Vice Chancellor’s report to staff

Vice Chancellor’sreport to staff November 2004

Vice Chancellor’sreport to staff The Presentation Plan Reminding everyone of the position of the University and its priorities last year – continuity Looking at progress made over the last year Recognising and celebrating success Recognising the foundations and the platform we have created Looking forward to future opportunities and challenges

Foundations in Place • Mission, Purpose and Values • A new structure for empowerment • Adoption of the EFQM Excellence Model for the University • Financial Stability, Transparency, Empowerment • The Brand • Strategic Plan

Foundations in Place A new structure for empowerment • Decisions devolved to Faculty and Services • Better information to facilitate management • Clear accountability and responsibility • New appointments and training for management • “Local” planning • Committee structure review • Budgeting principles changed

Main changes • The Faculty is the recognised organisational unit for academic planning and resource management • Staff decisions (within budget) are taken at Faculty/Service level • No arbitrary top-slicing of external/commercial earnings • Gross income (including required overheads charges) goes to Faculty/Service • Only condition is that contract goes through Enterprise Office and that cost estimates and pricing decisions are undertaken in line with University policy • Some ability to transfer planned surpluses into next financial year

Faculty budgets Teaching Funded research 3rd income Income flows Gross income £x1 Public funded Collaborative Franchise International fees (60%) RAE Contract £x2 £x3 £x4 £x5 £x6 £x7 Faculty costs Staff Non-staff £m1 £m2 £n1 £n2 £p1 £p2 Central costs contributions (fixed) Space Student services, Enterprise Office Personnel, etc. Surplus (carried forward) £y1 £y2 £z1 £y3 £y4 £y6 transfer

But bad habits born of old practice continue…. • Approximately 25% of all non-staff spending in Faculties occurs in June/July • It’s called computers (in the main) • WHY? • Outcome: Faculties go into embarrassing deficit (which is only carried forward) • CIS get a huge workload peak and then a service backlog and (if purchases are not coded correctly at peak buying time) these purchases may not assist our external assessments • YOU DON’T NEED TO DO THIS ANY MORE! • RECOGNISE THE NEW FREEDOMS - GET THE NEW HABIT AND FORWARD PLAN

Immediate conclusions from the self-assessment using the Model • No uniform appraisal and staff development system – related to strategy • Need for performance reward approach • Need for substantial process review using “diagonal slice” approach • Attention on communications and target setting

Other valuable feedback • Quality review highlighted priority of spend needed on books and deteriorating quality of physical environment • Staff survey also commented on personal performance and appraisal issues and issues of resource constraints

Financial Performance 2003/04 • The surplus achieved for the University group in 2003/04 was £2.2m • The recommended minimum level by HEFCE • Equivalent to 8 working days of payroll • First major surplus in years – although last year was actually an achievement too • Financially stable but tight

The Strategic Plan • Small growth in core public sector business and further Government control of that business • Scope for significant growth in private sector business • Opportunity for international developments • Need for review of the core base costs • Continuous improvement opportunities – process driven • Communication and partnership

Changes made in response to Excellence Model and QA feedback • More money for books in budget– despite tough budget environment • More money for repairs and maintenance (especially for redecoration) • PDPR system introduced uniformly across University – linked to strategic plan • New communication approaches being developed • The weekly e-bulletin to all staff • Website redesign and information management • SMG minutes and decisions on Newsfile • Information flow management • Suggestions and praise scheme introduced

Other items of progress and development • IT Resilience programme • Transfer of ownership of North Western Hall • Meeting pension obligations • Solid student recruitment overall • Risk management compliance

Some successes to celebrate – not complete list…. • IIP progress across the University (70%) • ICDC funding of £24m • Lambert Report • KTPs – highly graded and top Associate • HEIF2 funding • Committed to Excellence marque • Our Liverpool Telescope operating under full robotic control (Guinness Book of Records!) • Seed corn funding from EU – Liverpool Ventures

And more…. • Installation of new library control systems… • Installation of CRM pilot system • Timetabling systems piloting • NHSU • Honorary Fellowship to the Dalai Lama • Byrom Street development • New laboratories • Finally sorting the roof! • New build at the front and re-modelling entrances • Liverpool Science Park

And more…. • OSS • Thanks and appreciation for the support and patience of many staff • Many layers of issues – many related to how we have (and are still) conducting our affairs • Process reviews (many) and rapid • Working with focus to our Strategic Plan • University Dashboard • QAA Institutional Audit

Recognising the foundations and the platform we have created • Financial stability – linking internal resource allocations to income flows to the University • Ensuring that Faculties are incentivised to seek new relevant activities and income sources external to University • Rebuilding the infrastructure • Getting the systems right to attract and serve our students and clients – working smartly • Working towards a common agenda with agreed Purpose and Values • Keeping our academic standards and quality high

First of all where are we now?

Current financial position • Despite what you read in headlines from Government press releases (which tell the truth but not the detail which matters)…. • the increase in funding (like for like) in 2004/05 was 1.7%, and the national pay increase (which we have honoured with difficulty) was 3% • It will be a tight year again, where efficiencies will have to be made to balance the books

National Pay Framework agreement • A frustrating time locally • Want to make progress on this agenda, to be in a position to deliver on equal pay for work of equal value • Also with the current impasse we cannot make progress in meeting the staff request for additional rewards to recognise outstanding contributions (Excellence Model feedback)

Recruitment position • Current assessment – still counting • Home FT • Home PT • International • Implications……

External factors to take into account in our thinking and planning • HE Act • Tuition fee increases • Market issues, opportunities and threats • Expectations and shift in drivers • OFFA • Implications for bursaries/scholarships and systematic WP policy and activity • “Fair admissions” policy • UCAS 100% computer applications decision • Bologna European HE Area - implications • Growth in PG international market

Opportunities to be considered in present climate • With our achieved financial stability, and future increased funding starting in 2006, we can now commence an Estates Strategy built on our Strategic Plan • Design Academy • Corporate Training • Health • Sports Science • Administration

The big decision is how to focus our strategic direction looking 10 years forward in a rapidly evolving HE marketplace • What do we want to stand for? • What do we want to be known for? • How will we want to be different? • What should we develop that is new? • What do we stop doing? Whatever comes out of this process, the University will need to embrace change, be true to its core values and fundamental contributions to individuals and society, and support its staff through the process.

Summary • We are now in a relatively good position academically, financially, and organisationally • Much progress has been made over last three years • Now we can decide how to make LJMU a very special University

Vice Chancellor’s report to staff