NATIONAL PORTRAIT GALLERY

BUSINESS PLAN 2003-04

Contents

1 Introduction and Achievements

2 Aims and Objectives

3 Development and Communication
A) Audience Development
B) Developing marketing
C) TV and multi-media profile
D) Endowment, major donors and legacies
E) Increasing membership
F) Regency galleries - corporate support

4 Collections
A) Further digitising and recording of the Photographs Collection
B) Reference collection cataloguing/digitisation project
C) Facilitation of research by individual curators
D) Identification of further funding for research fellowships
E) Mezzotint research project
F) Historic archive cataloguing project
G) Records management project

5 Exhibitions, Displays and Collections Management
A) Regency Galleries
B) Early 20th century galleries
C) Exhibitions
D) Regional partnerships
E) Regional and touring developments
F) Delivering a co-ordinated exhibition and display programme
G) Integration of web and IT use in the exhibition and regional programme
H) Conservation and collections management
I) Develop Multi-Mimsy collections management database

6 Interpretation, Education and Access
A) Access and audience development
B) Video conferencing
C) Development of the Woodward Portrait Explorer and web programme
D) e-learning strategy
E) Studio Gallery
F) Conferences, seminars and talks

7 Resources and Services
A) Office accommodation and storage
B) Staffing issues
C) Training strategy
D) IT strategy
E) Main façade lighting

8 Trading
A) Raising the visitor/customer ratio and average spend
B) Improving retail, e-commerce and product offer
C) Publishing programme
D) Developing a publishing policy and three year plan
E) Implementing Aries publishing package
F) Picture Library
G) Development of Picture Library Online
H) Review of photography imaging

9 Corporate Governance and Financial Control
A) Review of corporate governance
B) Financial controls
C) Value for money

10 Financial Projections
A) Background
B) 2002/03 projected outturn, 2003/04 budget, 2004/05 and 2005/06 projections

Appendices
B) 2003-06 Funding Agreement with the Department for Culture, Media and Sport

The National Portrait Gallery was founded in 1856 to collect and display portraits of eminent British men and women. The first acquisition to be registered was the portrait of Shakespeare from the Chandos collection. From its earliest days the Gallery has also collected extensive reference material relating to portraiture which has developed into a uniquely important national resource. In the late 1960s the Photographs Collection was revitalised and portraits of living people were for the first time admitted to the collection. Today it is the largest and most prestigious collection of portraits in the world.

As well as a permanent display of portraiture from the sixteenth century to the present day, the Gallery provides a wide-range of special exhibitions and displays. The Gallery's Education Department provides extensive education and outreach programmes for schools, colleges, families and visitors in general, promoting access to and understanding of the collections to a broad range of audiences. There are some 10,000 portraits in the Primary Collection and over 300,000 portraits in the Reference Collections, divided between the Archive Collection of about 80,000 items (mainly prints but also 1,000 drawings, 60 paintings and 100 sculptures) and the Photographs Collection of more than 220,000 photographs and historic negatives; in addition, there is a Library of 35,000 books and some manuscripts.

The collection has been housed at St Martin's Place since 1896. The building, designed by Ewan Christian, was the gift of William Henry Alexander. An extension was built in the 1930s from funds provided by Sir Joseph (later Lord) Duveen. 1993 saw the opening of the ground floor contemporary galleries, a permanent home in Orange Street for the Gallery's archive and library, funded by the Heinz Foundation, together with new offices and a conservation studio. The new exhibition spaces were made possible by the removal of paintings in store to a specially adapted warehouse in Merton. The most recent addition, in 2000, was the Ondaatje Wing, providing additional gallery space, improved visitor facilities and a new lecture theatre which were funded by the Heritage Lottery Fund and a number of donors including Dr Christopher Ondaatje.

The Gallery has regional partners at Montacute House in Somerset, Beningbrough Hall in Yorkshire, both National Trust properties, and at Bodelwyddan Castle in Clwyd in partnership with the Bodelwyddan Castle Trust.

The National Portrait Gallery is a Non-Departmental Public Body sponsored by the Department for Culture, Media and Sport. The Museums and Galleries Act 1992 established the corporate status of the Trustees of the National Portrait Gallery. The Gallery is recognised as an exempt charity under the provisions of the Charities Act 1993.

A Board of sixteen trustees, appointed by the Prime Minister, meets quarterly. The Board has an Audit and Compliance Committee, as well as a Development Board to support fundraising initiatives. An Editorial Advisory Board was established in 2002. The Director leads and manages the day-to-day operations of the Gallery with the support of the Management Team. The Gallery currently employs 181 staff.

The Gallery does not charge for general access. Temporary exhibitions are partially funded by sponsorship, by admission charges for selected exhibitions, and by retail sales associated with the exhibitions. Earning revenue in addition to the government's grant-in-aid allows a wider public programme to be offered.

The National Portrait Gallery is an equal opportunities employer. The development of working practices and a working environment which facilitates this, in particular with regard to the employment of disabled persons, are key objectives. The Gallery has a comprehensive policy and training programme aimed at securing the health, safety and welfare of its employees.

Gallery employees are involved in the development of policies, strategic plans and performance targets through corporate planning, risk management and performance management procedures. Management meetings and newsletters provide a regular means for the consideration of issues and dissemination of information to staff throughout the year. Whitley Council meetings provide a forum for discussion of staff issues.

The Gallery is currently completing discussion of a Funding Agreement with the Department for Culture, Media and Sport (DCMS) which will set out performance targets for the three years 2003/04 to 2005/06.

In 2002/03 the Gallery achieved:

• Further important acquisitions including John Singer Sargent's full-length portrait of the Prime Minister, Lord Balfour and a group of photographs by Lewis Carroll of Alice Liddell (the inspiration for 'Alice in Wonderland').
• The establishment of a fund for New Commissions, with generous initial support from JP Morgan.
• A successful exhibition programme with major exhibitions devoted to portraits by George Romney; the very popular major retrospective of the photographer Mario Testino; an exhibition of paintings and photographs from the National Portrait Gallery, Washington, entitled Americans; and an exhibition of the work of the Victorian photographer Julia Margaret Cameron.
• A major touring exhibition programme to venues such as Leeds City Art Gallery; the Victoria Art Gallery, Bath; the Walker Art Gallery, Liverpool; the Royal Albert Memorial Museum, Exeter and Aberdeen Art Gallery; in Europe to the Palazzo Reale, Milan and FOAM Contemporary Photography Museum, Amsterdam; and in America to the Huntington Art Gallery, the Yale Center for British Art and the Georgia Museum of Art.
• A varied programme of displays from the collection, including Managing Partners, a collaboration with the magazine Management Today resulting in the acquisition of photographs of working partners in the business community; a survey of the Sixties photographs by David Bailey; and Changing Impressions, a display devoted to the conservation of large engravings from the Archive, short-listed for the UKIC Conservation Award 2002.
• A very successful publishing and educational collaboration with the BBC 'Great Britons' television series, and an innovative nationwide partnership with Channel 4, Northern Arts and Media 19, 'Self-Portrait UK', designed to encourage people from across the country to produce their own self-portraits, and leading to a series of films and an exhibition at the Gallery prior to a UK tour.
• Substantially increased demand from schools both for group visits and Studio Workshops.
• New developments in education and access work, including British Sign Language interpreted talks and tours, workshops for school pupils with special educational needs, outreach sessions to Great Ormond Street Hospital school, funded by JP Morgan as part of the Americans access project, video conferencing sessions to hospital and special schools, an staff training in disability awareness issues.
• Completion of the Gallery's contribution to the new Dictionary of National Biography, researching some 10,000 images of famous men and women.
• Provision of additional information and services on the Gallery website, including a facility to search the collection by a wide variety of subjects and themes; special collection features on the Alexander Browne mezzotints and the delightful James Gillray caricatures, resulting from projects funded by the DCMS and the Paul Mellon Centre; much enhanced research information including illustrated listings of the Reference collections, bibliographies and full details of the Gallery enquiry service; and meeting legislative requirements, including the Freedom of Information publication scheme.
• Sustained levels of fundraising in a difficult climate, including a number of significant donations, and the completion of fund-raising in order to proceed with the refurbishment of the Regency galleries.
• High levels of press awareness including for smaller displays, commissions and recent acquisitions.

2) Aims and Objectives

The overall aims of the Gallery as defined by the Museums and Galleries Act 1992 are:

• To promote through the medium of portraits the appreciation and understanding of the men and women who have made and are making British history and culture
• To promote the appreciation and understanding of portraiture in all media.

In achieving these aims the Gallery creates an annual Business Plan, which includes key projects and developments and a budget for the year ahead, together with budget projections for the two subsequent years. During 2003 the Gallery is undertaking a series of policy reviews which allow a comprehensive discussion of the priorities and direction for the years ahead. In the autumn of 2003 the work from the policy review papers will be brought together in a revised Corporate Plan for the period 2004-07.

The following are the draft key strategic objectives for the Gallery:

• To extend and broaden the range of audiences for the NPG and its work;
• To develop the Collection, creating opportunities for acquisition and commission, and bringing more of the reference collections into use;
• To increase the understanding of and engagement with the Collection and its subjects through outstanding research, displays and exhibition, education, access, publishing, information, regional and digital programmes, and a higher public profile;
• To increase the financial resources available through both public and private sector support, trading and licensing;
• To develop staff as an essential resource through the extension of staff training, development and learning programmes; and
• To bring the buildings and technical infrastructure of the Gallery to the highest standards, including storage, staff and technical accommodation.

The Business Plan for 2003/04 below focuses on priority projects and new areas of work that will achieve these objectives. They complement the on-going core activities of the Gallery, whether in acquisitions, research, exhibitions, education, trading or management of the organisation. In all of the Gallery's work there is the specific aim to make the work more efficient and look for the most effective use of resources. And this approach is linked to the on-going use of a Gallery-wide Risk Register, increasingly integrated into planning and management processes throughout the year.

Following a period of extraordinary change, the next three years will combine selected new initiatives of high quality with a measure of consolidation, through which the Gallery can achieve wider public recognition and participation, as well as a broader extension of its work in the UK.

The Fundraising Review, commissioned during 2002, identified the need for the Gallery to consolidate the recent growth in fundraising to provide a firm platform from which to expand in the future. Ideally this would include more long-term partnerships with corporate supporters, both through the Corporate Partnership programme and exhibition sponsorship. The importance of individual donors is widely recognised and maximising Gift Aid opportunities, legacy support, endowment as well as enhancing opportunities for American support are all included in the priorities for the next year. The number of trusts and foundations which now support the Gallery is increasing, and the strength of existing relationships was proven again during the recent Regency galleries appeal. We will continue to identify new areas of support, as well as keeping alert to possible threats to our fundraising capabilities. The effectiveness of the Development Board under a new Chair will be crucial for the Gallery and the fundraising team. Exploiting the potential of the fundraising database will also be an important factor in meeting the Gallery's objectives.

Press coverage continues to be consistently high and we are continuing to explore ways of developing the press and media profile of the Gallery, particularly through television. Increased qualitative market research proved valuable during the year and there are plans to improve this area as much as possible within a restricted budget. In order to deliver a comprehensive marketing strategy, particularly for the major exhibitions, there are a number of plans to enhance promotional opportunities and better respond to visitor expectations, as well as to communicate the Gallery's work to a wider audience through increased advocacy.

A) Audience Development
The need to continue to increase and diversify our visitors and to generate more earned income is of paramount importance to the Gallery's future. Although perceptions of the Gallery are constantly changing it is still seen in some quarters, and with other cultural organisations, as conservative and elitist. There is also increasing competition from 'blockbuster shows' and the number of photographic exhibitions at other venues.

Objectives:
In close liaison with the Education department,

• To increase further new and repeat visitor numbers;
• To diversify the demographics of visitors; and

Through increased promotional activities,

• To generate more earned income from exhibition entry fees, sponsorship, merchandising and publications.

In 2003/04 we shall conduct a high-level review of the National Portrait Gallery's current brand positioning and visual identity in partnership with an external brand/visual identity agency. Internal and external consultation will form an integral part of this review which will also consider areas such as signage on the outside of the Gallery, internal signage and the Gallery's whole range of promotional literature. The outcome of the review will determine whether any changes to the current brand and positioning would be beneficial for the Gallery and if necessary the creation of a brief for a new or re-developed visual brand identity for the Gallery and guidelines for implementation.

B) Developing marketing opportunities
A high percentage of our current marketing focus is on the planning and production of printed materials. While undoubtedly an essential element of any successful organisation, the printed material is only one means of communicating with the audience. The time currently devoted to print management leaves other avenues of promoting the Gallery and its work to wider audiences to be more fully explored and exploited.

Objectives:

• To reduce administration costs and staff time by providing more efficient delivery mechanisms for public information;
• To use a wider range of marketing tools and methodologies to ensure we communicate with our audiences in the way that best suits them;
• To build up an online body of Portrait Gallery followers throughout the world; and
• To supply more robust information for our funders and supporters.

In 2003/04 we shall:

• Appoint an additional member of staff, primarily with responsibility for print management, who would relieve pressure in both the PR and Development Department and the Design Department, enabling the Marketing Manager to work more pro-actively on developing and implementing effective audience development strategies in collaboration with the Education Department;
• Develop a press images online service;
• Introduce an e-marketing service for a monthly electronic newsletter, Face to Face; and
• Improve our programme of qualitative and quantitative market research.

We shall seek:

• Further promotional opportunities and partnerships, similar to those that have already proved successful as, for example with Classic FM on Painted Ladies and Julia Margaret Cameron, particularly those which do not have major financial outlay; and
• To maximise PR and opportunities with our regional and international partners.

C) TV and multi-media profile
The Gallery maximises its profile through broadcast TV, in particular BBC1, BBC2, ITV, C4 and Five, by working with commissioners and production companies on projects relating to exhibitions, acquisitions, the collection and lectures & events. In the past the Gallery has been reactive to initiatives from TV companies, although we have worked together very successfully with Omnibus on several exhibitions, and most recently collaborated on the BBC 'Great Britons' project which has resulted in the Gallery having a continuing and useful dialogue with the BBC. TV and multimedia production companies approach us regularly. We accommodate one-off exhibition or collection related filming requests but there have been several approaches from various companies regarding a longer-term relationship - for example, a history of portraiture series.

Objective:

• To initiate discussion with broadcasters and production companies, and arrange a regular opportunity for them to learn about future programme plans;

We shall seek:

• Additional resources in order to service a new commitment to develop project ideas and multi-media production and to administer this process, including access to the collections, filming hours and copyright clearance.

D) Endowment, major donors and legacies
The Gallery has been extremely successful over the years in raising funds for capital projects, most recently with the Ondaatje Wing and the refurbishment of the Regency galleries. However, during the course of fundraising for the latter it became increasingly obvious that the Gallery's base of donors with the ability to give major contributions is relatively small. The Gallery currently responds to requests for legacy information but, so as not to fall behind in this area, we shall be more active in promoting legacies. In order to survive in the current financial climate, where corporate support is becoming consistently harder, we must look more to individuals for support and grow this base of potential donors.

The establishment of the Patrons scheme has gone some way to beginning to identify a group of individuals whose potential to support the Gallery could increase. From hereon endowment, major donors and legacy support need to be considered together as priorities in relation to our overall strategy for individual giving and within the context of our pyramid of support.

Objectives:

• To agree the strategy for establishing an endowment fund for the acquisition of historic portraits, or for other areas of the Gallery's work; and
• To involve our current major donors and cultivate new individual sources of support.

E) Increasing Membership
The profile of Membership is presently fairly limited within the Gallery; therefore signage, leafleting, general presence and availability need to be developed. By understanding our regular visitor profiles in greater depth, we can begin to target new audiences. The development of the Membership as a loyalty-building scheme for the Gallery will enable its use as a base to identify possible future higher-level donors, and from which to develop a legacy programme.

Objectives:

• To raise the profile of Membership within the Gallery, through exposure to visitors and staff;
• To increase the circulation of the newsletter Face to Face; and
• To double the Membership figure by April 2004.

F) Regency galleries - maximising opportunities for corporate support
The Regency galleries have always been among the Gallery's most popular spaces for corporate hire. The refurbishment and re-display gives us the opportunity in the current corporate financial climate to take advantage of promoting the opening and the 'special' nature of these galleries to re-vitalise our corporate partnership programme.

Objective:

To mitigate the challenges of corporate fundraising and to increase our level of sustainable income by the recruitment of Regency Partners with a three-year commitment.

In 2003/04 we shall:

• Take advantage of the additional opportunities for promotion that the focus and themes of the new display provides.

Collecting lies at the heart of the Gallery's work. The associated activities of conserving, storing, cataloguing and displaying the collection make considerable demands on financial and non-financial resources. Although resource implications have to be considered, the Gallery believes it should continue to pursue an acquisitions policy that both reactively seizes opportunities to fulfil our historic collecting brief, and proactively commissions portraits of contemporary sitters.

A) Further digitisation and recording of the Photographs Collections
The Photographs Collection is a unique and much used national resource. However, of more than 220,000 items in the collection, only 19,500 (9% of the total) have been recorded on the Multi-Mimsy collections management database, of which 6,200 have been catalogued with images. A project initiated in 2002/03 with funding from the DCMS is enabling us to make progress with just one important collection within the Photographs Collection, the Bassano Studio photographs.

Given the scale and importance of the Photographs Collection, we will now advance on a broad front to:

• Add images for a further 5,000 key items on the database, so that users do not have the frustrating experience of text without images;
• Catalogue priority collections such as post-1975 images (much in demand), Bloomsbury (again in demand) and the Cecil Beaton collection (in preparation for exhibition in 2004);
• Digitise the 80,000 catalogue cards; and
• Transfer 60,000 items from FileMaker Pro to the Multi-Mimsy database.

Objectives:

• To give access to our holdings to the widest possible audience, both in the IT Gallery and through the website;
• To enable the Photographs Collection to be fully used in interpretation, displays and publications;
• To improve management of the collection; and
• To exploit the collection financially by selling images and reproduction rights

Due to the other commitments of the IT team during the year, in 2003/04 we shall develop the plan for the acceleration of this project and seek to initiate the continuation in 2004-06.

B) Reference collection cataloguing/digitisation project

The Reference Collection of prints and drawings comprises around 80,000 items of which 12% have been catalogued. Digitisation is progressing and at present rates it would take a further eight years to scan the catalogued items. Funding from DCMS has enabled us to start an ambitious programme to catalogue and digitise the remainder of the collection. The DCMS project ends in March 2004 when a further 4,000 prints will be accessible on the Multi-Mimsy database, 50% of which will be scanned or digitally photographed. This will leave around 67,000 items to process, of which a significant number may need to be digitised.

Objectives:

• To improve public access to the reference collection of prints and drawings;
• To provide material for further development of Portrait Explorer and website;
• To contribute to Gallery interpretation, research and display programmes; and
• To enable effective management of the reference collection.

Due to the other commitments of the IT team during the year, in 2003/04 we shall develop the plan for the acceleration of this project and seek to initiate the continuation in 2004-06.

C) Facilitate research by individual curators
Following the production of a research policy for the Trustees in 2001, it has been a priority to enable Gallery curators to undertake further research, both on a day-to-day basis and for one-off projects. However this aim has been frustrated by the large volume of major gallery, exhibition and public projects being undertaken by curators. While curators have had some limited periods of study leave, such as one-month fellowships, opportunities have been limited and certainly not on a sufficient scale to allow for the production of a book or a major exhibition.

Funding from DCMS towards refurbishments at our regional partners, Bodelwyddan Castle and Beningbrough Hall, has enabled a fixed-term appointment of a curatorial assistant. Ongoing additional support staff are required to give curators the chance to undertake long-term research such as publishing articles on acquisitions and the collections and greater participation in conferences and symposia as well as continuing with their contributions to major exhibition and book projects.

Objectives:
To give curators more time for day-to-day research relating to the collections; and
To enable curators to realise long-term research plans of a significant value to the Gallery.

From 2004/05, we shall seek to add the fixed-term curatorial post, currently project-funded, to the permanent staff complement.

D) Identification of further funding for research fellowships
The Gallery has a distinguished record as a centre for portraiture studies, both as a facilitator for the work of outside academics and as a producer of scholarly work. It is acknowledged that such research is crucial in maintaining the Gallery's authority and its position among its peer institutions. Current programmes include cataloguing of the late 18th-century collection and the commencement of cataloguing of the later Stuart portraits, with support for curatorial research being generously provided by the Paul Mellon Centre for Studies in British Art.

Following on the success of the Leverhulme Fellowships in the form of a three-year programme (2001-04) of one-year post-doctoral fellowships, we now wish to explore a slightly different formula in the form of a series of one-month or three-month fellowships.

Objectives:

• To encourage research into the history of British portraiture;
• To encourage new thinking which will lead into our programme of catalogues, exhibitions, displays and interpretation;
• To raise the Gallery's research profile and promote the study of its collections; and
• To offer opportunities to exceptional scholars

In 2003/04 we shall complete the second Leverhulme-funded fellowship, appoint the third Leverhulme fellow and seek to identify new sources of funding for the programme beyond 2004.

E) Mezzotint research project (part-funded by the Paul Mellon Centre)
With part-funding from the Paul Mellon Centre for Studies in British Art we have embarked upon a two-year project to 31 March 2004 to research our most important holdings of 17th century mezzotints, namely prints published by Alexander Browne and Richard Tompson, many after Sir Peter Lely, and a set of prints produced by John Smith, many after Sir Godfrey Kneller.

Objectives:

• To increase public access to the reference collection;
• To provide explanatory text and illustrated catalogues on the website relating to early mezzotint production; and
• To contribute to the Gallery's research profile and establish a reputation in the area of print scholarship

In 2003/04 we shall complete the mezzotint research project, generate a display for the programme and prepare a more substantial website feature.

F) Historic archive cataloguing project
The muniments or historical archives of the Gallery date back to 1856 and document its foundation, development, administration, programmes and achievements. The Gallery intends to seek funding to catalogue this collection and to digitise highlights in order to improve public access and encourage research.

Objectives:

• To improve access to the Gallery's historic archives and facilitate research:
• To meet professional and PRO standards for cataloguing public records:
• To enable efficient response to full access rights under the Freedom of Information Act; and
• To contribute to a celebration of the Gallery's 150th anniversary in 2006.

In 2003/04 we shall seek external funding for this project.

G) Records management project
As it is part of our commitment to meet the requirements of the Freedom of Information Act, Data Protection Act and Modernising Government White Paper, we have recruited a Records Manager on a two-year contract commencing January 2003. This new post is undertaking a gallery-wide records survey, including papers transferred to the Archive & Library during the last thirty years, and will develop records management procedures for both paper and electronic records.

Objectives:

• To ensure that Gallery records when transferred to the Archive for retention are sorted and housed with a view to their long term preservation requirements;
• To ensure compliance with PRO standards for storage and preservation of public records; and
• To contribute to an overall improvement in physical access to the collection.

In 2003/04 we shall complete a survey of the records of the Director's Office, Curatorial (with the exception of Archive & Library, Collections Management and Conservation), Administration, Trading, PR & Development and Education Departments.

The collection is at the centre of the Gallery's work (see section 4). With this goes a responsibility to house and manage the collection effectively, and make it widely available for display and exhibition both at the Gallery and around the country. These activities remain a very high priority for the Gallery.

A) Regency Galleries
The sequence of gallery renewals begun in 1993 is now in its final phase. The Regency galleries are the largest and most splendid spaces in the Gallery but are also by far the oldest, and have not been re-hung since 1986. Under the aegis of the architect Piers Gough, who designed the Victorian and early twentieth-century galleries in 1996, the current refurbishment project will be completed in May 2003. After a vigorous fundraising campaign and with the aid of HLF funding, the cost is being funded from external sources. Funding has also permitted the trial of innovative displays and new digital interpretation.

Objectives:

• To house, display and interpret the Regency collection to best advantage;
• To provide virtual access to all portraits covered by the Regency period not on show in gallery spaces; and
• To use the advantages of IT to enhance visitors' understanding of the Regency period and our portraits.

In 2003/04 we shall:

• Re-open the Regency galleries
• Organise a conference and other associated events on the theme of Regency portraiture; and
• Monitor the public's use of the new interpretative materials and assess reaction to the new galleries through focused market research.

B) Early 20th century Galleries
With the closure of these galleries for basic maintenance to the glass display screens and timber floors, there is an opportunity to make improvements which will renew and revitalise the display.

Objectives:

• To maintain the appearance of these primary display spaces;
• To encourage more visitors to see these rooms; and
• To make easier changes to display cases.

In 2003/04 we shall

• Redisplay the early 20th century collection, introducing new interpretative materials; and
• Modify the use of the screens and display cases in these rooms to improve their visibility from the Victorian corridor.

C) Exhibitions
The exhibition programme seeks to build upon the achievements of the past few years through a broad range of exhibitions which aim to draw not only upon our assisting existing key audiences but also to attract a more diverse group. Furthermore, the programme schedule reflects our aim to encourage regular attendees to visit more frequently.

The larger exhibitions include the photographs of Julia Margaret Cameron, the annual paintings competition, the BP Portrait Award over the summer months, and the examination of representations of 'servants' and domestic employees from the 17th century up to the present day, entitled Below Stairs. The Porter Gallery exhibitions concentrate on photography in 2003/04, including You Look Beautiful Like That: The Portrait Photographs of Seydou Keïta and Malick Sidibé, an exhibition focussing on the work of two Malian studio photographers, to be followed by A Gardener's Labyrinth: Photographs by Tessa Traeger and Patrick Kinmonth bringing photographs of significant British horticulturalists together with images of their gardens, and ending the year with the re-launched popular annual photographic portrait award.

Objectives:

• To deliver a wide ranging exhibition programme with broad appeal;
• To ensure that visitor figures are sustained, thus maintaining the Gallery's profile, enhancing income to underwrite exhibition costs, and providing publication opportunities; and
• To continue audience development associated with a varied programme, through press and marketing, schools and public programmes.

D) Regional Partnerships
The National Portrait Gallery has developed a number of ways of sharing the works in the collection with audiences outside London and has been at the forefront of such developments within the museum community. There are two collaborations with the National Trust, at Montacute House in Somerset, focusing on Tudor and Stuart paintings and at Beningbrough Hall in Yorkshire, showing late 17th and 18th century paintings. A third collaboration at Bodelwyddan in North Wales, with the Bodelwyddan Castle Trust and Denbighshire County Council, focuses on 19th-century paintings and is in the final stages of being re-furbished, with the design input of muf.architecture/art, re-opening in April 2003. In total nearly 400 objects from our collections are on display at these three locations.

In addition to these country house partnerships the Gallery has developed an extensive programme of long-term loans to other houses and historic locations in which portraits can be seen in the sort of settings for which many of them were intended, such as Gawthorpe Hall, Lyme Park and Dove Cottage, all in the North-West, and many others around the country. Short-term loans are also made to temporary exhibitions created by museums and galleries throughout the UK. In any recent year we have had over 270 works on long-term loan and more than 100 works out on shorter term loan at any one time.

Alongside these three strands, the Gallery has developed close working relationships with a small number of key institutions outside London, such as the Museum and Gallery Trust in Sheffield which runs the new Millennium Galleries, and the Nottingham Castle Museum. Developed as opportunities have arisen and as resources allowed, they offer great potential for collaboration with venues keen to develop the interests of their publics in the subject of portraiture.

Bodelwyddan Castle
In April 2003 the new displays at Bodelwyddan will be re-launched, together with a new area for temporary exhibitions.

Objectives:

• To revitalise the displays and encourage a larger audience;
• To enhance appreciation of the whole collection at Bodelwyddan;
• To use the advantages of IT to enhance visitors' understanding of Victorian photographic portraiture practice; and
• To increase public awareness of the Gallery's presence in this location and at the other regional partnerships.

Beningbrough Hall
It is an existing Corporate Plan priority to make our collections more widely available and accessible outside London. Work at Beningbrough will follow on the successful refurbishment at Montacute in 2000 and the current programme at Bodelwyddan, due to open in April 2003.

Objectives:

• To make the Gallery collections at Beningbrough as accessible and inviting as possible;
• To attract more visitors to the collections at Beningbrough; and
• To use the advantages of IT to enhance visitors' understanding of Georgian portraiture.

In 2003/04 we shall establish the scope and timing of the project and initiate detailed planning, with a target re-launch for spring 2005.

E) Regional and touring developments
To complement the loans activities we have developed an energetic programme of touring exhibitions, drawing on the collections and on the Gallery's temporary exhibitions, and making them available for UK tour. Recent examples include Mirror, Mirror, an exhibition of self-portraits by women artists, and Saving Faces, a collection of paintings by the young artist Mark Gilbert based on his residency at the Oral & Maxillofacial Surgery Unit of St Bartholomew's and Royal London Hospital. Of those drawn from our collections, the Living Lives project, a collaboration with Nottingham communities and the Nottingham Castle Museum, was one of the most effective. Similar interactions with regional curators include the development of an exhibition entitled Behind the Mask with the Bowes Museum, County Durham and the Hatton Gallery in Newcastle upon Tyne.

Our activities abroad have continued to develop with exhibitions touring widely in the United States, Italy and the Netherlands. This pattern continues into 2003/04 but would benefit from being developed by the production of special purpose-made touring exhibitions.

Objectives:

• To manage touring exhibitions in the UK more efficiently;
• To exploit more fully international possibilities for touring exhibitions;
• To develop the full potential of the collection, specifically for touring;
• To develop further partnerships/collaborative relationships with key venues in the UK;
• To encourage a more pro-active interaction with our current Regional Partners;
• To raise our regional and international profile; and
• To increase press and marketing opportunities.

In 2003/04 we shall appoint an additional post with responsibility for regional activities and seek to identify funds for an enhanced regional programme, supplemented by external funding. In 2005/06 we shall seek to extend our international activities.

F) Deliver efficiently co-ordinated exhibition and display programme
The demands upon the current Exhibitions team mean that they are unable to meet some deadlines, particularly with regard to the provision of photographic material to other departments and in driving projects far enough in advance to allow for more cost and time efficient procedures.

A more formal exhibition and display policy needs to be developed and signed up to, not just with regard to the breadth of the programme but also in connection with the dedicated spaces in which changing displays take place. In addition, greater administrative support is required within the Exhibitions team in order to ensure that the programme is managed more effectively.

Objectives:

• To allow longer-term planning so enabling a more efficient and cost-effective working method;
• To ensure all stakeholders' needs are met; and
• To comply with competition laws.

In 2003/04 we shall seek to strengthen the Exhibitions & Collections Management department.

G) Integration of Website and IT use in exhibition and regional programmes
To date, website and IT activities have tended to be 'clad on' to the side of our exhibition activities and regional programmes, as time and inspiration allows, rather than being involved in a more creative manner from inception.

The involvement of IT in the exhibition planning process would allow for the development of a more exciting and challenging website presence for exhibitions and displays, as well as providing expertise and creating opportunities for the inclusion of IT based materials within exhibitions themselves In addition, it would also afford great opportunity for strengthening our profile through promoting our regional and international presence to a wider audience. The potential to link with education projects and our other activities outside of London (e.g. 'In your region this month / Northeast' - the Head of Frame Conservation lecturing at Newcastle University; the Potter to Potter exhibition opening at the Durham Light Infantry Museum, etc) with good visual and web-links is considerable.

Objectives:

• To expand Portrait Gallery audiences, particularly in the regions;
• To create a more professional, rounded and joined-up exhibition experience;
• To increase our profile in London, throughout the UK and abroad;
• To develop our marketing potential; and
• To increase our earned income through sales of merchandise.

Due to the other commitments of the IT team during 2003/04, we shall seek to produce the plan for this development in 2003/04 and to initiate implementation in 2004-06.

H) Conservation and collections management
The Gallery's Conservation Departments have developed a strong reputation within the museum community and particularly within their peer group. The expertise of this small group of individuals provides the potential for the development of studies in the field as well as opportunities to enhance Gallery profile. A series of 'behind the scenes' activities offers the potential to involve a wider audience in understanding conservation practices and attitudes. Interested parties would range from Patrons and Members, through to school groups and museum studies students. In addition, a more in depth seminar programme, focussing on specialists and academics working in specific fields, e.g. early panel paintings or the portraiture of Sir Godfrey Kneller, would encourage professional development of our own staff and would develop wider understanding.

The use of new technology within conservation practises, administration and management also needs to be fully embraced.

Objectives:

• To explain to a broader audience our conservation work, and thereby to stimulate interest in the field;
• To develop specialist discussions within the conservation field with particular reference to the collection, so enhancing knowledge and understanding and the Gallery's reputation;
• To develop the educational role of the department; and
• To provide a more rounded Gallery experience for visitors.

In 2003/04 we shall investigate how this work can be taken forward and what the resource implications are for implementing this in future years.

I) Develop Multi-Mimsy collections management database
Subsequent to the appointment of a Multi-Mimsy Development Manager, a prioritised workplan is being drawn up. Even with this additional resource there is still much work to be done before Multi-Mimsy begins to function as the Collections Management database it promises to be. The Manager's arrival heralds the use of Loans, Acquisition, Exhibition, Offers and other database facilities; however the time-investment required in inputting (e.g. Frame dimensions, Painting and sculpture weights, Art Handling notes, conservation records and exhibition histories) and in checking, development of standards and the application of these activities is great.

The extra inputting that is required, and will continue to be required, is beyond that which either the Collections Manager or Collections Assistant will be able to accommodate in their daily activity. In addition, we wish to transfer summaries of past conservation records of all primary collection items, with a view to reducing reference to the objects' registered files (thereby saving staff time and handling of archival material) and to begin using Multi-Mimsy for condition reporting and examinations. This will involve a very high degree of training and a lengthy period of development of procedures and forms.

Objectives:

• To reduce staff time by automating outputs;
• To improve access to collection records for staff across the institutions;
• To effect as soon as possible a more co-ordinated use of collections database and efficient use of records management;
• To reduce loss or damage of archival documentation; and
• To have one-stop documentation of acquisitions, including up-to-date information on location changes.

In 2003/04 we shall look at how these tasks can be prioritised and resourced once the Multi-Mimsy manager has drawn up the work plan.

The Education Department provides an extensive programme, activities and resources for a wide range of audiences including school pupils, teachers, further and higher education groups, adult learners and people with disabilities. The teaching is based on the use of collections to study both history and portraiture (drawing, painting and photography). Recent and current projects, such as 'Local Heroes' and 'Self Portrait UK', show the vibrancy of work in engaging audiences and individuals with our collections. There are also outreach activities, working with many organisations including the Gallery's Regional Partnerships as well as schools, community groups and hospital schools. The development of video conferencing has enhanced the Department's potential to deliver direct teaching to groups nationwide. The Department reflects the Gallery's commitment to access and the development new audiences, especially amongst those under-represented in the overall visitor profile. At the same time, we recognise the need to maintain the broad range of activities and to existing audiences, and to build upon the excellence and expertise in the Department.

A) Access and audience development: reaching and sustaining new audiences
In order to provide access to the national collection of portraits for all sections of the population we must establish sustainable relationships with visitors under-represented in the current visitor profile. Both DCMS and other funders seek increased usage from key audiences - areas of economic/social deprivation, disabled, ethnic minorities and young people. In order to fulfil all these criteria some additional resources and closer collaboration with marketing will be required.

Objectives:

• To develop new audiences from among identified groups; and
• To sustain links to these audiences.

In 2003/04 we shall develop work for our key audiences:

Visitors with disabilities/ access programme: with assistance from the John Ellerman Foundation, the Vodafone UK Foundation and Carlton TV Trust, provide a programme of workshops and activities for groups which include pupils with special educational needs, adults with additional needs, visual and hearing impaired visitors and hospital schools. These will take place in the schools and public programmes both at the Gallery and through outreach. In 2004/05 we shall fund these projects from Grant-in-Aid.

Visitors from ethnic minorities: use opportunities such as You Look Beautiful Like That, the Pandit Ram Gopal/Topolski portrait and Black History Month to promote diversity. We shall seek to obtain funding in order to develop the Bressey report on Black and Asian representation in the Gallery's collections.

Adult education: especially amongst under-represented audiences, new partnerships with a range of adult groups. An essential element of this will be augmenting capacity to identify and reach these audiences; this will be achieved, in liaison with the Marketing Manager, through research, the building up of databases and publicity to these groups via targeted mailing, advertising etc.

From 2004/05 we shall seek to appoint a Family and Youth Officer who would:

• for Family learners: increase provision in the Gallery, targeting existing visiting families as well as encouraging new visits (building on the Potter to Potter family learning project); and
• for Young people (leisure learning): extend the Young Peoples' programme.

B) Video Conferencing
In 2002/03 we participated in an innovative pilot project, sponsored by the Department for Education and Skills, which extends Gallery-based learning opportunities to school and other educational groups unable to visit the Gallery. Teaching sessions available at the Gallery are almost always fully booked and many schools are unable to visit the Gallery simply because of distance. In addition, schools from areas of deprivation within the M25, poorly served by public transport, find it difficult to fund visits. Pupils with certain special needs cannot visit, including children in hospital schools. Videoconferencing allows us to reach these types of groups while increasing our overall teaching capacity. Initial evaluation has been very positive.

Objectives:

• To use ICT to deliver high quality outreach education sessions on history and art sessions to school pupils who are unable to visit the Gallery, reaching schools on a national basis;
• To give greater access to the collections for new school audiences; and
• To build upon our best practice and extend it throughout the UK

In 2003/04 we shall commit core funding towards running a programme and aim to increase outreach audiences by 50% in the pilot period. We will also be seeking to secure DCMS Regional/National commissioned funding to extend the project and to build capacity.

C) Development of the Woodward Portrait Explorer and website
The Gallery's award-winning IT facilities, making the collections available on the Woodward Portrait Explorer and the website, require completion of outstanding features and further development if we are to maximise our existing investment and keep up with competitors in a changing environment. Ten sound and image interviews in relation to the Photographs Collection are currently being recorded. Artists and sitters interviews would enhance understanding of the process of creation of our portraits from the perspectives of both the sitter and artist.

A dedicated interpreter/editor would ensure better editorial control of the existing and new content, including a clearer structure and improved links, create additional interpretative content in the form of introductory texts and biographies, and could develop more educational resources based on the collections, in collaboration with the Education Department.

Objectives:

• To enhance appreciation of specific portraits or sets of portraits in the collection;
• To enhance the understanding of the process of creating portraits through sound and image interviews;
• To develop the delivery of information on the collections into a world-class facility by improving editorial content;
• To raise our profile and encourage visitors by way of this facility; and
• To exploit the collection financially by making it better known.

In 2003/04 we shall:

• Review and integrate outstanding features; and
• Complete and integrate the sound interviews.

Due to the other commitments of the IT team during 2003/04, we shall seek to employ a dedicated interpreter/web editor from 2004/05, and to seek funding for additional materials such as video interviews.

D) E-Learning: strategy and resources
As other museums and galleries have begun to do, we will develop web-based learning resources, based upon the collection, by commissioning a series of learning packages and interpretational materials. The current bid for Culture Online funds outlines a suggested framework but the extent and timing of our investment will depend upon funding.

The development of an e-learning strategy would build upon the existing excellent work on the website and Woodward Portrait Explorer. Also there is a range of existing educational resources which could be quite easily developed for the web (e.g. Existing Tudor, Victorian and Photography packs) as well as resources already planned and prepared (such as 'Self Portrait UK'). The stages will involve:

• Development of an e-learning strategy and action plan, including identification of target audiences;
• Commissioning of learning packages (resources and virtual exhibitions);
• Design; and
• Promotion and marketing of resources.

Objectives:

• To utilise ICT to enhance understanding of the collections;
• To give greater access via ICT to the collections; and
• To reach and develop new audiences.

In 2003/04 we will look at how the web site can be developed and managed to meet the above objectives. This review will be influenced by the outcome of the Culture Online bid.

E) Studio Gallery
Reaching Out, Drawing In will be a key part of the Gallery's educational and outreach functions. The Studio Gallery will be used as a focus for engaging new audiences, collaborating with them to develop a series of exhibitions which draw on the Gallery's collections. The project will create a new identity and educational focus for the Studio Gallery, enabling visitors to see how a range of audiences engage with the collections. Some of the exhibitions will arise directly out of work with identified audiences both working at the Gallery and via outreach; others would be developed specifically to attract new audiences through linked programmes. We will work on six exhibition projects over the three-year period, each accompanied by linked activities. Information and resources about each exhibition will also be produced for the website. Whilst targeting specific audiences, the exhibitions will be accessible to all Gallery visitors. A funded post of Project Officer will be appointed to manage the programme under the direction of the Head of Education and working with the Education and Access Officers on specific exhibitions, and liaising with other departments in the Gallery. S/he will coordinate each exhibition and linked activities, and monitor and evaluate the project.

Objectives:

• To develop new audiences amongst non-visiting groups;
• To produce a series of exhibitions which focus on peoples' responses to the Gallery's collections; and
• To explore innovative interpretive approaches and to give greater access to the collections.

A bid to the Heritage Lottery Fund (HLF) was submitted in January 2003, and any decision will not be made by HLF until September 2003 at the earliest. If the bid is successful, we shall initiate this project in late 2003/04; otherwise we will continue to display work resulting from education-related project (e.g. Self Portrait UK April-June, Trafalgar Square portraits September - January 2004).

F) Conferences/seminars
In addition to the more general public programme of talks, events and study days run by the Education Department, we will develop a regular series of conferences and seminars to promote understanding of the collections and to reflect the Gallery's research programme. This will be undertaken in consultation with the curators. Themes for conferences/seminars will relate directly to the collections, and will examine the history and practices of portraiture. The exhibition programme presents opportunities to engage with and explore areas of academic study and research.

Objectives:

• To present the Gallery's academic and research programme;
• To develop new academic and research audiences; and
• To extend the use of the lecture theatre.

Conferences already planned for 2003/04 include:

• The Face of Elizabeth (3-4 July 2003)
• Regency (17/18 October 2003): organised jointly with the Paul Mellon Centre
• 'Faciality' (21/22 November 2003): new portraiture and the philosophy of the face (Nov): organised jointly with the Royal College of Art
• 'Below Stairs' (early 2004): organised jointly with the Paul Mellon Centre

Other areas which will be explored in 2003/04 are:

• the 2002/03 Leverhulme Research Fellow will be asked to give a lecture presenting her research on the representation of black people in 19th-century portraiture;
• a further photographic research project with University of Westminster;
• individual study seminars organised by curators; and
• publication opportunities (papers and proceedings)

Develop a prestigious strand within the public programme: as part of the regular Thursday evening event we are planning more high profile speakers in discussion using the collections to explore a range of issues. This will link where possible to media partnerships (BBC4, Radio 3, or C5 arts) and there is also the possibility of publications arising from any such collaboration.

Objectives:

• To raise the profile of the Gallery's public programme;
• To develop the use of the lecture theatre; and
• To generate income.

In 2003/04 we shall seek to identify a sponsor and/or media partner to work on this project.

A) Office accommodation and storage
There is a pressing need to create additional office space since there is no scope to accommodate further staff additions and some areas are already poorly accommodated, affecting staff morale, frustrating our programmes and creating inefficiencies. In order to buy the time required to identify the appropriate long-term solution, we are seeking a flexible five-year solution for the interim.

There is no expansion space remaining at the Merton store and a short-term solution (6/7 years) is needed within 2003 while a long-term solution is planned and delivered. With use of more space efficient storage units there is perhaps 7/10 years expansion space within Orange Street for the Reference Collections.

Objectives:

• To provide a timely, flexible and cost effective accommodation strategy which meets current and future staffing and storage requirements;
• To provide sufficient and cost effective storage space for the future growth of both the Primary and Reference Collections;
• To improve standards of storage to meet best practice in conservation;
• To offer appropriate access for curatorial and research purposes and for the public; and
• To minimise disruption to staff activities.

In 2003/04 we shall produce an accommodation strategy and initiate the short-term solution for office space as applicable. We shall extend the lease for Merton and take advice for a longer-term solution for the location and storing of the sculpture collection. In 2004/05 we shall seek to identify funds for more efficient storage units in either the basement archive and/or the special collections store.

B) Staffing issues
We currently employ 181 staff of whom 73 are front of house and security staff. Despite a steady increase in staffing over recent years - in 1995/96 we employed 141 staff - the pressure to increase staffing is unrelenting. The demand for ever more access and efficiency initiatives, the tendency for government to provide additional funds for new projects rather than for core activities, increasing regulation and accountability and the need to extend income generating activities are all obvious sources of pressure. The Quinquennial Review published by DCMS in 2002 highlighted the degree to which the Gallery is stretched. This plan identifies a number of key areas for strengthening staff resources but more will need to be done if the Gallery is to respond to these pressures.

Further manpower planning will be an important strand in the long-term strategy to be developed during 2003/04.

The Gallery continues to review salaries annually to ensure a competitive and fair reward structure. In terms of staff retention our performance over the past two years (circa 16% staff turnover) is slightly below the national average (circa 20%). This is not necessarily however, a reflection of satisfaction with salary levels and we continue to face the increasing tensions that have come to characterise public sector pay negotiations in recent years. In this context the development of supportive and flexible employment practices has an important part to play in retaining and motivating staff.

In 2003/04 we are required to complete an equal pay audit to ensure that there is no gender discrimination in our pay systems. This part of a broader review of our employment practices at the Gallery that has seen the development of equality policies during 2002/03.

C) Training strategy
The budget available for training was enhanced in 2002/03 but, before further enhancement, we should create a two-year structured training programme which meets our day to day operational requirements and reflects our business plan priorities.

This will involve identification of skills and knowledge needs at departmental and individual level through:

• Liaison with department heads;
• The annual staff appraisal system;
• Specialist advice (e.g. access issues);
• Where necessary, an audit of particular skills (e.g. IT); and
• Regular risk assessments (e.g. Health and Safety).

It will also involve development of existing databases to provide a more effective planning tool and record of staff training.

Key areas in 2003/04 are likely to be development of the IT skills base, continuation of the customer care programme for Front of House staff, further development of access issues training equality awareness training and training in project management.

Objectives:

• To promote job satisfaction and wider understanding of the environment in which the Gallery operates;
• To encourage personal development; and
• To comply with statutory requirements.

In 2003/04 Heads of Department will identify the training needs of their staff and the training allocation will be prioritised accordingly. In 2004/05 we shall seek to enhance the 2003/04 training allocation.

D) IT strategy
Up to 2000 the IT strategy was mainly focussed on the establishment of a IT infrastructure, the development of the collections management database (Multi-Mimsy), starting the digitisation of the collection, the Portrait Explorer, CD-ROM and the development of the NPG web site.

The following two years saw a major overhaul of the IT infrastructure upgrading hardware the cabling network, systems and applications software. We have increased staff resources in IT during 2001 and 2002 but we will need to consider more fully the resourcing and management of the projects described in this Business Plan as part of an overall IT strategy. 2003/04 will provide the breathing space to assemble this strategy.

Objectives:

• To improve and extend the services we provide by exploiting fully the possibilities offered by current technology;
• To save staff time by automating tasks currently carried out manually;
• To provide a structured plan of action based on costs/benefits involved; and
• To assess skills available and to identify weaknesses as a basis for a structured training plan (see Training Strategy above).

In 2003/04 we shall:

• Update our IT strategy;
• Identify IT training needs and devise a structured training plan; and
• Start a two-year programme to assess how technology is currently delivering services, identify tasks which could benefit from automation and implement recommendations as applicable.

E) Main façade lighting
The pedestrianisation of Trafalgar Square, improvements to the National Gallery and restoration of St Martin-in-the Fields will all serve to make our location even more attractive. Lighting the façade will highlight in particular the main entrance and shop entrance, the distinctive architectural features (the portrait busts above the second floor windows) and the signage, as well as generally to give the Gallery greater presence.

Objectives:

• To improve the external image of the NPG; and
• To attract more passing visitors.

In 2003/04 we shall obtain a firm costing and seek funding for the project. We shall continue to press Westminster County Council for improved street signs to the Gallery.

Following an outstanding year for Trading in 2002/3, in which the department capitalised on opportunities presented by the Mario Testino exhibition and Great Britons television series in particular, there is an ambitious programme of change to be implemented over the next three years.

A) Raising the visitor/customer ratio and improving average spend per visitor
If growth of our retail income and the reputation of our offer are not to be constrained, a review is required of the current retail offer in terms of layout, display, fittings and fixtures, staff skills and marketing.

Objectives:

• To increase income/visitor spend through enhancements to the design and layout of the ground floor shop, including better display cabinets/shelving and signage in and to all shops;
• To review retail marketing as part of an integrated Gallery approach;
• To review and develop e-commerce 'offer';
• To review proposed mobile shop unit for Porter Gallery, lectures, events etc.; and
• To improve staff training through proposal to close the ground floor shop for an hour every Monday morning for this purpose.

In 2003/04 we shall commission an external consultancy leading to recommendations for improvement to the retail areas and initiate the recommendations as applicable.

B) Improved retail (including e-commerce) product offer
To ensure customers' needs are being met, a review will be undertaken of the current retail product offer in terms of the balance between 'core' products such as slides and posters, other own branded merchandise and that bought-in, as well as the potential for developing the digital print service and product for Internet sales.

Objectives:

• To find alternative, cost effective ways of making currently uneconomic products available to customers;
• To increase sales through development of new merchandise based on the collection, as well as exhibitions, and using contemporary designers and manufacturers;
• To review and enhance the digital print service (Portrait Printer) as well as other potential revenue generating uses of our digitised collection;
• To develop a comprehensive range of children's product;
• To develop merchandise and packaging using our new corporate identity as applicable; and
• To work more closely with Marketing to publicise the merchandise to a wider audience

In 2003/04 we shall undertake a review of the product offer. From 2004/05 we shall seek to implement the outcome of that review.

C) Publishing Programme
In 2003/04 we shall publish:

• Elizabethan education pack (in conjunction with the National Maritime Museum)
• The fully revised and updated Complete Illustrated Catalogue of the collection
• Heroes and Villains - with Gerald Scarfe
• Irish Portraits
• Late 18th Century Catalogue
• BP Award 2003
• Below Stairs
• New Photographic Award 2003 catalogue
• Cecil Beaton

D) Develop a Gallery publishing policy and three-year plan
With the expansion of NPG publications over the last five years, there is potential tension between our strategic and our commercial responsibilities. We have raised internal expectations of the quality of our publications, the range of our educational materials, the commercial success of our books and our ability to publish, or co-publish substantial catalogues for all NPG exhibitions. In light of the changing commercial climate for small publishers, we would like to establish a clear policy and guidelines for the publication of exhibition and non-exhibition titles.

Objectives:

• To research and write a publishing policy linked to the three-year corporate plan;
• To establish strategic and commercial objectives for the department which balance our publishing list and to take advantage of new opportunities;
• To increase access to our collections;
• To innovate and thereby help to create demand for exhibition-product where none exists (e.g. commissioning authors who help to attract audiences to exhibition catalogues or establishing a TV/Radio tie-in for our titles);
• To enable the Education department to reach target and non-traditional audiences through print or on-line resources;
• To help to communicate our strong brand values to external audiences and enable the Development department to represent our needs to sponsors and attract funding; and
• To assist Retail to prioritise display space and set sales targets.

In 2003/04 we shall draft a publishing policy to be approved by Trustees.

E) Full implementation and development of Aries publishing package
Aries, a new publishing package which tracks sales and stock through the Gallery, went live in June 2002. However there has been insufficient time to explore the potential of this package and to train all members of staff in the programme. Aries has the ability to monitor royalties more accurately, and to maintain up-to-date centralised records of all our publications, and to produce marketing material such as Advance Information sheets. Following the IT strategy review, it is likely that further staff training and data input onto this programme will need to be prioritised.

Objectives:

• To produce regular, timely and clear sales reports which enable us to make better informed decisions on pricing, stock control, future titles and marketing spend;
• To enable access to data and manipulation of data for sales and marketing research;
• To improve efficiency of our sales and marketing (particularly our backlist); and
• To increase capacity of our sales and marketing (including via the website).

In 2003/04 we shall start a review of the use of Aries and will meet the supplier to give feedback on current usage and expectation before establishing publishing priorities and designing a programme of appropriate staff training.

F) Picture Library
Following the successful completion in January 2003 of the project to research and provide 10,000 portraits for the forthcoming New Dictionary of National Biography (to be published by Oxford University Press in 2004), the Gallery will begin discussions with the new DNB to agree cross marketing, information sharing, website developments and other mutually advantageous links between the two organisations.

Objectives:

• To enhance quality of links with factual information about sitters available through our website; and
• To increase the profile of the collection through links to the new DNB website.

G) Development of Picture Library Online
A comprehensive refreshment of the Picture Library's online presence is needed, giving separate emphases to print sales and professional image licensing, and creating e-mail marketing facilities in a five-stage process:

1. Redesign existing database, collate data and organise transfer to the Multi-Mimsy collections management database and develop copyright officer role as intellectual property rights contracts manager and as consultant to other departments.

2. Contract images from other collections to complement the Gallery's collection.

3. Develop an 'Images Direct' website for professional picture researchers, as part of an existing co-operative marketing initiative. This facility will make it easier to find works in national (and, eventually, regional) collections, under unified commercial and contractual terms. It aims to improve self-generated funding opportunities for UK museums and galleries, whilst making it easier and simpler for researchers to find and use pictures as well as to purchase pictures online. Current project partners are the National Gallery and the National Galleries of Scotland.

4. Design and commission one logical online access-point to our prints and reproductions and reorganise fulfilment of sales.

5. Redesign and commission new NPG Picture Library interface to encompass developments, with a commercial audience in mind. Create a visitor registration/marketing facility on the NPG website.

Objectives:

• To increase income;
• To improve our reputation through collaboration with other collections;
• To reduce the risk of error in relation to permissions management;
• To improve efficiency of marketing and sales; and
• To improve commercial access to the collections.

In 2003/04 we shall assess the recommendations of the business plan, including the business case, for the project in conjunction with our external partners and, as applicable, seek the funding required to deliver this important and ground-breaking initiative.

H) Review of photography and imaging
The Gallery has traditionally outsourced photography of its collection. Issues of quality control, lack of in-house facilities and the increasing variety of media (e.g. film versus digital) continues to make this are a matter of concern, but also one of opportunity.

The current arrangements for photography and imaging will be reviewed, including an assessment of freelance working arrangements versus in-house facility, film versus digital, quality control, space commitments and equipment.

Objectives:

• To improve image reproduction quality, cost effectiveness, variety of output media and all round efficiency for a number of key departments (e.g. collections management, exhibitions, retail, publications, archive, press and marketing); and
• To reduce the risk of error.

In 2003/04 we shall seek to develop a proposal for our photography and imaging arrangements.

A) Review of corporate governance
With the advent of a new Director and the full implementation of a formal risk management framework, we wish to undertake a substantial review of our corporate governance. This review will encompass three-year corporate and one-year business plans (embedding the Funding Agreement with DCMS), risk management, project and change management, staff performance and will potentially also contribute to the review of corporate identity.

Objectives:

• To create an overall framework which unites all our planning processes and risk management in order to provide a clarity of vision and purpose for all our stakeholders (trustees, staff, visitors, funders etc); and
• To address concerns identified on the risk register relating to effective corporate governance.

In 2003/04 we shall have an internal audit review of corporate governance and agree the planning framework, which will be adopted for the 2004-07 corporate plan.

B) Financial controls
Subsequent to the implementation of a new accounting package in 2001/02 and bedding in during 2002/03 of the changes arising, it is now timely to review the capacity of the system, to ensure that we are optimising the new features offered by the package and to modernise procedures and outdated forms. This will involve a restructure of accounting codes as at 1 April 2003 to enable improved and new reports, budget-holder/manager training and a review of the efficiency of paper-based systems leading to a more user-friendly version of financial procedures which separates regulations from procedures.

Objectives:

• To improve quality and speed of information received by users (management, budget managers, DCMS, National Audit Office etc);
• To decrease the time required for budget managers to process financial transactions; and
• To mitigate compliance and financial risks.

In 2003/04 we shall identify the improvements required and strengthen the staffing within Finance in order that those improvements can be implemented at the earliest opportunity.

C) Value for money / Modernising delivery
Although need and necessity have taught us to manage within limited means, there are some areas which will benefit from value-for-money reviews.

Objective:

• To reduce running costs in future years.

In 2003/04 we shall identify areas of potential saving and seek to invite competitive tenders for those where the greatest potential savings are identified.

A) Background
In 2002/03, the Gallery made cuts to a number of budgets in order to strengthen areas of vulnerability identified by the DCMS Quinquennial Review published in 2002. This was in anticipation of being able to restore these amounts in 2003/04 after the Government's 2002 Spending Review for 2003-06. In the event, the Gallery was faced in 2003/04 with Grant-in-Aid cash standstill for the second year running; however in 2004/05 Grant-in-Aid will increase by £0.5m (10%) and there will be a new annual capital allocation of £0.1m until at least 2005/06. Largely as a result of the unprecedented success of the Mario Testino exhibition, the Gallery has also been able to put aside £1m in an Investment and Contingency Fund.

In order to avoid further cuts, Trustees agreed that the Investment and Contingency Fund could contribute £0.1m towards the 2003/04 pay award and £0.15m as bridging to new recurrent costs which, from 2004/05, would be funded by the increased Grant-in-Aid settlement.

B) 2002/03 projected outturn
The 2002/03 budget sought to establish a sustainable baseline for recurrent activities. This was based on a number of principles as follows:

• one-off expenditure was to be funded by one-off grants or monies brought forward from the previous year's surplus;
• the trading surplus and fundraising jointly must increase by £0.1m year on year as a contribution towards the annual pay award;
• savings in non-staffing budgets were made in 2002/03 by Heads of Department to permit the recruitment of essential new posts identified within the annual staff review; this included a commitment to make further savings in 2003/04 to cover the full-year effect of these posts;
• overall inflation on non-staffing costs would have to be absorbed until at least 2003/04; and
• a one-off contingency of £75,000 was set aside to allow for unforeseen expenditure or loss of income in-year.

That these principles have so far proved to be robust is demonstrated by the latest outturn projected for 2002/03 of breakeven (Appendix A); indeed, the most likely outcome is a small surplus, which would be added to the Investment and Contingency Fund.

C) 2003/04 budget
These same principles have therefore been applied again in 2003/04, as shown in Appendix A.

Net of expenditure on fundraising and exhibitions and excluding carry-forward, total baseline income has increased by just over £0.1m as required. Trading is not predicted to increase due in part to maternity leave and an exhibition programme which will not be as strong as the two previous years for merchandising. Further consideration is to be given to a cycle of income and expenditure arising from the exhibition programme (including entrance charges, touring, sponsorship and trading income and marketing expenditure) which establishes for the baseline the average net spend across at least a three-year period; fluctuations over that period would be managed by the Investment and Contingency Fund.

In the main, departments met the targets for further savings on expenditure and, moreover, absorbed inflation on non-staffing expenditure for another year. The savings found in 2002/03 and 2003/04 have of necessity become permanent within the baseline but are barely tenable while maintaining existing activities. However increases were unavoidable for security, IT and communications costs (effectively representing a priority call on the 2004/05 additional Grant-in-Aid and the bridging funds); it was also necessary to use the Investment and Contingency Fund to bridge Accommodation costs to the new capital funds of 2004/05.

Together with £0.5m one-off investment costs, a total of £0.7m has been made available from the Investment and Contingency Fund to enhance the 2003/04 budget; the one-off costs have been treated as Funded Income and Expenditure. All the one-off costs mitigate in some way risks identified on the Gallery's risk register. The most significant of these costs are:

refurbishment of new office accommodation and enhancement to storage, countering physical limitations to expansion of the staff complement and collections;

• a review of the Gallery's corporate identity;
• refurbishment of Galleries 30 and 31 (early