Tim StricklandCEO, FE Sussex

Improving the value of Improving the value of examination procurement in examination procurement in

SussexSussex

Set the context of who we are Set the context of who we are and why we have done thisand why we have done this

Talk about the methodology we usedTalk about the methodology we used

Discuss what can be gainedDiscuss what can be gained

Suggest successful ways of improving value for moneySuggest successful ways of improving value for money

Talk about the futureTalk about the future

FE Sussex-value for money procurement from Awarding Bodies

FE Sussex-value for money procurement from Awarding Bodies

“Gentlemen: we are

running out of money”

“…(the) finance committee’s cases of administrative waste

and inefficiency I always study (sic) with great interest”

and yet

Winston Churchill, History of WWII, Pg 352 Vol IV

FE SussexFE SussexThe consortium company of the 12 post-sixteen The consortium company of the 12 post-sixteen Sussex collegesSussex colleges

The 12 post-sixteen Sussex collegesThe 12 post-sixteen Sussex colleges

Total turnover£228.21M pa

Total examination board spend£5.1M pa

The 12 post-sixteen Sussex collegesThe 12 post-sixteen Sussex colleges

Five Sixth Form colleges

Six General Further Education colleges

One specialist land-based college

Colleges as businessesColleges as businesses

All colleges are businesses in their own right and therefore have

•Suppliers and customers•Business philosophy•Business ethic

Awarding bodies are suppliers of services to colleges

The efficiency programmeThe efficiency programme

To improve the value for money we receive from the suppliers who provide services to our member colleges

Our aim

What are the pros and cons of What are the pros and cons of collaborative working?collaborative working?

Group questionWhat are the pros and cons What are the pros and cons

of collaborative working?of collaborative working?

Collaborative workingCollaborative working

StrengthIdeas PRDPulling powerSuccess

The pros

The cons•Trust – is it truly there?•Understanding – who wants what•Relationships – take time!•External politics – difficult!!……

The efficiency programmeThe efficiency programme

Why has the awarding body agenda come to the fore?

Question?

•Government•Ofqual•Customers•Fashion•Inefficiency•Value for money agenda

What we set out to

put right!

How we’re doing

Our awarding bodies target savingsOur awarding bodies target savings

10% savings by July 2011

Smarter examination procurementSmarter examination procurement

Group question

How many awarding bodies do you use in your college?

What is the amount of total spend?

What is the spread of spend?

How we started the process of value for How we started the process of value for money improvementmoney improvement

Undertook a spend analysis on awarding bodies within our consortium

What it told us

The result - a plan of action

What it did not tell us

Conducting a spend analysisConducting a spend analysis

What will the end result look like?

Group question

The results of our spend The results of our spend analysis-analysis-

An enormous spreadsheet –

12 rows deep, 59 columns wide

Maximum spend – minimum spend

Our end result - the format of our spend Our end result - the format of our spend analysis:analysis:

Name of College AQA OCN OCR

British Horse Soc

British Council NCFE ASDAN EAL EDI EMTA Lantra

University of Cambridge ESOL

ABC AWARDS

PlumptonNorthbrookChichesterCCBBhasvicSDCSCCVarndeanCollyersWorthingCSCBexhill

0

The results of our spend The results of our spend analysis-analysis-

18%

25%57%

City and GuildsEdexcelOther

The results of our spend analysisThe results of our spend analysis

Knowledge of spend with each awarding body

Strategic targeting of leading boards

Realisation of the need to target spending

Concerns by our colleges over effects on teaching, success rates and L&M

An ability to talk with confidence to awarding bodies

The need to get on our bike and talk to awarding bodies

FE SussexFE SussexWhat do we do now?What do we do now?

FE SussexFE SussexWhat do we do now?What do we do now?

Look to achieve our original aim of improving

value for money for our colleges

Improve value for moneyImprove value for money

HOW?

FE SussexFE SussexWhat do we do now?What do we do now?

By consolidating and targeting our business and using the advantages this

could bring

FE SussexFE SussexWhat do we do now?What do we do now?

Approach the largest awarding bodies with

an offer of a strategic partnership

Group questionGroup question

What should a partnership arrangement offer

- on both sides

What a partnership could offerWhat a partnership could offer

Some examples

Financial gain Improved efficiency

Enhanced CPD

Financial analysis and assistance

Marketing help

What do we want from an awarding What do we want from an awarding body?body?

Service

Value for money

Someone who knows the job

Someone who takes action

Accurate and concise information

Ease of contact and availability

What’s going to get in the wayWhat’s going to get in the way

Challenges

Barriers

Obstacles

Problems

Stumbling blocks

Suggest five examples of barriers and put Suggest five examples of barriers and put them in rank order!them in rank order!

Group question

Barriers, challenges, obstaclesBarriers, challenges, obstacles

From our experience:From exams…We don’t need to change

From curriculum teams…doom and gloom

Cross college…inertia in planning

Ignorance of the strategic objective

The results of talking – The results of talking – SuccessSuccess

Value added enhancements such as:

Incentive discounts linked to level of turnover

Key account managers

Improved quality assurance assistance

Speedy turnaround of registrations and certification

Early alerting to problems

Free CPD and staff development

Sponsorship of award ceremonies

Celebrating the achievement of

vocational learners in Sussex

Who are they and what did Who are they and what did they say?..they say?..

Nobody said there would be days like this…(and his aunt said “ you’ll never make a living out of playing a guitar”)

The times they are a-changing…

There will be fewer people to manage. Collaboration is about saving costs, both front and curriculum areas…look around at your competitors…we need to be imaginative and take risks… (24.6.10, Bloomsbury Hotel– Future of Further Education)

Future ways of working Future ways of working for collegesfor colleges

Tender exercises for suppliers of qualifications

Having preferred suppliers of qualifications – from tendering

Forging meaningful and commercially advantageous partnerships

…………………….

Rationalisation of the number of awarding bodies we deal with

Formation of two-way strategic alliances

The future:The future:

Price reduction and value for money increase

The need to incorporate open and fair competition under UK procurement rules

The introduction of tendering – driving down costs and increasing service levels

The future:The future:

Opportunity to become an awarding bodyRegionally or sub-regionally

FE SussexFE Sussex

Summary

FE SussexFE Sussex

Thank you and any questions!