Capita’s Principal and Vice Principal Briefing Event Solving the Efficiency Conundrum

1. Capita’s Principal and Vice Principal Briefing EventSolving the Efficiency Conundrum 8 November – Institute of Directors, London 10 November – Institute of Directors, Manchester

2. Welcome Agenda • Introduction • Student Journey • Using Staff and Facilities Efficiently • Improved Student Management • Streamlining Management and Administration • New Business Models • Maximising Income • Conclusion Twitter tag #feefficiency

3. Introduction Rob Elliott Senior Manager, Capita

4. Introduction Over the past year, further education colleges in the UK have found themselves performing a delicate balancing act. Some of the key questions that colleges have been asking themselves are: • How can we balance delivering a quality provision with financial viability? • Where can we cut costs without impacting on our course offering? • Are we achieving maximum value for money from all our existing resources? “Our challenge is surviving and succeeding with less money, while still providing the excellent service expected of us and maintaining outstanding Ofsted inspections. The only way we can do this is by putting our internal processes under constant review.” Julia Goldsmith, Walsall College

5. Financial viability and the impact on quality How concerned are you over financial viability? Are you concerned about maintaining/improving quality in face of significant budget cuts?

6. Targets for efficiency improvements Which area has the greatest potential for reducing cost and/or improving efficiency?

7. Shared Services Are you considering Shared Services?

8. The Student Journey Rob Elliott Senior Manager, Capita

9. Registration Enquiries / Preadmission Admissions Planning& Marketing Examinations, Assessment & Progress Placements Academic Delivery Alumni

10. Registration Enquiries / Preadmission Admissions Planning& Marketing Market Research, Business & Curriculum, Funding Modelling Examinations, Assessment & Progress Placements Academic Delivery Alumni

11. Registration Enquiries / Preadmission Admissions Planning& Marketing Self service, efficient and accurate data capture, react to demand Examinations, Assessment & Progress Placements Academic Delivery Alumni

12. Registration Enquiries / Preadmission Admissions Planning& Marketing Recruit with integrity, improving retention starts here, admission process is your sales pipeline Examinations, Assessment & Progress Placements Academic Delivery Alumni

13. Registration Enquiries / Preadmission Admissions Planning& Marketing Efficient fee capture, fee & debt collection, efficient electronic capture & dissemination. Examinations, Assessment & Progress Placements Academic Delivery Alumni

14. Registration Enquiries / Preadmission Admissions Planning& Marketing Staff & room utilisation, timetabled & actual. Communication & engagement reducing drop-out risks. Examinations, Assessment & Progress Placements Academic Delivery Alumni

15. Registration Enquiries / Preadmission Admissions Planning& Marketing Minimise awarding body fees, efficient electronic transfer processes. Effective assessment/mark processing. Examinations, Assessment & Progress Placements Academic Delivery Alumni

16. Registration Enquiries / Preadmission Admissions Planning& Marketing Employer engagement, sub-contracting/MCL collaboration, efficient MI funding and stats systems. Examinations, Assessment & Progress Placements Academic Delivery Alumni

17. Registration Enquiries / Preadmission Admissions Planning& Marketing Virtuous circle , retention between years, building reputation through success stories. Examinations, Assessment & Progress Placements Academic Delivery Alumni

18. Using Staff and Facilities Efficiently ViciCadwallader-Webb Senior Manager,Tenon

19. Improved Student Management Steve Braund Senior Manager, Capita

20. Improved Student Management Recruitment Process “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.” Julia Goldsmith, Walsall College • Colleges offering online applications report increased recruitment success, particularly if applicants can also pay online. • Online management can be carried on throughout the student’s life cycle, saving time and improving communication. • Once students have finished a course, they should be seen as the potential market for next year’s courses and retargeted with options to further their learning. Colleges should aim to recruit learners once and use them many times. With the increase of tuition fees in higher education, learners will be attracted to a lower debt burden by undertaking HE courses at FE institutions” Rob Elliott, Capita

21. Improved Student Management Student Retention “We want to treat each student as an individual, and communicating personally and directly with them enables us to do so. Effective internal communication must be targeted, and technology helps us with this.” Alex Richards, TottonCollege • Each drop-out can represent between £5,000 - £10,000 of lost funding. • Some colleges drop-out rates still remain as high as 20 per cent. The financial cost soon stacks up – for a college with 1000 students this could translate into lost funding of £1 million very easily. • Through use of MIS to monitor, inform and engage, anecdotal evidence from colleges is that drop-out rates can be reduced to just 1 or 2 per cent. “After staff, the recruitment of a learner is the highest cost. It’s no coincidence that colleges with higher success rates in retention make a better financial return, regardless of size..” Rob Elliott, Capita

22. Streamlining Management and Administration Steve Braund Senior Manager, Capita

23. Streamlining Management and Administration Are your ICT and MI systems as slick and efficient as they could be? Some of the key actions that can be taken: • Data systems audit – review at the highest level, be comprehensive including spreadsheets. • Integration – seek out islands of data which risk inconsistencies and inefficiencies. • Rationalisation - enter the data once and use many times must become the mantra. “When all the necessary information is held in a single integrated system, a complicated and previously lengthy returns process can be completed in just one click.” Alex Richards , Totton College

24. Streamlining Management and Administration Self service - paper free systems • Using simplified e-forms rather than paper versions saved Walsall time by storing data once but using it many times. In 2009/2010 conservative estimates saw a £10,000 saving. • Totton College central admissions team saved hundreds of hours usually spent copying and manually sorting & distributing student application documents. • Walsall’s HR system is online and can manage staff appraisals, monitor mandatorytraining and see at a glance who is on holiday and when. Saving in excess of £15,000between 2008/09 and 2009/10. “We have a simple rule – people should never be asked twice for the same information. A single core database means no time wasted, no duplicate copies and no misspelling of names. Having easily accessible, accurate data plays a significant part in keeping colleges efficient.” Alex Richards , Totton College

25. New Business Models Andy Shenstone Capita Consultant

26. Maximising Income John Bolt Senior Manager, KPMG

27. Conclusion Rob Elliott Senior Manager, Capita

28. Conclusions Findings from the White Paper • Use of staff and facilities more efficiently could result in an average saving of £750,000. “In assessing 18 colleges, we’ve found potential savings in excess of £21 million. In one college the savings were as high as £3.5 million and most averaged around £750,000. The area where the biggest savings could be made by far was staff utilisation.” John Bolt , KPMG

29. Conclusions Findings from the White Paper • Use of staff and facilities more efficiently could result in an average saving of £750,000. • Improved student management £1 million. “each drop-out can represent between £5,000 - £10,000 of lost funding… in some colleges the drop-out rates still remain as high as 20 per cent. The financial cost soon stacks up – for a college with 1000 students this could translate into lost funding of £1 million very easily”

30. Conclusions Findings from the White Paper • Use of staff and facilities more efficiently could result in an average saving of £750,000. • Improved student management £1 million. • Streamlining management & administration £25,000. “Using simplified e-forms rather than paper versions saved a conservative £10,000, online appraisals and holiday systems a further £15,000” Julia Goldsmith, Walsall College

31. Conclusions Findings from the White Paper • Use of staff and facilities more efficiently could result in an average saving of £750,000. • Improved student management £1 million. • Stream lining management & administration £25,000. • New business models 20-40% of your operational budget. “AoC Shared Services Awareness Seminar (July 2010) the outlook was even more positive, as the Shared Services Architects organisation reported that savings of between 20-40 per cent could be achieved by colleges coming together..” AoC Shared Services Awareness Seminar (July 2010)

32. Conclusions Findings from the White Paper • Use of staff and facilities more efficiently could result in an average saving of £750,000. • Improved student management £1 million. • Stream lining management & administration £25,000. • New business models 20-40% of your operational budget. • Maximising income £500,000. “Maximising funding isn’t about earning more for doing what you are already doing, it’s about doing things more efficiently. The first place you could look to maximise funding is class size. The average class size is far too small. Adding one student per class costs you virtually nothing, but can bring in an average of £5000 per student. With 100 classes, that’s an extra £500,000.” Nick Linford, Lsect

33. Conclusions Findings from the White Paper • Use of staff and facilities more efficiently could result in an average saving of £750,000. • Improved student management £1 million. • Stream lining management & administration £25,000. • New business models 20-40% of your operational budget. • Maximising income £500,000. Is data really a burden? Or can it help run your organisation more efficiently? Turning Data into Information into Knowledge

34. Conclusions • Thank you • Pick-up your copy of our white paper. • www.capita-fhe.co.uk/whitepaper • Keep in touch • Twitter @capitafhe • Web www.capita-fhe.co.uk