DRAFT STRATEGIC PLAN 2012-15 2012-‐15 STRATEGIC PLAN
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CONTENTS EXECUTIVE SUMMARY ................................................................................................... 3 OUR MISSION ................................................................................................................. 4 OUR CORE BELIEFS ......................................................................................................... 5 OUR VISION FOR 2015 ................................................................................................... 6 RATIONALE ..................................................................................................................... 7 MARKET INFLUENCES .................................................................................................... 8 RACC’s CURRENT STATUS ............................................................................................ 16 STRATEGY TO 2015 ...................................................................................................... 20 FINANCIAL STRATEGY .................................................................................................. 29 RISKS AND MITIGATIONS ............................................................................................. 33 KEY OBJECTIVES & TIMELINE ....................................................................................... 35 APPENDICES ................................................................................................................. 39
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EXECUTIVE SUMMARY Ø
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DRAFT 3-‐YEAR STRATEGIC PLAN 2012 -‐ 2015
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JulySeptember 201 Ø
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Richmond Adult and Community College is and will continue to be an outstanding provider of adult learning that serves the needs of Richmond and surrounding areas. Government policy on adult education and social and economic factors have created challenges and opportunities for the college. During the period 2012-‐15 the college will refocus its resources to become a single site college based at the Parkshot campus in Richmond Upon Thames. Investment in change during 2012-‐15 will enable the college to meet local learning needs and create specialist curriculum communities in an adult learning campus. Informal learning facilities open to the public will help to secure a financially sustainable future for adult learning in Richmond. The college will foster a collaborative and consultative working environment that will promote strong staff morale and high standards of customer service. Our vision is that in 2015 Richmond Adult and Community College will be an outstanding provider of adult learning and a resource for the whole community of Richmond Upon Thames and surrounding areas.
OUR MISSION
‘Unlocking Talent. Fulfilling Potential.’
Our mission is to enable adults to unlock their talent and fulfil their potential through learning, skills and enterprise.
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OUR CORE BELIEFS 1.
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Everyone can benefit from learning regardless of age, ability or background. RACC should be a diverse, inclusive, learning community that has no barriers to entry and has something for everyone Learning should recognise learner abilities, be relevant and personalised to the needs of the individual. Skilled teaching enables independent, adult learning. The tutor, as facilitator, enables learners to develop the skills to enquire, develop their opinions and gain confidence to express their ideas. Clear progression routes made up of small steps enable adult learners with work and caring commitments to learn at an appropriate pace and gain the skills for employment, active citizenship, greater independence and self fulfilment. Partnerships with local stakeholders, the voluntary sector and local businesses enrich learning and enable the college to respond to community needs. RACC should be a community resource and a creative and cultural hub where information, leisure, learning services and activities are available to individuals, partner organisations and local groups.
OUR VISION FOR 2015 Our vision is that in 2015 Richmond Adult and Community College will be an outstanding provider of adult learning and a resource for the whole community of Richmond Upon Thames and surrounding areas. Through partnerships and community involvement the college will understand and respond to local learning needs and through the delivery of appropriate qualifications and a range of informal leisure services and activities. The Parkshot Adult Learning campus will provide a creative and cultural hub for Richmond. It will house first class, specialist teaching and learning environments and communities. Facilities such as a theatre, cafe, gallery, shop and meeting rooms will foster informal learning opportunities and generate income to fund bursaries and ensure that learning is accessible to all.
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RATIONALE
The changing adult education market place and the desire of the Board of Governors to realign RACC with its core beliefs has created a need for a new strategic plan. This 3-‐year Strategic Plan sets out a strategy and financial plan to meet the Vision.
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MARKET INFLUENCES The market place is expected to evolve over the coming years. Key influences include:
Changes In Government Adult Education Policy Table 1: Summary of funding changes below shows that changes in Government Adult Education policy presents both challenges and opportunities to RACC, most notably: Challenges Ø General reduction in grant funding: Since 2003/04 the college has been faced with reducing government grant funding as government policy aligns funding with the needs of industry as detailed in ‘World Class Skills’ [Lord Leitch 2004]. Funding reductions have resulted in an increase in learner fees and a consequent fall in learner numbers. Further funding challenges and realignment can be envisaged in the coming years. Ø Reducing grant funding for informal learning: Learning activities for adults that do not lead to approved qualifications are regarded as ‘informal learning’ and the expectation is that they should be self-‐financing. Funding in this area has been cut by £155,000 for 2012/13 and further reductions may be made in the future. 8
Ø Prioritisation of vocational qualifications for the under-‐25s: Funding for further education has been further aligned to vocational qualification courses and learners under the age of 25 years. This has resulted in a decrease in funded qualifications for adult learners (over 25 years) and prioritisation of available funding to learners without qualifications. This has resulted in a 30% reduction in grant funding in the period 2003/4-‐2011/12. Ø Increase in adult learning providers: Government policy outlined in ‘New Challenges, New Chances’ (January 2012) has created greater competition in the adult learning market by creating ‘new freedoms’ that enable training providers and the voluntary sector to deliver classroom based learning. Social and technological changes have seen the rise of social networking and the growth of clubs, gyms and interest groups that have begun to challenge colleges’ traditional monopoly on leisure learning. Ø Apprenticeship Scheme: Changes to the school leaving age and the removal of grant funding for higher education have seen the Apprenticeship scheme promoted as the vehicle for further education. It involves work-‐based training with opportunities for progression to further study and training in the new landscape of higher education where degree level vocational courses are offered in the workplace and through industry. However, although many further education providers are following government funding and entering the Apprenticeship scheme, RACC has assessed this scheme as inappropriate. Discussions with LBRuT and the Skills Funding Agency have identified that there is not a need within Richmond for a new provider in this area. 9
Opportunities Ø Meeting local learner needs: Opportunities to use grant funding to meet local community and learner needs do exist in areas where there is local demand. Full funding remains for learners who lack vocational qualifications at Level 2 (equivalent to 5 GCSEs) and who have literacy, language and numeracy needs. This funding is currently used for provision for local people who are unemployed, lack the skills for progression or who have a learning disability (RACC learner groups 1 and 5). The college’s ‘Help 2 Work’ scheme of short vocational courses is run in partnership with Richmond Employment Service Job Centre. Ø Continued support for learners with disabilities and learning difficulties: Vocational training that includes the underpinning skills of literacy, language and numeracy will still attract government funding for adults who have learning difficulties and disabilities. Learners in this group currently represent 11% of the learner population. Success rates in discrete and mainstream provision are outstanding and on par with non disabled peers. Ø Adult learning grants for Level 3 Learners: Partial funding exists for more qualified and skilled adults (learner group 2) in priority areas and loans will be introduced in 2013/14 for adult learning at Level 3 (equivalent to 3 A’ levels). Ø Funding for higher-‐Level qualifications: The removal of higher education fee subsidies and the increase in higher-‐level qualifications available for public funding also present an opportunity for the college. Progression routes and 10
opportunities can be extended for adult learners who face barriers to entering higher education presented by geography, cost and modes of study. Ø Meeting employer needs: The ‘new freedoms’ introduced by the Coalition government include greater flexibility in how colleges respond to the needs of employers. Colleges are now able to use classroom based delivery methods and offer a wider range of qualifications. Removal of targets for NVQ delivery means that there is greater scope for developing non-‐subsidised fee work that is popular within Richmond’s SMEs (RACC learner group 4). Ø Alternative provision for young people: The rising school leaving age and predicted unemployment rates of young people creates opportunities for RACC. There is a limited amount of Level 1 provision in Richmond for 16-‐19 year olds who leave school without 5 GCSEs and a progression route to further training and employment. RACC young adults’ provision is targeted at this vulnerable group who benefit from a fresh start and an adult approach to learning.
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Table 1: Summary of Funding Changes – May 2012 Learner Group 1) Lack skills and qualifications to enter employment or further education
2) Learners seeking skills to retrain, career progression,
enter further or higher education
3) Skilled and qualified people seeking personal
development
4) Employers/Self Employed and SMEs
5) 16-‐19 year olds with additional social and learning
needs 6) People who have a Learning Difficulty or Disability 12
Funding Changes • Entry – Level 1 – fully or co-‐funded • Level 2 – learners 19+ years fully or co-‐funded dependent on prior attainment, fist Level 2 for learners 25+ co-‐funded • Level 3 – co-‐funded for learners 25+, loans available • Level 2 – learners 19+ years fully or co-‐funded dependent on prior attainment, fist Level 2 for learners 25+ co-‐funded • Level 3 – co-‐funded for learners 25+, loans available • £380,000 Adult Safeguarded Learning funding for non qualification courses reduced by £155k • Co-‐funding available for Level 2 and 3 learners aged 19+ on qualification courses • Loans available at L3 • Opportunity to use F.E funding for H.E courses • New freedoms to deliver broad range courses, not just NVQs, with ALR funds • Learner eligibility rules apply • Grant remains from new Education Funding Authority
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Full funding for Literacy and Numeracy Beginner vocational programmes fully funded.
Potential Impact No Change No Change Not Yet Known No Change Not Yet Known Negative No Change Not Yet Known Positive Positive
No Change No Change
Other Considerations Ofsted Requirements The new Common Inspection Framework comes into force in September 2012. RACC was awarded ‘Outstanding’ status at its last Ofsted inspection in May 2010. Although Outstanding providers will be exempt from inspection it is expected that 5% of Grade 1 providers will be subject to no notice inspections. The renewed focus on teaching and learning quality will mean that learner performance will be subject to rigorous scrutiny and a fall in standards in this area could lead to a full inspection. Therefore, maintaining academic standards are of upmost importance. Economic Outlook British Chamber of Commerce’s latest Quarterly Economic Forecast (1 June 2012) predicts that: ‘…the economy will continue to bump along the bottom for longer than we’d all like…’ and ‘...UK unemployment will increase from 2.625 million (8.2% of the workforce) in Q1 2012, to 2.9 million (9% of the workforce) in Q3 2013… part down to public sector spending cuts…’ They also predict that: ‘…Unemployment in the 18-‐24 age group is forecast to total around 850,000 (a jobless rate of 23%) in Q3 2013…’
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However, in December 2011, Institute for Public Policy Research published statistics that showed Richmond-‐upon-‐Thames as seventh (of 406) most likely Borough to recover quickly from the effects of the recession. The economic forecasting by IPPR suggests employment levels in London will return to its 2008 peak by 2014. It shows that employment levels in 2020 will be 10 per cent higher in London than in 2008. RACC needs to be mindful of both community needs during the current economic phase such as skills training for unemployed as well threats from falling public spending and lower consumer spending power. Learner Demographics London Borough of Richmond’s Borough Profile 2012 predicts a 7.38% increase in the borough population from 190,900 in 2010 to 205,000 in 2015 and to continue rising thereafter. The proportion of working age population and above in 2010 was 80%. On this basis it can predicted that RACC’s potential customer base in Richmond Upon Thames will have increased by circa 11,000 from 2010 to 2015. Evolving Technology and Social Media The influence of evolving technology will be a key consideration over the coming years. Technology can remove barriers to learning caused by disability or inability to access classroom provision. E-‐learning and blended learning have the potential to make learning more flexible through ‘out of hours’ access and enabling the learner to progress at their own pace. It also offers connection and collaboration with a potential world-‐wide audience. 14
Over recent years RACC has begun to explore social media as a means of delivering learning and communicating with learners, potential learners and stakeholders. This is a fast evolving area and RACC will need to keep abreast of new developments and opportunities. Video/audio technology has progressed such that it can now have an active role in enabling interaction with remote learners either on a live or recorded basis with the use of personal technology devices.
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RACC’s CURRENT STATUS Ability to Meet Learner Group Needs Table 2 overleaf shows how RACC provision is effectively meeting learner group needs and highlights areas for development. These include the development of new vocational programmes for young people and the unemployed, higher education and short courses for employers. Ability to Respond to Changes and Opportunities The college has not been able to align its traditional activities to meet government priorities. In 2003/04 70% of the curriculum was non-‐accredited decreasing to 62% by 2005/06. In 2011/12 with fewer qualifications available for public funding 62.5% of the curriculum is accredited. During the period of the previous two strategic plans the college embarked upon a programme of efficiency savings and cost reductions. It divested of two college sites, undertook internal restructure and staffing reductions and changed academic staff contracts to ensure maximum utilisation of teaching staff.
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Table 2: Evaluation of College Provision’s Ability to Meet Learner Group Needs Learner Group 1) Learners lacking the foundation skills to enter employment or training
RACC Provision Qualifications in Literacy, Numeracy, English Language, basic vocational training
2) Learners seeking to retrain, career progression, to enter further or higher education 3) Skilled and qualified seeking personal development
Access to H.E, vocational qualifications in Business, IT, Technology, Art and Design, Drama, Care, Therapies
Strengths • 97% learners highly satisfied • 78% of teaching ‘Good’ or better • Broad range of provision • High success rates • High standard teaching + learning
Non accredited, informal learning • in Languages, Art and Design, Humanities. • Qualifications in Leisure/interest areas
92%success on leisure programmes High satisfaction levels
4) Employers, Self Employed and Small to Medium Employers
Skill acquisition, access to specific • resources, mix of non accredited and qualification courses •
5) 16-‐19 year olds with additional social and learning needs
Qualifications in English, Maths and Science, IT and vocational training
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6) Learners with a learning difficulty or disability
Qualifications in Literacy, Numeracy, Vocational and independence skills. Non accredited learning in leisure areas and social opportunities
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93% success on qualification programmes Positive feedback on existing offer Good retention at benchmark 80% Excellent pastoral support Take learners who cannot access mainstream 14-‐19 provision 83% success in mainstream 94% success in discrete provision Good prevocational opportunities within RACC
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Areas for Development • Demand for vocational or progression pathways • Careers advice for progression planning
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Signposting of existing progression routes Demand for more progression routes to H.E Resources spread around general teaching areas at both sites
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Learners do not wish to undertake take exams Learner numbers declining with increasing fees Learners request range of courses of varying length and cost. Learners desire specialist environments and communities e.g. Art School Demand for progression courses Course information and fee materials require review. Opportunities for using employer feedback to inform course planning Success rates on long courses below national benchmarks Learners request more, part time vocational courses that lead to work
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Strong demand for more leisure opportunities Progression routes to mainstream Limited progression to employment routes locally
Organisational Challenges The current lean organisational structure presents the following challenges: Ø Academic managers have insufficient capacity to develop the range of new curriculum products required. Ø Tension exists between the broad spans of academic management areas and the required level of curriculum specialism. Ø Flexible working front of house staff require specialist skills and resources to meet learner needs and give excellent customer service in Information, Advice and Guidance, enrolment and financial information services. Ø Centralised management systems implemented through a small management group and a large part time sessional teaching team have resulted in problems in communication between the college and its learners and the risk of a mismatch between college services and learner needs. Ø Difficulty in sufficiently engaging part time teaching staff in curriculum review and development and enabling them to fully use their specialist skills.
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Financial Health Having produced an operating surplus each year since incorporation, the College for the first time this year (2011/12) will operate at a deficit as the result of diminished funding income and inability to further reduce costs in line with reduced income. Recognising the need to take action in order to realign cost structures and develop a sustainable future for the college, an agreement has been made to sell the Clifden site and to concentrate resources on the Parkshot site. Proceeds from the sale of Clifden will be used to purchase a small office block adjacent to the Parkshot site and to develop further the site as an adult learning hub fully accessible to the local community. Although funding is decreasing the funded value of each learner also decreases. Therefore, a 20% increase in learner numbers is required for a financially sustainable future and an increase in learner numbers to from 8800 learners in 2011/12 to 11,000 learners in 2015/16. The college’s balance sheet remains strong however with total reserves at £11.8m, acid test ratio at 4.22, cash days in hand 210 days and no debt, ‘Financial Health’ is rated as “good”. The College is in a financial position able to support the transition process to one site in 2014.
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STRATEGY TO 2015
Developing The Parkshot Adult Learning Campus In January 2012 the Board of Governors made a commitment to sell the Clifden Centre in Twickenham and to become a smaller, more accessible college focussed on the needs of the local community based at the Parkshot campus in Richmond-‐Upon-‐ Thames. The proceeds of sale of the Clifden Centre will enable the development of an adult learning campus that will:
Ø Ø Ø Ø Ø Ø Ø
support outstanding teaching and learning provide curriculum specialist facilities and zones provide an accessible hub and venue for community activities provide a means of income generation through venue hire provide a safe and healthy workplace promote sustainability promote the college vision, mission and values
The redevelopment is in progress and is due to complete in July 2014 when Clifden will close. During the period of the development access issues for learners, staff and the local community will be addressed through the promotion of a carefully considered Travel Plan. The plan will promote the use of public transport as well as walking and cycling routes campuses as part of its sustainability strategy. Throughout the period of the build RACC will promote the Parkshot campus as a community resource and a venue for community activities. Promotional activities will be used to raise awareness of the positive impact that new development will bring to the local community and stakeholders. 20
Diagram 1: Parkshot Campus Facilities and Activities in 2015
Outstanding Teaching and Learning Subject specialist faciliYes, accessible and sYmulaYng environments, informal and formal learning IAG InformaYon, advice and guidance on career goals, next steps and progression plans
Cultural Centre Gallery, theatre, community events and informal learning
Parkshot Campus Business Training Bespoke and accredited training for local SMEs and self employed, H.E and specialist pathways
Work and Enterprise Shop, market place, volunteering and support services for small businesses Accessible FaciliYes ExhibiYon, performance, training and meeYng faciliYes for hire and community use
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Developing Curriculum Products and Leisure Services During 2013-‐15 the curriculum will undergo a period of review and development to ensure that courses and products delivered from the Parkshot Campus appropriately meet the needs of the college’s five main learner groups and continue to provide stimulation, challenge and links to industry where appropriate. Learners and stakeholders will be invited to participate in the review process to ensure that learning and other services are tailored sufficiently to their needs and include the right balance of formal and informal learning opportunities. The curriculum will include: • Signposted progression routes from beginner to advanced levels and H.E • Qualifications and support in English, Maths and IT, areas that enable success in further training and study • Support for learners who face barriers to learning caused by disability or disadvantage • Vocational qualifications and training that enable progression to work or career development • Academic programmes that enable access to new higher education courses at RACC or local universities • A broad range of leisure opportunities in the form of short courses and activities for learners of all abilities and backgrounds • Bespoke training for employers 22
Informal learning activities will include a range of services that showcase and celebrate learner work and expertise and where appropriate support enterprise and progression to employment or self-‐employment. Services will include: • Theatre – a studio theatre for learner and community performances, lectures and events. • Cafe – open to the public, a place to meet, relax and find out what’s on at Parkshot and creative Richmond • Shop – selling a wide range of high quality jewellery, glass and ceramic artefacts made by learners, tutors and local artists • Gallery – exhibiting learner art work and local artists • Meeting facilities – supporting small businesses, the voluntary sector and community activities through access to first rate, accessible meeting and conference facilities. Surplus income from these activities will be used to create bursary funds and ensure that fees do not present a barrier to learning. The college will seek to ensure that in keeping with its heritage it has ‘something for everyone,’ in an outstanding teaching and learning community.
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Developing A New Academic Structure Diagram 2 below sets out the academic structure for formal and informal learning. It shows the curriculum organised into smaller ‘Schools’ that relate to areas of strong curriculum demand e.g. Richmond School of Art, Richmond School of Business and Technology. They will be delivered through a staffing structure appropriate to the size and scale of each area. This will create subject specialist environments appropriate to the needs of adult learners and will help to facilitate excellence in teaching and learning. It will also enable the capacity and expertise required for the development of a range of accredited and non-‐accredited provision with clear progression pathways from entry level to higher education. The smaller structures and specialist staffing will allow closer communication between college and learners about specific areas of interest and will ensure that the college can respond to needs appropriately. From September 2012 the college will begin the transition to its new location and structure. The details of this process will be published in the business plan in September 2012.
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Diagram 2: Academic Structure for formal and Informal Learning
School of Art Painting and Drawing, Ceramics, Glass, Print, Multi Media, Jewellery School of English and Cultural Studies
School of Business and Technology
English, EFL, ESOL, Humanities, Languages, Creative Writing
Business Training Services
Business, IT, Marketing, Finance, E-‐ Commerce, HR, Web Technologies
RACC
School of Health and Human Science Complementary Therapies, Beauty Therapy, Science, Maths, Cookery, Exercise, Care, Counselling
School of Performing Arts Professional Theatre Arts Training, Music, Dance
Learning and Development Literacy, Numeracy, LLDD Foundation Studies, Additional Learning Support
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Jazz School
Creating a New Culture The College is keen to promote a positive culture with high quality customer service. The organisational culture stems from the vision, business plan, built environment and its people. Creating a positive culture will depend largely on the interplay between individuals and the roles they fulfil. The processes that will define and sustain the culture are: Ø Ø Ø Ø
Ø Ø
Ø
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Leadership: The senior leadership team will represent and promote the vision, mission and core beliefs set by the Board of Governors. Job/task design and structure: identifying what ‘outstanding’ looks like in job/task descriptions and throughout the senior management team. Recruitment: ensuring that the best individuals are appointed with all the relevant skills and knowledge. Induction: ensuring that each employee is inducted in a way that ensures they have knowledge and they understand what behaviours are expected from them to realise the vision, mission and beliefs of the organisation Training and development: ensuring that individuals and teams continue to develop key behaviours and skills. Recognition and reward: ensuring that individuals and teams are recognised and rewarded for delivering the desired behaviours and outcomes for each role. Communication and consultation: positive communication and, where practicable, consultation between the leadership team, management teams, operational staff, learners and other stakeholders and will be colleagues will be encouraged.
Maintaining and Investing in Support Infrastructure and Systems Support infrastructure and systems will continue to be maintained and invested in as required. In particular, investment in technology infrastructure and systems will be required to keep up with technological developments and learner requirements/expectation
Maintaining and Developing Governance and Senior Leadership Teams Governance The Governance structure will be continue to be modelled and developed by the Governing body with the support of the senior leadership team both to satisfy the fiduciary interests of the College as well as to support its changing needs. The Board will continue to be supported by a Clerk to Governors. Senior Leadership Team The Senior Leadership Team currently comprises a Principal, a Deputy Principal and Directors of academic provision, Quality and Finance and Resources. A new Directorate of Business Development will also be formed by Jan 2013.
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Marketing, Promotion and Fundraising A new Directorate of Business Development will be formed by Jan 2013 to lead on learner and community engagement, the promotion of college activities and to ensure that learner needs are at the heart of college services. Customers will be engaged through the most appropriate medium, including; Website: The college website will be developed to showcase the college, its services and the expertise of the new Schools to potential learners, clients and stakeholders. Social media: Current and emerging social media will be utilised to connect with the different learner communities of each school. Initial engagement and carefully fostered relationships with local networks, potential clients, stakeholders, learners and teachers will be maintained. Advertising: Will be a necessary part of promoting the services. Clearly targeted advertising campaigns will reach out to stakeholders and potential learners. Public relations: PR will be an ongoing exercise and will continue from the campaign relating to the building and will involve updating and engaging staff in disseminating information to learners and the public and specific curriculum/school networks. Branding: A review of branding will take place to ensure that the college and its standing is appropriately represented and to support the development of the different identities of the Schools that have commercial potential. Fundraising: A fundraising strategy will be developed to raise awareness of the needs of RACC and to attract donations. It will involve the creation of a college Alumni that will also support PR and community engagement work. 28
FINANCIAL STRATEGY Three Year Financial Forecast (see Appendix I) The college will enter deficit in 2012/13 where it will remain but reduce over a three-‐ year period as investment is made in organisational infrastructure. The capacity gained from this investment in change is planned to achieve a surplus by 2015/16. Funding Adult funding is set to decrease incrementally by 5% per annum over the next two years and by 3% in the third year all per government (BIS) policy statement. Franchised delivery will be required in order to achieve funding targets but will be decreased over the forecast period so that by 2014/15 RACC will have grown in its capability of delivering blended learning and will no longer require franchising in order to achieve its funding targets. Adult Safeguarded Learning (now Adult Community Learning), a grant-‐in-‐aid allocation, is reduced by £155k per annum from next year as the First Steps part of the allocation is absorbed into main adult funding. Fees As adult funding allocations decrease, so with it the ability to collect fees on funded provision. Non-‐funded provision must therefore replace funded provision, with non-‐ funded learners and fee income replacing funding income as the main target. Changes to Skills Funding Agency regulations for 2012/13 relating to fees for fully funded learners will have a positive impact on learner numbers but a negative impact 29
on fees. Fees from employers falls into this category and will be developed as a regular source of income as part of the Business Development strategy. Average tuition fee per learner is therefore forecast to decrease in 2012/13 to £203 per learner (from £217 in 2011/12), then increase again to £211 per learner by 2014/15. Fee income per annum is forecast to decrease next year from the current year £1.9m to £1.85m then steadily increase to £2.05m by 2014/15. Impact on Total Income Total income is forecast to decrease from £7.3m this year to just over £7m in 2012/13, decrease again to £6.9m in 2013/14 during the height of the Parkshot building project, then start to increase again once provision is on one site with objectives achieved for the new build and for newly developed curriculum areas. Income is projected at £7.1m for 2014/15 with a target to increase to a viable £7.5m by 2016 (the year following the three-‐year forecast). Staffing Costs The payroll percentage forecast to be achieved in 2011/12 is 69.6%, however if franchised funding had been delivered internally then the percentage would have been 73%. Over the forecast period the pay percentage to income remains at 76% for 2012/13 and 2013/14 during the enabling phase then starts to decrease once the College is on one site, to 72.5% in 2014/15 with the aim of reducing further to 68% by 2016. There will be a new staffing structure to transition into by the end of the 2014/15 year following a consultation process. This will be a smaller, tighter team working on one site. At this time pay rates will need to be reviewed according to sector norms for the size, type and location of college. 30
Other Costs Non-‐pay costs take account of outside premises hire costs during the build period, marketing costs, PR support for learner and community engagement and a consultancy budget to provide additional capability as required. Franchise costs will decrease to zero by 2014/15. Depreciation charges fall in 2012/13 as the result of the sale of the Clifden site assets. Depreciation on the new build of £150k per annum is not released until the building is brought into use in September 2014. The College is showing a deficit for the three year forecast period which is decreasing by 2014/15. The aim will be to return to surplus in the following year 2015/16. 2012/13 deficit (£358k) 2013/14 deficit (£194k) 2014/15 deficit (£94k) Financial Risks The main risks related to the achievement of the financial forecast as presented relate to the maintaining and growing of income and ability to contain proportionate cost to income ratios: Ø Ø Ø Ø Ø
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Achievement of funding targets and balancing self-‐delivery with franchising Achievement of learner number targets for non-‐funded provision Achievement of fee targets Maintaining proportionate payroll costs Maintaining proportionate non-‐pay costs
Financial Health The three-‐year financial health is predicted as: 2011/12 2012/13 2013/14 2014/15
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Good Good Good Good
RISKS AND MITIGATIONS SWOT Analysis
Strengths
Weaknesses
a) Financial health
a) Declining fee income and learner number
b) Quality of teaching and learning
b) Insufficiently differensated fee policy
c) 'Outstanding' Ofsted grading d) Strong demand for Art, Business, Technology, Preparason for Life and Work provision e) Locason and transport links
c) Imbalance between income and infrastructure costs d) Lack of sufficient engagement with learners and community to fully adapt services to their needs. e) Technology for teaching and learning requires review
SWOT Analysis OpportuniYes a) 'New campus', New college' b) Flexibilises in funding guidance c) Partnership working creates access to new learners d) Curriculum development for employers, H.E, e-‐learning e) Fundraising for bursary g) Community focus is good fit with government priorises & direcson h) 'The' Richmond Centre will awract new learners
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Threats a) Lack of infrastructure and capability to effect change in markesng, curriculum development etc b) Insufficient budget to complete Build vision c) Disrupson during building works d) Further funding cuts e) New Ofsted priorises lead to reinspecson during change period
Key Risks Risk 1. Financial Health Reduced government grants, increases in learner fees and reduction in learner numbers creates trend of financial deficit.
2. Quality and Effectiveness Continued reductions in staffing to reduce deficit could result in a decline in academic standards, customer service and management controls resulting in a decline in academic standards, poor Ofsted grading and public perceptions. 3. Learner and Community Engagement Failure to provide appropriate curriculum and to participate in local networks and forums communicate with relevant groups leads to a decline in learner numbers and financial health. 4. Community Engagement Failure to engage with community networks/partnerships could result in a negative impact on the college profile, learner numbers and confusion over the closure and sale of the Clifden Centre and inability to transfer learners to Parkshot. 5. Recruitment of Learners Failure to increase learner numbers on government funded and non-‐funded provision will result in a decrease in fee income and an inability to use grant funding. This will result in financial claw back, declining income and reserves and continued deficit.
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Impact High
Mitigation Actions Required
• • • • • • Medium • • • High
•
• • • Medium • • • High
• • • • •
To sell Clifden and transfer activities to Parkshot Maintain and increase learner numbers Identify income generating opportunities Create differential fee system Strengthen capacity to deliver income generating activities Transition to new, one site staffing structure by 2014 Review front of house staffing to ensure good customer response levels Review of organisational structure to ensure appropriate spans of control and response to learner needs and management of curriculum specialisms. Strengthen management competency and delegation of authority to relevant staff and managers. Development of systems to interact with learners about needs and interests to inform curriculum planning. Systems to include alumni, forums, social media etc. Improve information on financial assistance Identify learner needs re affordability of courses Delegation of curriculum planning systems to curriculum specialist teams. Identification and linking of key planning forums and stakeholders with college staff. Development of strategy and action plan Development of alumni, forums, social media to aid communication Creation of Business Development Directorate to coordinate learner recruitment systems Development of learner bursary fund Review of course entry procedures Review of course outline systems and delegation to tutors with specialist knowledge Delegate leaner number targets to academic and business support areas.
KEY OBJECTIVES & TIMELINE Key Objectives 1. Teaching and Learning Excellence Achieve and maintain ‘outstanding’ standards in teaching and learning. 2. Create an Adult Learning Campus at Parkshot Curriculum specialist facilities at Richmond’s creative and cultural hub 3. Increase Learner Numbers Increase learner numbers by 20% by July 2015. 4. Develop a Marketing Strategy that Enables Learner and Community Engagement Gather and use data to inform curriculum and service planning. 5. Development of Curriculum and Progression Pathways Curriculum review and development to create clear progression routes. 6. Generation of Income and Fundraising Activities to Finance Student Bursaries College services and fundraising activities to help finance learner bursaries. 7. Development of Organisational Efficiency and Culture Develop a culture of empowerment, competency and learner focus. 8. Create A Financially Stable Future for the College Infrastructure costs in line with income targets. 35
Timeline for Implementation Year and Term
Activities
2012/13 Term 1 Term 2 Term 3
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• • • • • • • • • • • • • • • • • •
Objective
8 Business plan 2012/13 1,4,5 Curriculum development plan Staff consultation on ‘Schools’ model and structural change begins 7 7 Impact assessment of HR policies and action plan 3,4,6 Draft differential fee model for 2013/14 2 Building work begins 3,6 Fundraising strategy and action plan 4 Review of learner engagement strategy 7 Implementation of management training plan 1,4,5 Curriculum development action plan implemented 7 Staff pay review begins 8 Revise 12/13 budget if required 1,4,5,7 Staff development work begins Evaluation of community engagement strategy and action plan 4 Draft proposal for new staffing structure and organisational model 7 Evaluation of business plan yr1 and creation of business plan yr2 8 Fundraising activities begin 3,6 Curriculum and staff development work continues 1,4,5,7
Year and Term
Activities
2013/14 Term 1 Term 2 Term 3
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• • • • • • • • • • • • • • •
Consultation with staff on proposal for new staffing structure Evaluation of partnership working and new partnership strategy Finalise curriculum offer 14/15 and process for ongoing development Staff development work evaluation Parkshot Campus opening campaign begins New staffing structure finalised and implementation begins Evaluation of management training Staff pay review concludes Publish new curriculum offer for 14/15 Implementation of new staffing structure and organisational model Building work completes. Clifden decant and furnishing of the new build. Evaluate business plan yr2, create business plan yr3 Community/partner visits to new campus begin Fundraising activities
Objective 7 4,7 1,4,5,7 7 2,3,4 7 7 7 3,4,5 7 2 2 8 3,4,5 6
Year and Term
Activities
2014/15 Term 1 Term 2 Term 3
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• • • • •
Opening of new campus Learner and community events Fundraising activities Evaluation of community engagement, curriculum and business plans. Strategy for 2015-‐18
Objective 2 3,4,6 6 All
APPENDICES Appendix I: Three year funding forecast and financial plan (see Paper C) Appendix II: Cashflow for 2012-‐2015 (see Paper C) Appendix III: Background to College and current Context Appendix IV: Devolved College Structure Document
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Appendix I: Three year funding forecast and financial plan (see Paper C) Appendix II: Cashflow for 2012-‐2015 (see Paper C)
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APPENDIX III: Background to the College and Current Context Roots in Community Education Richmond Adult and Community College was established in 1838 as a working men’s institute. It grew and developed through affiliation with local clubs and societies and provision of a range of non accredited courses that it delivered from its Arts School in The Shaftesbury Centre, The Hampton School of Needlework and its head office in Kew Road. It became the Richmond Institute for Adult Education in 1962 and Richmond Adult College in 1970. In 1986 it gained the Clifden Centre from the council and renamed itself Richmond Adult and Community College in order to ensure that local people understood that it offered ‘something for everyone’ and had a range of courses that enabled women and people without qualifications to progress to university and employment. In this period it had over 13,000 enrolments on largely year long courses. In 1994 the college, after having its application to become a Specialist Designated Institution rejected, incorporated and became a General Further Education College. This meant that as a private organisation it was subject to the grant funding regulations of central rather than local Government. It was and remains the only General Further Education College with an adult mission. Effects of Changing Government Policy and Incorporation Since incorporation the landscape of adult education has undergone significant changes that have presented the college with great challenges. The role of teacher 41
led, classroom based, education of adults for the purpose of self development and enrichment has been replaced by the Government with its Adult Skills Agenda. This saw Government grant funding for non accredited adult learning frozen in 2007 and then reduced in 2010. Grant funding is instead directed at qualification provision. The change in Government policy has result in a 30% decrease in funding in the period 2006-‐12. This policy change required the college to change its curriculum from a non accredited course offer that responded to local needs and interests to a curriculum that was qualification target ‘plan led’. It also had to change and strengthen its administrative and quality systems in order to deal with monitoring and reporting requirements of Government and awarding bodies. This created a situation where the college was faced with increasing costs and declining income. The college did not recognise the permanence of the policy changes sufficient quickly and begin early enough the refocusing and redevelopment of the curriculum towards Further Education priorities. In 2003/04 70% of the curriculum was non accredited. By 2005/06 this situation had only changed by 8% with 62% of provision non accredited. Instead the college focussed on efficiency savings and cost reductions. It divested of two college sites, undertook internal restructure and staffing reductions and changed academic staff contracts to decrease study and development time and increase teaching and management duties. This had an impact on capacity to develop curriculum to meet funding requirements. 42
Evaluation of 2007-‐10 and 2009-‐12 Strategic Plans The college undertook an evaluation of its position in 2007 as the basis of the 2007-‐ 10 ‘Three College’ Strategic Plan. It identified the following strengths: Ø Ø Ø Ø Ø
The prime Richmond location attracted learners A growing portfolio of work with local small to medium employers Community partnerships informed planning High quality of teaching A strong demand for teacher led classroom learning and high levels of learner satisfaction
The following areas for development were identified: Ø Need to ‘get closer to’ client groups and develop information on customer preferences Ø Develop and increase the proportion of government priority qualification provision in order to prevent cuts to grant funding. ‘Three College’ Strategy This focus on Government funding meant that central Government rather than local people became the college’s key client. The college attempted to address this tension with its ‘Three Colleges’ strategic plan that created three colleges as delivery arms for the three main areas of its work. A pan London training division was established to deliver central Government targets related to National skills shortages, a community based division was set up in the Twickenham, Clifden Centre to deliver pre vocational 43
training to adults lacking qualifications and therefore eligible for Government subsidies, a leisure offer division was based at Richmond to offer non accredited learning to a target learner group of qualified learners from professional backgrounds. Implementation of the strategy involved accepting Government grant funding for its ‘Train 2 Gain’ initiative and delivery of assessment based qualifications in the workplace, an area where the college was inexperienced. The college chose to participate in this new area on a very large scale and accepted £1.5 million in funding to deliver 900 Level 2 NVQ qualifications in 2007/08. 37 similar qualifications had been delivered in 2005/6. Implementation of the strategy created a need to move from teacher based staffing to verifier based staffing and to reduce the number of full time teaching staff. This led to a missed opportunity to build on college strengths in teaching and learning. It also led to the project to develop the Clifden site instead of the flagship site at Parkshot in the heart of Richmond. Outcomes of 2007/10 Strategy By 2009 implementation of the strategy had created the following issues: • •
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A greater focus on government priorities and central London rather than local employment and training needs. Reliance on franchising arrangements to deliver NVQs and qualifications the college lacked the capacity to develop. This diverted resources from developing local partnerships. Training and management of assessing staff detracted resources away from the development of teaching and learner quality systems.
• •
Failure to develop other sources of income and courses relevant to Richmond and RACC learner groups Local learner recruitment systems were not developed due to reliance on Government broker system for recruiting learners across London on to NVQ workplace programmes.
This resulted in a lack of curriculum development, problems recruiting learners and a culturally inward facing organisation. The college identified these issues and addressed them through a period of internal review detailed in the 2009-‐12Strategic Plan. The college focussed on developing its strengths in classroom based teaching and learning and responding to community needs though innovative use of existing resources and available funding. The themes of ‘Learning and Enterprise’ provided touchstones for the review process with their relevance to the needs of adult learners. This period of evaluation enabled the college to gain ‘Outstanding’ status in its May 2010 Ofsted inspection and review the central values and systems that underpin its work and focus on local needs and learner groups. The college also identified its curriculum strengths and specialisms. Most importantly the college has been able to reaffirm the value of adult pedagogy and the role of adult and continuing education in community development.
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APPPENDIX IV: Devolved College Structure Centralised Controls • Monitoring of Teaching, Learning and Curriculum Quality • Monitoring of Quality Systems • Policy Framework –Health and Safety, Safeguarding, Equality and Diversity • Internal Financial Controls • HR systems and Staff Contracts • Organisational Structure • Marketing and PR Strategy • Community/Learner Engagement Strategy • Learner Recruitment Strategy • Information, Advice and Guidance and Course Info • IT Infrastructure Local Responsibilities in Schools • Curriculum Development and Delivery • Staffing Structure and Budget • Learner Number and Funding Targets • Teaching Schedules • Targeted Marketing • Learner Engagement Activities 46
