Initiative 4.1

Director and Head of Finance and Planning

Demonstrating to government the need for increased core funding, both directly and through joint lobbying organised by the National Museums Directors' Conference

Objective 4 Priority: High Themes: 5, 6, 7

Progress during 2003/04

• Initial work completed for technical bid to the Department for Culture Media and Sport
• Material submitted as part of joint efforts of the National Museum Directors' Conference

2004/05

• Allocate time to joint museums' lobbying through National Museum Directors Conference.
• Put forward Gallery case in relation to Spending Review 2004 (SR04) through discussion with DCMS

2005/06

• Develop longer term plans for needs of the organisation which can be used for future lobbying for SR06

Resources:
Time input from Director and Head of Finance and Planning; as well as Chairman and some trustees

• Case from NMDC will not be convincing as a whole (ensuring our feedback incorporated in submissions)

Failure of Gallery to put its case in a sufficiently convincing manner (Management Team buy-in, following business case principles)

Initiative 4.2

Director, Communications and Development Director and Chief Curator

Creating an endowment sufficient to help support acquisitions for the collection and collection development work

Objectives: 4 Priority: Medium to High Themes: 3, 7

Progress during 2003/04

• Initial feasibility study work undertaken by Susan Davenport
• First discussions with Trustees

2004/05

• Following on from feasibility study obtain initial financial support for setting up costs
• build a case for support and 'test' on current donors
• identify and research potential donors among current and recent supporters
• decide time-frame and appropriate strategy

2005/06
Link strategy to celebration of 150th Anniversary

• Supporters not interested in supporting endowment and insufficient number of potential donors (determine strategy to seek additional supporters, and set realistic goals)
  
• Distracts from revenue fundraising (ensure clarity of continuing role of development Board)

Government alters grant-in-aid because of endowment (seek formal reassurance)

• Target for Gallery for end of 150th year - 2006/07
  
• Long-term plan for endowment fund are considered to be viable

Monitor as part of project evaluation

Initiative 4.3

Head of Trading

Investing in retailing, trading and e-commerce opportunities within and beyond the Gallery to produce increased net revenue

Objectives: 1, 3 and 4 Priority: High Themes: 7 and to some extent 4 and 2

Progress during 2003/04

• Initial plan and appointment of design consultant for shops completed
• Further progress in e-sales through Gallery website: sales doubled during 2003/04

• Create new business case for shops
• Undertake refit of shops
• Develop e-commerce opportunities
• Re-launch Portrait Printer in re-fitted shop

2005/06

• Develop further new products and use more of refitted shops for children's material

Resources:
Sums allocated for shop refit; further funds for new products dependent on business case

• Economic factors and reduced tourism (plan to maximise use of domestic market and links to programme)
  
• Lack of success of new products (trials if all products)
  
• Inadequate return on investment (assess each product in advance)

Failure to keep pace with competitors and consumer expectation (ensure good research on market developments)

• Increased sales and retail operating profit
  
• Capital payback within 3 years
  
• Qualitative customer feedback
  
• Conversion of visitors to customers from 12%- 14%
  
• Increased average sales per transaction by 7.5%
  
• Increased average sales per visitor by 23% in 3 years

Monitored as part of management reporting

Initiative 4.4

Head of Trading

Increase licensing & Picture Library revenue, directly (inc. e-commerce) and through constructed partnerships

Objectives: 4 Priority: Medium to High Themes: 4, 7

Progress during 2003/04

• Initial consortium plan with other nationals re-assessed and dropped
• Initial work undertaken on agency proposal
• Some work on market assessment completed

2004/05

• Create new detailed Business Plan
• Develop on-line facilities including digital image supply and print sales.
• Develop agency for portraits in other collections.
• Market the picture library as the single one-stop shop for portraits.

• Develop agency idea further

Resources:
Funds to be allocated dependent on Business Case; support required from IT and creation of software platform.

• Competition for content and clients (develop robust plan and marketing strategy)
  
• Volatile market with large-scale players (develop niche position for maximum gain)

• Additional turnover targets for Licensing and Picture Library as agreed in Business Plan
  
• Retain quality of service to both private and and public sector users.

Monitor as part of regular management work

Initiative 4.5

Communications and Development Director

Sustaining and developing the patrons scheme, introducing higher-level contributions by ascertaining what would bring more Patrons on board. Linking Patrons research and donor profile to a legacy programme and endowment

Objectives: 4 Close linkage required with endowment work (see 4.2)

Priority: High Themes: 5 and 7

Progress during 2003/04

• Focus on retaining existing patrons successful
• Plan submitted to Customs and Excise and Inland Revenue
• Programme for patrons strengthened
• Plan for re-forming Board of American Friends of National Portrait Gallery initiated

2004/05

• Introduce different levels of contribution
• Maximise Gift-Aid opportunities
• Research amongst existing donors, particularly Members
• Take opportunities through celebration of 150th anniversary (see 3.8)

2005/06

• Develop the Patrons programme further, increasing recruitment at higher level
• Maximise opportunities for fundraising through American Friends

2006/07

• Evaluate programme to date and develop in light of results

Resources:
Additional research required and input of new print and marketing

• Inability to build up Patrons membership because of economic situation (search new areas for potential patrons)
  
• Patrons not sufficiently engaged with Gallery and so do not renew (ensure personal contact is maintained)
  
• Lack of awareness amongst colleagues of importance of research (ensure involvement of range of staff in patrons events)

No decision from Customs and Excise holds up plans for new membership levels (increased pressure on decision makers)

• Conversion from those attending cultivation events to increased Patron membership
  
• Increased take-up of organised events
  
• Keep high-level of retention amongst existing Patrons
  
• Increased donor base for other fundraising initiatives - i.e endowment

Monitor as part of on-going management of scheme.