NCCLSC Spring Conference Thank you to our sponsors

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NCC/LSC Spring Conference Thank you to our
sponsors
Soon to be known as
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Achieving an Efficient and Effective College

• Vici Cadwallader-Webb
• Associate Director
• Tenon Education, Training and Skills

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What are we going to cover

• Why monitor Efficiency and Effectiveness?
• How to Measure Efficiency and Effectiveness
• Benchmark - Sector available data
• Is my College Efficient and Effective?
• Support departments
• Understanding the relationship between costs and
  quality
• Way forward

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Why monitor Efficiency and Effectiveness?

• Introduction of New Funding Streams
• 16-18 Learners
• Adult Learners
• Employer Responsive Learners
• Key Drivers of the New Funding Methodology are
  different for each funding stream
• 16-18 Funding Model Learners
• Learner Responsive Funding Model Funding and,
• Employer Responsive Funding Model A balance of
  Learners and Funding.

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Why monitor Efficiency and Effectiveness?

• High Level Challenges of the New Funding
  Methodology
• No virement between Funding Streams Likely to
  get worse!
• Restricted growth
• Some Funding Streams are subject to Tender
• Introduction of the Minimum Levels of Performance
  Ofsted/ LSC review of success rates
• Different financial model for each stream

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Why monitor Efficiency and Effectiveness?

• Further challenges to come?
• Need to enhance the efficiency and effectiveness
  of the College in a significant number of
  instances.More with Less
• Nationally the LSC cannot afford to fund a shift
  between 2006-07 and 2007-08 What about 2008-09?

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How to Measure Efficiency and Effectiveness

• In house
• Monitor year on year trends (KPIs)
• Benchmark against Sector available data
• Learner surveys
• Framework for Excellence (whats left)
• External advisors
• Benchmark against peers/ Sector

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Sector Available Data Benchmarking (1 of 4)

• Diversity of income is encouraged under
  Framework for Excellence
• Managing the financial viability of each funding
  stream.
• Increased costs in monitoring the activity given
  the number of funding returns the organisation
  needs to make

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Sector Available Data Benchmarking (2 of 4)

• Monitoring income yields can flag up problems
  with the curriculum/ ILR

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Sector Available Data Benchmarking (3 of 4)

• Other KPIs that can be calculated include
• Staff costs as a of income
• Average teaching pay costs
• Average group size
• If the average group size reduces by just 1
  learner the financial impact on a 15m college
  can be around 500,000

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Sector Available Data Benchmarking (4 of 4)

• Success rate benchmarking
• Relationship between costs and success

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Is My College Efficient and Effective?
Is this College Efficient and Effective?
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Is My College Efficient and Effective?

• Operating Surplus 2.4
• Staff Costs as a Percentage of Income 63

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Is My College Efficient and Effective?

• Overall Success 76

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Is My College Efficient and Effective?
Is this College Efficient and Effective?
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Is My College Efficient and Effective? Success
Rates

• Overall Success 76
• 10 SSAs below
• benchmark

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Is My College Efficient and Effective?
Is this College Efficient and Effective?
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Is My College Efficient and Effective? Staff
Costs
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Is My College Efficient and Effective? Income
Yield

• Income Yield High
• Learner to SLN ratio has reduced
• Low proportion of priority provision

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Is My College Efficient and Effective?
Is this College Efficient and Effective?
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Is My College Efficient and Effective? Staffing
Levels
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Is My College Efficient and Effective? Support
Staff

• Library Costs 42 lower
• Fewer staff
• Higher pay level
• Lower non-pay
• Is there an impact on retention / achievement?

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Is My College Efficient and Effective?
Is this College Efficient and Effective? .probabl
y not, but ..
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Is My College Efficient and Effective? Staff
Utilisation

• The largest resource
• Contract 840 hours pa per FTE
• Role Remission c. 10 of staff average of 280
  hours pa per FTE 560 taught hours available
• Other Remission c. 10 of staff average of 36
  hours pa per FTE 804 taught hours available
• Available Hours (0.1 560) (0.1 804)
  (0.8 840) 808 hours pa per FTE

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Is My College Efficient and Effective? Staff
Utilisation

• Taught Hours 700 hours pa per FTE
• Variance Available hours to Taught hours 108
  hours
• Cost of under-resource 108 / 840 36,000
  4,600 per FTE
• Total Cost to the college of under-utilised hours
  c. 200 FTEs _at_ 4,600 920,000
• Systems in place to effectively monitor this
  resource? Not in our experience

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Is My College Efficient and Effective?
So do you now think that this is an Efficient and
Effective College? No! but they are not alone!
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Support Departments

• What will impact on the required resources within
  support / administration?
• Number of learners
• Number of onsite learners
• Mix of learners
• Number of qualification aims
• Number of income streams
• Number of staff
• Mix of staff
• Number of sites
• Amount / type of space
• Systems / processes
• ..

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Support Departments - Ratios to Monitor

• Library Resource per SLN
• Student Services Resource per 16-18 Learner
• MIS Resource per Qual Aim
• IT Resource per Computer
• Computers per Learner
• Computers per Staff
• HR Resource per Staff FTE
• Finance Resource per Income
• Estates Resource per SQM

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Understanding the Relationship Cost vs Quality
(1 of 2)

• What is the impact on success of under / over
  delivery?

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Understanding the Relationship Cost vs Quality
(2 of 2)

• What is the impact of resource levels on the
  learners?

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Way Forward

• Establish where current resources are too high or
  too low
• Financial situation
• Knowledge of staff
• Benchmark against other colleges
• Establish how the planned changes to the college
  curriculum plan, estates strategy etc will
  impact on the required resources
• Understand the relationship between resource
  levels and activity volumes / mix / type
• Understand the relationship between resource
  levels and quality
• What else to consider
• Review of processes / data flows / systems

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Questions?