Different approaches and models for sustainability Beej Kaczmarczyk, Learning Curve Group, and Alasdair Redmond, CIO, City of Liverpool College

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1 Achieving back office and business support service efficiencies Different approaches and models for sustainability Beej Kaczmarczyk, Learning Curve Group, and Alasdair Redmond, CIO, City of Liverpool College

2 The Policy Context Need to reduce the Budget deficit tough spending review Need to improve skill levels and productivity More devolved powers and funding Reform of the FE and skills sector refocus on technical and vocational, specialisation, restructuring Finances of colleges deficits and cost variations More and better, for even less

3 National Programme of Area Reviews About 40 area reviews to be completed by March 2017 Covering all areas of the country Incorporating GFEs and SFCs Taking account of school sixth forms and other provision Other providers can opt-in to the process

4 The Area Review Process Five Steering Group meetings (over 3-4 months), each to consider a different aspect of the review Assessment of economic and educational needs of the area and how current provision meets those needs Changes to curriculum and its delivery, including rationalisation and specialisation Efficiencies in college estate and back office operations Options for changing structures and improving financial sustainability Planning for way forward

5 Possible Options? No change - is that really an option? Internally-focused changes to all operations Curriculum: rationalisation, relocation, specialisation or withdrawal of some provision Possible closure of some campuses or institutions and a transfer of assets More effective use of estates and business support functions College collaborations and partnerships, e.g. joint marketing Formal partnerships including mergers and federations Proposals for Institutes of Technology

6 The Challenges for the FE Sector Manage change and achieve economies of scale without damaging education delivery Greater focus on meeting and exceeding the expectations of different markets Maximising revenue streams from all sources Reduce avoidable costs and minimise unnecessary expenditures Deliver continuous improvement of teaching and learning, and better outcomes for learners Make more and better use of technology - move beyond FELTAG goals

7 Avoidable Costs Teaching staff utilisation Better use of property and facilities Improved student management Streamlining management and administration Developing new business models Colleges need to ask themselves if they are getting value for money for every resource they have, not just facilities and IT but in terms of how we manage students too.

8 Getting the balance right Achieving cost savings and efficiencies, and Improving the quality of service to users However, this project has never been just about saving money; it has a keen, ongoing focus on service improvement. Clearly, once all partners are fully integrated into the new system it will be fascinating to look at the key performance indicators and relative efficiencies of the individual staff teams. AOC report on Shared Services in Sussex and Surrey College 2013

9 Learning from the NHS Organisations will not reduce costs solely through moving into a shared service or outsourcing consortium. It is important that all organisations seek to simplify, standardise and combine back office functions, using a structured approach to transforming their efficiency.

10 Learning from the Commercial Sector The commercial sector has led the way in this area, creating leaner back office functions through three key steps: simplification of processes, re-engineering of back office processes to a common standard, and the adoption of a shared service approach

11 Simplify, standardise and share process model

12 Different Approaches Shared services intra and inter-organisation Outsourcing to third parties Simplification and standardisation of processes Deploying activity-based costing Eliminating low-value-added transactions Applying lean methodologies and systems thinking Standardising processes and procedures Exploiting technology solutions Improving efficiency through matching resource to process Leveraging cost reduction through scale and joint procurement Wider aggregation of services, e.g. UCAS

13 Cost sharing groups SISSC Ltd is a membership organisation which was formed by seven government funded general further education colleges in Sussex and Surrey with the express intention of introducing and maintaining a common back office computing software platform across its member colleges. The share system provides the functions of Finance HR Payroll E-Recruitment It is based on the Aggresso Business World UNIT4 system. Membership of SISSC Ltd (a company limited by guarantee) comprises: Brooklands College Chichester College City College Brighton and Hove East Surrey College Guildford College Northbrook College Sussex Coast College Hastings

14 Joint Procurement NESSP aims to deliver significantly reduced costs, improved value and efficiencies through coordinated and systematic collaborative and strategic procurement of goods, services and works. The key objectives are: Collaboratively ensure that goods, works and services are procured strategically to achieve outstanding value for money. Implement modern e-procurement processes to achieve cost and efficiency benefits. Support the delivery of high quality services and facilities for learners, staff and partners. Engage with suppliers, employers and the community. Improve staff procurement skills and capacity

15 Creating Value through Shared Services Delivering Accelerated Transformation

16 City of Liverpool College Case Study Top 10 provider nationally, serving 22,000 students across over 500 courses The only College to have successfully completed transformation in just one year Led by a team with a strong mix of public and private sector experience Group includes First4Skills, a leading national work based learning provider Launched SharEd to lead accelerated transformation services across the sector

17 Ability to execute What does good look like? FE Maturity Model Challenging Leading Accelerated Transformation Characteristics of a great college Well managed finances, balancing funding and income generation Impact of sustained funding reduction Savings eroded Hard to develop new capabilities Failing Optimising Completeness of vision Low cost, highly adaptable infrastructure and systems Processes and support functions that proactively add value rather than process transactions Clear alignment to local skills needs and ability to quickly respond to changes High quality teaching and learning with excellent outcomes Demonstrable innovation

18 Ability to execute Strategic goals FE Maturity Model Reduce costs Significantly improve efficiency Flexible platform for growth Challenging Leading Over 1m savings from SharEd in year 1 Clear definition of services Complete process redesign Strong service delivery Failing Optimising Completeness of vision

19 The creation of SharEd Strategy Reduce costs and significantly improve operational efficiency Raise the bar on service delivery a platform for growth Develop new and sector leading capabilities transformation accelerators Move all teams into the new company IT, MIS, HR, Finance, Facilities, Business support Define services Establish service catalogue and work management processes Process and framework standardisation e.g. ITIL v3, Prince 2 PMO, Lean, ISO27001 Develop key partnerships e.g. Tribal, Jisc, Microsoft Standardise solutions. Strengthen capabilities. Customer focus Business partner model ensures deep understanding of customer needs

20 How SharEd delivers Delivering high quality outsourced services across IT, MIS, HR, Finance, Facilities, Business support Pre-packaged best practice to deliver Accelerated Transformation MATURITY MODEL REVIEW TRANSFORMATION BLUEPRINT TRANSFORMATION ACCELERATORS SHARED SERVICE PROJECT DELIVERY BUSINESS PARTNER ENGAGES PROACTIVE SERVICE IMPROVEMENT DESIGN IMPLEMENT IMPROVE

21 Early Success Delivered over 1m in cost savings in 2015/16 financial year Significant process efficiencies, better use of resources and investment Work management system giving much better visibility and management of where resource is focused IT infrastructure savings through data centre consolidation and cloud migration Faster to introduce new capabilities and improve services New clients joining the service Value creation through technology and partners

22 Conclusions How many shared service initiative have we had in last 5 years? What were the outcomes? Why does it have to be different this time? How can we make sustainable changes to our operations and still maintain and improve quality? What changes in organisational culture are needed? What will happen if we don t get it right this time?

23 Upcoming e-memoir webinars Tuesday 17 th November 16:30 17:30pm Understanding the governing body s role in the area review of post 16 education and training provision Wednesday 18 th November 10:00 11:00am Understanding the governors role in curriculum planning and development Wednesday 18 th November 12:15 13:00pm Curiosity as the engine of discovery and learning Tuesday 24 th November 16:30 17:30pm Understanding the governors role in the inspection process 23

24 Upcoming e-memoir webinars Wednesday 25 th November 12:15 13:00pm Pedagogy of synoptic assessment Monday 30 th November 10:00 11:00am The Spending Review 2015: implications for the FE and Skills sector Click here to book your place Tuesday 12 th January 12:15 13:00pm Staying the course and helping learners to reach their potential Thursday 25 th January 12:15 13:00pm Building resilience and rational beliefs Plenty more to come. Please contact: for bookings and further information. 24

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