1. Martin Owen Director of Consulting 1 March 2011 Financial benchmarking as an objective planning tool Tribal Benchmarking: Suite 402, The Atrium, 20 Wollaton Street, Nottingham, NG1 5FW Telephone: 0115 934 7373

2. Agenda Who we are What we do What is financial Benchmarking? What do our clients do with the results? Your thoughts, questions and views

3. Who we are Established 1999 Employs in excess of 2,000 people Commands over £238 million turnover Has over 2,500 clients >40% of HE institutions in the Benchmarking Databank (est. 1992) 42% of our work is in education

4. Core Principle… Function Driven Model OVERALL UNIVERSITY Associated Activities Capital & Financing Incomparable Principal Activities Schools/Faculties Teaching Activity Research & Enterprise Activity Support Services What is financial benchmarking?

5. Registry Staff Numbers

6. What do our clients do with the results? Effort / time to return Return on investment LowHigh

7. Identify areas for immediate financial savings and investment A London based University identified that their staff recruitment costs were over twice the benchmark for London universities. The University commissioned an immediate review of this area and was able to identify savings of over £150k by renegotiating with suppliers and refining recruitment processes. Quick Wins A Northern University identified that their IT costs were around 30% (£1.8m) lower than the benchmark. Given the importance of IT to staff and students, the University recognised the need to increase investment in this area as a priority and have targeted resources to this area. They have recently undertaken a follow-up benchmark. The results show their costs remain below benchmark but the variance has fallen to c. 13%.

8. Inform strategic reviews of resource allocation across the University The University planned to undertake a major corporate planning exercise and, as a precursor, needed objective information and analysis to give a greater understanding of its cost base “Tribal’s rigorous and replicable methodology has provided us with a base-point allowing us to confirm or challenge ‘taken-for-granted’ views, and giving us a useful picture of how we compared to similar institutions. The briefing sessions led by Tribal on the results of their work were greatly valued by senior managers and have enabled them to take a more sophisticated approach to planning, resourcing and managing their area of responsibility.” Madeline Atkins, Vice Chancellor; Coventry University “Tribal’s rigorous and replicable methodology has provided us with a base-point allowing us to confirm or challenge ‘taken-for-granted’ views, and giving us a useful picture of how we compared to similar institutions. The briefing sessions led by Tribal on the results of their work were greatly valued by senior managers and have enabled them to take a more sophisticated approach to planning, resourcing and managing their area of responsibility.” Madeline Atkins, Vice Chancellor; Coventry University Strategic Review

9. Link financial performance to key qualitative indicators and show progress In 2005/06 The University of Salford were wanting to undertake a process of reviewing the league table position and investigate ways to improve on current standing. The University used the benchmarking information to review the current position relative to competitors and Tribal were invited back in 2008/09 to undertake another HE benchmarking exercise with particular interest in the ‘distance travelled’ since 2005/06 and results of investment decisions made since the previous exercise. The University was seeking to review cost base and remove areas of duplication of effort in order to maximise the effectiveness of support services. Strategic Review

10. Thoughts, Questions and Views Tribal can help save the UK HE sector £2bn (8%) Tribal can help save the UK HE sector £2bn (8%) HE benchmarking experience since 1992 HE benchmarking experience since 1992 Consistent function-driven model providing robust comparisons Consistent function-driven model providing robust comparisons “I have now been involved in commissioning Tribal to undertake a benchmarking exercise in two universities. In both instances, I have found the exercise to be extremely useful in informing decision making about the allocation of resources and their deployment across the institution.” David Duncan, Registrar and Secretary; University of York