were determined. Central support provisions
(i.e. meeting/training rooms, reception, server rooms, copy pods etc) were also modelled with a view to
flexibility on capacity and use. Storage requirements were also considered and benchmarked against
best practice leading to the storage provisions being at least halved for the offices.
In support of our Workplace Strategy, an Agile Working Toolkit has been developed and significant
change management programmes have been necessary to enable the change to no owned offices and
shared workstations. Technology advancements have also been key, with investment in our IM&T asset
base to progress to a one device per person strategy (resulting in savings in hardware, licences and
support), new phone system (Voice Over Internet Protocol – VOIP and blackberry solutions), wireless
capacity within the offices and improving remote access via webmail and Alfresco (document
management system) to support agility in and out of the office.
This work place strategy has now been successfully delivered in our Edinburgh West Port, Glasgow 2
Central Quay and Dundee Ninewells offices. Post Project Evaluation, lessons learned exercises and
space utilisation measurement from the first project in West Port led to us adjusting some of the ratio’s of
desk allocation for 2 of our 4 workstyles and adjusting the ratio’s in terms of the provisions of small
meeting rooms (4 and 6 person, and study booths) with the objective to improving utilisation further.
During 2014, we conducted a review of our Workplace Strategy, ensuring it remains appropriate with the
correct balance/configuration of space to fully support our needs and also help identify where our
workplace strategy model could be updated and improved both in terms of functionality and space
utilisation. This review gathered information from a space utilisation measured survey, using desk/seat
sensors to accurately measure space utilisation, in West Port and 2 Central Quay. For West Port, a
staff questionnaire was also undertaken to gauge employees feedback 2 years on from the initial move,
on the type, quality and quantity of workspaces and their ability to support peoples work activities and
objectives. For 2 Central Quay, a post occupancy evaluation questionnaire was undertaken 100 days
after the final phase moves. Both questionnaires aimed to assess the cultural development in both these
locations, harnessing opinions and current mindsets in relation to agile working and the move from “my
desk” to “our space” to “any place”.
This recent review has recognised that the new ways of working could lead to further opportunities to
improve our asset base/space utilisation as the cultural change matures and technology advances. At
the present time, measuring our space utilisation performance on the KPI’s for desk ratio’s and space
standards against SFT/SG targets, we are currently at 1:0.85 for desk:WTE ratio for West Port and
1:0.98 for our Glasgow accommodation. A target of 1:0.8 is promoted by SFT for which NES wish to
strive to achieve as a minimum in all our office accommodation. Our measured space use determined a
maximum workstation utilisation of around 65% for both sites during the 4 week monitoring periods.
Ancillary support space utilisation was on average approximately 40%. Therefore there are opportunities
to drive our overall space harder and increase our utilisation. To ensure we can adapt to future potential
opportunities to improve our space efficiency, our leases for Edinburgh and Glasgow have been
negotiated to allow for sub-letting and assignation rights for future flexibility. However, the review of the
data from the questionnaires reveal the current cultural development and the move in mindset to a more
agile working profile requires further development and time. This cultural change management and the
demographic of our workforce requires to be carefully considered when setting out proposed improved
utilisation options and associated timescales.
Facilities Management Strategy
In support of our 2010 Property Strategy, a Facilities Management Strategy was developed which
proposed a 3 phase plan to centralise the management of the Premises and Facilities. This strategy
focussed on 3 key objectives and workstreams. Firstly, the development of a new organisational
structure to enable an appropriately skilled and experienced central team to manage the whole estate
and develop the facilities management arrangements. This has already led to the benefit of enabling
statutory compliance in particular to be fully addressed by ensuring the necessary skills and knowledge
are in place, along with benefits of economies of scale to be achieved in the management of planned
maintenance and works programmes. Secondly, new systems have been developed and put in place to
gather and manage estates information in one consistent way/place (i.e. within the Estates Asset
Management System software) and also room booking software and help desk systems have been rolled
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out. Finally, a workstream focused on the development of consistent, efficient and effective procedures
and standards for all property and facilities management services, ensuring there are clear
responsibilities and procedures and skills/resources in place to deliver.
This Facilities Management Strategy was reviewed and updated in 2014. The refreshed strategy
document notes the progress made in the development of FM Services, moving from a historical
approach of the provision of “office support services”, managed and delivered at each site; to a full FM
support service provision which also focuses on the hard FM asset management activities, and
management of the workplace to maximise the use of our facilities, and to ensure all statutory and
mandatory activities are being undertaken. The benefits, efficiencies and improvements delivered to
date through the implementation of the previous strategy are also detailed, confirming the recurrent
savings secured from the organisational change process of £200K per annum. Details are also included
of the improvements delivered to ensure statutory compliance and improved asset management, along
with obtaining better value for money and management efficiencies for out-sourced services via a revised
contract strategy.
The review identifies that whilst phases 1 and 2 of the 2011 Strategy which focussed on the FM support
services in Edinburgh and Glasgow (to align with the property rationalisation projects) are complete and
in the ‘review’ phase; phase 3, which focussed on FM services in the remaining regional offices is at the
‘strategy development phase’; the review of existing arrangements highlights the issues and
opportunities that arise as a result.
Our updated Facilities Management Strategy includes an implementation plan with proposed initial
activities and timelines to take forward the following 2 main workstreams:
Corporate Level Activities- activities focussed on ensuring that all necessary Policies, Statement
of Services, Service Level Standards, and Procedures are fully developed for roll out across all
NES sites, ensuring consistency and a common understanding on responsibilities and services
to be provided.
Business Unit/Regional Office Strategy Development - activities focussed on reviewing our
Business Unit Strategy for the delivery of FM services in the regional offices. This will include a
detailed capacity review of existing arrangements, procedures and resources and the
development of an appropriate business unit strategy to move the FM support services forward.
Digital Strategy
The NES IM&T Strategy prepared in 2010 has now been superseded by a NES Digital Strategy. This
new strategy has at its core a programme of assessment and planning followed by the migration of IT
asset based, corporate systems from NES internal architectures to Cloud. In addition, the move away
from flood cabled delivery of network services to Wifi only, will dramatically remove the number of service
delivery side assets across NES by the end of the 2016 /17 financial year.
This strategy will significantly enhance the agile working ambitions of the organisation, delivering
improved technology solutions to enable more agile working and the cultural development from “my
desk” to “any place”. This digital strategy further allows for greater flexibility and agility in NES’ capability
to move, adjust and change its work places, aligning with and complimenting the property strategy.
Another key component in support of the agile working practices afforded by Cloud based service
delivery is the introduction in 2015/16 of a Bring Your Own Device policy for certain NES staff. Within the
boundaries of appropriate Information Governance, this policy will allow NES staff to access corporate
systems from their device of choice which may not be supplied by NES Digital. This policy will be piloted
through the 2015/16 financial year and rolled out more comprehensively from April 2016.
In summary, the NES Digital Strategy will significantly reduce the planned investment in the infrastructure
and associated assets over the next 3 years by:
*Removing the need for any NES office based data centres (server rooms and associated services).
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*The move from flood cabled delivery of network services to Wifi from April 2016.
*The introduction of a Bring Your Own Device policy that will allow NES staff to use their device of choice
(which may not be a NES asset).
Scenario planning
Scenario planning is a strategic planning and learning tool that has been used by government
departments, multinational businesses, communities and the defence sector. Scottish Government
PAMS guidance includes a requirement to undertake scenario planning in order to develop a PAMS
which is agile and flexible to long term change.
It is a critical time for healthcare in Scotland and a time of unprecedented change. The Quality Strategy
and the 20:20 Vision implementation will require services re-design on a national and local basis and it is
therefore vital that the asset strategy considers possible or likely future changes and not just be based on
a predicated or expected change. This will enable us to develop an agile and resilient asset strategy that
can support the organisational needs well in a number of different possible futures.
The scenario planning process has considered what major drivers for change could impact the
organisation, and in particular those that are most likely to impact on the asset requirements. These led
to these factors being used to develop a realistic range of future scenarios. These are then tested to
identify the potential implications and impacts of the scenarios to the Property and Asset Management
strategy. Actions can then be identified for readily adapting to alternative future scenarios and ensuring
the asset strategy takes cognisance of these.
The following main scenarios were established during our 2014 review which could present key drivers
for change which were likely to impact on the PAMS:
Services Demand
Increasing demand – National Objectives leading to service re-design result in role and remit of
NES increasing to provide appropriate skills development and educational development to adapt
to services re-design. Role and remit develops beyond NHSScotland, with demand from other
sectors (e.g. the wider public sector in Scotland; private sector or beyond Scotland), workforce
numbers increase.
Decreasing demand – demand for NES services or scope of service decreases due to services
re-design, other service providers and technological advancements. Workforce numbers decline
due to own service re-design or new/developing technology solutions reduce demand on training
environments (e.g. increasing on-line training).
Financial Position
Significantly reduced resources – Economic climate and financial situation results in significantly
less resource availability requiring reduced budgets. Supply of available commercially leased
properties decline due to increased demand by others, driving costs up and quality down.
Existing resources maintained (considered to be most likely situation opposed to increase in
resources) – economic climate enables budgets to be minimally impacted to adjust to inflation,
requiring improved efficiencies to do more with available funding.
These major drivers for potential change were then developed in the following Scenario Matrix to
consider what we may need to consider if these situations arise:
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Existing Resources
Opportunities to invest in improving
technology, workforce and assets.
Opportunities to rationalise space and
share/sub-let to others, reducing
property costs to release resources to
other organisational objectives.
Agile Working and Workplace
Strategy refined to drive space
utilisation harder, striving to
release space for downsizing or
sharing with others.
Adopt new technology to improve
mobility and working in non office
environments (e.g. home)
Reducing
demand
Increasing
demand
Downsizing of assets required (shared
space, sub-letting or disposal).
Efficiency improvements required
lower costs in increasing demand.
Streamlining of processes to reduce
costs.
Agile Working and Workplace Strategy
refined to drive space utilisation harder,
striving to release space for downsizing
or sharing with others.
Pro-actively increase service demand
to other bodies and sectors.
Increasing
pursued.
shared/co-location
to
options
Reduced Resources
These scenarios present common themes on the need to continue to drive our space utilisation to the
most efficient model in any event, ensuring existing space is best utilised to meet any increasing
demand/cost pressures or can be downsized to cope with decreased demand or reduced
resources/budget availability. Our existing asset arrangements, encompassing leased accommodation
and co-location under Service Level Agreements enables our asset management strategy to be flexible
and agile to adapt to future changes. As NES do not own any premises, our ability to respond to arising
scenarios is considered to be preferential and as a result it is considered that the purchase of property
continues to be an inappropriate option for the organisation.
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5.
How do we get there?
The purpose of this section is to set down the proposed strategy for the preferred options for addressing
the gaps and opportunities presented by comparing the “where are we now” assessment to the “where
do we need to be” section.
The review of our Property Strategy confirms the current geographical positioning of our office
accommodation and training facilities serves our strategic objectives in the short to medium term. The
Strategic review indicates the workforce profile and associated workplace demands for space are not
expected to generate any significant change in the short to medium term (i.e. in 5 years). Service redesign and planned changes in the organisation, including our workplace strategy and agile working
programme, indicate the need for our strategy to be flexible to adapt to possible medium to longer term
requirements (i.e. 5 to 10 years). Our current tenure approach (i.e. co-location and shared
accommodation where possible, commercial leases providing sub-letting/assignation rights and hire of
venues around the rest of the country to meet the demand of our stakeholders delivery needs) are
therefore considered to remain appropriate to meet our current needs and provide sufficient future
flexibility to adapt to change as required.
On the basis our geographical locations and tenure strategy for our assets are considered to be
appropriate for our objectives, our strategy development is focussed on the improvements required from
the performance appraisal of the existing assets.
The table overleaf summarises the
issues/opportunities on a properties/cities basis and details our preferred options and asset strategy for
moving forward. This includes considering the continuing roll out and development/refinement of our
workplace strategy and agile working toolkit to all offices.
In addition to these property specific actions, the following ongoing activities will continue:

Agile Working and our Workplace Strategy - We will continue to review and refresh our
workplace strategy and agile working toolkit, monitoring utilisation of workstations and
ancillary/support space to ensure the balance of space and technology solutions are the most
effective. As the cultural change regarding agile working matures and develops over the coming
years, we will also seek to further improve our utilisation to endeavour to then release some
space for generating income/offsetting costs; either by hiring out our meeting/training facilities
and/or enabling other organisations to share workstation/ancillary space as opportunities may
arise. We will work with SG/SFT in identifying sharing opportunities to contribute to the effective
use of the overall government estate. We will also continue to design the internal layout and
specification of our accommodation with future flexibility in mind, ensuring it can be easily
adapted to cope with reconfigurations and sub-division for sharing.
We also plan to undertake further phases of surveys to accurately measure our space utilisation
using the technological methodology of installing sensors over a 4 week monitoring period. The
data obtained from our first phase of such surveys at West Port, 2 Central Quay and Aberdeen
has proved invaluable in considering space use, identifying opportunities for improving utilisation
and functionality and managing our work places.

The Property and Asset Management Strategy will continue to be reviewed annually, ensuring
any changes in strategic requirements or changes to the asset base are considered.
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Property and Asset Strategy Summary
Property/Location
Issue/Opportunity Key Points
Strategy/Actions
Outline Timescale
Forest Grove House,
Aberdeen
Tenure: lease expiry due in April 2017.
Detailed space utilisation measured survey
progressing in February 2015 to accurately
determine current use of existing space
types and contribute to establishing future
space needs in Aberdeen (combined with
ADEC).
Options appraisal to then be
developed
for
our
Aberdeen
accommodation. Property option solutions
to consider: 1. Renegotiating existing lease
on basis of a reduced demised area. 2.
Examining shared accommodation options
with other public sector organisation who
may have surplus space, 3. Retaining
existing leased space and sharing space
with another public sector organisation 4.
Vacating existing property and securing a
lease for another commercial property.
Options appraisal to
be
developed
in
2015 to be able to
implement by April
2017.
Consider in line with Aberdeen Forest
Grove House options appraisal (and
therefore overall Aberdeen needs). In any
case consider layout and allocation (multiuse) of space in conjunction with
application of new ways of working/agile
toolkit. Detailed space utilisation measured
survey progressing in February 2015 to
accurately determine current use
of
existing space types..
Options appraisal to
be
developed
in
2015 to be able to
implement by April
2017.
Business Case to be completed, including
establishing accurate details of teaching
Options appraisal
and Business Case
Space utilisation is very poor (2 desks per person, 3.00 desks per WTE
and an office space standard of 25.84m2 per person). Opportunity
therefore to consider reducing space, following our workplace strategy
model, and consider options in line with lease expiry.
Functionality and condition assessments also indicate unsatisfactory
gradings.
ADEC, Aberdeen
The functionality and space utilisation KPI’s reveal conflicting
information which appear to indicate the overall building configuration
may not meet the optimum allocation and arrangement of office and
training space, or technology solutions are not allowing agility/multiuse.
Opportunities to examine overall NES Aberdeen accommodation
needs and the potential improved use of this existing space.
Dundee
Ninewells
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Dundee Ninewells space has been reconfigured and refurbished in the
last couple of years addressing condition, quality and functionality
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and Dundee TCGP
issues and is configured in line with our workplace strategy. The
opportunity to relocate operations from TCGP into this office area to
improve utilisation has been recently partially implemented. Office
based activities have been relocated (improving the desk to WTE ratio
to 1:1.2 in Ninewells), however the office area within TCGP remains
NES demise at present. Teaching activities also continue to be
delivered from TCGP.
operational space requirements for medical
directorate from the TCGP section located
in McKenzie building. This will include
establishing any potential implications to
our stakeholders/ service delivery, test fit
options for the space, change management
implications and cost benefit details before
seeking a new occupancy agreement with
Dundee University regarding the space at
TCGP.
to be completed and
considered/approved
in FY15-16,
Inverness Centre for
Health Sciences
Space utilisation KPI’s in relation to desk ratio and space standards of
office accommodation reveals efficiencies could be achieved by
potential reconfiguration and re-allocation of the space, essentially
implementing our workplace strategy and new ways of working.
Potential options to address this could lead to property cost savings (iff
space can be released and there is a demand from elsewhere for the
space).
Measured space utilisation surveys to be
considered to establish accurate picture of
current use.
Options appraisal to be
developed following establishing space
requirements.
The existing tenure
arrangements (leased until 2021 and 2023)
will require us to consider opportunities to
share or sub-let our space (either for offices
or training/meeting space). Options will
need to consider the overall Cost/income
benefits (i.e. costs to change the space
versus potential income opportunities
towards reducing overall property costs)
Options appraisal to
be
developed
in
2016/17
GDEC
A project to redevelop the dental hospital on Sauchiehall Street,
including the spaces used by NES, was being considered by NHS
GC&C when the property strategy was first drafted in 2010. Due to
budget restraints and the anticipated project costs, works to the
building have proceeded to include essential repairs and improvements
only. While the space is operationally functional, issues with condition,
quality, space utilisation and functionality are noted in the assessment.
It is proposed further discussions are held
with NHSGC&C regarding their estates
strategy for this property and dental
teaching facilities to help develop our own
plans.
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Measured space utilisation survey to be
considered to establish accurate picture of
current use.
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EDEC and DDEC
The performance assessment notes the condition to be grading C,
indicating significant expenditure is required in forthcoming years to
avoid an operational impact. As we occupy internal areas on shared
occupancy agreements, we are not responsible for the overall building
fabric and building services improvement programmes.
Space utilisation would benefit from a detailed measurement survey to
establish exact use patterns and help inform a detailed assessment of
future needs.
For EDEC and DDEC, to remain fully
operational in future years, plans require to
be
developed
with
the
relevant
stakeholders to ensure the condition of the
overall building fabric and building services
can be maintained at least at Grade C, with
objectives to make improvements to
condition grade B.
FY15-16/16-17
to
initiate discussions
with
relevant
stakeholders
to
commence planning.
Measured space utilisation surveys to be
considered to establish accurate picture of
current use.
West Port,
Edinburgh
and 2 Central Quay,
Glasgow
The performance assessment does not indicate any issues with these
properties following the recent refurbishment/fit-out and rationalisation
projects in these cities.
The 2014 workplace strategy review and measured space utilisation
surveys do however reveal future potential opportunities to further
improve the performance of the facility in terms of space utilisation and
ensure it continues to best support the operational needs of the
organisation. This can also enable us to work towards gradually
reducing our overall space requirement, by maximising our utilisation,
with a view to being able to reduce our overall space requirement by
the time we come to renew/renegotiate leases in the longer term (8 to
10 years) as part of a longer term strategy by the expiry dates of our
current leases.
Potential plans require to be fully supported by a change management
programme of activities to ensure the continued cultural development
regarding agile working and a move from “my desk/our space” to “any
space” and onwards to “any place”.
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Consider the detailed scenarios for further
maximising space utilisation and agree a
medium and longer term strategy,
considering the required cultural change
and key drivers (eg financial benefits).
Short to medium term strategy could
include examining scenarios for reducing
workstations to 90%, 80% or 70% of current
quantities, planned over a gradual
timescale to align with cultural change and
any potential opportunities to sub-let
surplus desks/space to another government
body.
This could provide a feasible, gradual
strategy to reduce the overall space need
by the time we come to renew/renegotiate
our existing leases.
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ongoing.
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Projected Strategy Impact
The potential impact of the detailed Property and Asset Management strategy being implemented has
been considered to help determine what success would look like. The forecasted impact to the estates
National Asset and Facilities Management performance KPI’s is included in the table in Appendix 3,
highlighting the projected forecast for 2020. In addition, the forecasted impact to the key facets to the
estates asset performance assessment are summarised in the table below, detailing the performance as
at 2010, in 2014, the current assessment in 2015 and the projected assessment for 2020 should the
strategy continue to be implemented.
Table: NES Performance Assessment – Comparison Table highlighting changes to date and
Forecasted Outcomes on Strategy Implementation
Key Performance Indicator/Facet
Number of Properties
Total Estate Floor Area (m2)
Age Profile
Over 50 years old
30-50 years old
10-29 years old
up to 10 years old
Tenure types
Leased
Occupancy Agreements
Condition
A
B
C
D
Functionality
A
B
C
D
Quality
A
B
C
D
Space Ranking
Empty
Under-used
Fully used
Overcrowded
2015 REVIEW
NES 2010
PAMS
NES 2014
PAMS
NES 2015
PAMS
NES forecast
for 2020
13
11
10
9
14527
11653
11940
10626
23%
42%
21%
14%
0%
27%
28%
45%
0%
25%
31%
44%
0%
22%
31%
48%
77%
23%
72%
28%
68%
32%
65%
35%
0%
70%
30%
0%
33%
38%
30%
0%
53%
29%
19%
0%
0%
92%
8%
0%
17%
18%
65%
0%
33%
38%
29%
0%
53%
32%
16%
0%
66%
28%
6%
0%
17%
18%
65%
0%
33%
40%
27%
0%
53%
30%
17%
0%
66%
29%
5%
0%
0%
15%
85%
0%
0%
18%
78%
4%
0%
11%
89%
0%
0%
0%
100%
0%
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Notes – In the comparison table above, the space ranking assessment in 2010 was undertaken at a
Block/Building level only. The space ranking for 2015 has been undertaken on a room by room basis
assessment, and is therefore more accurate and detailed. Hence the increase in overall floor area from
2014 to 2015; the measured surveys of our space at GDEC, EDEC and DDEC has resulted in an overall
increase of floor area of a combined 650m2 approximately.
We would highlight our strategy in 2010 prioritised the accommodation for which there was a higher
impact on the overall workforce and took opportunities presented by lease breaks/expiries for our larger
offices in Edinburgh and Glasgow, accommodating around 75% of our workforce. The benefits of this
strategy are already evident in the KPI’s in the comparison table above, demonstrating the progress
made since 2010. The full benefits of the work completed to date also include rationalisation of Facilities
Management resources and costs, along with reduction in IM&T infrastructure costs. Furthermore the
benefits to our workforce in terms of quality of space and enabling their work activities to be better
supported have been realised.
We would also highlight the completion of our Glasgow accommodation project in the last 12 months has
realised a significant proportion of the forecasted future change in the areas of condition, functionality
and quality.
The reduction from the 10 current sites to 9 is proposed to be achieved by completing the relocation of
the TCGP Dundee offices into the Dundee Ninewells offices.
Our Aberdeen and Inverness offices provide accommodation for approximately 9% of our total workforce
(based on headcount) and is approximately 24% of our overall current estate area. It is estimated the
space required in Aberdeen could be reduced by approximately 35-40% (circa 400m2 of the current
provision and for Inverness approximately by 15% (circa 200m2) of the current area, however a detailed
space requirements exercise requires to be undertaken to establish exact training room needs and
workspace needs to feed into the planned options appraisals to confirm these estimations which are
based on benchmarking targets on space standards. Furthermore, the existing building layout
configurations and ease of adapting to a more efficient layout, releasing usable space for possible
sharing/letting to others requires to be determined (i.e. the current layout plan and leased areas may not
enable us to release this amount of space and then the potential income from sharing versus the cost to
reconfigure may not be viable – this is a particular possibility for Inverness). For Inverness this underused space currently represents approximately £95K per annum in property running costs and for
Aberdeen approximately £185K per annum in property running costs. The planned options appraisal for
Aberdeen in particular will however set out the potential impact resulting from the current market for
property in Aberdeen (i.e. market demand and the current economic climate in Aberdeen may result in
higher rents being incurred on any new lease/occupancy agreement negotiations).
Projected Strategy Benefits
The implementation of this updated strategy will increasingly continue to build on the benefits already
realised by our recent Edinburgh rationalisation project and Glasgow accommodation project. We
consider the proposed strategy will enable us to continue to secure the objectives and benefits as
outlined in our Introduction in section 1.0 of this document.
In particular, our ability to enhance corporate performance, enabling our Strategic Objectives to be
delivered efficiently and effectively and facilitating our people to deliver the services we provide, will be
secured by the property strategy which can deliver:


The ability for us address remaining property performance issues such as functionality, quality
and condition to provide modern, innovative, flexible/agile, well designed spaces to fully support
our operational needs and the needs of those who we support.
By innovation in our workplace strategy, further maximise our space utilisation, driving the
efficient and effective use of our resources and minimising our property running costs. This to be
achieved while ensuring the cultural development to a more agile way of working can be
sustained, providing an innovative work place that fully meets our peoples current and future
work activities and work patterns, ensuring productivity is not detrimentally impacted.
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Investment Plan
In terms of the required planned investment to achieve the property and asset management strategy,
NHS Education for Scotland anticipates the plans should be affordable. As our estate is leased and not
owned, the focus on the strategy is considering greater efficiencies in our running costs (property, FM
and IM&T in particular) and with only a very small Capital Resource Limit each year (achieved through
transfer from revenue resource), the projected investment will be retained minimal.
A summary of our detailed Investment Plan is included in Appendix 4.
The planned options appraisals for Aberdeen and Inverness will consider the full financial implications,
examining expenditure and potential savings over a 10 year costed plan to ensure decisions are
financially viable. Financial implications are likely to be a key selection criteria.
Risk Management
The key risks associated with the implementation of the PAMS are summarised in the table below:
Risk Description
Risk Scoring
Mitigation Actions
Likelihood Impact RAG
Changes in National or Strategic objectives
lead to service re-design for which the
PAMS do not support
Workforce plans – Workforce profile
(numbers and geographic location) changes
significantly in a short period of time,
resulting in assets not meeting requirements
Approval process – SG approval not
obtained in required timescales to enable
key lease tenure opportunities to be
exercised
Shared Space – occupancy agreements for
space within Territorial Boards estates are
not re-signed or are subject to significant
change in terms of costs, space availability
Finance – Budget unavailable to fulfil
preferred options identified during future
options appraisals.
2015 REVIEW
3
3
3
3
3
4
9
9
12
3
4
12
2
4
8
Annual
PAMS
review
considers
Strategic Framework and PAMS has
designed to be Agile to respond to
future changes
Workforce planning and operational
planning designed to identify any
significant possible changes.
SG and SFT to be kept informed (via
PAMS and other forums) of required
space needs or surplus, ensuring
working partnerships are developed to
enable sharing opportunities to be
explored
Work with SGHD and other Health
boards to ensure potential changes to
other Boards estates are considered
and joint planning can explore fully
opportunities to both organisations.
Options
appraisal
affordability
to
consider
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6.
Implementation Plan
The purpose of this section is to outline the management and decision making arrangements
within NHS Education for Scotland for implementing the PAMS.
6.1
Leadership and Responsibilities
The Director of Finance and Corporate Resources is responsible at NHS Board level for the
development and implementation of the Property and Asset Management Strategy for NHS
Education for Scotland.
The following structure, key responsibilities and organisational and governance arrangements
are in place for the development, delivery and monitoring of the PAMS:
Governance
The following organisational diagram outlines the governance structure in place for the
development, approval and implementation of the Property and Asset Management Strategy:
NES Board
Finance and
Performance
Management
Committee
Property and
Facilities
Management
Team
Project Boards
Audit Committee
Internal and
External auditors
Progress reporting on the PAMS implementation and reporting of Key Performance indicators
against the plans and targets set out in the strategy will be considered by the Finance and
Performance Management Committee, reporting to the Board. Options Appraisals and Business
Cases will also be presented to the Executive Team, Finance and Performance Management
Committee and Board for approval, prior to submission to SG as necessary.
Internal Audits will also be undertaken by the Internal Auditors to ensure government policies are
adhered to and that the NES PAMS is being implemented. Project Boards will be set up as
necessary to monitor and consider any issues on the implementation of individual projects as the
implementation plan rolls out.
In addition to the above, regular reports are also presented to our Health and Safety Committee
regarding Statutory Compliance and activities planned around any outstanding risks (Statutory
Compliance is reported to our Board and Finance and Performance Committee via this
document annually).
Development of the PAMS
The Head of Properties and Facilities Management is responsible for taking the lead in the
preparation and drafting of the Property and Asset Management Strategy, ensuring property
asset details are maintained, property asset performance is appraised and the asset strategy is
developed recognising national policies/programmes and best practice in both public and private
sectors.
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The Interim Director of Digital is responsible for taking the lead in the development of the
strategy for the IT infrastructure and hardware, ensuring asset details are maintained and the IT
asset strategy developed, feeding this into the overall PAMS.
The assessment of the asset performance and the identification of the future requirements will
be undertaken with the involvement and contribution of the various directorates of the
organisation, largely through the Executive Team and other key senior staff throughout the
organisation. This will include the Employee Director and Union representatives. External
organisations, such as Scottish Futures Trust, SGHD and SGPAD will also be consulted on
plans and options for any proposed changes. Key stakeholders such as other health boards and
partners will also be consulted as required on any changes which may impact on service delivery
or existing co-location arrangements.
Delivery of the PAMS
The following organisational diagram outlines the organisational structure in place for the
development, approval and implementation of the Property and Asset Management Strategy and
associated projects:
Director of Finance and
Corporate Resources
(Project Owner)
Project Boards
Head of Property and
Facilities Management
Senior Facilities Manager
Building Surveyor
(Soft FM Services lead)
(Hard FM Services lead)
(set up as required for
each Project)
Construction Project
Team (eg Project
Manager, Advisors,
Designers and
Contractors - variable
according to project)
Project Team
(variable according to
Project)
The Director of Finance and Corporate Resources will have overall responsibility for delivering
the implementation of the PAMS and will generally assume the role of Project Owner for any
planned projects.
For rationalisation/reconfiguration projects, a Project Team will be formed by the Director of
Finance and Corporate Resources. As per our Edinburgh and Glasgow project this will typically
consist of 3 work stream leads for Place (Head of PFM), Technology (Head of IM&T or Senior
Network Manager) and People (Head of Organisational Development). An overall Project
Manager resource will be identified considering the project size and complexity
The Head of Properties and Facilities Management will take a lead role in delivering the
implementation of the PAMS in respect to the premises aspects, including options appraisals
and business case development. This will also involve developing detailed programmes and
developing project management requirements for individual projects as required for significant
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changes. Day to day premises management and facilities management (e.g. property
appraisals, maintenance of asset details, utilisation monitoring, alternations/maintenance and
minor works contracts and repairs etc) will be undertaken in connection with the Building
Surveyor and Senior Facilities Manager within the Properties and Facilities Management Team.
For property projects, the Head of Facilities Management will be responsible for determining
appropriate resource levels for each specific project and appointing/commissioning any
necessary Project Managers, Agency Surveyors, Cost Advisors, Designers, Supervisors,
Contractors and Transition managers. Typically these resources will be engaged on a
consultancy basis due to the nature and size of the anticipated projects not requiring a full time
resource. Central Legal Office (CLO) will also be engaged as necessary for any property
transaction legal works.
Procurement and Contract Strategy
Our Procurement and Contract Strategy for premises related projects identified within our PAMS
is summarised in the table below:
Service/Project Value
Form of Contract proposed
Consultancy Services (eg Project
Manager, Cost Advisor, Lead
Advisor, Supervisor)
Frameworks Scotland 2 PSC, National Procurement
or SG framework where available, or competitive
tender/quotation (value dependant)
Design Services
Framework Scotland 2 PSCP or competitively
tendered
Construction Projects – over
£1million
Framework Scotland 2 PSCP or competitively
tendered
Construction Projects £50K to
£1Million
Capital Works Framework (once established by NP)
or Competitively Tendered via SMNW, JCT or NEC
Minor New Works and Forward
Maintenance Plan works (up to
£50K)
SBCC Minor Works or NEC3.
Next Steps
On approval of the Property and Asset Management Strategy by NES Board, the implementation
will be taken forward in line with the timescales identified in the summary table in section 5.0.
The Facilities Management Strategy will also continue to be implemented, ensuring it supports
and aligns with the Property Strategy and continues to ensure the most efficient and effective
processes, systems and procedures are in place to fully support the organisational needs.
7.
Performance Monitoring
The performance of our assets are monitored to ensure they are meeting the organisational
needs of the organisation and that improvement programmes to address issues are being
implemented successfully and to programme.
The Key Performance Indicators used by NHS Education for Scotland for the estate assets are
set out in Appendix 1. These enable the performance of each property to be reviewed and also
the overall estate performance. This is used also in conjunction with the NHSScotland National
Asset and Facilities Performance Framework.
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NHS Education for Scotland’s performance against the NHSScotland National Asset and
Facilities Performance Framework is included at Appendix 3. It should be noted a number of
these 23 KPI’s are not relevant to NHS Education for Scotland properties as they are not directly
used to deliver services to patients in clinical environments.
This appendix along with the comparison table in section 5.0 record our current assessment and
performance and also record where we were in 2010 and also our forecast of where we
anticipate the implementation of the identified strategy will take us to in 5 years. Annual
monitoring and updating of these KPI’s will enable NES to consider if “what success will look
like” is on target and being achieved.
In addition to the estate KPI’s detailed in Appendix 1, 2 and 4, we developed individual project
benefit plans (e.g. for the Edinburgh Rationalisation project and the Glasgow accommodation
project) to track and record specific benefits envisaged at strategy and business case level, and
also record any further unexpected benefits to the organisation. Post Occupancy Evaluations
(including staff and visitor surveys) have also been undertaken for our Edinburgh rationalisation
project and our Glasgow accommodation project. These performance monitoring tools have
enabled us to evaluate the impact on the organisational activities and the ability to support the
strategic objectives. These activities proved to be of significant value following the Edinburgh
rationalisation project to complete a “lessons learned” exercise and apply the information gained
to the Glasgow project.
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8.
Conclusions
In conclusion, it is recommended the Property and Asset Management Strategy (PAMS) outlined
in this document is implemented by NES to enable the current property appraisal issues and
future operational requirements to be addressed.
NES believes property is an important facilitator of improved corporate performance and the
implementation of the strategy identified through this Property and Asset Management Strategy
review will enable the strategic objectives and service delivery of the organisation to be fully
supported and ensure best value for money is being achieved.
The PAMS process identified our property objectives, current asset performance issues through
a thorough property appraisal and our future requirements to support business delivery. The
gaps between the current arrangements, the performance issues and future strategic needs led
to the identification of a strategy to address this (section 5.0, How do we get there?).
Our Property Strategy of 2010 has been implemented to rationalise our Edinburgh
accommodation from 3 properties into one property, reducing the overall Edinburgh estate space
by 45%. This property strategy project initiated the development and implementation of our
Workplace Strategy and Agile Working toolkit which has delivered a successful model to achieve
considerable space utilisation and functionality performance improvements. Our Glasgow
accommodation project also enabled us to deliver further performance improvement across the
estate by the end of 2014, addressing the functionality, condition and space utilisation facets
which had previously presented issues, together with removing the backlog maintenance costs
of approximately £987K for 2 Central Quay and Clifton House.
This performance improvement is evident in the estate asset performance assessments within
section 5, demonstrating the change in the estates performance from 2010 to the present day.
Our review of our future strategic and corporate objectives and requirements has identified a
number of operational performance improvement programmes in progress, which together with
key national policy drivers requires us to ensure our PAMS provides sufficient flexibility in the
balance and allocation of space. A scenario planning exercise has been undertaken to examine
how potential key drivers for change could impact on the asset base and ensure our strategy is
suitably agile to adapt to such changes if they arise. These scenarios presented common
themes to continue to drive our space utilisation to the most efficient model and also reinforced
our current tenure approach (i.e. co-location and commercial leases of appropriate terms and
assignation rights) remains the most appropriate strategy.
Following the completion of our Glasgow accommodation project in 2014, our strategy outlines
the intention to undertake options appraisals for our Aberdeen and Inverness accommodation
with the focus on improving space utilisation, reducing property costs and addressing
functionality issues. For Aberdeen, the timescale will be in alignment with an opportunity for a
lease expiry at Forest Grove House in 2017.
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Appendices
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