ARCHIVE: Key strategic and planning documents for new and existing executive agencies

The guidance is aimed at executive agencies and those looking to set up a new executive agency.

Overview of guidance

This guidance describes the four key documents required to create an executive agency. It outlines the purpose of each document, gives tips on preparing the document and suggested timeframes. It also states who should be involved in developing each document.

Mandatory practice

There are four key documents which you must produce when you set up a new executive agency. They are:

  • a framework document
  • a corporate plan
  • a business plan
  • a business case.

Central guidance

Central guidance on the four key documents can be found on the Cabinet Office agencies and public bodies website. We strongly recommend that departments proposing to deviate substantively from the central guidance discuss their reasoning for this with Cabinet Office officials in the agencies and public bodies team.

Approval of key documents

Defra ministers are responsible for ensuring the framework document, corporate plan, business plan and business case are fit for purpose. These documents outline an executive agency’s governance framework, strategic direction and key targets. You must lay each document in Parliament when you launch the new executive agency. Treasury officials must clear an executive agency’s first framework document (and subsequent revisions). The Treasury minister then undertakes a final clearance on the basis of a submission from a Defra minister. Providing Cabinet Office guidance has been followed, Cabinet Office officials or ministers no longer need to clear framework documents, although they should seek advice from officials during the drafting stages. You can find detail on the process for securing ministerial approval of the four key documents in ministerial approval.

Framework document

a) Purpose

The purpose of this document is to set out an agreed operating framework for a specific executive agency. The framework document serves as a central reference for future discussions on the corporate composition of the executive agency.

Alternatively, parent departments can draft an overarching ‘departmental framework’ setting out the governance arrangements for the whole department, including its executive agencies.

b) Contents

To reflect the range of different types of agencies, there is no prescribed model framework document. However, framework documents usually follow a standard format. You can get examples of executive agency framework documents from the Delivery Relationship Team (DRT) and find detailed guidance on preparing a framework document on the Cabinet Office agencies and public bodies website.

The content of the framework document should provide an overarching outline of the key corporate building blocks, which are necessary to ensure an executive agency runs effectively. In particular, a framework document will describe the composition of an executive agency – its size, location, functions and aims and objectives. It sets out the key elements of the policy and resources framework for the executive agency, including the financial framework and reporting requirements. It sets out the relationship and respective responsibilities of the chief executive, the relevant minister, the permanent secretary, the Treasury expenditure team and other departments, agencies and organisations. You should set out a greater level of detail on these issues in other documents, such as the executive agency’s business plan.

c) Preparation

It is usual for the department (the team creating the executive agency) to prepare the framework document early in the project timeframe. The framework document sets out the agreement that is needed on all key issues and, as such, will often form the main thread of an agency creation project - you can use it as a checklist for ensuring you have discussed and agreed key elements. The Defra minister is responsible for ensuring the framework document is fit for purpose, on the advice of officials in the department. Interested parties, such as the DRT, the sponsor, chief executive (designate), finance, human resources, Cabinet Office and Treasury officials will need to endorse the framework document before it is submitted to Defra ministers for approval. The relevant Defra minister will then seek approval from Treasury ministers before publication.

d) Timing

The framework document is not for a set period of time, but must be reviewed by Defra, in consultation with the executive agency, at intervals of not more than three years. You should also make provision for amendments to be proposed by the executive agency or Defra at any time.

e) Who should be involved?

You must develop the framework document with extensive consultation of interested parties. Key contacts include:

  • DRT (should be the first point of contact)
  • executive agency chief executive (designate)
  • executive agency sponsor
  • finance
  • Departmental Trade Unions Side (DTUS)
  • human resources
  • other executive agencies or related bodies
  • Cabinet Office
  • Treasury.

Corporate plan

a) Purpose

The purpose of a corporate plan is to set out how an executive agency will seek to operate over a three-year time span. The plan should guide the executive agency and department in a cohesive effort to carry out the executive agency’s objectives. You should pitch the plan at a level to inform everyone involved (including the public and stakeholders) about the executive agency’s priorities and objectives.

b) Contents

The corporate plan should describe the executive agency’s strategy to meet its key performance targets, within its three-year budget. Typically, a corporate plan will set out the new structure for the executive agency, its goals and objectives, and its strategy for achieving objectives. The plan should take into account the recommendations of any landscape and end-to-end business process reviews, as they impact on the executive agency. The guidance on the contents of a business plan, detailed below, is also applicable to those preparing a corporate plan.

c) Preparation

The corporate plan would usually be prepared by the senior management team for the executive agency. When the executive agency is being set up, a senior team may not yet be in place. In such cases, the team appointed to set up the executive agency would usually coordinate the plan. In any situation the plan should be prepared in close consultation with the executive agency’s sponsor and DRT. Interested parties, such as the sponsor, chief executive (designate), Defra finance, DRT and Treasury and Cabinet Office officials should endorse the plan before you submit it to Defra ministers for approval. The relevant Defra minister will then seek approval from Treasury ministers before publication. The executive agency only needs approval from Treasury ministers for its first corporate plan. Defra ministers approve subsequent corporate plans.

You should publish the corporate plan. However, if a plan is unsuitable for publication because of commercial sensitivity, you must justify and agree it with the Treasury and include a statement to that effect in the framework document.

d) Timing

The corporate plan usually covers a three-year period - you should update it annually.

e) Who should be involved?

You should develop the corporate plan with extensive consultation with interested parties. Key contacts include:

  • DRT (should be the first point of contact)
  • executive agency chief executive (designate)
  • executive agency sponsor
  • finance
  • DTUS
  • human resources
  • other executive agencies or related bodies
  • Cabinet Office.

Business plan

a) Purpose

The purpose of a business plan is to set out the executive agency’s key objectives for the coming year, in a more detailed format than the corporate plan. The business plan should be prepared in conjunction with the corporate plan, the latter outlining the executive agency’s objectives for three years.

b) Contents

The main content of a business plan will be the executive agency’s one-year key targets. When the executive agency is first launched, you will issue the key targets as part of the ministerial announcement, and you will use these to measure the executive agency’s performance. You should include no more than 10 key targets and you must therefore prepare the key targets carefully.

Target setting should be an intelligent process and form part of the wider business planning. To achieve this, you should align targets with Defra’s five strategic priorities and, where appropriate, with Defra’s PSA targets and the executive agency’s framework document. You should embed the targets in the executive agency’s corporate plan. The key targets should address the issues of interest to customers and should take account of stakeholders views. You must balance the need to achieve targets which are sufficiently challenging with the risks associated with not delivering objectives that are too aspirational.

For its first year, the targets for an executive agency might focus on building capacity, on establishing relations with customers and installing systems. They should include an efficiency target – all targets must be measurable. The Cabinet Office website provides guidance on setting targets for executive agencies.

c) Preparation

The business plan should be endorsed by interested parties, such as the sponsor, chief executive (designate), Defra finance, DRT and Treasury and Cabinet Office officials before you submit it to Defra Ministers for approval. The relevant Defra minister will then seek approval from Treasury ministers before publication. The executive agency only needs approval from Treasury ministers for its first business plan. Defra ministers approve subsequent business plans.

Once approved, you should publish the plan on the executive agency website and / or make it available on request from the executive agency’s head office.

d) Timing

The business plan is for one year only and would usually be prepared when work on the framework document was well under way. The business plan is often the last document officials finalise, because it is linked to the development of the corporate plan and framework document. It is important to ensure that enough time is available to draft and secure agreement from Defra officials on the one-year and three-year key targets. These often take longer to agree than expected.

e) Who should be involved?

The business plan should be developed with extensive consultation of interested parties. Key contacts include:

  • DRT (should be the first point of contact)
  • executive agency chief executive (designate)
  • executive agency sponsor
  • finance
  • DTUS
  • human resources
  • other agencies or related bodies
  • Cabinet Office

Business case

a) Purpose

The business case should inform the Treasury, ministers and Defra Management Board about the proposed creation of an executive agency, justifying the business need for change and seeking agreement to proceed with establishing the new executive agency.

b) Contents

A business case is a structured proposal for business improvement and should include an analysis of business process performance and associated needs or problems, proposed alternative solutions, assumptions, constraints, and a risk-adjusted cost-benefit analysis. The business plan should explain the process taken to decide that you should create an agency and should set out the benefits (particularly any financial savings) of creating an executive agency.

c) Preparation

You must seek approval from a Cabinet Office minister before you take forward a programme of work to create an executive agency. The business plan should conform to OGC Guidance on producing business cases.

d) Timing

You should prepare a business case before you receive confirmation of the decision to create an executive agency and before you initiate a programme of work. You usually include the business case in your final submission to ministers to provide the background and business justification for creating an executive agency.

e) Who should be involved?

Senior officials in Defra must be involved in developing the business case.

Other documents

Other documents required to set up an executive agency include:

  • initiation document
  • executive agency finance manual
  • programme communication strategy
  • executive agency communication strategy.

For further information please contact DRT.

Related pages

Useful links

If you require additional information on planning and management issues, and do not have access to the Defra intranet, please  contact the Delivery Relationship Team.

Page last modified: 8 May 2006
Page published: 8 May 2006